Menu Links
Sales – underlying and constant exchange rate movement
Sales movement for total operations (including the Data Management business) excluding the impact of acquisitions and disposals and movements in exchange rates.
| All figures in £ millions | 2007 |
|---|---|
| Underlying increase | 249 |
| Portfolio changes | 146 |
| Exchange differences | (228) |
| Total sales increase | 167 |
| Underlying increase | 6% |
| Constant exchange rate increase | 10% |
Adjusted income statement
Reconciliation of the Consolidated Income Statement to the adjusted numbers presented as non-GAAP measures in the financial statements.
| 2007 | ||||||||
|---|---|---|---|---|---|---|---|---|
| All figures in £ millions | Statutory Income Statement |
Re-analyse discontinued operations |
Other net gain and losses |
Amortisation of acquired intangibles |
Other net finance costs/income |
Tax amortisation benefit |
Recognition of tax losses |
Adjusted Income Statement |
| Sales | 4,162 | 56 | – | – | – | – | – | 4,218 |
| Gross profit | 2,252 | 72 | – | – | – | – | – | 2,324 |
| Operating expenses | (1,701) | (57) | – | 45 | – | – | – | (1,713) |
| Share of results of joint ventures and associates |
23 | – | – | – | – | – | – | 23 |
| Operating profit | 574 | 15 | – | 45 | – | – | – | 634 |
| Net finance costs | (106) | – | – | – | 21 | – | – | (85) |
| Profit before tax | 468 | 15 | – | 45 | 21 | – | – | 549 |
| Income tax | (131) | (5) | (9) | (19) | (6) | 25 | – | (145) |
| Profit for the year from continuing operations |
337 | 10 | (9) | 26 | 15 | 25 | – | 404 |
| Profit for the year from discontinued operations |
(27) | (10) | 37 | – | – | – | – | – |
| Profit for the year | 310 | – | 28 | 26 | 15 | 25 | – | 404 |
| Minority interest | (26) | – | – | (4) | – | (2) | – | (32) |
| Earnings | 284 | – | 28 | 22 | 15 | 23 | – | 372 |
| 2006 | ||||||||
|---|---|---|---|---|---|---|---|---|
| All figures in £ millions | Statutory Income Statement |
Re-analyse discontinued operations |
Other net gains and losses |
Amortisation of acquired intangibles |
Other net finance costs/income |
Tax amortisation benefit |
Recognition of tax losses |
Adjusted Income Statement |
| Sales | 3,990 | 61 | – | – | – | – | – | 4,051 |
| Gross profit | 2,149 | 130 | – | – | – | – | – | 2,279 |
| Operating expenses | (1,651) | (90) | – | 35 | – | – | – | (1,706) |
| Share of results of joint ventures and associates |
24 | – | (4) | – | (1) | – | – | 19 |
| Operating profit | 522 | 40 | (4) | 35 | (1) | – | – | 592 |
| Net finance costs | (74) | – | – | – | (16) | – | – | (90) |
| Profit before tax | 448 | 40 | (4) | 35 | (17) | – | – | 502 |
| Income tax | (4) | (15) | (4) | (10) | 5 | 25 | (127) | (130) |
| Profit for the year from continuing operations |
444 | 25 | (8) | 25 | (12) | 25 | (127) | 372 |
| Profit for the year from discontinued operations |
25 | (25) | – | – | – | – | – | – |
| Profit for the year | 469 | – | (8) | 25 | (12) | 25 | (127) | 372 |
| Minority interest | (23) | – | – | (3) | – | (2) | – | (28) |
| Earnings | 446 | – | (8) | 22 | (12) | 23 | (127) | 344 |
Amortisation of acquired intangibles includes a £7m adjustment to goodwill on recognition of pre-acquisition deferred tax.
Adjusted sales include sales from discontinued operations held throughout the current and previous years.
Adjusted operating profit – underlying and constant exchange rate movement
Operating profit movement excluding the impact of acquisitions and disposals and movements in exchange rates.
| All figures in £ millions | 2007 |
|---|---|
| Underlying increase | 81 |
| Portfolio changes | (2) |
| Exchange differences | (37) |
| Total adjusted operating profit increase | 42 |
| Underlying increase | 14% |
| Constant exchange rate increase | 13% |
Free cash flow per share
Operating cash flow for continuing and discontinued operations before tax, finance charges and integration costs paid, divided by the weighted average number of shares in issue.
| All figures in £ millions | 2007 | 2006 |
|---|---|---|
| Adjusted operating profit | 634 | 592 |
| Cash conversion | 108% | 97% |
| Operating cash flow | 684 | 575 |
| Operating tax paid | (61) | (59) |
| Net operating finance costs paid | (90) | (82) |
| Operating free cash flow | 533 | 434 |
| Non operating tax paid | (26) | – |
| Special pension contribution | (100) | – |
| Integration costs paid | – | (1) |
| Total free cash flow | 407 | 433 |
| Weighted average number of shares in issue (millions) | 796.8 | 798.4 |
| Operating free cash flow per share | 66.9p | 54.4p |
| Total free cash flow per share | 51.1p | 54.2p |
Return on invested capital
Adjusted operating profit less cash tax expressed as a percentage of gross invested capital.
| All figures in £ millions | 2007 | 2006 |
|---|---|---|
| Adjusted operating profit | 634 | 592 |
| Cash tax (15%) | (95) | (89) |
| Return | 539 | 503 |
| Gross goodwill | 5,592 | 5,477 |
| Net operating assets | 1,000 | 803 |
| Invested capital | 6,592 | 6,280 |
| Return on invested capital | 8.2% | 8.0% |