TIDMSMDS
RNS Number : 6261Y
Smith (DS) PLC
07 December 2017
7 December 2017
DS Smith Plc - 2017/18 HALF YEAR RESULTS
Growing with customers
6 months to 31 October Change Change
2017 (reported) (constant
currency)
------------------------ ---------- ------------ -----------
Revenue GBP2,800m +19% +14%
Adjusted operating
profit(1) GBP251m +11% +6%
Adjusted EPS(1) 17.4p +6% +2%
Interim dividend
per share 4.9p +7% +7%
Return on sales(4) 9.0% (60)bps (60)bps
ROACE(5) 14.6% (50)bps (40)bps
Profit before tax GBP144m (1)% (5)%
Statutory EPS 10.6p (14)% (17)%
------------------------ ---------- ------------ -----------
Highlights
-- Strong organic volume growth(2) of 5.2%
o All regions in growth
o E-commerce and pan-European strength
-- In-line performance, delivering against all financial KPIs
-- Recovery of paper price increase progressing as expected
-- Excellent start from Interstate, our first fibre-based US business
o Integration ahead of expectations with positive employee and
customer reaction
o Benefits of global supply chain validated and being
delivered
o Annualised pre-tax cost synergy target raised to $30
million
-- Continuing to grow the business organically and inorganically
o Proposed EUR208 million acquisition of Ecopack and Ecopaper in
Romania (completion expected January 2018)
o Packaging capacity investment programme for Europe and US
"We are delighted with our volume growth which has significantly
accelerated to over 5%, fuelled by success with e-commerce and
pan-European customers. Structural shifts, including changes in
consumer preferences, the increased relevance of our packaging at
point-of-sale, and the rise in e-commerce are all underpinning the
growth of packaging. The strong customer demand has driven
performance and our operating margin is in line with our
expectations, despite the substantial input cost pressures in the
period, which we continue to recover as planned.
Integration of our recently acquired North American business is
going very well and we have been delighted by the reaction from
both employees and customers. The proposed acquisition in Romania
is on track to complete in January 2018. We continue to see
exciting opportunities for growth, both in Europe and in North
America, and, accordingly, the Board remains confident about the
outlook for DS Smith."
Miles Roberts, Group Chief Executive
Sustainable delivery against medium term targets
Medium term targets Delivery in H1 2017/18(8)
----------------------------------- --------------------------
Organic volume growth(2) >=GDP(3)
+1% +5.2%
Return on sales(4) 8% - 10% 9.0%
ROACE(5) 12% - 15% 14.6%
Net debt / EBITDA(6) <=2.0x 2.0x
Cash conversion(7) >=100% 118%
----------------------------------- --------------------------
See notes to the financial tables below
Enquiries
DS Smith Plc +44 (0)20 7756 1800
Hugo Fisher, Group Communications Director
Rachel Stevens, Investor Relations Director
Presentation and dial-in details
A presentation to investors and analysts will be held at 9:00am
today at Allen & Overy, One Bishops Square, London E1 6AD.
Dial-in access for the presentation is available with details as
follows: +44 (0) 20 3003 2666 (standard access) or 0808 109 0700
(UK Toll Free) Password: DS Smith. The slides accompanying the
presentation will be available on our website shortly before the
start of the presentation. Dial-in participants will have the
opportunity to participate in the Q&A. A replay is available
for 7 days on +44 (0) 20 8196 1998, PIN 1778967#.
Notes to the financial tables
The Group uses certain key non-GAAP measures in order to provide
an additional view of the Group's overall performance and position,
eliminating significant unusual or non-operational items that may
obscure understanding of the key trends and position. These
measures are used internally to evaluate business performance, as a
key constituent of the Group's planning process, as well as
comprising targets against which compensation is determined.
Reporting of non-GAAP measures alongside reported measures is
considered useful to enable investors to understand how management
evaluates performance and value creation internally, enabling them
to track the Group's adjusted performance and the key business
drivers which underpin it. Note 15 explains the use of non-GAAP
performance measures.
(1) Before adjusting items and amortisation of intangible assets
(2) Corrugated box volumes, adjusted for working days, on a like-for-like basis
(3) GDP growth (year-on-year) for the countries in which DS
Smith operates, weighted by our sales by country = 2.4%. Source:
Eurostat (14 Nov 2017)
(4) Operating profit before adjusting items and amortisation of
intangible assets as a percentage of revenue
(5) Operating profit before adjusting items and amortisation of
intangible assets as a percentage of the average monthly capital
employed over the previous 12 month period. Average capital
employed includes property, plant and equipment, intangible assets
(including goodwill), working capital, provisions, capital
debtors/creditors and assets/liabilities held for sale
(6) Net debt at average exchange rates over operating profit
before depreciation, adjusting items and amortisation of intangible
assets for the previous 12 month period, calculated in accordance
with banking covenants
(7) Free cash flow before tax, net interest, growth capital
expenditure and pension payments as a percentage of operating
profit before adjusting items and amortisation of intangible
assets
(8) Organic volume growth, cash conversion and return on sales
given for the 6 months to 31 October 2017, ROACE and net debt /
EBITDA given for the 12 months to 31 October 2017
Cautionary statement: This announcement contains certain
forward-looking statements with respect to the operations,
performance and financial condition of the Group. By their nature,
these statements involve uncertainty since future events and
circumstances can cause results and developments to differ
materially from those anticipated. The forward-looking statements
reflect knowledge and information available at the date of
preparation of this announcement and DS Smith Plc undertakes no
obligation to update these forward-looking statements. Nothing in
this statement should be construed as a profit forecast.
Unless otherwise stated, all commentary and comparable analysis
in the overview and operating review is based on constant currency
performance. Organic volume growth means corrugated box volume
growth, on a like-for-like basis.
Overview
In the half year to 31 October 2017, DS Smith has delivered
strong organic corrugated box volume growth and maintained return
on sales and return on capital employed in line with our medium
term targets, despite substantial input cost rises in the period.
In addition, we have seen an excellent performance from Interstate
Resources since we acquired the business and have had a very
positive start to our integration work.
Organic corrugated box volumes have grown at 5.2%, well ahead of
our target of GDP+1% which represents a continuation of the
momentum of the previous year. Growth is due to market share gains,
with strong volumes again from our pan-European customers,
particularly within the e-commerce category, together with an
improvement in European economic growth. Return on sales for the
period was 9.0%, the midpoint of our target range of 8 - 10%. We
are pleased with our progress in recovering paper price rises and
have also benefited strongly from operational leverage. Return on
average capital employed at 14.6% remains near the top of our
target range despite the initial dilutive effect of the Interstate
acquisition and other acquisitions in the past 12 months. Net debt
/ EBITDA at the period end was 2.0x reflecting our focus on tight
balance sheet management. These results reflect our absolute focus
on returns and cash flow in the business and our commitment to
bringing net debt back into line with our medium term targets
following an acquisition.
On 25 August 2017 we completed our acquisition of Interstate
Resources, our first fibre-based packaging business in the United
States. We are delighted by the financial performance and
operational progress to date, with employees showing great
enthusiasm to be part of leveraging our packaging expertise in this
exciting market. We are actively engaged in discussions with both
international customers of Interstate and DS Smith and have been
enjoying positive responses, particularly from large customers of
the Interstate Resources group, who recognise the benefit of
sourcing from a large company with innovation and expertise in
shelf-ready packaging, for example.
We have also increased our estimate of annualised pre-tax cost
synergies achievable from the acquisition, from $25 million by the
end of the third full year to $30 million over the same period,
based principally on greater opportunities to drive operational
efficiencies and global supply chain benefits.
For the half year period, Group revenues increased on a constant
currency basis by 14%, principally reflecting volume growth in
corrugated boxes in Europe, the contribution from acquired
businesses, particularly North America, and increased selling
prices. Group revenues increased on a reported basis by 19%.
Adjusted operating profit was up 6% (GBP15 million) on a
constant currency basis, reflecting the margin pressure from higher
paper prices in part offset by significant volume growth in the
period and two months' contribution from Interstate. The profit
drop-through from volume growth in corrugated boxes is consistent
with prior periods, while sales price and mix increased
significantly due to the marked increase in input costs during the
period which are being progressively recovered in box prices.
We continue to remain heavily focused on cash and ROACE,
delivering 14.6% ROACE, which is towards the top of our target
range, despite the initial dilutive impact from the acquisition of
Interstate in August 2017, and other smaller businesses in the past
12 months. Net debt / EBITDA increased from 1.8x at 30 April 2017
to 2.0x at 31 October 2017 as net debt increased by GBP314 million
to GBP1,406 million, due to the impact of acquisitions, (GBP926
million, including debt assumed of GBP144 million and GBP261
million of equity consideration shares issued), particularly
Interstate, and the currency translation impact, partially offset
by the proceeds from issuing new equity to finance the Interstate
acquisition, and by free cash flow (GBP171m). Underlying cash flow
from the business continued to be good, with a further working
capital inflow of GBP25 million generated during the period.
Operating Review
UK
Half year Half year Change
ended ended
31 October 31 October
2017 2016
Revenue GBP550m GBP466m 18%
Operating
profit* GBP55m GBP45m 22%
Return on
sales* 10.0% 9.7% 30bps
*Adjusted, before amortisation and adjusting items
In the UK revenues increased 18% to GBP550 million (H1 2016/17:
GBP466 million) while adjusted operating profit has increased 22%
to GBP55 million (H1 2016/17: GBP45 million). Corrugated box
volumes in the period were good, reflecting continued success with
e-commerce customers. We have developed a leading position in
e-commerce which is being replicated in other European regions.
Margin in the region has been at the top of the Group target range,
reflecting the mix of our business, good performance in the
acquired TRM and Creo businesses and also good progress in
recovering paper price rises.
Western Europe
Half year Half year Change Change -
ended ended - reported constant
31 October 31 October currency
2017 2016
Revenue GBP716m GBP626m 14% 8%
Operating
profit* GBP55m GBP56m (2%) (7%)
Return on
sales* 7.7% 8.9% (120bps) (120bps)
*Adjusted, before amortisation and adjusting items
In Western Europe organic corrugated box volumes in the period
reflected a strong performance in the Iberian businesses and in
France, with flatter volumes in the Benelux region. Revenue
increased by 8% driven by underlying volume growth and increases in
box prices, which partially mitigated the input price rises in the
period. There was also a small benefit to revenues from
acquisitions in the past 12 months in both France and Iberia.
Adjusted operating profit fell by 7%, principally reflecting the
lower proportion of paper manufacturing in the region than the
Group as a whole, together with the lag between the increase in
input costs and the recovery of those costs through corrugated
packaging price rises.
DCH and Northern Europe
Half year Half year Change Change -
ended ended - reported constant
31 October 31 October currency
2017 2016
Revenue GBP545m GBP490m +11% +6%
Operating
profit* GBP43m GBP45m (4%) (9%)
Return on
sales* 7.9% 9.2% (130bps) (120bps)
*Adjusted, before amortisation and adjusting items
DCH and Northern Europe has seen very strong volume growth
across the region, with good growth in Northern Europe and
excellent growth in Germany and Switzerland, reflecting good
progress with customers following the recent investment in the new
Erlensee display packaging site in Germany. The acquisition of
Deku-Pack in September 2016 also gave a small positive benefit.
Adjusted operating profit fell 9% reflecting the lag between the
increase in input costs and the recovery of those costs through
price rises.
Central Europe and Italy
Half year Half year Change Change -
ended ended - reported constant
31 October 31 October currency
2017 2016
Revenue GBP700m GBP614m +14% +8%
Operating
profit* GBP63m GBP62m +2% (5%)
Return on
sales* 9.0% 10.1% (110bps) (120bps)
*Adjusted, before amortisation and adjusting items
Organic corrugated box volumes in Central Europe and Italy have
grown ahead of the Group average, reflecting a very good
performance from this high growth market, particularly in Poland
and the Baltics, and south eastern Europe. Our corrugated box
volumes in Italy have also continued to grow well. Revenues
increased by 8%, reflecting the volume growth and the benefit of
pricing increases in packaging and in external paper sold. Adjusted
operating profit decreased 5%, reflecting the organic growth offset
by the lag between the increase in input costs and the recovery of
those costs through packaging price rises.
North America
Half year
ended
31 October
2017
Revenue GBP110m
Operating GBP15m
profit*
Return on
sales* 13.6%
*Adjusted, before amortisation and adjusting items
Corrugated box volumes in the two months of ownership were
extremely strong in the period compared to the comparative period
in 2016 prior to DS Smith's ownership. This was driven by the
strong market for paper and the benefit of beginning to integrate
with the wider DS Smith platform. Profit performance is
considerably ahead of that in 2016. As expected there has been
great customer interest in performance packaging and shelf ready
packing. The supply chain benefits between Europe and the east
coast of USA will deliver greater benefits than originally
assumed.
Plastics
Half year Half year Change Change -
ended ended - reported constant
31 October 31 October currency
2017 2016
Revenue GBP179m GBP161m +11% +7%
Operating
profit* GBP20m GBP18m +11% +5%
Return on
sales* 11.2% 11.2% 0bps (20bps)
*Adjusted, before amortisation and adjusting items
Plastics has seen revenue grow by 7%, driven by volume growth in
the business. Adjusted operating profit grew 5% reflecting volume
growth in the core business and through acquisition, with return on
sales margins falling 20 basis points to 11.2%.
Acquisition of Interstate Resources
On 25 August 2017, we completed our acquisition of Interstate
Resources, our first fibre-based packaging business in the United
States. The rationale for the acquisition is to build a business in
North America offering similar packaging solutions as has proved
successful in Europe, based on demand for our solutions from our
pan-European customers who also operate in the United States, and
to capitalise on the opportunities from operating a global supply
platform.
We are delighted by the financial performance and operational
progress to date, with employees showing great enthusiasm to be
part of leveraging our packaging expertise in this exciting market.
We are actively engaged in discussions with international customers
of both Interstate and DS Smith and have been enjoying very
positive responses, particularly from large customers of the
Interstate Resources group, who recognise the benefit of sourcing
from a large company with innovation and expertise in shelf-ready
packaging, for example. Plans are in place to develop a PackRight
Centre alongside the largest of the US packaging sites, and we are
excited by the growth opportunities for the business.
We have also increased our estimate of annualised pre-tax cost
synergies achievable from the acquisition, from $25 million by the
end of the third full year to $30 million over the same period,
based principally on greater opportunities to drive operational
efficiencies and global supply chain benefits. Cash benefits of $95
million are confirmed, mainly driven by working capital management.
The cash investment required in total until the end of our
financial year 2020/21 to integrate the business and bring it up to
European health and safety standards is now expected to be $20
million treated as an adjusting item and $40-45 million treated as
capital expenditure.
Outlook
The outlook remains positive as we begin our second half with
good momentum. Our packaging proposition that delivers real value
to our customers is reflected in our volume growth and, while input
cost pressures remain, we continue to recover those costs as
planned.
We continue to see exciting opportunities for growth, both in
Europe and in North America and, accordingly the Board remains
confident about the outlook for DS Smith.
Financial Review
Group revenue for the half year to 31 October 2017 increased by
19% to GBP2,800 million (H1 2016/17: GBP2,357 million), reflecting
acquisitions (GBP150 million), volume and sales price growth, and a
significant positive currency translation effect (GBP98 million).
On a constant currency basis, revenue increased by 14% due to
acquisitions and organic growth of GBP195 million, approximately
evenly split between corrugated box volume growth and sales price
and mix growth, reflecting the price increases to recover input
cost pricing that took place in the period.
Unadjusted operating profit of GBP174 million was marginally
lower than the prior year (H1 2016/17: GBP175 million) due to the
impact of the inclusion of adjusting items of GBP35 million (H1
2016/17: GBP21 million) and higher amortisation of GBP42 million
(H1 2016/17: GBP30 million) due to acquisitions.
Adjusted operating profit increased 11% to GBP251 million (H1
2016/17: GBP226 million), with a GBP10 million benefit due to
currency translation. On a constant currency basis, adjusted
operating profit growth was 6%, benefitting from a GBP15 million
contribution from the recently acquired North America business plus
a further GBP4 million from other businesses acquired in the past
12 months. The profit drop-through from higher volumes (GBP39
million) and the benefit of higher pricing and sales mix (GBP81
million) was offset by higher input and other costs (GBP124
million). Input costs were substantially higher period-on-period,
reflecting a rise in fibre costs and in paper pricing.
Free cash flow (being EBITDA plus the cash flow effect of
working capital, pension payments, capital expenditure (net of
proceeds), tax and interest) was GBP171 million (H1 2016/17: GBP182
million), driven by EBITDA of GBP332 million and a further positive
contribution from working capital of GBP25 million, partially
offset by capital expenditure, tax and interest payments. Reported
cash grew from GBP123 million at 30 April 2017 to GBP535 million at
31 October 2017 through cash flows from operating activities of
GBP259 million, share issues of GBP283 million and net proceeds
from borrowings of GBP571 million, offset by acquisitions of GBP521
million, net capital expenditure of GBP121 million and dividends of
GBP44 million.
Net capital expenditure was GBP121 million in the period (H1
2016/17: GBP84 million) with a total of c. GBP280 million expected
to be spent in the full financial year. The full year increase
compared to previous guidance is primarily driven by the addition
of capex relating to the North America business.
Amortisation for the period was GBP42 million (H1 2016/17: GBP30
million), with a total of GBP90 million expected for the full
financial year, driven by the effect of the acquisition of
Interstate. Depreciation for the period was GBP81 million (H1
2016/17: GBP74 million), with the charge for the full financial
year expected to be c. GBP175 - GBP185 million.
Return on average capital employed of 14.6% for the 12 month
period to 31 October 2017 (12 months to 31 October 2016: 15.1%)
represents a 40 bps decrease on a constant currency basis and
remains near the top end of our target range. This decrease is
driven by the initially dilutive impact of recently acquired
businesses, partially offset by the continued profitable growth of
the business.
Adjusting items after tax of GBP38 million were incurred in the
period (H1 2016/17: GBP17 million), including GBP18 million
relating to acquisition costs, GBP5 million of acquisition-related
financing costs, GBP5 million to integration and GBP5 million
relating to other restructuring initiatives. Total adjusting items
for the year are expected to be c. GBP60 - 65 million.
Net financing costs were GBP26 million (H1 2016/17: GBP28
million), reflecting the increase in debt over the period due to
consideration paid for acquisitions, less the slightly larger
impact of receiving the proceeds of the equity issue before paying
for Interstate Resources. The pension interest charge for the
period was GBP2 million, similar to last year, with a charge of
GBP5 million expected for the full year. The interest charge for
the year as a whole is expected to be around GBP60 million,
inclusive of the pension interest charge. Adjusting finance costs
of GBP5 million relate to costs incurred on the acquisition of
Interstate.
Unadjusted profit before tax was lower at GBP144 million (H1
2016/17: GBP146 million), through higher financing costs and the
lower operating profit, offset slightly by improved share of
results of associates. Adjusted profit before tax of GBP184 million
(H1 2016/17: GBP167 million) was higher through the growth in
adjusted operating profit and lower adjusted financing charges.
Unadjusted tax on profits has been charged at a rate on
continuing operations before amortisation and adjusting items of
23% (H1 2016/17: 22%), similar to the full year 2016/17.
Unadjusted profit after tax for continuing operations was GBP107
million (H1 2016/17: GBP115 million). Adjusted profit after tax was
GBP145 million (H1 2016/17: GBP132 million).
Earnings per share for continuing operations before amortisation
and adjusting items increased 6% to 17.4 pence (H1 2016/17: 16.4
pence) or 2% on a constant currency basis, reflecting the growth in
operating profit, boosted by the decrease in interest costs.
Earnings per share was disproportionately impacted in the period by
the equity issue on 29 June 2017 which raised funds for the
Interstate Resources acquisition which completed approximately two
months later, on 25 August 2017, in addition to the equity issued
to the vendors on completion. Total unadjusted earnings per share
was 10.6 pence (H1 2016/17: 12.3 pence) due to higher amortisation
and adjusting items, together with the issues of equity noted
above.
Financial position
Total equity increased to GBP2,025 million at 31 October 2017
from GBP1,355 million at 30 April 2017 due to equity issues of
GBP544 million, retained profits of GBP107 million, actuarial gain
on employee benefits of GBP25 million and foreign currency
translation differences of GBP26 million, offset by dividends of
GBP44 million.
Net debt at 31 October 2017 was GBP1,406 million (30 April 2017:
GBP1,092 million), representing 2.0x EBITDA for the prior 12 month
period, calculated on the basis of a full year contribution from
acquired businesses. Expenditure on acquisitions was GBP521 million
and borrowings of GBP144 million were also assumed. GBP283 million
was raised by the issue of equity, principally in a placing
conducted at the time of the announcement of the Interstate
Resources acquisition in June 2017. The Group maintains tight
capital discipline, and constant attention to working capital means
that, despite the increase in working capital on a translated basis
due to foreign exchange changes, GBP25 million has been released
from working capital in the period on a like-for-like basis, and
working capital as a percentage of sales as an average over the
period is now 0.1% (H1 2016/17: 1.7%).
Dividend
The Board considers the dividend to be an important component of
shareholder returns. In considering dividends the Board will be
mindful of the Group's leverage, earnings growth potential and
future expansion plans. As first set out in December 2010, our
policy is that dividends will be progressive and, in the medium
term, dividend cover should be on average 2.0x to 2.5x through the
cycle.
The Board declares an interim dividend for this half year of 4.9
pence per share (H1 2016/17: 4.6 pence per share). This represents
an increase of 7%, demonstrating the confidence of the Board in the
outlook for the Group. The dividend will be paid on 1 May 2018 to
ordinary shareholders on the register at the close of business on 6
April 2018.
Risks and uncertainties
The Board has considered the principal risks and uncertainties
affecting the Group in the second half of the year. The principal
risks and uncertainties discussed in the Business Review on pages
42 to 45 of the 2017 Annual Report, available on the Group's
website at www.dssmith.com, remain relevant.
In summary, the Group's key risks and uncertainties are:
-- Acquisition strategy;
-- Access to capital market and liquidity restrictions;
-- Increasing market consolidation;
-- Governance and compliance;
-- Process changes;
-- Changes in shopping habits;
-- Digital vulnerabilities;
-- Eurozone and macroeconomic limits;
-- Interference in securing required paper supplies;
-- Unanticipated fibre technology changes;
-- Sustainability promise; and
-- Talent barriers.
Going concern
The Group's recent trading and forecasts, after taking account
of reasonably foreseeable changes in trading performance, shows
that the Group is able to operate within its current debt
facilities. At 31 October 2017 there was significant headroom on
the Group's committed debt facilities of GBP2,778 million. As a
consequence, the Board believes that the Group is well placed to
manage its business risks (as summarised above) successfully
despite the uncertainties inherent in the current economic outlook.
After making enquiries, the Board has formed a judgement that there
is a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future.
For this reason, the going concern basis has been adopted in
preparing the interim financial statements.
Responsibility statement
We confirm that to the best of our knowledge:
(a) the condensed set of financial statements, prepared in
accordance with IAS 34 "Interim Financial Reporting" as adopted by
the European Union, gives a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company
and the undertakings included in the consolidation taken as a
whole;
(b) the interim management report includes a fair review of the
information required by DTR 4.2.7R (indication on important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
(c) the interim management report includes a fair review of the
information required by DTR4.2.8R (disclosure of related parties'
transactions and changes therein).
Miles Roberts Adrian Marsh
Group Chief Executive Group Finance Director
6 December 2017
INDEPENT REVIEW REPORT TO DS SMITH PLC
We have been engaged by the Company to review the condensed set
of financial statements in the half yearly financial report for the
six months ended 31 October 2017 which comprises the Condensed
Consolidated Income Statement, the Condensed Consolidated Statement
of Comprehensive Income, the Condensed Consolidated Statement of
Financial Position, the Condensed Consolidated Statement of Changes
in Equity, the Condensed Consolidated Statement of Cash Flows and
related notes 1 to 15. We have read the other information contained
in the half yearly financial report and considered whether it
contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial
statements.
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
Review of Interim Financial Information Performed by the
Independent Auditor of the Entity issued by the Auditing Practices
Board. Our work has been undertaken so that we might state to the
Company those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company for our review work, for this
report, or for the conclusions we have formed.
DIRECTORS' RESPONSIBILITIES
The half yearly financial report is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the half yearly financial report in accordance with
the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half yearly financial report has been prepared in
accordance with International Accounting Standard 34, Interim
Financial Reporting, as adopted by the European Union.
OUR RESPONSIBILITY
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half yearly
financial report based on our review.
SCOPE OF REVIEW
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
United Kingdom. A review of interim financial information consists
of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK), and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
CONCLUSION
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half yearly financial report for the six months ended 31
October 2017 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
6 December 2017
condensed consolidated income statement
Half year ended
Half year ended 31 October Year ended
31 October 2017 2016 30 April 2017
Unaudited Unaudited Audited
------------------------------- ------------------------------- -------------------------------
Adjusting Adjusting Adjusting
Before items After Before items After Before items After
adjusting (note adjusting adjusting (note adjusting adjusting (note adjusting
items 3) items items 3) items items 3) items
Note GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 2 2,800 - 2,800 2,357 - 2,357 4,781 - 4,781
Operating costs (2,549) (17) (2,566) (2,131) (18) (2,149) (4,338) (57) (4,395)
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Operating profit
before
amortisation,
acquisitions
and disposals 2 251 (17) 234 226 (18) 208 443 (57) 386
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Amortisation
of intangible
assets;
acquisitions
and disposals (42) (18) (60) (30) (3) (33) (65) (5) (70)
Operating profit 2 209 (35) 174 196 (21) 175 378 (62) 316
Finance income 4 - - - 1 - 1 1 - 1
Finance costs 4 (26) (5) (31) (29) - (29) (51) - (51)
Employment
benefit net
finance expense (2) - (2) (3) - (3) (5) - (5)
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Net financing
costs (28) (5) (33) (31) - (31) (55) - (55)
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit after
financing costs 181 (40) 141 165 (21) 144 323 (62) 261
Share of profit
of equity
accounted
investments,
net of tax 3 - 3 2 - 2 3 - 3
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit before
income tax 184 (40) 144 167 (21) 146 326 (62) 264
Income tax
(expense)/credit 6 (39) 2 (37) (35) 4 (31) (69) 13 (56)
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit for
the period 145 (38) 107 132 (17) 115 257 (49) 208
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit for the
period attributable
to:
------------------------ --------- --------- --------- --------- --------- --------- --------- --------- ---------
Owners of the
parent 145 (38) 107 133 (17) 116 258 (49) 209
Non-controlling
interests - - - (1) - (1) (1) - (1)
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Half year ended Year ended
Earnings Half year ended 31 October 30 April
per share 31 October 2017 2016 2017
----------------- ------------------------------------- ------------------------------- -------------------- ---------
Earnings per
share
Basic 7 10.6p 12.3p 22.1p
Diluted 7 10.5p 12.2p 22.0p
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
Adjusted earnings
per share (1)
Basic 7 17.4p 16.4p 32.5p
Diluted 7 17.3p 16.3p 32.3p
------------------ ---- --------- --------- --------- --------- --------- --------- --------- --------- ---------
1 Adjusted for amortisation and adjusting items.
Condensed Consolidated Statement of Comprehensive Income
Half year Half year
ended ended Year ended
31 October 31 October 30 April
2017 2016 2017
Unaudited Unaudited Audited
GBPm GBPm GBPm
----------------------------------------------------- ----------- ----------- ----------
Profit for the period 107 115 208
------------------------------------------------------ ----------- ----------- ----------
Items which will not be reclassified
subsequently to profit or loss
Actuarial gain/(loss) on employee
benefits 25 (112) (1)
Income tax on items which will
not be reclassified subsequently
to profit or loss (3) 17 (3)
Items which may be reclassified
subsequently to profit or loss
Foreign currency translation differences 26 150 71
Movements in cash flow hedges 17 39 9
Share of other comprehensive income
of equity accounted associate - - 1
Income tax on items which may be
reclassified subsequently to profit
or loss (3) (6) 35
Other comprehensive income for
the period, net of tax 62 88 112
------------------------------------------------------ ----------- ----------- ----------
Total comprehensive income for
the period 169 203 320
------------------------------------------------------ ----------- ----------- ----------
Total comprehensive income/(expense)
attributable to:
----------------------------------------------------- ----------- ----------- ----------
Owners of the parent 169 204 321
Non-controlling interests - (1) (1)
------------------------------------------------------ ----------- ----------- ----------
Condensed Consolidated Statement of Financial Position
At 31 At 31 At 30
October October April
2017 2016 2017
Unaudited Unaudited Audited
Note GBPm GBPm GBPm
------------------------------------ ---- ---------- ---------- --------
Assets
Non-current assets
Intangible assets 2,024 1,231 1,178
Biological assets 3 - -
Property, plant and equipment 2,231 1,883 1,866
Equity accounted investments 25 6 9
Other investments 11 3 3
Deferred tax assets 77 67 79
Other receivables 8 3 3
Derivative financial instruments 12 63 19
------------------------------------ ---- ---------- ---------- --------
Total non-current assets 4,391 3,256 3,157
------------------------------------ ---- ---------- ---------- --------
Current assets
Inventories 491 403 406
Biological assets 4 - -
Income tax receivable 11 2 10
Trade and other receivables 881 815 766
Cash and cash equivalents 10 558 134 139
Derivative financial instruments 27 34 13
Assets held for sale 1 6 2
------------------------------------ ---- ---------- ---------- --------
Total current assets 1,973 1,394 1,336
------------------------------------ ---- ---------- ---------- --------
Total assets 6,364 4,650 4,493
------------------------------------ ---- ---------- ---------- --------
Liabilities
Non-current liabilities
Borrowings 10 (1,925) (1,215) (1,144)
Employee benefits 5 (161) (306) (181)
Other payables (12) (14) (14)
Provisions (4) (6) (5)
Deferred tax liabilities (270) (161) (133)
Derivative financial instruments (12) (22) (11)
Total non-current liabilities (2,384) (1,724) (1,488)
------------------------------------ ---- ---------- ---------- --------
Current liabilities
Bank overdrafts 10 (23) (14) (16)
Borrowings 10 (57) (130) (119)
Trade and other payables (1,713) (1,311) (1,358)
Income tax liabilities (126) (113) (120)
Provisions (21) (26) (24)
Derivative financial instruments (15) (29) (13)
Total current liabilities (1,955) (1,623) (1,650)
------------------------------------ ---- ---------- ---------- --------
Total liabilities (4,339) (3,347) (3,138)
------------------------------------ ---- ---------- ---------- --------
Net assets 2,025 1,303 1,355
------------------------------------ ---- ---------- ---------- --------
Equity
Issued capital 107 95 95
Share premium 1,260 716 728
Reserves 657 490 530
------------------------------------ ---- ---------- ---------- --------
Total equity attributable to owners
of the parent 2,024 1,301 1,353
Non-controlling interests 1 2 2
------------------------------------ ---- ---------- ---------- --------
Total equity 2,025 1,303 1,355
------------------------------------ ---- ---------- ---------- --------
Condensed Consolidated Statement of Changes in Equity
Total
reserves
attributable
to owners
Share Share Hedging Translation Own Retained of the Non-controlling Total
capital premium reserve reserve shares earnings parent interests equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------- ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
At 1 May 2017
(audited) 95 728 (22) 40 (4) 516 1,353 2 1,355
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
Profit for the
period - - - - - 107 107 - 107
Actuarial gain
on employee
benefits - - - - - 25 25 - 25
Foreign currency
translation
differences - - - 26 - - 26 - 26
Cash flow hedges
fair value
changes - - 7 - - - 7 - 7
Reclassification
from cash flow
hedge
reserve to income
statement - - 10 - - - 10 - 10
Income tax on
other
comprehensive
income - - (3) - - (3) (6) - (6)
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
Total
comprehensive
income - - 14 26 - 129 169 - 169
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
Issue of share
capital 12 532 - - - - 544 - 544
Employee share
trust - - - - 2 (6) (4) - (4)
Share-based
payment
expense (net of
tax) - - - - - 6 6 - 6
Dividends paid - - - - - (44) (44) - (44)
Transactions with
non-controlling
interests - - - - - - - (1) (1)
Other changes in
equity in the
period 12 532 - - 2 (44) 502 (1) 501
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
At 31 October
2017 (unaudited) 107 1,260 (8) 66 (2) 601 2,024 1 2,025
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
At 1 May 2016
(audited) 94 716 (29) (69) (3) 428 1,137 3 1,140
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
Profit for the
period - - - - - 116 116 (1) 115
Actuarial loss
on employee
benefits - - - - - (112) (112) - (112)
Foreign currency
translation
differences - - - 150 - - 150 - 150
Cash flow hedges
fair value
changes - - 32 - - - 32 - 32
Reclassification
from cash flow
hedge
reserve to income
statement - - 7 - - - 7 - 7
Income tax on
other
comprehensive
income - - (7) 1 - 17 11 - 11
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
Total
comprehensive
income/(expense) - - 32 151 - 21 204 (1) 203
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
Issue of share
capital 1 - - - - - 1 - 1
Employee share
trust - - - - (1) (5) (6) - (6)
Share-based
payment
expense (net of
tax) - - - - - 3 3 - 3
Dividends paid - - - - - (38) (38) - (38)
Other changes in
equity in the
period 1 - - - (1) (40) (40) - (40)
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
At 31 October
2016 (unaudited) 95 716 3 82 (4) 409 1,301 2 1,303
------------------ ------- ------- ------- ----------- ------ -------- ------------ --------------- -------
Condensed Consolidated Statement of Cash Flows
Half year Half year
ended ended Year ended
31 October 31 October 30 April
2017 2016 2017
Unaudited Unaudited Audited
Continuing operations Note GBPm GBPm GBPm
---------------------------------------- ---- ----------- ----------- ----------
Operating activities
Cash generated from operations 9 317 292 629
Interest received - 1 1
Interest paid (26) (31) (46)
Tax paid (32) (25) (61)
---------------------------------------- ---- ----------- ----------- ----------
Cash flows from operating activities 259 237 523
---------------------------------------- ---- ----------- ----------- ----------
Investing activities
Acquisition of subsidiary businesses,
net of cash and cash equivalents 13 (521) (33) (71)
Capital expenditure (130) (91) (244)
Proceeds from sale of property,
plant and equipment and intangible
assets 9 7 18
Cash flows used in investing activities (642) (117) (297)
---------------------------------------- ---- ----------- ----------- ----------
Financing activities
Proceeds from issue of share capital 283 1 13
Repayment of borrowings (353) (501) (924)
Proceeds from borrowings 924 422 785
(Payments)/proceeds from settlement
of derivative financial instruments (11) - 31
Repayment of finance lease obligations (2) (7) (9)
Dividends paid to Group shareholders 8 (44) (38) (121)
Other (6) (7) -
---------------------------------------- ---- ----------- ----------- ----------
Cash flows from/(used in) financing
activities 791 (130) (225)
---------------------------------------- ---- ----------- ----------- ----------
Increase/(decrease) in cash and
cash equivalents 408 (10) 1
Net cash and cash equivalents at
1 May 123 115 115
Exchange gains on cash and cash
equivalents 4 15 7
---------------------------------------- ---- ----------- ----------- ----------
Net cash and cash equivalents 10 535 120 123
---------------------------------------- ---- ----------- ----------- ----------
1. Basis of preparation
The unaudited condensed consolidated interim financial
statements for the half year ended 31 October 2017 have been
prepared in accordance with IAS 34 Interim Financial Reporting and
the disclosure requirements of the Listing Rules. These interim
financial statements should be read in conjunction with the Group's
annual financial statements for the year ended 30 April 2017, which
have been prepared in accordance with International Financial
Reporting Standards as adopted by the EU ('IFRSs'). Those accounts
were reported on by the Company's auditor and delivered to the
Registrar of Companies. The report of the auditor was not qualified
or modified, did not draw attention to any matters by way of
emphasis and did not contain an adverse statement under section 498
(2) or (3) of the Companies Act 2006.
The interim financial information has been prepared using the
same accounting policies as those adopted in the annual financial
statements for the year ended 30 April 2017, which are prepared in
accordance with IFRSs.
The following new accounting standards, amendments or
interpretations have been adopted by the Group as of 1 May
2017:
-- Amendments to IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses
-- IAS 7 Disclosure Initiative - Amendments to IAS 7
-- Annual Improvements to IFRSs 2014-2016 Cycle
The adoption of these standards, amendments or interpretations
has not had a material effect on the results for the period.
There were no other new accounting standards, amendments or
interpretations adopted by the Group as of 1 May 2017.
The condensed information presented for the year ended 30 April
2017 does not constitute full statutory accounts as defined in
section 434 of the Companies Act 2006. The financial information
for the half year ended 31 October 2017 is unaudited but has been
reviewed by Deloitte LLP, the Group's auditor, and a copy of their
review report forms part of this half year report.
Foreign exchange rates
The Group's main currency exposure is to the euro and the US
dollar, and the following exchange rates have been applied during
the periods:
Half year ended Half year ended Year ended
31 October 2017 31 October 2016 30 April 2017
Average Closing Average Closing Average Closing
----------- --------- -------- --------- -------- -------- --------
euro 1.129 1.138 1.190 1.111 1.179 1.184
US Dollar 1.303 1.325 1.340 1.216 1.285 1.294
----------- --------- -------- --------- -------- -------- --------
Going concern
As explained in the narrative section of this half year
financial report under the heading 'Going concern', the financial
statements are prepared on the going concern basis. This is
considered appropriate given that the Group has adequate resources
to continue in operational existence for the foreseeable
future.
Estimates and judgements
The application of the Group's accounting policies requires
management to make estimates and assumptions; these estimates and
assumptions affect the reported assets and liabilities and
financial results of the Group. Actual outcomes could differ from
the estimates and assumptions used.
In preparing these interim financial statements, the key sources
of estimates were the same as those that applied to the Group's
consolidated financial statements for the year ended 30 April 2017,
being pensions and other employee benefits, taxation and adjusting
items.
There are no critical accounting judgements.
Non-GAAP performance measures
In the reporting of financial information, the Group has adopted
certain non-GAAP measures of historical or future financial
performance, position or cash flows other than those defined or
specified under International Financial Reporting Standards
(IFRSs).
Non-GAAP measures are either not defined by IFRS or are adjusted
IFRS figures, and therefore may not be directly comparable with
other companies' reported non-GAAP measures, including those in the
Group's industry.
Non-GAAP measures should be considered in addition to, and are
not intended to be a substitute for, or superior to, IFRS
measures.
Details of the Group's non-GAAP performance measures are
included in note 15.
2. Segment reporting
Operating segments
To accommodate the Group's acquisition of Indevco Management
Resources Inc. in August 2017, an additional operating segment,
'North America', has been added for the half year ended 31 October
2017.
DCH Central
and Europe Total
Western Northern and North continuing
Half year ended 31 UK Europe Europe Italy America Plastics operations
October 2017 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------------------ ---- ------- ------------------ ------- -------- -------- ----------
External revenue 550 716 545 700 110 179 2,800
------------------------- ---- ------- ------------------ ------- -------- -------- ----------
Adjusted operating
profit (1) 55 55 43 63 15 20 251
Unallocated items:
Amortisation (42)
Adjusting items (35)
Total operating profit (continuing
operations) 174
----------
DCH Central
and Europe Total
Western Northern and North continuing
Half year ended 31 UK Europe Europe Italy America Plastics operations
October 2016 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------------------ ---- ------- -------- -------- ------- -------- --------------------
External revenue 466 626 490 614 - 161 2,357
------------------------- ---- ------- -------- -------- ------- -------- --------------------
Adjusted operating
profit (1) 45 56 45 62 - 18 226
Unallocated items:
Amortisation (30)
Adjusting items (21)
----------
Total operating profit
(continuing operations) 175
----------
(1) Adjusted for amortisation and adjusting items
3. Adjusting items
Items are presented as adjusting in the financial statements
where they are significant items of financial performance that the
Directors consider should be separately disclosed to assist in the
understanding of the trading and financial results of the Group.
Such items include business disposals, restructuring and
optimisation, acquisition related and integration costs and
impairments. With effect from 1 May 2017, the Group has changed the
description of these items from 'exceptional' to 'adjusting', to
better represent their nature.
Half year Half Year
ended year ended
31 October ended 30 April
2017 31 October 2017
2016
---------------------------------------------
Continuing operations GBPm GBPm GBPm
--------------------------------------------- ----------- ----------- ---------
Acquisition related costs (18) (3) (7)
Gains on acquisitions and disposals - - 2
--------------------------------------------- ----------- ----------- ---------
Acquisitions and disposals (18) (3) (5)
Integration costs (5) (6) (17)
Other restructuring costs (5) (9) (26)
Impairment of assets (1) - (5)
Other (6) (3) (9)
--------------------------------------------- ----------- ----------- ---------
Total pre-tax adjusting items (recognised in
operating profit) (35) (21) (62)
Finance cost adjusting items (5) - -
Adjusting tax item (2) (1) (1)
Current tax credit on adjusting items 4 - 13
Deferred tax credit on adjusting items - 5 1
Total post-tax adjusting items (38) (17) (49)
--------------------------------------------- ----------- ----------- ---------
Half year ended 31 October 2017
Acquisition costs of GBP18m relate to professional advisory,
legal and consultancy fees and directly attributable internal
salary costs relating to the review of potential deals, and deals
completed during the period, including the acquisition of
Interstate Resources and DPF Groupe, and the pending acquisition of
Ecopack and Ecopaper. Of the total, GBP14m relates to the
acquisition of Interstate Resources, with the most significant
components being transaction and sponsor fees, legal costs, and
financial and tax due diligence and advice costs.
Integration costs relate to integration projects underway to
achieve cost synergies from the acquisitions made in the current
period and previous financial years (of which Interstate Resources
comprises GBP2m).
Other restructuring costs of GBP5m includes reorganisation and
restructuring in DCH and Northern Europe (GBP1m), the UK (GBP1m)
and Plastics (GBP1m), primarily completion of projects commenced in
the previous year.
Other adjusting items of GBP6m principally relate to European
centralisation and optimisation projects.
Finance cost adjusting items relate to financing costs incurred
in the acquisition of Interstate Resources.
The current tax credit on adjusting items of GBP4m in the half
year ended 31 October 2017 is the tax effect at the local
applicable tax rate of adjusting items that are subject to tax.
This excludes non-tax deductible deal related advisory fees in
relation to acquisitions and disposals. The adjusting tax item of
GBP2m is an increase in tax provisions in respect of tax risks in
acquired businesses.
Year ended 30 April 2017 and half year ended 31 October 2016
Acquisition costs of GBP7m relate to professional advisory,
legal and consultancy fees and directly attributable internal
salary costs relating to the review and execution of potential
deals, and deals completed during the periods, including the
acquisition of Creo, Deku-Pack, Gopaca, P&I Display and
Parish.
Integration costs relate to integration projects underway to
ensure appropriate health and safety standards are operating and to
achieve cost synergies from the acquisitions made in the current
period and previous financial year. They include directly
attributable internal salary costs.
Other restructuring costs for the year ended 30 April 2017
includes reorganisation and restructuring in DCH and Northern
Europe (GBP11m), the UK (GBP6m), Western Europe (GBP4m) and
Plastics (GBP2m). For the half year ended 31 October 2016, GBP4m
relates to projects in the UK, and GBP3m relates to DCH and
Northern Europe.
Other adjusting items principally relate to infrastructure
optimisation and efficiency projects.
The income tax credit on adjusting items in the periods includes
an increase in tax provisions arising from the acquisition of a
business (GBP1m), and the tax effect at the local applicable tax
rate of adjusting items that are subject to tax. The adjusting
items in the year give rise to a net income tax effect, with the
exception of non-deductible deal related advisory fees in relation
to acquisitions and disposals.
4. Finance income and costs
Half Half
year year Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
Continuing operations GBPm GBPm GBPm
-------------------------------------- ----------- ----------- ---------
Interest income from financial assets - (1) (1)
Finance income - (1) (1)
-------------------------------------- ----------- ----------- ---------
Interest on borrowings and overdrafts 19 22 46
Finance cost adjusting items 5 - -
Other 7 7 5
-------------------------------------- ----------- ----------- ---------
Finance costs 31 29 51
-------------------------------------- ----------- ----------- ---------
5. Employee benefits
Movements in the net employee benefit deficit recognised in the
Condensed Consolidated Statement of Financial Position:
Half Half
year year Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
GBPm GBPm GBPm
--------------------------------------- ----------- ----------- ---------
Opening employee benefit deficit (181) (188) (188)
Acquisitions (11) - -
Expense recognised in operating
profit (3) (3) (5)
Employment benefit net finance expense
(excluding Pension Protection Fund
levy) (2) (2) (4)
Employer contributions 10 9 17
Other payments and contributions 3 3 7
Actuarial gains/(losses) 25 (112) (1)
Currency translation (2) (13) (8)
Reclassification - - 1
Employee benefit deficit (161) (306) (181)
Deferred tax asset 42 63 42
--------------------------------------- ----------- ----------- ---------
Net employee benefit deficit (119) (243) (139)
--------------------------------------- ----------- ----------- ---------
Acquisition movement of GBP11m relates to schemes acquired as
part of Interstate Resources and DPF Groupe.
6. Income tax expense - continuing operations
Tax on profit for continuing operations has been charged at an
underlying rate before adjusting items and amortisation of 22.5%
(half year ended 31 October 2016: 22.0%; year ended 30 April 2017:
22.0%) being the expected full year rate.
The tax credit on amortisation was GBP11m (half year ended 31
October 2016: GBP8m; year ended 30 April 2017: GBP16m).
7. Earnings per share
Basic earnings per share from continuing Half year Half year Year
operations ended ended ended
31 October 31 October 30 April
2017 2016 2017
----------------------------------------- ------------ ------------ ----------
Profit from continuing operations GBP107m GBP116m GBP209m
attributable to ordinary shareholders
----------------------------------------- ------------ ------------ ----------
Weighted average number of ordinary
shares 1,010m 944m 945m
----------------------------------------- ------------ ------------ ----------
Basic earnings per share 10.6p 12.3p 22.1p
----------------------------------------- ------------ ------------ ----------
Diluted earnings per share from Half year Half year
continuing operations ended ended. Year ended
31 October 31 October 30 April
2017 2016 2017
----------------------------------------- ------------ ------------ ------------
Profit from continuing operations GBP107m GBP116m GBP209m
attributable to ordinary shareholders
----------------------------------------- ------------ ------------ ------------
Weighted average number of ordinary
shares 1,010m 944m 945m
Potentially dilutive shares issuable
under share-based payment arrangements 6m 7m 6m
----------------------------------------- ------------ ------------ ------------
Weighted average number of ordinary
shares (diluted) 1,016m 951m 951m
----------------------------------------- ------------ ------------ ------------
Diluted earnings per share 10.5p 12.2p 22.0p
----------------------------------------- ------------ ------------ ------------
The number of shares excludes the weighted average number of the
Company's own shares held as treasury shares during the period of
1m (half year ended 31 October 2016: 2m; year ended 30 April 2017:
2m).
Adjusted earnings per share from continuing operations
The Directors believe that the presentation of an adjusted
earnings per share, being the basic earnings per share adjusted for
adjusting items and amortisation of intangible assets, better
explains the underlying performance of the Group. Adjusted earnings
is calculated by adding back the post-tax effects of both
amortisation and adjusting items. A reconciliation of basic to
adjusted earnings per share is as follows:
Half year ended Half year ended Year ended
31 October 31 October 30 April 2017
2017 2016
--------------------- --------------------- ---------------------
Basic Diluted Basic Diluted Basic Diluted
pence pence pence pence pence pence
per per per per per per
GBPm share share GBPm share share GBPm share share
----------------------- ---- ------ ------- ---- ------ ------- ---- ------ -------
Basic earnings 107 10.6p 10.5p 116 12.3p 12.2p 209 22.1p 22.0p
Add back:
Amortisation of
intangible assets 42 4.2p 4.2p 30 3.1p 3.1p 65 6.9p 6.8p
Tax credit on
amortisation (11) (1.1p) (1.1p) (8) (0.8p) (0.8p) (16) (1.7p) (1.7p)
Adjusting items,
before tax 40 3.9p 3.9p 21 2.2p 2.2p 62 6.6p 6.6p
Tax on adjusting
items and
adjusting tax
items (2) (0.2p) (0.2p) (4) (0.4p) (0.4p) (13) (1.4p) (1.4p)
----------------------- ---- ------ ------- ---- ------ ------- ---- ------ -------
Adjusted earnings 176 17.4p 17.3p 155 16.4p 16.3p 307 32.5p 32.3p
----------------------- ---- ------ ------- ---- ------ ------- ---- ------ -------
8. Dividends proposed and paid
Pence Pence
per share GBPm per share GBPm
--------------------- ---------- ----------- ----------- ---------
2015/16 interim
dividend - paid 4.0p 38
2015/16 final
dividend - paid 8.8p 83
2016/17 interim
dividend - paid 4.6p 44
2016/17 final
dividend - paid 10.6p 113
2017/18 interim
dividend - proposed 4.9p 52
---------------------- ---------- ----------- ----------- ---------
Half year Half year Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
GBPm GBPm GBPm
----------------------------------- ----------- ----------- ---------
Paid in the period 44 38 121
----------------------------------- ----------- ----------- ---------
The final dividend in respect of 2016/17 of 10.6 pence per share
(GBP113m) was paid after the half year end on 1 November 2017. The
2016/17 interim dividend was paid during the half year ended 31
October 2017. An interim dividend in respect of the half year ended
31 October 2017 of 4.9p per share (GBP52m) has been proposed by the
Directors after the reporting date.
9. Cash generated from operations
Half year Half year
ended ended Year ended
31 October 31 October 30 April
2017 2016 2017
Continuing operations GBPm GBPm GBPm
--------------------------------------- ----------- ----------- ----------
Profit for the period 107 115 208
Adjustments for:
Pre-tax integration costs and other
adjusting items 17 18 57
Amortisation of intangible assets;
acquisitions and disposals 60 33 70
Cash outflow for adjusting items (33) (32) (66)
Depreciation 81 74 148
Profit on sale of non-current assets
* (1) (6) (14)
Share of profit of equity accounted
investments, net of tax (3) (2) (3)
Employment benefit net finance
expense 2 3 5
Share-based payment expense 4 3 10
Finance income - (1) (1)
Finance costs 31 29 51
Other non-cash items (including
other deposits) 2 3 9
Income tax expense 37 31 56
Change in provisions (2) (1) (6)
Change in employee benefits (10) (10) (19)
--------------------------------------- ----------- ----------- ------------
Cash generation before working
capital movements 292 257 505
--------------------------------------- ----------- ----------- ------------
Changes in:
Inventories (43) (21) (49)
Trade and other receivables (42) (6) 10
Trade and other payables 110 62 163
--------------------------------------- ----------- ----------- ----------
Working capital movement 25 35 124
--------------------------------------- ----------- ----------- ----------
Cash generated from operations 317 292 629
--------------------------------------- ----------- ----------- ----------
* Includes gains on the sale of surplus property assets of
GBPnil (half year ended 31 October 2016: GBP3m; year ended 30 April
2017: GBP7m).
10. Net debt
Half
Half year year Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
GBPm GBPm GBPm
--------------------------------- ----------- ----------- ---------
Cash and cash equivalents 558 134 139
Overdrafts (23) (14) (16)
--------------------------------- ----------- ----------- ---------
Net cash and cash equivalents 535 120 123
--------------------------------- ----------- ----------- ---------
Other deposits 43 45 40
Borrowings due - after one year (1,914) (1,202) (1,133)
Borrowings due - within one year (54) (127) (115)
Finance leases (14) (16) (15)
Derivative financial instruments
- assets 9 41 14
- liabilities (11) (16) (6)
(1,941) (1,275) (1,215)
--------------------------------- ----------- ----------- ---------
Net debt (1,406) (1,155) (1,092)
--------------------------------- ----------- ----------- ---------
Derivative financial instruments above relate to forward foreign
exchange contracts, interest rate and cross-currency swaps used to
hedge the Group's borrowings and the ratio of net debt to EBITDA.
The difference between the amounts shown above and the total
derivative financial instrument assets and liabilities in the
Consolidated Statement of Financial Position relates to derivative
financial instruments that hedge forecast foreign currency
transactions and the Group's purchase of energy.
Other deposits balances are included, as these short-term
receivables have the characteristics of net debt.
11. Reconciliation of net cash flow to movement in net debt
Half
Half year year Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
GBPm GBPm GBPm
------------------------------------------ ----------- ----------- ---------
Continuing operations
Operating profit before amortisation
and adjusting items 251 226 443
Depreciation 81 74 148
------------------------------------------ ----------- ----------- ---------
Adjusted EBITDA 332 300 591
Working capital movement 25 35 124
Change in provisions (2) (1) (6)
Change in employee benefits (10) (10) (19)
Other 5 (3) 5
------------------------------------------ ----------- ----------- ---------
Cash generated from operations before
adjusting cash items 350 321 695
Capital expenditure (130) (91) (244)
Proceeds from sale of property, plant
and equipment and other investments 9 7 18
Tax paid (32) (25) (61)
Net interest paid (26) (30) (45)
------------------------------------------ ----------- ----------- ---------
Free cash flow 171 182 363
Cash outflow for adjusting items (33) (32) (66)
Dividends paid (44) (38) (121)
Acquisition of subsidiary businesses,
net of cash and cash equivalents (521) (33) (71)
Other (5) (5) -
Net cash flow (432) 74 105
Proceeds from issue of share capital 283 1 13
Borrowings acquired (144) (4) (14)
Net movement on debt (293) 71 104
Foreign exchange, fair value and
other non-cash movements (21) (127) (97)
------------------------------------------ ----------- ----------- ---------
Net debt movement - continuing operations (314) (56) 7
Opening net debt (1,092) (1,099) (1,099)
------------------------------------------ ----------- ----------- ---------
Closing net debt (1,406) (1,155) (1,092)
------------------------------------------ ----------- ----------- ---------
12. Financial instruments
Carrying amounts and fair values of financial assets and
liabilities
Set out below is the accounting classification of the carrying
amounts and fair values of all of the Group's financial assets and
liabilities:
31 October 30 April 2017
2017
----------------- --------------------
Carrying Fair Carrying Fair
amount value amount value
GBPm GBPm GBPm GBPm
----------------------------------- -------- ------- ---------- --------
Financial assets
Cash and cash equivalents 558 558 139 139
Available for sale - other
investments 11 11 3 3
Loans and receivables 889 889 769 769
Derivative financial instruments 39 39 32 32
----------------------------------- -------- ------- ---------- --------
Total financial assets 1,497 1,497 943 943
----------------------------------- -------- ------- ---------- --------
Financial liabilities
Trade and other payables (1,725) (1,725) (1,372) (1,372)
Bank and other borrowings (1) (1) (194) (194)
Medium-term notes and other
fixed-term debt (1,967) (2,024) (1,054) (1,088)
Finance lease liabilities (14) (14) (15) (15)
Bank overdrafts (23) (23) (16) (16)
Derivative financial instruments (27) (27) (24) (24)
Total financial liabilities (3,757) (3,814) (2,675) (2,709)
----------------------------------- -------- ------- ---------- --------
The fair value is the amount for which an asset or liability
could be exchanged or settled on an arm's-length basis. For
financial instruments carried at fair value, market prices or rates
are used to determine fair value where an active market exists. The
Group uses forward prices for valuing forward foreign exchange and
commodity contracts and uses valuation models with present value
calculations based on market yield curves to value note purchase
agreements, the medium-term note, cross-currency swaps and interest
rate swaps. All derivative financial instruments are shown at fair
value in the Consolidated Statement of Financial Position.
The Group's medium-term notes and other fixed-term debt are in
effective cash flow and net investment hedges and are therefore
held at amortised cost. The fair values of financial assets and
liabilities which bear floating rates of interest are estimated to
be equivalent to their carrying amounts.
IFRS 7 Financial Instruments: Disclosures requires the
classification of fair value measurements using the fair value
hierarchy that reflects the significance of the inputs used in
making the assessments.
All of the Group's financial instruments are Level 2 financial
instruments in accordance with the fair value hierarchy, meaning
although the instruments are not traded in an active market, inputs
to fair value are observable for the asset and liability, either
directly (i.e. quoted market prices) or indirectly (i.e. derived
from prices).
13. Acquisitions and disposals
(a) Acquisition of Interstate Resources
On 29 June 2017, the Group entered into a conditional agreement
to acquire an 80% interest in Indevco Management Resources Inc.
(IMRI), the owner of Interstate Resources Inc. (Interstate
Resources), from Merpas Co. SÃ rl. ('Merpas'), which completed on 25
August 2017.
Interstate Resources is an integrated packaging and paper
producer based on the East Coast of the USA. It operates from 19
production sites and has approximately 1,500 employees.
Interstate Resources operates across the entire packaging chain
including wood procurement, paper manufacturing, design, packaging
manufacturing and customer logistics, with the majority of their
customer base for its packaging products being FMCG and food
customers.
The acquisition aligns with the global convergence of DS Smith's
customers' requirements and is expected to create a higher quality,
higher margin group with more growth potential.
The acquisition was funded by the issue of a placing on 29 June
2017 of shares in the Company with proceeds net of commissions and
expenses of GBP280m, existing debt facilities, new debt facilities
of GBP400m agreed by the Company on 28 June 2017, and the issue of
52,474,156 ordinary shares to the seller.
In the half year ended 31 October 2017, Interstate Resources
contributed combined revenue of GBP110m and operating profit before
amortisation and adjusting items of GBP15m to the Group's results.
If the acquisition had occurred on 1 May 2017, estimated revenue
and operating profit before amortisation and adjusting items for
the combined entity would have been GBP2,989m and GBP278m
respectively.
The following table summarises the consideration paid for the
Interstate Resources business and provisional fair value of assets
acquired and liabilities assumed:
Carrying
values Provisional
before fair
acquisition values
GBPm GBPm
------------------------------------------------- ------------ -----------
Intangible assets 1 258
Biological assets 8 8
Property, plant and equipment 272 286
Equity accounted and other investments 16 22
Inventories 33 31
Net income tax assets/(liabilities) 3 3
Trade and other receivables 63 62
Cash and cash equivalents 1 1
Borrowings (140) (140)
Trade and other payables (54) (41)
Provisions and employee benefits (11) (13)
Net deferred tax (liabilities)/assets (37) (141)
Total identifiable net assets acquired 155 336
Redemption liability relating to non-controlling
interest (152)
Goodwill 588
------------------------------------------------- ------------ -----------
Total consideration 772
------------------------------------------------- ------------ -----------
Satisfied by:
Cash consideration 511
Equity instruments (52,474,156 ordinary
shares) 261
------------------------------------------------- ------------ -----------
Total consideration transferred 772
Net cash flow arising on acquisition
Cash consideration 511
Cash and cash equivalents acquired (1)
------------------------------------------------- ------------ -----------
Total cash outflow 510
------------------------------------------------- ------------ -----------
The fair value of the ordinary shares issued was based on the
listed share price of the Company at 25 August 2017 of GBP4.97 per
share.
A detailed exercise has been undertaken to assess the
provisional fair values of assets acquired and liabilities assumed,
with the use of third party experts where appropriate. The
provisional fair values of intangible assets and property, plant
and equipment has been assessed by reference to work performed by
an independent valuation specialist. The intangible assets acquired
as part of the acquisition relate to customer relationships.
If new information obtained within one year from the acquisition
date about facts and circumstances that existed at the acquisition
date identifies adjustments to the above amounts, or any additional
provisions that existed at the acquisition date, then the
acquisition accounting will be revised.
The redemption liability relating to non-controlling interest of
GBP152m relates to the 20% minority stake in IMRI retained by
Merpas. On fixed dates over the next four years, Merpas can require
the Group to acquire some or all of the remaining shares in IMRI on
agreed terms under a put option, and, on the fifth anniversary of
Completion, the Group will (unless agreed otherwise) acquire any
shares in IMRI that it does not already own. The Group has
concluded that the risks and rewards related to the put option have
substantially transferred to the Group as acquirer and, as such, a
financial liability has been recognised, with no non-controlling
interest recognised in the statement of financial position. The
redemption liability is held at discounted fair value, with
subsequent movements to be taken to the income statement; movements
due to re-measurement using the multiple based formula as specified
in the contract will be recorded in operating profit in adjusting
items; the unwind of the discount will to be taken to finance cost
adjusting items. The redemption liability is included in trade and
other payables in the Consolidated Statement of Financial
Position.
Deferred tax is recognised on the temporary timing differences
created by the fair value adjustments.
The trade and other receivables comprise gross contractual
amounts due of GBP63m. At the acquisition date, it is estimated
that contractual cash flows of GBP1m will not be collected.
The provisional goodwill balance of GBP588m arising on the
acquisition of Interstate Resources (which is not expected to be
tax deductible) includes anticipated synergies from integrating
Interstate Resources into the Group, and the skills and technical
talent of the Interstate Resources workforce.
(b) Other 2017/18 acquisitions and disposals
During the half year ended 31 October 2017, the Group also
completed various other business acquisitions for a total
consideration of GBP11m, net of cash and cash equivalents,
including the acquisition of DPF Groupe on 31 May 2017, which are
not material to the Group individually or in aggregate. Loans and
borrowings acquired from these other transactions were GBP4m.
In total, during the half year ended 31 October 2017, cash
consideration for acquisition of subsidiary businesses, net of cash
and cash equivalents was GBP521 million, and loans and borrowings
acquired were GBP144 million, giving a total impact on net debt
from acquisitions of GBP665 million.
On 18 October 2017, the Group announced it had entered into an
agreement to acquire Ecopack and Ecopaper, (collectively "the
Business") for an enterprise value of c. EUR208 million.
The Business is a leading integrated packaging and paper group
in Romania; family owned for many years. It will significantly
enhance our capacity to serve customers in this high growth region
as well as supporting our wider substantial Eastern European
presence. The Business includes both high quality packaging assets,
focused on the local FMCG market, as well as a new paper machine,
built in 2017, that specialises in high quality, light-weight
paper, which is particularly well-suited to supporting our
performance packaging solutions.
The acquisition consideration and repayment of debt, together
totalling EUR208 million, will be satisfied from existing cash and
debt facilities, and from EUR35 million of DS Smith shares to be
issued to the vendor. The acquisition is expected to be earnings
enhancing immediately, is consistent with the Group's medium term
financial targets and equates to a post synergy multiple of c. 5 -
6x EBITDA. Completion is expected within DS Smith's third fiscal
quarter, following Romanian Competition Authority approval and the
satisfaction of other customary closing conditions.
(c) 2016/17 acquisitions and disposals
In the half year ended 31 October 2016, the Group made various
business acquisitions, which included the acquisition of two
businesses specialising in point of sale and display product and
services for in-store marketing, Creo in the UK, and Deku-Pack in
Denmark, for a total of GBP37m (including borrowings acquired of
GBP4m).
During the remainder of the year ended 30 April 2017, the Group
acquired Parish (a US manufacturer and supplier of bag-in-box
systems), Gopaca (a corrugated producer in Portugal) and P&I
Display (a specialist corrugated display business in Portugal).
These acquisitions were not considered material to the Group
individually or in aggregate and were for a total of GBP71m (net of
cash and cash equivalents). Borrowings acquired from these
transactions were GBP14m.
(d) Acquisition related costs
The Group incurred acquisition related costs in the half year
ended 31 October 2017 of GBP18m (half year ended 31 October 2016:
GBP3m; year ended 30 April 2017: GBP7m), which primarily related to
the acquisition of Interstate Resources as detailed in 13(a). In
addition to the total of GBP18m which was included in
administrative expenses within adjusting items, GBP5m of costs
related to the share placing with existing DS Smith equity holders
have been netted against share premium.
14. Subsequent events
There are no subsequent events after the reporting date which
require disclosure.
15. Non-GAAP performance measures
The Group presents reported and adjusted financial information
in order to provide shareholders with additional information to
further understand the Group's operational performance and
financial position.
The principal adjustments to financial information are made to
exclude the effects of adjusting items and amortisation.
Total reported financial information represents the Group's
overall performance and financial position, but can contain
significant unusual or non-operational items that may obscure
understanding of the key trends and position. These unusual or
non-operational items include business disposals, restructuring and
optimisation project costs, acquisition-related and integration
costs, and impairments. Restructuring and optimisation items
treated as adjusting items are major programmes usually spanning
more than one year, with uneven impact on the profit and loss for
those years affected. Other adjusting items, such as business
disposals, impairments, integration and acquisition costs, which
are by nature either highly variable or non-recurring, can also
have a similar distorting effect. Therefore, the Directors consider
that presenting non-GAAP measures which exclude adjusting items
enable comparability of the recurring core business, complementing
the IFRS measures presented.
Amortisation relates primarily to customer contracts and
relationships arising from business combinations. Significant costs
are incurred in maintaining, developing and increasing the value of
such intangibles, costs which are charged in determining adjusted
profit. Exclusion of amortisation remedies this double count.
The Group's key non-GAAP measures are used internally to
evaluate business performance against the Group's KPIs, as a key
constituent of the Group's planning process, as well as comprising
targets against which compensation is determined.
Certain non-GAAP performance measures can be, and are,
reconciled to information presented in the financial statements.
Other financial key performance measures are calculated using
information which is not presented in the financial statements and
is based on, for example, average twelve month balances or average
exchange rates.
The key non-GAAP performance measures used by the Group and
their calculation methods are:
Adjusted operating profit
Adjusted operating profit is operating profit excluding
amortisation and adjusting items. Adjusting items include business
disposal gains and losses, restructuring and optimisation costs,
acquisition related and integration costs and impairments. A
reconciliation between reported and adjusted operating profit is
set out on the face of the Consolidated Income Statement.
Operating profit before adjusting items
A reconciliation between operating profit and operating profit
before adjusting items is set out on the face of the Consolidated
Income Statement.
Other similar profit measures before adjusting items are quoted,
such as profit before income tax and adjusting items, and are
directly derived from the Consolidated Income Statement, from which
they can be directly reconciled.
Return on sales
Return on sales is adjusted operating profit measured as a
percentage of revenue.
Adjusted earnings per share
Adjusted earnings per share is basic earnings per share adjusted
to exclude the post-tax effects of adjusting items and
amortisation. A reconciliation between basic and adjusted earnings
per share is provided in note 7.
Return on average capital employed (ROACE)
ROACE is the last 12 months' adjusted operating profit as a
percentage of the average monthly capital employed over the
previous 12
month period. Capital employed is the sum of property, plant and
equipment, goodwill and intangible assets, working capital, capital
debtors/creditors, provisions and assets/liabilities held for
sale.
Half Half
year year Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
GBPm GBPm GBPm
-------------------------------------- ----------- ----------- ---------
Capital employed 3,867 2,950 2,796
Currency, inter-month and acquisition
movements (666) (160) 182
Last 12 months' average capital
employed 3,201 2,790 2,978
-------------------------------------- ----------- ----------- ---------
Last 12 months' adjusted operating
profit 468 421 443
Return on average capital employed 14.6% 15.1% 14.9%
-------------------------------------- ----------- ----------- ---------
EBITDA
Earnings before interest, tax, depreciation and amortisation
(EBITDA) is adjusted operating profit excluding depreciation. A
reconciliation from adjusted operating profit to EBITDA is provided
in note 11.
Net debt/EBITDA
Net debt/EBITDA is the ratio of net debt to EBITDA, calculated
in accordance with the Group's banking covenant requirements. In
calculating the ratio, net debt is stated at average rates as
opposed to closing rates, and EBITDA is adjusted operating profit
before depreciation from the previous 12 month period adjusted for
the full year effect of acquisitions and disposals in the
period.
Half Half
year year Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
GBPm GBPm GBPm
------------------------------------ ----------- ----------- ---------
Net debt - reported basis (see note
10) 1,406 1,155 1,092
Currency and acquisition effects (10) (108) -
Net debt - adjusted basis 1,396 1,047 1,092
------------------------------------ ----------- ----------- ---------
EBITDA - last 12 months' reported
basis 624 561 591
Currency and acquisition effects 77 6 6
EBITDA - adjusted basis 701 567 597
------------------------------------ ----------- ----------- ---------
Cash conversion
Cash conversion is free cash flow before tax, net interest,
growth capital expenditure, pension payments and adjusting items
cash flows as a percentage of adjusted operating profit. Growth
capital expenditure is capital expenditure necessary for the
development or expansion of the business. Free cash flow is set out
in note 11.
Half Half
year year Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
GBPm GBPm GBPm
------------------------------- ----------- ----------- ---------
Growth capital expenditure 58 44 103
Non-growth capital expenditure 72 47 141
Total capital expenditure 130 91 244
------------------------------- ----------- ----------- ---------
Average working capital to sales
Average working capital to sales measures the level of
investment the Group makes in working capital to conduct its
operations. It is measured by comparing the monthly working capital
balances for the previous 12 months as a percentage of revenue over
the same period. Working capital is the sum of inventories, trade
and other receivables, and trade and other payables, excluding
capital and acquisition related debtors and creditors.
Half Half
year year Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
GBPm GBPm GBPm
------------------------------------ ----------- ----------- ---------
Inventories 491 403 406
Trade and other receivables 889 818 769
Trade and other payables (1,725) (1,325) (1,372)
Inter-month movements and exclusion
of capital and acquisition related
items 351 180 239
Last 12 months' average working
capital 6 76 42
------------------------------------ ----------- ----------- ---------
Last 12 months' revenue 5,224 4,470 4,781
Average working capital to sales 0.1% 1.7% 0.9%
------------------------------------ ----------- ----------- ---------
Constant currency
The Group presents commentary on both reported and constant
currency revenue and adjusted operating profit comparatives in
order to explain the impact of exchange rates on the Group's key
income statement captions. Constant currency comparatives
recalculate the prior period revenue and adjusted operating profit
as if they had been generated at the current year exchange rates.
The table below shows the calculation:
Half year
ended
31 October
2016
------------------------ -------------------
Adjusted
operating
Revenue profit
GBPm GBPm
------------------------ ------- ----------
Reported basis 2,357 226
Currency effects 98 10
------------------------ ------- ----------
Constant currency basis 2,455 236
------------------------ ------- ----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UNVKRBUAURAA
(END) Dow Jones Newswires
December 07, 2017 02:00 ET (07:00 GMT)
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