Financial statements

Summarised income statement

£m 2016 2015 2014 2013 2012
Revenue 2,561.6 2,384.7 2,219.8 2,094.9 2,047.1
Gross profit 243.7 213.2 181.0 171.3 186.7
Operating profit 48.8 38.8 28.9 33.6 48.1
Net finance income/(expense) -3.5 -4.5 -3.7 -2.3 -1.0
PBTA 45.3 34.3 25.2 31.3 47.1
Exceptional items - -46.9 0.0 -14.7 -10.0
Intangible amortisation -1.4 -2.2 -2.4 -2.7 -2.9
Statutory profit/(loss) before tax 43.9 -14.8 22.8 13.9 34.2
Tax (charge)/credit -7.1 4.8 -4.8 1.1 -3.5
Profit/(loss) after tax 36.8 -10.0 18.0 15.0 30.7
Adjusted earnings per share 84.7p 63.0p 46.7p 60.9p 92.0p
Dividend per share 35.0p 29.0p 27.0p 27.0p 27.0p

Other data

Net cash (£m) 208.7 57.9 55.7 69.7 50.4
Average number of employees 5,982 5,828 5,750 5,752 6,384
Market cap at b/s date (£m) 333.1 327.8 273.3 326.6 222.8

The information above should be read in conjunction with Morgan Sindall Group plc’s annual reports from which it has been extracted.

Consolidated income statement

For the year ended 31 December 2016

    2016
2015
  Notes Total
£m
Before exceptional items
£m
Exceptional operating items
£m
Total
£m
Revenue   2,561.6 2,384.7 - 2,384.7
Cost of sales   (2,317.9) (2,171.5) (46.9) (2,218.4)
Gross profit   243.7 213.2 (46.9) 166.3
Administrative expenses   (202.3) (184.0) - (184.0)
Share of net profit of joint ventures   7.4 9.6 - 9.6
Operating profit/(loss) before amortisation of intangible assets   48.8 38.8 (46.9) (8.1)
Amortisation of intangible assets   (1.4) (2.2) - (2.2)
Operating profit/(loss)   47.4 36.6 (46.9) (10.3)
Finance income   1.3 1.2 - 1.2
Finance expense   (4.8) (5.7) - (5.7)
Profit/(loss) before tax   43.9 32.1 (46.9) (14.8)
Tax 4 (7.1) (4.7) 9.5 4.8
Profit/(loss) for the year   36.8 27.4 (37.4) (10.0)
Attributable to:          
Owners of the Company   36.8 27.5 (37.4) (9.9)
Non-controlling interests   - (0.1) - (0.1)
Profit/(loss) for the year   36.8 27.4 (37.4) (10.0)
           
Earnings/(loss) per share          
Basic 6 83.8p     (22.6p)
Diluted 6 81.4p     (22.3p)

There were no discontinued operations in either the current or comparative periods.

Consolidated statement of comprehensive income

For the year ended 31 December 2016

  2016
£m
2015
£m
Profit/(loss) for the year 36.8 (10.0)
Items that will not be reclassified subsequently to profit or loss:    
Actuarial gain/(loss) arising on retirement benefit obligation 0.7 (0.1)
Deferred tax on retirement benefit obligation (0.1) (0.1)
  0.6 (0.2)
Items that may be reclassified subsequently to profit or loss:    
Foreign exchange movement on translation of overseas operation 0.6 (0.4)
Other movement on cash flow hedges 0.8 0.2
Deferred tax relating to items that may be reclassified (0.2) -
  1.2 (0.2)
Other comprehensive income/(expense) 1.8 (0.4)
Total comprehensive income/(expense) 38.6 (10.4)
Attributable to:    
Owners of the Company 38.6 (10.3)
Non-controlling interests - (0.1)
Total comprehensive income/(expense) 38.6 (10.4)
Consolidated balance sheet

At 31 December 2016

  Notes 2016
£m
2015
£m
Assets      
Goodwill and other intangible assets   217.0 217.3
Property, plant and equipment   16.6 20.8
Investment property   6.6 8.8
Investments in joint ventures   56.9 50.3
Shared equity loan receivables 7 18.4 20.3
Retirement benefit asset   2.6 1.4
Non-current assets   318.1 318.9
Inventories   213.9 246.7
Trade and other receivables 8 332.8 353.6
Cash and cash equivalents 9 228.5 115.7
Current assets   775.2 716.0
Total assets   1,093.3 1,034.9
Liabilities      
Trade and other payables 11 (748.3) (674.5)
Current tax liabilities   (7.7) (3.5)
Finance lease liabilities   (0.5) (1.6)
Borrowings 9 (4.8) (12.8)
Provisions   - (0.1)
Current liabilities   (761.3) (692.5)
Net current assets   13.9 23.5
Trade and other payables   (8.6) (17.8)
Finance lease liabilities   (0.7) (1.8)
Borrowings 9 (15.0) (45.0)
Deferred tax liabilities   (11.7) (11.9)
Provisions   (18.8) (16.9)
Non-current liabilities   (54.8) (93.4)
Total liabilities   (816.1) (785.9)
Net assets   277.2 249.0
Equity      
Share capital   2.2 2.2
Share premium account   33.7 32.0
Other reserves   0.2 (1.0)
Retained earnings   241.1 216.5
Equity attributable to owners of the Company   277.2 249.7
Non-controlling interests   - (0.7)
Total equity   277.2 249.0
Consolidated cash flow statement

For the year ended 31 December 2016

 
Notes
2016
£m
2015
£m
Operating activities      
Operating profit/(loss)   47.4 (10.3)
Adjusted for:      
Amortisation of intangible assets   1.4 2.2
Share of net profit of equity accounted joint ventures   (7.4) (9.6)
Depreciation   5.5 5.5
Share option expense   4.6 2.0
Gain on disposal of property, plant and equipment   (0.2) (0.3)
Movement in fair value of shared equity loan receivables 7 (0.6) (1.4)
Non-cash exceptional operating items   - 46.9
Additional pension contributions   (0.4) (0.7)
Disposals of investment properties   2.2 0.7
Repayment of shared equity loan receivables 7 2.5 1.5
Increase/(decrease) in provisions   1.8 (0.8)
Operating cash inflow before movements in working capital   56.8 35.7
Decrease/(increase) in inventories   32.8 (44.5)
Decrease in receivables   22.6 41.5
Increase/(decrease) in payables   69.8 (20.3)
Movements in working capital   125.2 (23.3)
Cash inflow from operations   182.0 12.4
Income taxes paid   (3.3) (1.7)
Net cash inflow from operating activities   178.7 10.7
Investing activities      
Interest received   1.3 1.3
Dividend from joint ventures   1.2 0.7
Proceeds on disposal of property, plant and equipment   3.6 0.6
Purchases of property, plant and equipment   (4.7) (6.2)
Purchases of intangible fixed assets   (1.1) (1.4)
Net (increase)/decrease in loans to joint ventures   (0.4) 13.6
Payment for the acquisition of subsidiaries, joint ventures and other businesses   (7.7) -
Net cash (outflow)/inflow from investing activities   (7.8) 8.6
Financing activities      
Interest paid   (3.1) (4.7)
Dividends paid 5 (13.2) (11.8)
Repayments of obligations under finance leases   (2.2) (1.9)
(Repayment of)/proceeds from borrowings   (38.0) 25.9
Proceeds on issue of share capital   1.7 1.1
Payments by the employee benefit trust to acquire shares in the Company   (3.3) -
Proceeds on exercise of share options   - 0.2
Net cash (outflow)/inflow from financing activities   (58.1) 8.8
Net increase in cash and cash equivalents   112.8 28.1
Cash and cash equivalents at the beginning of the year   115.7 87.6
Cash and cash equivalents at the end of the year 9 228.5 115.7
Consolidated statement of changes in equity

For the year ended 31 December 2016

  Share
capital
£m
Share
premium
account
£m
Other
reserves
£m
Retained
earnings
£m
Total
£m
Non-controlling
interests
£m
Total
equity
£m
1 January 2015 2.2 30.9 (0.8) 236.2 268.5 (0.6) 267.9
Total comprehensive income - - (0.2) (10.1) (10.3) (0.1) (10.4)
Share option expense - - - 2.0 2.0 - 2.0
Issue of shares at a premium - 1.1 - - 1.1 - 1.1
Exercise of share options and vesting of share awards - - - 0.2 0.2 - 0.2
Dividends paid - - - (11.8) (11.8) - (11.8)
1 January 2016 2.2 32.0 (1.0) 216.5 249.7 (0.7) 249.0
Total comprehensive income - - 1.2 37.4 38.6 - 38.6
Share option expense - - - 4.6 4.6 - 4.6
Issue of shares at a premium - 1.7 - - 1.7 - 1.7
Purchase of shares in the Company by the employee benefit trust - - - (3.3) (3.3) - (3.3)
Purchase of additional stake in subsidiary undertaking - - - (0.9) (0.9) 0.7 (0.2)
Dividends paid - - - (13.2) (13.2) - (13.2)
31 December 2016 2.2 33.7 0.2 241.1 277.2 - 277.2