Financial review

Underlying results /

£m 2010 2009* Change
%		 Constant
currency
%
Turnover 10,565.8 9,684.6 9.1 8.6
Revenue 1,459.4 1,346.5 8.4 6.4
Gross profit 1,237.5 1,147.0 7.9 6.4
Operating expenses (1,045.3) (976.7) (7.0) (5.3)
Operating profit 192.2 170.3 12.9 12.3
Associates 4.0 (0.3) 1,433.3 1,900.0
Profit before interest and tax 196.2 170.0 15.4 14.5
Net financial items (33.8) (19.6) (72.4) (73.3)
Profit before tax 162.4 150.4 8.0 7.0
Diluted eps 10.1p 9.6p 5.2 4.1
Operating margin 13.2% 12.6% 60bps 70bps
* 2009 underlying results are restated to exclude imputed interest arising due to discounting of deferred consideration.

Headlines /

  • Revenue growth of 8.4%, or 6.4% at constant currency, to £1,459.4m (2009: £1,346.5m), driven in particular by strong top line growth from businesses in faster-growing regions and North America

  • Underlying operating profit increased 12.9%, or 12.3% at constant currency, to £192.2m (2009: £170.3m) and underlying pre-tax profit increased 8.0%, or 7.0% at constant currency, to £162.4m (2009: £150.4m), due to improved performances of both businesses during the year

  • Group margin improved 60 basis points, 70 basis points at constant currency, to 13.2% (2009: 12.6%)

  • Net debt fell to £331.3m at the end of 2010, from £398.4m at the end of the first half, due to strong operating cash flows in the second half of 2010

  • Balance sheet strengthened through £190.6m convertible bond and re-financing of £450.0m revolving credit facility

  • Covenant positions remain comfortable, with undrawn available facilities of £450.0m at end of the year (2009: £376.4m).

Currency /

The average exchange rates in the year saw sterling weaken against the US dollar and strengthen against the euro. The US dollar average rate for 2010 was £1:$1.5457 (2009 was £1:$1.5659) and the euro average rate was £1:€1.1663 (2009 was £1:€1.1229). On this basis the average US dollar rate strengthened versus sterling by 1.3% and the euro weakened versus sterling by 3.7%. Currency movements in other markets offset this effect so that reported results reflect a positive currency impact of 1.9% on reported revenue.

Continue