Carphone Warehouse 2011 Annual Report Download - page 30

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£156M OF NET FUNDS / LOAN ASSETS
OTHER
EPS UP OVER 80% TO 15p
5p DIVIDEND
FINANCIALS
£
26 Carphone Warehouse Group plc Annual Report 2011
BUSINESS REVIEW
OTHER FINANCIALS
Headline Group income statement
2011
£m
2010
£m
Revenue 5.6 5.5
Operating expenses (8.7) (6.0)
Best Buy Europe160.4 47.3
Virgin Mobile France28.2 (8.2)
EBIT 65.5 38.6
Interest 3.9 (1.6)
Taxation (1.6) 0.4
PAT 67.8 37.4
EPS 15.0p 8.3p
1 See page 16.
2 See page 24.
Revenue represents rental income from
the Group’s freehold properties, and
increased from £5.5m in 2009-10 to £5.6m
in 2010-11.
As anticipated, operating costs increased
year-on-year, from £6.0m to £8.7m, in the
first year of a stand-alone PLC function
following the Demerger.
Net interest income for the period was
£3.9m (2010: expense of £1.6m) reflecting
interest on cash and on loans to Virgin
Mobile France, facility fees from Best
Buy Europe and income from minority
investments.
A tax charge of £1.6m arose in the year,
compared to a credit of £0.4m in the prior
year, reflecting increased interest income
and a proportion of disallowable costs
within profit before taxation.
Revenue and operating expenses are
expected to remain similar in the year
to March 2012.
Statutory results
2011
£m
2010
£m
PAT 65.6 218.8
EPS 14.5p 48.7p
Prior year statutory profits include
dividend income of £182.0m which
arose in association with the Demerger.
Current year statutory profits include
amortisation of acquisition intangibles
in Virgin Mobile France, which had a
post-tax effect of £2.2m (2010: £0.6m).
These items are excluded from Headline
results to avoid distortion of underlying
performance. A reconciliation between
Headline results and statutory results is
provided in note 10 to the Group financial
statements.
Group balance sheet
2011
£m
2010
£m
Best Buy Europe 571.8 512.6
Virgin Mobile France 20.4 29.2
Cash 120.6 100.0
Property 67.8 65.9
Other (22.6) (17.2)
Net assets 758.0 690.5
Group net assets increased by £67.5m
year-on-year to £758.0m (2010: £690.5m)
broadly in line with net profits for the year.
The Group’s interests in Best Buy Europe
comprise our share of the joint venture’s
net assets, together with goodwill on the
investment, and the year-on-year growth
in its value is closely in line with our share
of Best Buy Europe PAT.
The Group’s interests in Virgin Mobile
France include loans due to the Group
as well as our share of the venture’s net
liabilities. Strong cash generation enabled
the business to repay £14.6m of loans to
the Group, leaving £35.7m outstanding
at the end of the year. These loan
repayments contributed to an increase in
the Group’s cash balances year-on-year
from £100.0m to £120.6m.
Freehold properties
While our freeholds are
not strategic investments,
we anticipate that minor
development work in the
short-term will help to
maximise capital returns.
In Preston, we have
developed retail units
alongside our office space,
and may find opportunities
for further expansion in the
coming year.