Connecting People and Communities
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Financial statements FINANCIAL STATEMENTS Consolidated income statement 136 Connecting Consolidated statement of 137 comprehensive income Consolidated balance sheet 138 people and Consolidated statement 139 of changes in equity Consolidated cash flow statement 140 Note to the consolidated cash flow 140 communities statement – reconciliation of net cash flow to movement in net debt Notes to the consolidated 141 financial statements Independent auditor’s report 205 Group financial summary 218 Company balance sheet 219 Statement of changes in equity 220 statements Financial Notes to the Company 221 financial statements Shareholder information 226 Financial calendar 227 Glossary 228 Supporting mental health conversations amongst customers and colleagues First Rail operating companies GWR, SWR and TPE teamed up with leading UK charity Samaritans to hold events across our networks highlighting important mental Promoting travel for customers health issues such as stress, with disabilities depression and anxiety. On what is known as ‘Blue Monday’ in Bus minister Baroness Vere visited January, employees who are First Bus in Bristol to launch the trained as Mental Health First DfT’s ‘It’s Everyone’s Journey’ Aiders, in conjunction with campaign to promote inclusivity volunteers from Samaritans, on public transport. One in four attended stations to talk to disabled people say that negative customers and fellow employees attitudes from other passengers – offering support as well as prevent them from travelling. First helping overcome the stigma Bus pioneered the use of disability associated with discussing awareness cards for customers mental health. who need additional support, and is proud to partner in this drive to encourage the small changes in everyone’s behaviour to create a more supportive and inclusive travel environment for disabled passengers. Financial statements Consolidated income statement For the year ended 31 March 2020 2019 Continuing Operations Notes £m £m Revenue 3,5 7,754.6 7,126.9 Operating costs 6 (7,907.3) (7,117.1) Operating (loss)/profit 5,6 (152.7) 9.8 Investment income 8 2.7 2.7 Finance costs 8 (149.6) (110.4) Loss before tax (299.6) (97.9) Tax 9 (25.0) (10.1) Loss for the year (324.6) (108.0) Attributable to: Equity holders of the parent (327.2) (66.9) Non-controlling interests 2.6 (41.1) (324.6) (108.0) Earnings per share Basic 10 (27.0)p (5.5)p Diluted 10 (27.0)p (5.5)p Adjusted results1 Restated2 Adjusted operating profit 4 256.8 314.8 Adjusted profit before tax 4 109.9 208.2 Adjusted EPS 10 6.8p 13.3p Adjusted diluted EPS 10 6.7p 13.2p 1 Adjusted for certain items as set out in note 4. 2 Restated to charge £18.1m of software amortisation to divisional results in arriving at adjusted operating profit. The accompanying notes form an integral part of this consolidated income statement. 136 FirstGroup Annual Report and Accounts 2020 Consolidated statement of comprehensive income Year ended 31 March 2020 2019 Note £m £m Loss for the year (324.6) (108.0) Items that will not be reclassified subsequently to profit or loss Actuarial losses on defined benefit pension schemes 36 (29.0) (38.7) Deferred tax on actuarial losses on defined benefit pension schemes 1.1 7.1 Writing down previously recognised deferred tax assets on actuarial losses on defined benefit schemes (25.7) – (53.6) (31.6) Items that may be reclassified subsequently to profit or loss Derivative hedging instrument movements 28 (29.3) 23.5 Deferred tax on derivative hedging instrument movements 5.9 (4.1) Exchange differences on translation of foreign operations 91.3 160.8 67.9 180.2 Other comprehensive income for the year 14.3 148.6 statements Financial Total comprehensive (loss)/income for the year (310.3) 40.6 Attributable to: Equity holders of the parent (312.9) 81.7 Non-controlling interests 2.6 (41.1) (310.3) 40.6 The accompanying notes form an integral part of this consolidated statement of comprehensive income. FirstGroup Annual Report and Accounts 2020 137 Financial statements continued Consolidated balance sheet As at 31 March 2020 2019 Note £m £m Non-current assets Goodwill 11 1,663.2 1,598.1 Other intangible assets 12 51.9 75.1 Property, plant and equipment 13 4,374.5 2,165.9 Deferred tax assets 25 33.6 40.6 Retirement benefit assets 36 53.2 69.2 Derivative financial instruments 24 15.8 20.5 Investments 14 32.9 34.1 6,225.1 4,003.5 Current assets Inventories 16 63.3 60.2 Trade and other receivables 17 1,170.6 1,141.4 Current tax assets 9.8 3.4 Cash and cash equivalents 20 869.3 692.9 Assets held for sale 18 1.0 31.7 Derivative financial instruments 24 4.8 15.5 2,118.8 1,945.1 Total assets 8,343.9 5,948.6 Current liabilities Trade and other payables 19 1,799.7 1,547.3 Tax liabilities – Current tax liabilities 7.5 3.9 – Other tax and social security 42.9 29.0 Borrowings 21 694.3 84.9 Derivative financial instruments 24 44.2 3.4 Provisions 26 232.1 265.9 2,820.7 1,934.4 Net current (liabilities)/assets (701.9) 10.7 Non-current liabilities Borrowings 21 3,502.9 1,564.1 Derivative financial instruments 24 19.2 1.9 Retirement benefit liabilities 36 366.6 376.4 Deferred tax liabilities 25 38.8 16.5 Provisions 26 419.0 532.0 4,346.5 2,490.9 Total liabilities 7,167.2 4,425.3 Net assets 1,176.7 1,523.3 Equity Share capital 27 61.0 60.7 Share premium 688.6 684.0 Hedging reserve 28 (28.3) 17.5 Other reserves 28 4.6 4.6 Own shares 28 (10.2) (4.7) Translation reserve 29 635.6 544.3 Retained earnings (141.5) 248.1 Equity attributable to equity holders of the parent 1,209.8 1,554.5 Non-controlling interests (33.1) (31.2) Total equity 1,176.7 1,523.3 The accompanying notes form an integral part of this consolidated balance sheet. Ryan Mangold 8 July 2020 138 FirstGroup Annual Report and Accounts 2020 Consolidated statement of changes in equity Year ended 31 March Non- Share Share Hedging Other Own Translation Retained controlling Total capital premium reserve reserves shares reserve earnings Total interests equity £m £m £m £m £m £m £m £m £m £m Balance at 1 April 2018 60.5 681.4 16.5 4.6 (6.3) 383.5 340.6 1,480.8 9.8 1,490.6 Loss for the year – – – – – – (66.9) (66.9) (41.1) (108.0) Other comprehensive income/(loss) for the year – – 19.4 – – 160.8 (31.6) 148.6 – 148.6 Total comprehensive (loss)/income for the year – – 19.4 – – 160.8 (98.5) 81.7 (41.1) 40.6 Shares issued 0.2 2.6 – – – – – 2.8 – 2.8 Derivative hedging instrument movements transferred to balance sheet (net of tax) – – (18.4) – – – – (18.4) – (18.4) Dividends paid/other – – – – – – – – 0.1 0.1 Movement in EBT and treasury shares – – – – 1.6 – (3.1) (1.5) – (1.5) Share-based payments – – – – – – 9.1 9.1 – 9.1 Balance at 31 March 2019 60.7 684.0 17.5 4.6 (4.7) 544.3 248.1 1,554.5 (31.2) 1,523.3 Financial statements Financial Balance at 31 March 2019 60.7 684.0 17.5 4.6 (4.7) 544.3 248.1 1,554.5 (31.2) 1,523.3 Adjustment on transition to IFRS 16 – – – – – – (15.6) (15.6) – (15.6) Balance at 1 April 2019 60.7 684.0 17.5 4.6 (4.7) 544.3 232.5 1,538.9 (31.2) 1,507.7 Loss for the year – – – – – – (327.2) (327.2) 2.6 (324.6) Other comprehensive income/(loss) for the year – – (23.4) – – 91.3 (53.6) 14.3 – 14.3 Total comprehensive (loss)/income for the year – – (23.4) – – 91.3 (380.8) (312.9) 2.6 (310.3) Shares issued 0.3 4.6 – – – – – 4.9 – 4.9 Derivative hedging instrument movements transferred to balance sheet (net of tax) – – (22.4) – – – – (22.4) – (22.4) Dividends paid/other – – – – – – 0.7 0.7 (4.5) (3.8) Movement in EBT and treasury shares – – – – (5.5) – (4.2) (9.7) – (9.7) Share-based payments – – – – – – 10.3 10.3 – 10.3 Balance at 31 March 2020 61.0 688.6 (28.3) 4.6 (10.2) 635.6 (141.5) 1,209.8 (33.1) 1,176.7 The accompanying notes form an integral part of this consolidated statement of changes in equity. FirstGroup Annual Report and Accounts 2020 139 Financial statements continued Consolidated cash flow statement Year ended 31 March 2020 2019 Note £m £m Net cash from operating activities 31 958.2 563.7 Investing activities Interest received 2.7 2.7 Proceeds from disposal of property, plant and equipment 30.5 63.5 Purchases of property, plant and equipment (321.8) (421.3) Purchases of software (9.2) (8.9) Disposal of businesses 4 16.2 – Acquisition of businesses 30 (21.8) (2.3) Net cash used in investing activities (303.4) (366.3) Financing activities Shares purchased by Employee Benefit Trust (9.8) – Shares issued 4.5 2.1 Repayment of bond – (250.0) Drawdowns from bank facilities 122.9 255.0 Repayment of loan notes – (0.1) Repayments of lease liabilities (596.5) (53.1) Fees for finance facilities (2.1) (2.2) Net cash flow used in financing activities (481.0) (48.3) Net increase in cash and cash equivalents before foreign exchange movements 173.8 149.1 Cash and cash equivalents at beginning of year 692.9 555.7 Foreign exchange movements 2.6 (11.9) Cash and cash equivalents at end of year per consolidated balance sheet 20 869.3 692.9 Cash and cash equivalents are included within current assets on the consolidated balance sheet.