Ratio Analysis
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1) Debt Service Coverage Ratio = Profit Before Interest & Tax / Fix Interest Charges The standard ratio is 5 or 6 : 1 Also known as Interest Service Coverage Ratio or Fixed Charges Coverage Ratio.
2) Dividend Cover Ratio = ( Net Profit – Preference Share Dividend ) / Equity Share Dividend Declared No dividend declared during the year
3) Sales To Net Worth Ratio = Net Sales / Proprietor’s Funds
4) Debtors Turnover Ratio = Net Credit Sales / ( Average Debtors + Average Bills Receivable )
5) Average Collection Period = 365 / Debtors Turnover Ratio
6) Creditors Turnover Ratio = Net Credit Purchases / ( Average Creditors + Average Bills Payable )
7) Average Payment Period = 365 / Creditors Turnover Ratio
8) Working Capital Turnover Ratio = Net Sales / Working Capital
9) Fixed Assets Turnover Ratio = Net Sales / Net Fixed Assets
10) Current Assets Turnover Ratio = Net Sales / Current Assets
The standard ratio is 5 : 1
11) Assets Turnover Ratio = Net Sales / Total Assets
The standard ratio is 2 : 1
12) Return On Share Holder’s Investment = Net Profit After Tax * 100 Total Share Holder’s Funds
13) Return On Equity = Net Profit After Tax – Preference Share’s Dividend * 100 Equity Share Holder’s Funds
14) Return On Capital Employed = Profit Before Interest And Tax *100 Capital Employed Capital Employed = Proprietor’s Funds + Loan Funds
15) Return On Total Resources =
Net Profit After Interest And Tax *100 Total Assets – (Provision For Depreciation + Fictitious Assets)
16) Dividend Yield Ratio = ( Dividend Per Share / Market Price Per Share ) *100
17) Preference Dividend Cover Ratio = Net Profit After Interest And Tax Preference Share’s Dividend
*100
18) Equity Dividend Cover Ratio = Net Profit After Tax – Preference Share’s Dividend Equity Share Dividend Declared Per Share
* 100
19) Earning Per Share = Net Profit After Tax – Preference Share’s Dividend Equity Share Units 20) Dividend Payout Ratio = ( Dividend Declared Per Share / Earning Per Share ) *100 21) Price Earning Ratio = Market Price Per Share / Earning Per Share 22 return on equity 23 operating profit margin 24 Pat / networtrh
pbit/sales
Consolidated income statement for the year ended 31 December 2008
Notes
2008
2008
2008
Underlying1
NonUnderlying2
Total
£m
£m
£m
Continuing operations 2
Revenue
5,384
-
5,384
3
Trading costs
(4,746)
(57)
(4,803)
Restructuring costs
-
(194)
Non-trading items
-
1
1
638
(250)
388
10
-
10
648
(250)
398
52
-
(141)
91
(50)
559
(159)
400
(156)
126
(30)
403
(33)
4 5
(194)
Profit from operations
17
Share of result in associates Profit before financing and taxation
9
52 Investment revenue
10
Finance costs Profit before taxation
11
Taxation Profit for the period from continuing operations
370 31
Discontinued operations3 (Loss)/profit for the period from discontinued operations
84
(88) (4)
Profit for the period
487
(121)
366
485
(121)
364
2
-
2
487
(121)
366
Attributable to: Equity holders of the parent Minority interests
Earnings per share from continuing and discontinued operations
13
Basic
30.1 p
22.6 p
13
Diluted
30.0 p
22.6 p
From continuing Operations 13
Basic
24.9 p
22.8 p
13
Diluted
24.8 p
22.8 p
Before items described in Note 2 below. Includes restructuring costs, non-trading items, amortisation and impairment of acquisition intangibles, IAS 39 adjustment and any assoc financial statements. 3 In accordance with IFRS 5, the 2007 income statement, statement of recognised income and expense and related notes have been re-pre Beverages and Australia Beverages as discontinued operations (see Note 31). 1 2
Average number of shares Basic
1,611
Diluted
1,614
Balance Sheets at 31 December 2008
Notes
2008
2007
£m
£m
Assets Non-current assets 14 15
Goodwill Acquisition intangibles
15
Software intangibles
16
Property, plant and equipment Investment in associates
17 24 25 20
Deferred tax assets Retirement benefit assets Trade and other receivables
2,288
2,805
1,598
3,378
87
149
1,761
1,904
28
32
181
124
17
223
28
50
18
Other investments
2
2
5,990
8,667
767
821
247
2
1,067
1,197
35
41
251
493
Current assets 19
Inventories Short-term investments
20
Trade and other receivables Tax recoverable Cash and cash equivalents
27 21
Derivative financial instruments
Assets held for sale Total assets
268
46
2,635
2,600
270
71
8,895
11,338
(1,551)
(1,701)
(328)
(197)
(1,189)
(2,562)
(150)
(111)
(1)
(21)
Liabilities Current liabilities 22
Trade and other payables Tax payable
27 23 32
27
Short-term borrowings and overdrafts Short-term provisions Obligations under finance leases Derivative financial instruments
(169)
(22)
(3,388)
(4,614)
Non-current liabilities 22
Trade and other payables
27
Borrowings
25
Retirement benefit obligations Tax payable
24
Deferred tax liabilities
23
Long-term provisions
32
Obligations under finance leases
(61)
(37)
(1,194)
(1,120)
(275)
(143)
(6)
(16)
(121)
(1,145)
(218)
(61)
(1)
(11)
(1,876)
(2,533)
Liabilities directly associated with assets classified as held for sale 21 Total liabilities Net assets Equity
(97)
(18)
(5,361)
(7,165)
3,534
4,173
28 28
Share capital Share premium account
28
Other reserves
28
Retained earnings
136
264
38
1,225
850
(4)
2,498
2,677
3,522
4,162
12
11
3,534
4,173
Equity attributable to equity holders of the parent 28 29
Minority interests Total equity
Consolidated cash flow statement for the year ended 31 December 2008
Notes
34
Net cash inflow from operating activities
2008
2007
£m
£m
469
812
10
8
18
57
(500)
(409)
(107)
(30)
(67)
-
16
(352)
-
6
48
27
(4)
(1)
Investing activities
17
Dividends received from associates Proceeds on disposal of property, plant and equipment Purchases of property, plant and equipment and software Americas Beverages separation costs paid
Americas Beverages net cash and cash equivalents demerged
30
Acquisitions of businesses and associates Net cash assumed on acquisitions Sale of investments, associates and subsidiary undertakings
Cash removed on disposal
Acquistions and disposals
60
(320)
Movement in equity investments and money market deposits (245)
127
Net cash used in investing activities
(831)
(567)
Net cash (outflow)/inflow before financing activities
(362)
245
(295)
(311)
-
(1)
(21)
(21)
58
56
12
(13)
Financing activities Dividends paid Dividends paid to minority interests Capital element of finance leases repaid Proceeds on issues of ordinary shares Net movement of shares held under Employee Trust Proceeds of new borrowings Borrowings repaid
4,382
2,026
(4,167)
(1,722)
(31)
14
(393)
259
449
186
43
4
Net cash (used in)/generated from financing activities Net (decrease)/increase in cash and cash equivalents
Opening net cash and cash equivalents – total Group
Effect of foreign exchange rates Closing net cash and cash equivalents
99 449 Net cash and cash equivalents includes overdraft balances of £152 million (2007: £44 million). There are no cash and cash equivalents included in assets held for sale.
2008 398 50 7.96
vidend Declared 0
5,384 3,534 1.52 5,384 1,067 5.05 365 5.05 72.34
lls Payable ) (1,551)
365 0
5,384 6,023 0.89 5,384 5,734 0.94 5,384 2,635
2.04 5,384 8,895 0.61 366 3,534 0.1
366 3,534 0.1
398 1,658 0.24
*100
366 6,607 0.06
0
366 0
0
22.8
0
22.8
Re-presented
Re-presented
Re-presented
2007
2007
2007
Underlying1
Non-Underlying2
Total
£m
£m
£m
4,699
-
4,699
(4,226)
(32)
(4,258)
-
(165)
(165)
-
2
2
473
(195)
278
8
-
8
481
(195)
286
56
-
56
(107)
19
(88)
430
(176)
254
(121)
16
(105)
309
(160)
149
323
(65)
258
632
(225)
407
630
(225)
405
2
-
2
632
(225)
407
30.2 p
19.4 p
29.9 p
19.2 p
14.7 p
7.0 p
14.6 p
7.0 p
S 39 adjustment and any associated tax effect as set out in Note 1(y) to the related notes have been re-presented following the classification of Americas
2,087 2,108
2007 286 88 3.25
0
4,699 4,173 1.13 4,699 1,197 3.93 365 3.93 92.98
(1,701)
365 0
4,699 7,214 0.65 4,699 8,236 0.57 4,699 2,600
1.81 4,699 11,338 0.41 122 4,173 0.03
122 4,173 0.03
286 1,640 0.17
122 11,338 0.01
0
122 0
0
7.0
0
7.0
2) Dividend Cover Ratio = ( Net Profit – Preference Share Dividend ) / Equity Share Dividend Declared No dividend declared during the year
3) Sales To Net Worth Ratio = Net Sales / Proprietor’s Funds
4) Debtors Turnover Ratio = Net Credit Sales / ( Average Debtors + Average Bills Receivable )
5) Average Collection Period = 365 / Debtors Turnover Ratio
6) Creditors Turnover Ratio = Net Credit Purchases / ( Average Creditors + Average Bills Payable )
7) Average Payment Period = 365 / Creditors Turnover Ratio
8) Working Capital Turnover Ratio = Net Sales / Working Capital
9) Fixed Assets Turnover Ratio = Net Sales / Net Fixed Assets
10) Current Assets Turnover Ratio = Net Sales / Current Assets
The standard ratio is 5 : 1
11) Assets Turnover Ratio = Net Sales / Total Assets
The standard ratio is 2 : 1
12) Return On Share Holder’s Investment = Net Profit After Tax * 100 Total Share Holder’s Funds
13) Return On Equity = Net Profit After Tax – Preference Share’s Dividend * 100 Equity Share Holder’s Funds
14) Return On Capital Employed = Profit Before Interest And Tax *100 Capital Employed Capital Employed = Proprietor’s Funds + Loan Funds
15) Return On Total Resources =
Net Profit After Interest And Tax *100 Total Assets – (Provision For Depreciation + Fictitious Assets)
16) Dividend Yield Ratio = ( Dividend Per Share / Market Price Per Share ) *100
17) Preference Dividend Cover Ratio = Net Profit After Interest And Tax Preference Share’s Dividend
*100
18) Equity Dividend Cover Ratio = Net Profit After Tax – Preference Share’s Dividend Equity Share Dividend Declared Per Share
* 100
19) Earning Per Share = Net Profit After Tax – Preference Share’s Dividend Equity Share Units 20) Dividend Payout Ratio = ( Dividend Declared Per Share / Earning Per Share ) *100 21) Price Earning Ratio = Market Price Per Share / Earning Per Share 22 return on equity 23 operating profit margin 24 Pat / networtrh
pbit/sales
Consolidated income statement for the year ended 31 December 2008
Notes
2008
2008
2008
Underlying1
NonUnderlying2
Total
£m
£m
£m
Continuing operations 2
Revenue
5,384
-
5,384
3
Trading costs
(4,746)
(57)
(4,803)
Restructuring costs
-
(194)
Non-trading items
-
1
1
638
(250)
388
10
-
10
648
(250)
398
52
-
(141)
91
(50)
559
(159)
400
(156)
126
(30)
403
(33)
4 5
(194)
Profit from operations
17
Share of result in associates Profit before financing and taxation
9
52 Investment revenue
10
Finance costs Profit before taxation
11
Taxation Profit for the period from continuing operations
370 31
Discontinued operations3 (Loss)/profit for the period from discontinued operations
84
(88) (4)
Profit for the period
487
(121)
366
485
(121)
364
2
-
2
487
(121)
366
Attributable to: Equity holders of the parent Minority interests
Earnings per share from continuing and discontinued operations
13
Basic
30.1 p
22.6 p
13
Diluted
30.0 p
22.6 p
From continuing Operations 13
Basic
24.9 p
22.8 p
13
Diluted
24.8 p
22.8 p
Before items described in Note 2 below. Includes restructuring costs, non-trading items, amortisation and impairment of acquisition intangibles, IAS 39 adjustment and any assoc financial statements. 3 In accordance with IFRS 5, the 2007 income statement, statement of recognised income and expense and related notes have been re-pre Beverages and Australia Beverages as discontinued operations (see Note 31). 1 2
Average number of shares Basic
1,611
Diluted
1,614
Balance Sheets at 31 December 2008
Notes
2008
2007
£m
£m
Assets Non-current assets 14 15
Goodwill Acquisition intangibles
15
Software intangibles
16
Property, plant and equipment Investment in associates
17 24 25 20
Deferred tax assets Retirement benefit assets Trade and other receivables
2,288
2,805
1,598
3,378
87
149
1,761
1,904
28
32
181
124
17
223
28
50
18
Other investments
2
2
5,990
8,667
767
821
247
2
1,067
1,197
35
41
251
493
Current assets 19
Inventories Short-term investments
20
Trade and other receivables Tax recoverable Cash and cash equivalents
27 21
Derivative financial instruments
Assets held for sale Total assets
268
46
2,635
2,600
270
71
8,895
11,338
(1,551)
(1,701)
(328)
(197)
(1,189)
(2,562)
(150)
(111)
(1)
(21)
Liabilities Current liabilities 22
Trade and other payables Tax payable
27 23 32
27
Short-term borrowings and overdrafts Short-term provisions Obligations under finance leases Derivative financial instruments
(169)
(22)
(3,388)
(4,614)
Non-current liabilities 22
Trade and other payables
27
Borrowings
25
Retirement benefit obligations Tax payable
24
Deferred tax liabilities
23
Long-term provisions
32
Obligations under finance leases
(61)
(37)
(1,194)
(1,120)
(275)
(143)
(6)
(16)
(121)
(1,145)
(218)
(61)
(1)
(11)
(1,876)
(2,533)
Liabilities directly associated with assets classified as held for sale 21 Total liabilities Net assets Equity
(97)
(18)
(5,361)
(7,165)
3,534
4,173
28 28
Share capital Share premium account
28
Other reserves
28
Retained earnings
136
264
38
1,225
850
(4)
2,498
2,677
3,522
4,162
12
11
3,534
4,173
Equity attributable to equity holders of the parent 28 29
Minority interests Total equity
Consolidated cash flow statement for the year ended 31 December 2008
Notes
34
Net cash inflow from operating activities
2008
2007
£m
£m
469
812
10
8
18
57
(500)
(409)
(107)
(30)
(67)
-
16
(352)
-
6
48
27
(4)
(1)
Investing activities
17
Dividends received from associates Proceeds on disposal of property, plant and equipment Purchases of property, plant and equipment and software Americas Beverages separation costs paid
Americas Beverages net cash and cash equivalents demerged
30
Acquisitions of businesses and associates Net cash assumed on acquisitions Sale of investments, associates and subsidiary undertakings
Cash removed on disposal
Acquistions and disposals
60
(320)
Movement in equity investments and money market deposits (245)
127
Net cash used in investing activities
(831)
(567)
Net cash (outflow)/inflow before financing activities
(362)
245
(295)
(311)
-
(1)
(21)
(21)
58
56
12
(13)
Financing activities Dividends paid Dividends paid to minority interests Capital element of finance leases repaid Proceeds on issues of ordinary shares Net movement of shares held under Employee Trust Proceeds of new borrowings Borrowings repaid
4,382
2,026
(4,167)
(1,722)
(31)
14
(393)
259
449
186
43
4
Net cash (used in)/generated from financing activities Net (decrease)/increase in cash and cash equivalents
Opening net cash and cash equivalents – total Group
Effect of foreign exchange rates Closing net cash and cash equivalents
99 449 Net cash and cash equivalents includes overdraft balances of £152 million (2007: £44 million). There are no cash and cash equivalents included in assets held for sale.
2008 398 50 7.96
vidend Declared 0
5,384 3,534 1.52 5,384 1,067 5.05 365 5.05 72.34
lls Payable ) (1,551)
365 0
5,384 6,023 0.89 5,384 5,734 0.94 5,384 2,635
2.04 5,384 8,895 0.61 366 3,534 0.1
366 3,534 0.1
398 1,658 0.24
*100
366 6,607 0.06
0
366 0
0
22.8
0
22.8
Re-presented
Re-presented
Re-presented
2007
2007
2007
Underlying1
Non-Underlying2
Total
£m
£m
£m
4,699
-
4,699
(4,226)
(32)
(4,258)
-
(165)
(165)
-
2
2
473
(195)
278
8
-
8
481
(195)
286
56
-
56
(107)
19
(88)
430
(176)
254
(121)
16
(105)
309
(160)
149
323
(65)
258
632
(225)
407
630
(225)
405
2
-
2
632
(225)
407
30.2 p
19.4 p
29.9 p
19.2 p
14.7 p
7.0 p
14.6 p
7.0 p
S 39 adjustment and any associated tax effect as set out in Note 1(y) to the related notes have been re-presented following the classification of Americas
2,087 2,108
2007 286 88 3.25
0
4,699 4,173 1.13 4,699 1,197 3.93 365 3.93 92.98
(1,701)
365 0
4,699 7,214 0.65 4,699 8,236 0.57 4,699 2,600
1.81 4,699 11,338 0.41 122 4,173 0.03
122 4,173 0.03
286 1,640 0.17
122 11,338 0.01
0
122 0
0
7.0
0
7.0
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