| 2012
£m | 2011
£m |
|---|
| Revenue | 587.8 | 570.7 |
| Operating profit | 93.4 | 80.4 |
| Add back / (subtract): | | |
| Impairment of goodwill and acquired intangible fixed assets | – | 4.2 |
| Acquisition costs | 2.5 | – |
| Reorganisation costs | 2.4 | – |
| Profit on disposal of investment | (2.4) | – |
| Amortisation of acquired intangible fixed assets | 2.0 | 0.9 |
| Headline operating profit | 97.9 | 85.5 |
Group revenue was £587.8m, an increase of 3.0%, of which acquisitions accounted for 3.9%, organic growth contributed 2.5% and foreign exchange rate movements had a negative impact of 3.4%.
Headline operating profit was £97.9m, an increase of 14.4%, of which acquisitions accounted for 6.0%, organic growth contributed 11.0% and foreign exchange rate movements had a negative impact of 2.6%. Headline operating margin increased from 15.0% to 16.6%.
Cash flow is analysed as follows:
| 2012
£m | 2011
£m |
|---|
| Headline operating profit | 97.9 | 85.5 |
| Add back non-cash items: | | |
| Depreciation and amortisation | 50.5 | 50.2 |
| Impairment of fixed assets | 0.7 | 0.5 |
| Share-based payments | 3.9 | 5.4 |
| Loss on disposal of property, plant and equipment | 0.1 | 0.7 |
| Headline EBITDA1 | 153.1 | 142.3 |
| Net capital expenditure | (47.7) | (44.5) |
| Net working capital movement | 5.4 | (1.8) |
| Headline operating cash flow | 110.8 | 96.0 |
| Cash cost of restructuring | (5.3) | (5.7) |
| Acquisition costs | (2.5) | – |
| Operating cash flow | 103.0 | 90.3 |
| Interest | (2.5) | (4.5) |
| Taxation | (19.3) | (15.3) |
| Free cash flow | 81.2 | 70.5 |
Strong profit growth, disciplined capital spending and working capital control have resulted in excellent operating cash flow of £103.0m (2011: £90.3m). This has allowed £84.7m of acquisitions to be funded, while Group net debt at 31 December 2012 remains modest at £34.2m (2011: net cash £0.1m).
Capital expenditure has continued to be managed carefully. Capital spend (net of asset sales) in 2012 was £47.7m, being 0.9 times depreciation (2011: 0.9 times). There has been a continued focus on cash collection and receivable days at 31 December 2012 are 58 days (31 December 2011: 59 days). Receivables are little changed in the year and a modest increase in inventories (£1.8m) has been more than offset by an increase in payables of £6.4m.
Definitions:
- Earnings before interest, tax, depreciation, amortisation, share-based payments, impairment of fixed assets, loss on disposal of property, plant and equipment and exceptional items.