Brambles 2006 Annual Report - Alle jaarverslagen

39
Brambles
2006 Annual Report
Summary of Statutory Financial Results for the Year
IFRS
2006
US$m
2005
US$m
% change
actual fx rates
Results after special items
Operating profit from continuing operations 701.1 606.0 16%
Profit before tax from continuing operations 589.3 475.9 24%
Group profit after tax, after minorities 1,463.4 447.0 227%
Basic earnings per share (US cents) 86.7 26.4 228%
Overview
The financial statements this year are significantly impacted
by a number of factors:
THE INTRODUCTION OF IFRS
This is the first Annual Report in which Brambles
has reported under International Financial Reporting
Standards (IFRS). The detailed impacts of the introduction
of IFRS are set out in detail in Notes 38 and 39 to the
Financial Statements.
It is important to note that, whilst the introduction of
IFRS has resulted in alterations to the presentation of
the Financial Statements, it has not affected the Group’s
strategy, underlying operations or cash flows.
For Brambles, it also provides the opportunity to present
the same financial information to both Australian and UK
markets, in contrast to the previous practice of reporting
under UK GAAP in the UK and under AGAAP in Australia.
The Directors have chosen to show separately “Special
Items” on the face of the Income Statement (page 89),
believing results before Special Items to be relevant
measures of business performance. Included within
Special Items are Exceptional Items, and certain of
these are set out below.
The definitions of Special and Exceptional Items are shown
in the Glossary on page 172.
REPORTING IN US DOLLARS
The introduction of IFRS also has allowed Brambles to
select a single reporting currency. Brambles has chosen
to report in US dollars, which is the Group’s fastest
growing currency in terms of sales and operating profit.
RESTRUCTURING, DIVESTMENT AND PROPOSED
UNIFICATION
On 29 November 2005, Brambles announced its intention
to focus on CHEP and Recall, divest its other businesses,
and unify the dual-listed companies (DLC) structure.
The divestments of Brambles Industrial Services’ Northern
Hemisphere operations, Cleanaway Germany, Cleanaway
Australia and New Zealand, Industrial Services Australia
and Brambles’ Regional Businesses have already been
completed. The divestment of Cleanaway UK has
also been announced and the divestment of the small
Cleanaway Asia business is anticipated to complete in
the next few months.
Resolutions associated with the proposed unification
of the DLC (Unification) will be put to shareholders at
Extraordinary General Meetings on 1 November 2006 in
the case of Brambles Industries plc and 9 November 2006
in the case of Brambles Industries Limited. An Information
Memorandum setting out information relevant to
Unification will be distributed to shareholders by the
end of September 2006.
The 30 June 2006 consolidated balance sheet set out
on page 90 includes a receivable of US$1,341.6 million
in respect of the sale of Brambles Australia Limited
(including the businesses of Industrial Services Australia
and Cleanaway Australia and New Zealand), which
was settled on 5 July 2006 when the sale completed.
Assets classified as held for sale of US$648.8 million
and associated liabilities of US$331.5 million relate to
Cleanaway UK and Cleanaway Asia. The sale of Cleanaway
UK for US$1,102.2 million, which was announced on
30 June 2006, is subject to regulatory clearance and the
associated profit on sale has not been recognised in 2006.
In this financial review, the majority of the focus will be
on the performance of Brambles’ continuing operations,
CHEP and Recall, although a section has been dedicated
to Brambles’ discontinued operations, which also had
good results for the year.
Relative measures of sales and comparable operating profit
performance are stated in constant currency.
Continuing Operations
Brambles continues to focus on the use of Brambles Value
Added (BVA) and this has helped to deliver record Returns
on Capital Invested (ROCI).
BVA, which is denominated in US dollars, measures the
economic returns of different businesses and business
decisions by comparison to a pre-tax weighted average
cost of capital (a full definition is shown in the Glossary
on page 171). In 2006, BVA, the definition of which has
been adjusted to adopt IFRS-compliant terms, continued
to form the core component of short term incentive
arrangements for all senior executives, including Brambles’
Executive Directors.
Because of the distorting effects of the divestment
and unification programme, BVA is only shown for
continuing operations: