Brambles 2006 Annual Report - Alle jaarverslagen

41
Brambles
2006 Annual Report
Proceeds and profits associated with the divestment programme to date
Proceeds
US$m
Gain/(loss) on sale
pre-tax
US$m
Gain/(loss) on sale
post-tax
US$m
Eurotainer 105.5 61.0 44.7
BIS Northern Hemisphere 238.2 0.7 1.8
Cleanaway Germany 738.5 179.3 172.1
Interlake 41.5 (19.5) (13.4)
TMF 19.4 8.8 7.5
TCR 32.7 10.7 10.7
Cleanaway Australia & Industrial Services Australia 1,341.6 857.1 743.4
Recall Italy 9.3 (26.5) (26.5)
Total 2,526.7 1,071.6 940.3
Cleanaway Germany, Brambles Industrial Services and
Regional Businesses were divested at various stages
during the year and each of their results in the year ended
30 June 2006 is shown up to the point where control
passed to the respective purchaser.
Cleanaway UK, whose result was consolidated for the
whole year, showed a strong improvement against last
year, with a 104% growth in underlying comparable
operating profit, at US$81.2 million.
The results of Cleanaway Rest of World were also
consolidated for the whole year, with the exception of
the last 11 days of June 2006 in respect of Cleanaway
Australia and New Zealand as control was deemed to
pass to the purchaser on 19 June 2006. Even excluding
this trading growth, underlying comparable operating
profit for Cleanaway Rest of World was 20% higher at
US$39.7 million.
Exceptional Items
A number of exceptional items are reflected in the income
statement for the year ended 30 June 2006. These are
set out in Notes 6 and 12 to the financial statements,
and largely reflect the one-off profits, losses and costs
associated with the divestments, restructuring and
unification programme announced on 29 November 2005,
but also include costs incurred in relation to the integration
of AUSDOC.
An agreement for the sale of Cleanaway UK for
US$1,102.2 million was signed, subject to regulatory
clearance, on 30 June 2006. The sale of this business
is expected to result in a profit before tax on sale of
approximately US$700 million, to be recorded in results
for the year ending 30 June 2007.
Interest
Net interest expense decreased by US$18.3 million to
US$111.8 million, principally reflecting receipt of proceeds
in relation to business sales and the generation of free
cash flow, offset by the purchase of AUSDOC and the
buy-back of shares in BIP and BIL for a total cost of
US$645.2 million.
Earnings per share
Basic earnings per share before special items were
US 38.3 cents compared with US 26.8 cents the previous
year, an increase of 43%. Basic earnings per share after
special items were US 86.7 cents (2005: US 26.4 cents),
an increase of 228%, principally reflecting the business
divestment profits. For continuing operations, basic
earnings per share before special items were
US 25.5 cents (2005: US 18.3 cents), an increase
of 39%, and after special items were US 21.5 cents
(2005: US 18.5 cents), an increase of 16%.
Taxation
The tax expense on continuing operations’ profit
before tax and special items of US$659.5 million was
US$229.4 million, an effective tax rate of 34.8%. This
compares with 34.1% in the previous year. Overall the
group effective tax rate for the year was 33.3%.
The effective tax rate on profit after special items is heavily
distorted by the tax treatment of exceptional items.
Cash flow
Free cash flow was US$559.7 million, compared to last
year’s figure of US$622.2 million.
Free cash flow was more than sufficient to cover dividends
paid of US$296.7 million.
Net borrowings were US$1,690.1 million, down from
US$2,208.3 million the previous year. This figure
was further significantly reduced in early July 2006
following the receipt of the US$1,341.6 million proceeds
from the sale of Cleanaway Australia and Industrial
Services Australia.