2568.11 kb - Compass Group

57 Compass Group PLC Annual Report 20076 Discontinued operations continued2007 2006Selecta Other 1 Total SSP Selecta Other 2 TotalFinancial performance of discontinued operations £m £m £m £m £m £m £mTrading activities of discontinued operationsExternal revenue 325 33 358 1,238 483 276 1,997Inter-segment revenues 14 1 15 – 21 – 21Total revenue 339 34 373 1,238 504 276 2,018Operating costs (307) (43) (350) (1,209) (456) (279) (1,944)Trading activities of discontinued operations before exceptional costs 32 (9) 23 29 48 (3) 74Exceptional operating costs (note 7) – – – – – (47) (47)Profit before tax 32 (9) 23 29 48 (50) 27Income tax (expense)/credit (see below) (8) – (8) (7) (8) 1 (14)Profit after tax 24 (9) 15 22 40 (49) 13Exceptional items: disposal of net assets and otheradjustments relating to discontinued operationsProfit on disposal of net assets of discontinued operations 130 18 148 170 – (54) 116Increase in provisions related to discontinued operations 4 – (45) (45) – – – –Cumulative translation exchange loss recycled on disposals 3 – – – (2) – – (2)Profit on disposal before tax 130 (27) 103 168 – (54) 114Income tax (expense)/credit (see below) (1) 95 94 (99) – 5 (94)Total profit after tax 129 68 197 69 – (49) 20Profit/(loss) for the year from discontinued operationsProfit/(loss) for the year from discontinued operations 153 59 212 91 40 (98) 332007 2006Selecta Other 1 Total SSP Selecta Other 2 TotalIncome tax from discontinued operations £m £m £m £m £m £m £mIncome tax on trading activities of discontinued operationsCurrent tax (7) – (7) (9) (12) 1 (20)Deferred tax (1) – (1) 2 4 – 6Income tax (expense)/credit on discontinued operations (8) – (8) (7) (8) 1 (14)Exceptional items: income tax on disposal of net assets andother adjustments relating to discontinued operationsCurrent tax (1) 18 17 (117) – 11 (106)Deferred tax – (2) (2) 18 – (6) 12Exceptional tax credit (note 7) – 79 79 – – – –Income tax (expense)/credit on disposal of net assets ofdiscontinued operations (1) 95 94 (99) – 5 (94)Total income tax from discontinued operationsTotal income tax (expense)/credit from discontinued operations (9) 95 86 (106) (8) 6 (108)1. Travel concessions and various other non-core businesses and adjustments to prior year disposals.2. Middle East military catering operations and various other non-core businesses.3. The Group manages foreign currency exposures in accordance with the policies set out in note 20, matching its principal projected cash flows by currency to actual or effective borrowings in the samecurrency. As a result the cumulative exchange translation loss recycled on disposals is £nil (2006: £2 million).4. Additional provisions established in respect of the prior year disposal of travel concessions catering businesses and in respect of Middle East military catering operations discontinued in the prior year.