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Notes 16-21

19. Non-GAAP measures of performance

Reconciliation of profit before interest and taxation to headline PBIT for the six months ended 30 June 2011

  Six months
ended
30 June
2011
£m
Six months
ended
30 June
2010
£m
Year ended
31 December
2010
£m
Profit before interest and taxation 455.7 362.5 1,028.2
Losses/(gains) on disposal of investments 2.7 0.7 (4.1)
Gains on re-measurement of equity interest on acquisition of controlling interest (25.4) (7.5) (13.7)
Goodwill impairment 10.0 10.0
Amortisation and impairment of acquired intangible assets 83.3 87.0 170.5
Share of exceptional losses of associates 0.7 0.4 0.3
Investment write-downs 0.9 2.2 37.5
Headline PBIT/Headline operating profit 517.9 455.3 1,228.7
       
Finance income 44.9 39.3 81.7
Finance costs (145.8) (138.4) (276.8)
  (100.9) (99.1) (195.1)
       
 
 
Interest cover on headline PBIT 5.1 times 4.6 times 6.3 times

Calculation of headline EBITDA

  Six months
ended
30 June
2011
£m
Six months
ended
30 June
2010
£m
Year ended
31 December
2010
£m
Headline PBIT (as above) 517.9 455.3 1,228.7
Depreciation of property, plant and equipment 89.1 93.0 184.9
Amortisation of other intangible assets 12.5 12.5 25.4
Headline EBITDA 619.5 560.8 1,439.0

Reconciliation of profit before taxation to headline PBT and headline earnings for the six months ended 30 June 2011

  Six months
ended
30 June
2011
£m
Six months
ended
30 June
2010
£m
Year ended
31 December
2010
£m
Profit before taxation 334.3 243.9 851.3
       
Losses/(gains) on disposal of investments 2.7 0.7 (4.1)
Gains on re-measurement of equity interest on acquisition of controlling interest (25.4) (7.5) (13.7)
Goodwill impairment 10.0 10.0
Investment write-downs 0.9 2.2 37.5
Amortisation and impairment of acquired intangible assets 83.3 87.0 170.5
Share of exceptional losses of associates 0.7 0.4 0.3
Revaluation of financial instruments 20.5 19.5 (18.2)
Headline PBT 417.0 356.2 1,033.6
       
Taxation (excluding net deferred tax credit in relation to the amortisation of acquired intangible assets and other goodwill items) (91.9) (85.2) (227.8)
Non-controlling interests (32.1) (31.8) (75.0)
       
Headline earnings 293.0 239.2 730.8
       
Ordinary dividends1 94.5 73.8 200.4
       
Dividend cover on headline earnings 3.1 times 3.2 times 3.6 times

Notes

  1. 1 For the six months ended 30 June 2011, ordinary dividends represent an estimate of the 2011 first interim dividend expected to be paid to share owners in November 2011, based on the number of shares in issue at 30 June 2011. The corresponding figure for the six months ended 30 June 2010 represents the 2010 first interim dividend paid in November 2010.

Headline PBIT margins before and after share of results of associates

  Margin
(%)
Six months
ended
30 June
2011
£m
Margin
(%)
Six ???months
ended???
30 June
2010
£m
Revenue   4,713.0   4,440.9
Headline PBIT 11.0 517.9 10.3 455.3
Share of results of associates (excluding exceptional losses)   25.2   22.7
Headline PBIT excluding share of results of associates 10.5 492.7 9.7 432.6

Reconciliation of free cash flow for the six months ended 30 June 2011

  Six months
ended
30 June
2011
£m
Six months
ended
30 June
2010
£m
Year ended
31 December
2010
£m
Cash generated by operations (280.3) 17.4 1,680.1
Plus:      
Interest received 24.9 27.1 50.7
Investment income 0.2 1.0 4.2
Dividends from associates 23.9 24.6 53.3
Share option proceeds 23.5 9.3 42.7
Movements in working capital and provisions 911.8 555.7 (225.5)
Proceeds on disposals of property, plant and equipment 7.3 1.5 7.6
Less:      
Interest and similar charges paid (132.2) (134.1) (219.7)
Purchases of property, plant and equipment (92.9) (79.9) (190.5)
Purchases of other intangible assets (including capitalised computer software) (13.7) (9.9) (27.0)
Corporation and overseas tax paid (126.5) (95.7) (207.4)
Dividends paid to non-controlling interest in subsidiary undertakings (28.7) (33.3) (66.7)
Free cash flow 317.3 283.7 901.8