Operating profit107.0102.1
Acquisition costs0.2
Reorganisation costs0.8
Operating profit prior to exceptional items107.2102.9
Amortisation of acquired intangible fixed assets3.94.5
Headline operating profit111.1107.4

Group revenue was £609.1m, a decrease of 1.7%, with revenues at constant exchange rates up 4.0% and foreign exchange rate movements having a negative impact of 5.7%.

Headline operating profit for the year increased by 3.4% from £107.4m to £111.1m, and headline operating margin was 18.2% (2013: 17.3%). Headline operating profit at constant exchange rates increased by £9.9m, but adverse foreign exchange rate movements reduced the reported increase by £6.2m to £3.7m.

Cash flow IconCash flow is analysed as follows:

Headline operating profit111.1107.4
Add back non-cash items:
Depreciation and amortisation51.252.9
Impairment of fixed assets2.75.1
Share-based payments1.93.6
Profit on disposal of property, plant and equipment(1.4)(0.1)
Headline EBITDA1165.5168.9
Net capital expenditure(53.8)(57.3)
Net working capital movement(11.7)(2.7)
Headline operating cash flow100.0108.9
Cash cost of restructuring(3.0)(4.3)
Acquisition costs(0.2)
Operating cash flow96.8104.6
Free cash flow75.178.8

Profit growth, disciplined capital spending and working capital control have resulted in an operating cash inflow of £96.8m (2013: £104.6m). Group net cash at 31 December 2014 was £35.7m (2013: £15.0m).

Capital expenditure continued to be managed carefully. Capital spend (net of asset sales) in 2014 was £53.8m (2013: £57.3m), being 1.0 times depreciation2 (2013: 1.0 times). There has been a continued focus on cash collection and receivable days at 31 December 2014 were 60 days (31 December 2013: 59 days). The net working capital outflow in the year is primarily a result of increases in inventories and receivables, in line with trading activity, in addition to a decrease in payables, resulting from the timing of capital expenditure payments and the utilisation of environmental provisions.

  1. Earnings before interest, tax, depreciation, amortisation, share-based payments, impairment of fixed assets, profit or loss on disposal of property, plant and equipment and exceptional items.
  2. Net capital expenditure to depreciation ratio is defined as capital expenditure less proceeds from asset disposals as a proportion of depreciation and amortisation plus impairment of fixed assets.