| 2014
£m | 2013
£m |
|---|
| Revenue | 609.1 | 619.6 |
| Operating profit | 107.0 | 102.1 |
| Acquisition costs | 0.2 | – |
| Reorganisation costs | – | 0.8 |
| Operating profit prior to exceptional items | 107.2 | 102.9 |
| Amortisation of acquired intangible fixed assets | 3.9 | 4.5 |
| Headline operating profit | 111.1 | 107.4 |
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 is analysed as follows:
| 2014
£m | 2013
£m |
|---|
| Headline operating profit | 111.1 | 107.4 |
| Add back non-cash items: | | |
| Depreciation and amortisation | 51.2 | 52.9 |
| Impairment of fixed assets | 2.7 | 5.1 |
| Share-based payments | 1.9 | 3.6 |
| Profit on disposal of property, plant and equipment | (1.4) | (0.1) |
| Headline EBITDA1 | 165.5 | 168.9 |
| Net capital expenditure | (53.8) | (57.3) |
| Net working capital movement | (11.7) | (2.7) |
| Headline operating cash flow | 100.0 | 108.9 |
| Cash cost of restructuring | (3.0) | (4.3) |
| Acquisition costs | (0.2) | – |
| Operating cash flow | 96.8 | 104.6 |
| Interest | (2.7) | (3.3) |
| Taxation | (19.0) | (22.5) |
| Free cash flow | 75.1 | 78.8 |
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.
- 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.
- 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.