12.9 (0.2) 12.7 8.7 (2.9) 1

Overview |Strategy|Performance|Governance| Financial statements

12. Income tax expense

Analysis of tax expense for the year Current tax United Kingdom: Corporation tax on profits for the year Adjustment in respect of prior years

Group

2013 ?m

2012 (restated)

?m

12.9

12.2

(0.2)

0.8

12.7

13.0

Foreign tax Adjustment in respect of prior years Total current tax Deferred tax Representing: United Kingdom Effect of change in UK tax rate on deferred tax Foreign tax Adjustment in respect of prior years Total deferred tax (Note 18) Income tax expense

8.7 (0.7) 20.7

6.8 (0.2) 19.6

(2.9) 1.2 (0.5) 0.2 (2.0) 18.7

(5.0) 0.6 (1.2) 0.9 (4.7) 14.9

The weighted average applicable UK corporation tax rate was 23.25% (2012: 24.5%) due to the reduction of the UK corporation tax rate from 24% to 23% which was effective from 1 April 2013. The tax on the Group's profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to Group profits. The tax for the year is higher (2012: higher) than the weighted average rate of 23.25% (2012: 24.5%). The total tax charge on profit can be reconciled to the accounting profit as follows:

Profit before tax

Group

2013 ?m

2012 (restated)

?m

70.1

52.0

Tax on profit at 23.25% (2012: 24.5%) Effects of: Adjustment in respect of prior years Adjustments in respect of foreign tax rates Utilisation of previously unprovided tax losses Impact of falling/(rising) share price compared to the fair value of share awards/options at date of grant Income not subject to tax Non-deductible tax losses Expenses and other charges not deductible for tax purposes Tax on joint ventures and associates Effect of change in UK tax rate on deferred tax Income tax expense on profit

16.3

(0.7) (1.0) (0.4) 0.1 (0.2) 2.0 3.1 (1.7) 1.2 18.7

12.8

1.5 (1.7) (1.1) (0.9) (0.1) 1.4 3.8 (1.4) 0.6 14.9

The effective tax rate of the Group for the year ended 31 December 2013 is 26.7% (2012 (restated): 28.7%).

The Finance Act 2013 substantively enacted on 2 July 2013 included legislation reducing the UK corporation tax rate from 23% to 21% with effect from 1 April 2014 and to 20% from 1 April 2015.

Deferred tax expected to reverse in the year ended 31 December 2014 has been remeasured using the effective rate that is expected to apply in the year (21.25%) and at 20.25% to 20% for reversals expected after that date.

Savills plc

101

Report and Accounts 2013

Notes to the financial statements

Year ended 31 December 2013 continued

The tax (charged)/credited to other comprehensive income is as follows:

Tax on items that will not be reclassified to profit or loss Deferred tax charge on pension actuarial gains

Tax on items that may subsequently be reclassified to profit or loss Current tax credit on employee benefits Current tax (charge)/credit on foreign exchange reserves Current tax credit on retirement benefits Deferred tax on additional pension contributions Deferred tax on pension ? effect of tax rate change Deferred tax (charge)/credit on employee benefits Deferred tax charge on revaluations of available-for-sale investments Deferred tax credit on foreign exchange reserves

Tax on items relating to components of other comprehensive income

Group

2013 ?m

2012 (restated)

?m

(1.7)

(0.5)

(1.7)

(0.5)

4.0

2.5

(0.1)

0.2

2.1

1.7

(2.1)

(1.7)

(0.2)

(0.6)

(0.6)

(0.5)

(0.2)

(0.2)

0.1

?

3.0

1.4

1.3

0.9

Company

2013 ?m

2012 ?m

(0.2)

(0.1)

(0.2)

(0.1)

0.5

?

?

?

0.1

0.1

?

?

?

?

0.3

0.2

?

?

?

?

0.9

0.3

0.7

0.2

13. Dividends ? Group and Company

Amounts recognised as distribution to owners in the year: Ordinary final dividend for 2012 of 6.7p per share (2011: 6.35p) Supplemental interim dividend for 2012 of 6.0p per share (2011: 4.0p) Interim dividend of 3.5p per share (2012: 3.3p)

2013 ?m

8.5 7.6 4.5 20.6

2012 ?m

7.8 5.0 4.1 16.9

The Board recommends a final dividend of 7.0p (net) per ordinary share (amounting to ?9.0m) is paid, alongside the supplemental interim dividend of 8.5p per ordinary share (amounting to ?11.0m), to be paid on 21 May 2014 to shareholders on the register at 22 April 2014. These financial statements do not reflect this dividend payable.

Under the terms of the Savills plc 1992 Employee Benefit Trust (the `EBT'), the Trustee has waived all but 0.01p of any dividend on each share held by the Trust.

The total paid and recommended ordinary and supplemental dividends for the 2013 financial year comprises an aggregate distribution of 19.0p per ordinary share (2012: 16.0p per ordinary share).

14(a). Basic and diluted earnings per share Basic earnings per share (`EPS') are based on the profit attributable to owners of the Company and the weighted average number of ordinary shares in issue during the year, excluding the shares held by the EBT, 5,525,661 shares (2012: 7,183,049 shares).

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of dilutive potential ordinary shares, being the share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year and where performance conditions have been met.

The earnings and the shares used in the calculations are as follows:

Basic earnings per share Effect of additional shares issuable under option Diluted earnings per share

2013 Earnings

?m

50.8

?

50.8

2013 Shares million

127.7

5.6

133.3

2013 EPS pence

39.8

(1.7)

38.1

2012 Earnings (restated)

?m

36.8

?

36.8

2012 Shares million

124.8

5.7

130.5

2012 EPS (restated) pence

29.4

(1.2)

28.2

102

Savills plc

Report and Accounts 2013

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download