| 2015
£m | 2014
£m |
|---|
| Revenue | 567.2 | 609.1 |
| Operating profit | 77.9 | 107.0 |
| Acquisition costs | – | 0.2 |
| Reorganisation costs | 20.0 | – |
| Operating profit prior to exceptional items | 97.9 | 107.2 |
| Amortisation of acquired intangible fixed assets | 4.2 | 3.9 |
| Headline operating profit | 102.1 | 111.1 |
Group revenue was £567.2m, a decrease of 6.9%, with revenues at constant exchange rates down 4.1% and foreign exchange rate movements having a negative impact of 2.8%.
Headline operating profit for the year decreased by 8.1% from £111.1m to £102.1m, and headline operating margin was 18.0% (2014: 18.2%). Headline operating profit at constant exchange rates decreased by £6.7m, whilst adverse foreign exchange rate movements decreased headline operating profit by a further £2.3m.
Cash flow is analysed as follows:
| 2015
£m | 2014
£m |
|---|
| Headline operating profit | 102.1 | 111.1 |
| Add back non-cash items: | | |
| Depreciation and amortisation | 49.6 | 51.2 |
| Impairment of fixed assets | – | 2.7 |
| Share-based payments | (0.4) | 1.9 |
| Profit on disposal of property, plant and equipment | (2.1) | (1.4) |
| Headline EBITDA1 | 149.2 | 165.5 |
| Net capital expenditure | (61.3) | (53.8) |
| Net working capital movement | (6.3) | (11.7) |
| Headline operating cash flow | 81.6 | 100.0 |
| Cash cost of restructuring | (8.4) | (3.0) |
| Acquisition costs | – | (0.2) |
| Operating cash flow | 73.2 | 96.8 |
| Interest | (2.6) | (2.7) |
| Taxation | (23.2) | (19.0) |
| Free cash flow | 47.4 | 75.1 |
Operating cash flow was £73.2m (2014: £96.8m) with the decrease, compared to prior year, attributable to a reduction in profits, increased capital investment and reorganisation costs. Group net cash at 31 December 2015 was £12.3m (2014: £35.7m).
Capital spend (net of asset sales) in 2015 was £61.3m (2014: £53.8m), being 1.2 times depreciation2 (2014: 1.0 times). There has been a continued focus on cash collection and receivable days at 31 December 2015 were 62 days (31 December 2014: 60 days). There was a working capital outflow in the year mainly due to an increase in receivable days caused by lower than anticipated cash collection in December and a decrease in payables, arising primarily due to a reduction in accruals for variable staff costs.
- 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.