Net finance costs Net finance costs for the period were £2.5m compared to £3.0m in 2020 due to the reduction in our drawn facilities and LIBOR during the global pandemic. Net finance costs include lease financing costs from IFRS 16 of £1.2m (2020: £1.2m). Taxation The Group’s effective statutory tax rate is 32.4% (2020: restated 33.3% 3 ). The Group’s adjusted tax rate is 27.8% (2020: 23.5%). The effective rate remains above the UK standard rate of corporation tax, reflecting the origin of a reasonable proportion of Group profits in overseas territories with higher tax rates than the UK and due to a review of US R&D tax credits recognition.
Cash flow and net debt 2 The table below summarises the Group’s cash flow and net debt 2 :
2020 (restated) 3 £m
2021 £m
Operating cash inflow before movements in working capital Increase/(decrease) in trade and other receivables
47.3
38.8
4.7
(11.0)
(0.2)
Increase in inventories
(0.2)
(Decrease)/increase in trade and other payables
(5.5)
19.2
Cash generated from operating activities before interest and taxation Interest element of lease payments
Earnings per share (EPS)
46.3
46.8
2020 (restated) 3 pence
(1.2) (1.1) (5.1)
(1.2) (1.6) (4.8)
2021 pence
Finance interest paid
Statutory Basic EPS Diluted EPS Adjusted 2 Basic EPS
Taxation paid
3.6p 3.5p
2.3p 2.3p
Net cash generated from operating activities
38.9
39.2
(2.7) (2.1)
Purchase of property, plant and equipment Software and development expenditure Proceeds on disposal of intangibles
(2.8) (2.5)
9.5p
7.6p
0.5
–
(13.0)
Equity dividends paid
(12.9)
(6.0)
Repayment of lease liabilities
(5.3)
Proceeds from the issue of ordinary share capital
72.6
1.1
Net movement Opening net debt
88.2
16.8
(4.2)
(20.2)
Non-cash movements (release of deferred issue costs and lease financing costs)
(0.2) (0.5)
(0.2) (0.6)
Foreign exchange
Closing net cash/(debt) excluding lease liabilities 2
83.3
(4.2)
(34.4)
Lease liabilities
(38.2)
Closing cash/net (debt) 2
48.9
(42.4)
Free cash flow (net cash generated from operating activities less net capital expenditure)
34.6
33.9
2 S ee Note 3 for an explanation of Alternative Performance Measures (APMs) and adjusting items. Further information is also contained within the Chief Financial Officer’s Review and the Glossary of terms on pages 187 and 188. 3 S ee Note 34 for an explanation of the prior year restatement recognised in relation to the adoption of the IFRIC agenda decision on cloud configuration and customisation costs in April 2021.
NCC Group plc — Annual report and accounts for the year ended 31 May 2021
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