In 2015 Whistl incurred exceptional costs of £22.9m due to the operation and closure of the final mile delivery service and other restructuring and non-recurring costs of £2.4m. Whistl awaits the outcome of the competition investigation by Ofcom into Royal Mail’s behaviour, that ultimately led to the closure of the final mile end to end activity. Investment in fixed asset additions in relation to core business increased by 60.0% to £4.0m in 2016. Investment is targeted to develop the business in the growth areas of Parcels services, International services and Doordrop Media, to maintain leading operational quality and to improve
management information. Management information systems are critical in our business to optimise processes, manage risks and furnish customers with the information that they need.
Net assets increased by £7.3m to £13.7m (2015: £6.4m) due to the profit for the financial year.
Fixed assets relate to software, plant and equipment and other tangible fixed assets in use by the business in its day to day activities. Fixed assets have reduced by £0.5m due to depreciation and disposals exceeding new additions.
Exceptional costs
2016 £m
2015 £m (20.5) (2.4) (22.9)
– – –
End to End final mile – Operating loss Other exceptional costs Total exceptional income costs
Capital investment
Capital additions to fixed assets
2016 £m 0.9 1.6 1.5 4.0 - 4.0
2015 £m 0.4 1.6 0.5 2.5 0.3 2.8
Change % 125% - 200% 60% (100)% 43%
Product development Operations Back office & management information Total core activities Final Mile Total capital additions
Balance sheet
2016 £m 8.2
2015 £m 8.7 80.9 14.4 (95.0) (2.6) 6.4
Change £m
Fixed assets Debtors Cash at bank and in hand Creditors: amounts falling due within one year Provisions for liabilities Net assets
(0.5) (3.9)
77.0 22.9 (93.0) (1.4) 13.7
8.5 2.0 1.2 7.3
Cash flow
2016 £m 12.7 (0.1) (3.6) - (0.6) 8.5
2015 £m (0.4) 2.5 (2.8) 0.1 (0.4) (1.1)
Change £m 13.1
Net cash from operating activities Taxation (paid)/ receipt Net investment in fixed assets Interest received Net cash used in financing activities Net increase/ (decrease) in cash
(2.6) (0.8) 0.1 (0.2) 9.6
16
Strategic Report | Whistl Annual Report 2016
Made with FlippingBook - Online catalogs