Organic growth

Organic growth represents the constant currency year on year growth after adjusting for the effect of businesses acquired or disposed of since the beginning of the prior year. This is calculated by comparing current period reported revenue to prior period revenue, adjusted for pre-acquisition or pre-disposal revenue as applicable, and stated at constant exchange rates, in order to derive like-for-like growth.

Constant currency results

Constant currency results are calculated by restating prior year local currency amounts using current year exchange rates.

Underlying results

Underlying operating profit, underlying profit before interest and tax, underlying profit before tax, and underlying profit after tax are operating profit, profit before interest and tax, profit before tax, and profit after tax respectively, stated before those items of financial performance that the Group believes should be separately disclosed to assist in the understanding of the underlying performance achieved by the Group and its businesses (“adjusting items”). In the opinion of the Directors, such adjusting items are material by nature or amount and may include impairment charges, profits and losses on disposals of investments, amortisation of purchased intangible assets (being amortisation charged on separately identifiable intangible assets in acquired businesses), acquisition costs in relation to business combinations, fair value gains and losses on the revaluation of deferred consideration, revaluation of derivatives, fair value gains and losses on liabilities in respect of put option agreements, and one-off items which are material by nature or amount in the opinion of the Directors, and any related tax thereon, as appropriate. Adjusting items may also include specific tax items such as deferred tax liabilities for tax deductions taken in respect of goodwill, where a deferred tax liability is recognised even if such a liability would only unwind on the eventual sale or impairment of the business in question.

Adjusting items are classified as operating, non-operating and financing according to the nature of the underlying income or expense.

Goodwill

The difference between the fair value of purchase consideration of a business as a whole and the aggregate fair value of its identifiable net assets.

Non-controlling interests

Partial ownership of subsidiary undertakings by external shareholders.

Faster growing regions

Faster growing regions comprise Latin America, Central and Eastern Europe, Asia Pacific, and the Middle East and Africa.

Enterprise value

The disposal value of Synovate based on a set level of working capital and on a nil-cash, nil-debt basis.