13. DISCONTINUED OPERATION
 

In December 2017, management committed to a plan to discontinue the UK Contract Distribution (CD) business segment which operates in the United Kingdom. By year-end, we were close to finalising our proposed exit from this non-core segment. Costs associated with this anticipated exit were substantially provided for and any further costs are unlikely to be significant. The CD business segment is a component of the groupís business, the operations and cash flows of which can be clearly distinguished from the rest of the group. CD represents a separate major line of business or geographical area in the United Kingdom. The relevant requirements of IFRS 5 were met for this operation to be classified as a discontinued operation.

Post the year-end, the prospective purchaser of our CD business notified Bidcorp that for its own internal reasons, it has decided not to proceed with the transaction. The CD business remains a non-core activity in respect of Bidcorpís global foodservice operations. Accordingly, Bidcorp is currently considering alternative proposals which were suspended due to the advanced sale process.

The CD segment was not previously classified as held-for-sale or as a discontinued operation. The comparative consolidated statement of profit or loss was restated to show the discontinued operation separately from continuing operations.

The results of the discontinued operation included in the group’s results for the year ended June 30 are detailed below:

  2018 
Rí000 
    2017 
Rí000 
  
Revenue  18 254 268      20 458 449    
Cost of revenue  (16 686 301)     (18 622 873)   
Gross profit  1 567 967      1 835 576    
Operating expenses  (2 194 450)     (1 814 230)   
Trading (loss) profit  (626 483)     21 346    
Share-based payment expense  (3 110)     (3 456)   
Impairment of property, plant and equipment  (793)     (21 366)   
Operating loss  (630 386)     (3 476)   
Net finance charges  (5 226)     (3 446)   
   Finance income      11    
   Finance charges  (5 231)     (3 457)   
Loss before taxation  (635 612)     (6 922)   
Taxation  106 283      (4 317)   
Loss for the year from discontinued operation  (529 329)     (11 239)   

The following adjustments to profit attributable to shareholders were taken into account in the calculation of headline (loss) earnings:

  2018 
Rí000 
  2017 
Rí000 
  
Loss attributable to shareholders of the company from discontinuing operation  (529 329)   (11 239)   
   Impairment of property, plant and equipment  793    21 366    
   Taxation relief  (151)   (4 060)   
Headline (loss) earnings from discontinuing operation  (528 687)   6 067    
   Basic loss per share (cents) (159,1)   (3,4)   
   Diluted basic loss per share (cents) (158,6)   (3,4)   
   Headline (loss) earnings per share (cents) (158,9)   1,8    
   Diluted headline (loss) earnings per share (cents) (158,5)   1,8    
Effect of the discontinued operation on the statement of financial position of the group         
Assets classified as held-for-sale  2 590 657       
   Property, plant and equipment  212 090       
   Intangible assets  7 437       
   Deferred tax asset  1 338       
   Investments and loans  440       
   Inventories  428 733       
   Trade and other receivables  1 161 229       
   Taxation  101 043       
   Cash and cash equivalents  678 347       
Liabilities classified as held-for-sale  2 613 207       
   Deferred tax liability  6 476       
   Long-term portion of provisions  30 013       
   Trade and other payables  2 576 718       
Cash flows from discontinued operation         
Net operating cash flows from discontinued operation  36 227    (258 291)   
Net investing cash flows from discontinued operation  (12 491)   (15 384)   
Net increase (decrease) in cash and cash equivalents  23 736    (273 675)