Extract from Capita 2012 full year results
After these non-underlying items, reported operating profit for 2012 is £340.9m (2011:£355.5m), reported profit before tax is £290.0m (2011: £302.9m) and reported earnings per share is 37.08p (2011: 39.16p). These figures were impacted by higher amortisation of goodwill arising from increased levels of acquisitions and impairments of goodwill relating to our acquisition of Applied Language Solutions and of our investment loan in Optima Legal Services (see note 2 administrative expenses in the notes to the preliminary statement).
Applied Language Solutions (ALS) was acquired in December 2011 and due to uncertainties in the newly won courts' interpretation contract, consideration for the acquisition was structured with a high proportion of contingent consideration relative to the initial consideration of £7.5m. Due to the performance of this contract no contingent consideration is now likely to be payable and the related goodwill has also been reassessed to £nil. This has resulted in an impairment of goodwill net of the contingent consideration release of £10.6m. There is no cash impact as no contingent consideration has been paid. In 2012, there was other contingent consideration release of £0.4m (2011 £11.2m).