Executive directors' report on group results

EBITDA increased by 30%.
The share-based payment charge under IFRS 2 included in operating expenses was US$22.5 million, almost double the equivalent charge in FY21 of US$11.5 million which reflects the increasing valuations of the divisions' cash-settled share-based payment plans, particularly Westcon International and Analysys Mason. To be more in line with international peers, the Group is now presenting the adjusted** figure for EBITDA excluding share-based payment charges as well as restructuring costs.

A tax charge of US$10.6 million (FY21: US$19.5 million) has arisen on the pre-tax profits. The effective tax rate of 20.8% has benefited from an increase in UK tax losses recognised as deferred tax assets, part of which arose from the increase in the UK corporation tax rate enacted earlier in the year. The effective tax rate reduced as profits grew and the profit mix continued to improve. As at 28 February 2022, there are estimated tax loss carry forwards of US$231.2 million with an estimated future tax benefit of US$57.2 million, of which US$36.3 million has been recognised as a deferred tax asset.