REG - Assoc British Foods - ABF annual results for 52 weeks ended 13 Sept 2014 <Origin Href="QuoteRef">ABF.L</Origin> - Part 4
04/11/2014 08:05
- Part 4: For the preceding part double click ID:nRSD0238Wc
Chifeng, north China.
Included within the
amount charged in the
Ingredients segment
was a loss of £26m in
respect of the
disposal of our US
whey protein
operation. Cash
consideration for the
US disposal was £20m,
tangible assets
disposed amounted to
£8m and goodwill
disposed was £27m.
Provisions made were
£4m and foreign
exchange differences
recycled from equity
were £7m. A charge of
£72m was made to write
down the carrying
value of certain
Ingredients assets in
China and to provide
for restructuring
costs, and a charge of
£13m to write down the
value of yeast plants
in India. Cash flow on
sale of subsidiaries,
joint ventures and
associates of £35m
comprised £20m in
respect of the US whey
protein business and
£15m of deferred
consideration received
for previous
disposals.
7. Analysis of net debt
At Cash flow Acquisitions Non-cashitems Exchange adjustments At
14 September 2013 13 September 2014
£m £m £m £m £m £m
Cash at bank and in hand, cash 243 187 - - (31) 399
equivalents and overdrafts
Short-term loans (275) 158 (4) (124) 7 (238)
Long-term loans (772) 10 - 124 31 (607)
(804) 355 (4) - 7 (446)
Cash and cash equivalents comprise bank and cash balances, call deposits and short-term investments with original maturities of three months or less. Bank overdrafts that are repayable on demand of £120m form an integral part of the group's cash management and are included as a component of cash and cash equivalents for the purpose of the cash flow statement.
8. Related party transactions
The group has a controlling related party relationship with its parent company, Wittington Investments Limited, which is also its ultimate parent company. The group also
has a related party relationship with its associates and joint ventures and with its directors. In the course of normal operations, related party transactions entered
into by the group have been contracted on an arm's length basis. Material transactions and year end balances with related parties were as follows:
2014 2013 Sub note £'000 £'000 Charges to Wittington Investments Limited in respect of services provided by the Company and its subsidiary undertakings 403 338 Dividends
paid by ABF and received in a beneficial capacity by: (i) trustees of the Garfield Weston Foundation 1 9,125 8,277 (ii) directors of Wittington Investments Limited who
are not trustees of the Foundation 1,442 1,297 (iii) directors of the Company who are not trustees of the Foundation and are not directors of Wittington Investments
Limited 43 30 (iv) a member of the Weston family employed within the Associated British Foods group 2 952 864 Sales to fellow subsidiary undertakings on normal trading
terms 3 93 2 Sales to companies with common key management personnel on normal trading terms 4 12,459 16,538 Commissions paid to companies with common key management
personnel on normal trading terms 4 1,418 787 Amounts due from a company with common key management personnel 4 1,456 2,227 Sales to joint ventures on normal trading
terms 21,337 18,488 Sales to associates on normal trading terms 30,248 19,460 Purchases from joint ventures on normal trading terms 372,496 397,449 Purchases from
associates on normal trading terms 16,266 20,805 Amounts due from joint ventures 182,254 163,170 Amounts due from associates 3,274 1,790 Amounts due to joint ventures
33,095 30,806 Amounts due to associates 6,640 1,059
1. The Garfield Weston Foundation ('the Foundation') is an English charitable trust, established in 1958 by the late W Garfield Weston. The Foundation has no direct
interest in the Company, but as at 13 September 2014 was the beneficial owner of 683,073 shares (2013 - 683,073 shares) in Wittington Investments Limited representing
79.2% (2013 - 79.2%) of that company's issued share capital and is, therefore, the Company's ultimate controlling party. At 13 September 2014 trustees of the Foundation
comprised two children and two grandchildren of the late W Garfield Weston and five children of the late Garry H Weston.2. A member of the Weston family who is
employed by the group and is not a director of the Company or Wittington Investments Limited and is not a trustee of the Foundation.3. The fellow subsidiary
undertaking is Fortnum and Mason plc.4. The companies with common key management personnel are the George Weston Limited group, in Canada, and Selfridges & Co.
Limited.
Amounts due from joint ventures comprise £14m (2013 - £15m) of finance lease receivables and £145m (2013 - £130m) of loan receivables. The remainder of the balance is
trading balances. The loan receivables are all non-current (2013 - all non-current), and all but £3m (2013 - £3m) of the finance lease receivables are non-current.
Charges to Wittington Investments Limited in respect of services provided by the Company and its subsidiary undertakings
403
338
Dividends paid by ABF and received in a beneficial capacity by:
(i) trustees of the Garfield Weston Foundation
1
9,125
8,277
(ii) directors of Wittington Investments Limited who are not trustees of the Foundation
1,442
1,297
(iii) directors of the Company who are not trustees of the Foundation and are not directors of Wittington Investments
Limited
43
30
(iv) a member of the Weston family employed within the Associated British Foods group
2
952
864
Sales to fellow subsidiary undertakings on normal trading terms
3
93
2
Sales to companies with common key management personnel on normal trading terms
4
12,459
16,538
Commissions paid to companies with common key management personnel on normal trading terms
4
1,418
787
Amounts due from a company with common key management personnel
4
1,456
2,227
Sales to joint ventures on normal trading terms
21,337
18,488
Sales to associates on normal trading terms
30,248
19,460
Purchases from joint ventures on normal trading terms
372,496
397,449
Purchases from associates on normal trading terms
16,266
20,805
Amounts due from joint ventures
182,254
163,170
Amounts due from associates
3,274
1,790
Amounts due to joint ventures
33,095
30,806
Amounts due to associates
6,640
1,059
1. The Garfield Weston Foundation ('the Foundation') is an English charitable trust, established in 1958 by the late W
Garfield Weston. The Foundation has no direct interest in the Company, but as at 13 September 2014 was the beneficial owner
of 683,073 shares (2013 - 683,073 shares) in Wittington Investments Limited representing 79.2% (2013 - 79.2%) of that
company's issued share capital and is, therefore, the Company's ultimate controlling party. At 13 September 2014 trustees
of the Foundation comprised two children and two grandchildren of the late W Garfield Weston and five children of the late
Garry H Weston.2. A member of the Weston family who is employed by the group and is not a director of the Company or
Wittington Investments Limited and is not a trustee of the Foundation.3. The fellow subsidiary undertaking is Fortnum
and Mason plc.4. The companies with common key management personnel are the George Weston Limited group, in Canada, and
Selfridges & Co. Limited.
Amounts due from joint ventures comprise £14m (2013 - £15m) of finance lease receivables and £145m (2013 - £130m) of loan
receivables. The remainder of the balance is trading balances. The loan receivables are all non-current (2013 - all
non-current), and all but £3m (2013 - £3m) of the finance lease receivables are non-current.
9. Other information
The financial information set out above does not constitute the Company's
statutory accounts for the 52 weeks ended 13 September 2014, or the 52
weeks ended 14 September 2013. Statutory accounts for 2013 have been
delivered to the Registrar of Companies and those for 2014 will be
delivered following the Company's annual general meeting. The auditors
have reported on those accounts. Their reports were (i) unqualified,
(ii) did not include references to any matters to which the auditors drew
attention by way of emphasis without qualifying their reports and (iii)
did not contain a statement under section under section 498(2) or (3) of
the Companies Act 2006 in respect of the accounts.
10. Basis of preparation
Associated British Foods plc ('the Company') is a company domiciled in
the United Kingdom. The consolidated financial statements of the Company
for the 52 weeks ended 13 September 2014 comprise those of the Company
and its subsidiaries (together referred to as 'the group') and the
group's interests in joint ventures and associates. The consolidated
financial statements were authorised for issue by the directors on 4
November 2014. The consolidated financial statements have been prepared
and approved by the directors in accordance with International Financial
Reporting Standards ('IFRS') as adopted by the EU. Under IFRS,
management is required to make judgements, estimates and assumptions
about the reported amounts of assets and liabilities, income and expense
and the disclosure of contingent assets and liabilities. The estimates
and associated assumptions are based on experience. Actual results may
differ from these estimates. The estimates and underlying assumptions
are reviewed on a regular basis. Revisions to accounting estimates are
recognised from the period in which the estimates are revised. The
consolidated financial statements are presented in sterling, rounded to
the nearest million. They are prepared on the historical cost basis
except that biological assets and certain financial instruments are
stated at fair value. Assets classified as held for sale are stated at
the lower of carrying amount and fair value less costs to sell. The
consolidated financial statements of the group are prepared to the
Saturday nearest to 15 September. Accordingly, these financial
statements have been prepared for the 52 weeks ended 13 September 2014.
To avoid delay in the preparation of the consolidated financial
statements, the results of certain subsidiaries, joint ventures and
associates are included up to 31 August 2014. The results of Illovo are
included for the period to 30 September 2014 in line with Illovo's local
reporting date. Adjustments are made as appropriate for significant
transactions or events occurring between 31 August and 30 September.
11. Significant accounting policies
The accounting policies applied by the group in this annual results
announcement are substantially the same as those applied by the group in
its consolidated financial statements for the 52 weeks ended 14 September
2013. There have been a number of minor changes to standards which have
become applicable for the year ending 13 September 2014, none of which
have been assessed as having a significant impact on the group.
The revised IAS 19 Employee Benefits is applicable to the group for the
first time in 2014 and makes changes to measurement and disclosure
requirements for defined benefit post-employment arrangements. The
expected return on plan assets and the interest charge on scheme
liabilities have been replaced by net interest income or expense
calculated by applying the liability discount rate to the net pension
asset or liability. Scheme administration costs are expensed as incurred
and the reserve for scheme costs, which was previously included in scheme
liabilities, has been removed. IAS 19 service cost is charged to
operating profit and pension financing costs are charged to other
financial expense.
The impact of adoption of the revised standard, which has been applied
with retrospective effect from the 2012 balance sheet date, is set out
below. The impact of all charges is reflected in retained earnings in
equity and is wholly attributable to equity shareholders.
52 weeks ended
14 September 2013
(restated) (previously reported)
£m £m
Income statement
Adjusted operating profit 1,180 1,185
Operating profit 1,088 1,093
Other financial expense (5) (2)
Adjusted profit before taxation 1,088 1,096
Profit before taxation 868 876
Taxation (240) (242)
Profit for the period 628 634
pence pence
Basic earnings per share 74.0 74.8
Adjusted earnings per share 98.1 98.9
£m £m
Other comprehensive income
Remeasurements of defined benefit schemes 33 24
Deferred tax associated with defined benefit schemes (7) (5)
Balance sheet
Net employee benefits balances (15) (44)
Net deferred tax balances (158) (151)
In the 2012 balance sheet, the £95m net pension liability decreased by
£28m to £67m and net deferred tax liabilities of £177m increased by £7m
to £184m. These adjustments had no effect on net cash from operating
activities but the cash flow statement does reflect the above adjustments
to profit before taxation offset by an equal and opposite adjustment to
pension costs less contributions.
This information is provided by RNS
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