REG - Cake Box Holdings - Full Year Results
27/06/2022 07:00
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RNS Number : 2116Q Cake Box Holdings PLC 27 June 2022
Cake Box Holdings plc
("Cake Box", "the Company" or "the Group")
Audited Full Year Results for the 12 months ended 31 March 2022
Strong results and robust current trading, confident of further progress
Cake Box Holdings plc, the specialist retailer of fresh cream cakes, today
announces its audited full year results for the twelve months ended 31 March
2022.
Financial Highlights
Full year Full year Change
ended ended
31-Mar-22 31-Mar-21
Revenue £33.0m £21.9m +50.7%
Gross profit £15.8m £10.9m +45.0%
EBITDA* £8.8m £4.9m +79.6%
Pre-tax profit £7.7m £4.2m +83.3%
Adjusted Pre-tax profit** £7.0m £4.7m +48.9%
Cash at Bank £6.6m £5.1m +29.4%
Earnings per share 15.8p 8.4p +88.1%
Adjusted Earnings per share** 13.8p 9.6p +43.8%
Final dividend recommended 5.1p 3.7p +37.8%
· Group revenue up 50.7% to £33.0m (2021: £21.9m).
· Gross margin reduced to 47.9% (2021: 49.8%), due to exceptional
increase in new store openings.
· Cash from operations of £5.3m (2021: £4.3m).
· Strong balance sheet with £6.6m cash at period end (2021: £5.1m).
· Dividend per share for the full year: 5.1 pence per share recommended
(Interim dividend of 2.5 pence per share).
Operational highlights
· 41% growth in online sales
· Exceptional number of new franchise store openings, with 31 opened in
the year (2021: 24).
· 185 franchise stores in operation at the end of FY22 (2021: 157).
· Continued expansion of kiosk offering; now with 15 supermarket kiosks
(2021:5); in addition to 20 kiosks in shopping malls (2021:16).
· New warehouse opened in Enfield in December 2021 to support ongoing
expansion.
Franchisee store highlights
· Like-for-like(1) sales growth of 12% in franchise stores in ten-month
period to 31 March 2022.(3)
· Franchisee total turnover up 55% to £66.0m (2021: £42.7m)
· Franchisee online sales up 41% to £13.3m (2021: £9.4m)
Current trading(2) and outlook
· Sales have remained robust post period end against a very strong
comparative trading period in FY22. However, the Board remains mindful of an
increasingly challenging economic and trading environment.
· We continue to increase our geographic presence with a strong
store opening programme to drive future growth, whilst investing in marketing
to grow brand awareness and strengthening our digital capabilities.
· We have continued to invest in strengthening the Group's senior
leadership team and internal functions to improve governance and processes to
support a larger franchise estate.
Sukh Chamdal, Chief Executive Officer, commented:
"Despite a challenging economic and trading environment, we have delivered yet
another strong set of results and continue to trade robustly post period end.
"I founded Cake Box at the height of the financial crisis in 2008. These are
difficult times for everyone, but as we've seen before, the Group's unique
customer and franchisee proposition remains both exciting and enticing. Our
people have proven their resilience and commitment through tough times and now
is the time for the Cake Box Family of extraordinary entrepreneurs to shine,
with support from a bigger, better and more experienced Group function.
"The Cake Box Family is bigger and more geographically diverse than ever
before, and we are serving more customers than ever, with a keen focus on
value for money. As I said at the height of the Covid pandemic, there will
still be birthdays, marriages and countless moments in our lives to celebrate
with a slice of our delicious cake."
EBITDA is calculated as operating profit before depreciation and
amortisation
** Calculated after adjusting for exceptional items (2022 - £782k, 2021 -
£486k) see note 10
(1) Like-for-like: Stores trading for at least one full financial year prior
to 31 March 2022
(2) Current trading defined as average store turnover for last 12 weeks to
week ended 27 June 2022
(3) Trading was affected by COVID lockdowns and associated store closures
during the first 2 months of FY22
For further information, please contact:
Cake Box Holdings plc Enquiries via MHP Communications
Sukh Chamdal, CEO
David Forth, CFO
Shore Capital +44 (0) 20 7408 4090
Stephane Auton
Patrick Castle
MHP Communications +44 (0) 20 3128 8570
Simon Hockridge cakebox@mhpc.com (mailto:cakebox@mhpc.com)
Pete Lambie
Chairman's Statement
Expanding our reach
We are very pleased with our performance over the last year, with 31 new shop
openings, taking our total store estate to 185, and 14 new kiosks opened
across both supermarkets and shopping malls, bringing the total number to 35.
Our Coventry depot is now fully operational, meaning we have Enfield serving
the South of England, Bradford serving the North of England and Scotland, and
Coventry serving the Midlands and Wales. Having depots in these strategic
locations has also allowed to us to significantly reduce our road mileage and
carbon footprint. We have learned that building capability early is key to
sustaining the resilience of the business.
The Board recognises and remains cognisant of the concerns previously raised
by some shareholders around the Group's internal governance, finance and audit
processes, and continues to work to evolve, improve and further
professionalise the Group, bringing in the experience and capabilities to
support our growth ambitions. We have invested significantly in Cake Box's
senior management and Group functions, including the appointments of David
Forth as Interim Chief Financial Officer, Richard Zivkovic as Chief Operating
Officer and the creation of a new Chief Commercial Officer role for Dr Jaswir
Singh. As well ensuring our operation is fit for purpose as we grow, we
continue to review and improve working with external partners, ensuring we run
our business effectively with accurate reporting.
During the period, we also recruited a new Marketing Director, Chay Watkins,
IT Director Paul Owers, a Customer Service Manager and Learning &
Development Manager as well as expanding the Group's IT, Finance and
procurement functions.
I would like to welcome all of our new colleagues to the Cake Box Family and
look forward to their contribution to our continued future growth.
Through our strategic expansion, we have created the capacity to significantly
increase our volume and reach communities nationwide and we remain focused on
maximising productivity to meet the additional demand. For the coming year we
have a target of another 24 new store openings and we will continue with kiosk
development. This should bring us the 200th Cake Box store in the autumn of
2022, well in line with our stated ambition of having 250 stores.
We continue to successfully open stores in new areas throughout the UK such as
Sunderland, Cardiff and Exeter, increasing our geographical presence and
becoming a national brand. There are still many opportunities for Cake Box
within the UK, so for the time being this is where we continue to concentrate
our growth plans.
Cake Box also continues to adapt and evolve in other ways. E-commerce is a key
sales channel, and we continue to increase our capability and expand our
customer reach through a dedicated delivery service. This will form an
integral part of our growth over the next two to three years with the
potential for Cake Box to be a 50/50 online and bricks-and-mortar business.
Building resilience
To come out of the pandemic stronger, it has been key to support our
franchisees in setting up and growing their businesses. In the period, we
continued our already-established Franchise Support Fund initiative, lending
money during this financial year to franchisees to help them set up and at a
time when it has been hard to access traditional lending.
The franchise model is unique in that it creates a community of genuine
entrepreneurs with the drive to make things work. We have a healthy pipeline
of franchisee applications for new stores and we always welcome more
entrepreneurs who want to run their own businesses.
The increasing number of franchisee enquiries at Cake Box shows that these
entrepreneurs have an appetite to take control of their lives and also their
income, as well as creating additional employment for others. Over the last
four years, the Cake Box franchise model has created hundreds of jobs across
the UK.
Creating social value
Community has always been central to what we do, and why we actively encourage
our franchisees to engage with the communities in which they operate through
local initiatives. We support their endeavours through money-raising
initiatives - donating the proceeds of carrier bag sales back into communities
for example. Our voluntary work at head office level also continues, including
our large-scale programme serving food to the homeless.
More recently, we have set up an Environmental, Social and Governance (ESG)
committee, focusing on how we conduct our business, from the packaging we use
through to miles travelled, and how and where we source our products. We
consider our ESG activities to be a moral obligation to our investors,
customers, franchisees and supplier base. A huge focus going into 2023 and
beyond will be on how we measure the outcomes and set meaningful targets.
Looking forward
The Cake Box Family can be incredibly proud of its achievements over the past
year. Achievements only made possible through the collaborative culture that
exists between our head office teams, diverse franchisee community and a
supplier base that has continued to ensure no supply disruption despite the
challenges they may have faced. We must sometimes remind ourselves what we
have achieved in less than 11 years since we established the business and just
four years after the IPO. In such a short period, we have built a strong brand
with a solid loyalty base and huge growth trajectory. In what is a
cash-generative business, our cash position remains strong, as does the
overall balance sheet.
The Cake Box brand is a perfect example of how through collaboration we can
remain strong through times of adversity, and we look forward to delivering
value to our investors, customers and franchisees over the long-term.
A Family of extraordinary entrepreneurs
It is critical in the current economic environment to remind ourselves of what
the Cake Box Family is. At its core, it is a Family of extraordinary
entrepreneurs up and down the country, continuously creating jobs in their
communities, often in underserved areas of the UK where investment is needed
and most of the time, lacking.
To chair a business that ultimately provides a platform to facilitate this
entrepreneurship makes me incredibly proud. Taking on a franchise and becoming
a small business owner is a bold step at the best of times, and I am
constantly reminded of how extraordinary our franchisees are when I meet them
and hear about their entrepreneurial journeys. I would like to thank the
entire Cake Box Family, our customers, our staff, franchisees and supply base
for their continued commitment, hard work and dedication over the last year
but also for the last two years of the pandemic.
Neil Sachdev MBE
Non-Executive Chairman
Chief Executive's review
Welcoming new franchisees
Despite the pandemic, we were able to uphold our unique proposition of an
egg-free celebration cake. Born at the height of the 2008 recession, Cake Box
learnt an important business lesson that while people may cut down on
essential items, celebrating a special occasion provides that one chink of
light. As a result, we saw double-digit growth in 2021 with the opening of 31
new stores and 14 kiosks across the UK.
One result of COVID-19 was that it prompted people to re-evaluate their life
goals and, in some cases, to start their own business. They just needed that
extra incentive and we were delighted to welcome new franchisees into the
business.
Providing training support
Training support to franchisees has been an essential part of our business
model prior to, during and since the pandemic. This happens online, via email,
weekly forums, and through our dedicated hub where we provide training
documents and videos that franchisees can access to conduct their own
induction and refresher training.
During COVID-19, our training focus included topics such as minimum social
distancing, safe practices at the front and back of house in often small
operating spaces, hygiene and sanitisation, and offering masks to customers
entering the store.
Franchisee commitment
We always owe a debt of thanks to the commitment of our franchisees. Our churn
rate of shops changing hands remains low by industry standards. This shows the
commitment and trust of our franchisees and ambitions to expand their
business. 43% of our franchisees have more than one store.
The average earnings from a Cake Box store provides an attractive proposition
for our franchisees, which is why there are so many multi-store operators.
Also, as owner occupiers, it is in their interest that they operate optimally
and efficiently. This in turn increases our head office revenue.
Ongoing people strategy
The need to grow our infrastructure in line with the expansion of our estate
has guided both our distribution centre strategy and recruitment policy. We
now have three UK distribution centres located in Enfield in the South,
Bradford in the North, and more recently Coventry in the Midlands, giving us a
reach across the whole of the UK, including Scotland and Wales.
We have also instigated a major recruitment drive of key head office positions
across health and safety, food safety, marketing, HR, training, customer
service and at C-suite level. Our long-term strategy is to make sure that we
have the right quality of people to drive and sustain the business into the
long-term.
Listening to the customer
It remains at the top of our agenda to give our customers the products they
want. We collect data from the verbal customer feedback and online reviews our
franchisees receive. We also have a feedback form which customers respond to
regularly with their valuable insights. As a result, we can adjust our product
offering in line with customer needs.
A recent example is the feedback that some customers wanted less cream on
their cakes. This has resulted in our naked cake range, which has been
received very positively. It is through such initiatives that we will be able
to meet customer demands and set trends in the coming years.
Continuing the Cake Box journey
Over the last year we have seen some excellent quality franchisees come into
the business. With 31 new store openings, FY22 delivered extraordinary
results. For FY23, we remain ambitious while setting a realistic target of 24
new store openings.
It is interesting to reflect on the fact that when Cake Box first began in
2008, it was restricted to serving very specific communities. Today, our three
main distribution centres can cater for the entire UK and buffer us from any
potential supply chain issues, allowing us to distribute our products
seamlessly and ensure business continuity.
A cake is an emotional purchase. Whether the customer wants to enjoy the
sights and smells of a physical store or the convenience of ordering from the
comfort of their own home, our objective remains the same - to provide the
right cake to complete the perfect occasion.
I would like to thank Pardip Dass, my co-founder who left the business at the
end of the financial year, for his important contribution to making Cake Box
the success it is today.
A bigger, better business
Despite a challenging economic and trading environment, we have delivered yet
another strong set of results and continue to trade robustly post period end.
I founded Cake Box at the height of the financial crisis in 2008. These are
difficult times for everyone, but as we've seen before, the Group's unique
customer and franchisee proposition remains both exciting and enticing. Our
people have proven their resilience and commitment through tough times and now
is the time for the Cake Box Family of extraordinary entrepreneurs to shine,
with support from a bigger, better and more professional Group function.
The Cake Box Family is bigger than ever before, and we are serving more
customers than ever, with a keen focus on value for money. As I said at the
height of the Covid pandemic, there will still be birthdays, marriages and
countless moments in our lives to celebrate with a slice of our delicious, egg
free cake.
Sukh Chamdal
Chief Executive Officer
Financial Review
FY22 FY21
£m £m
Revenue 33.0 21.9
Gross profit 15.8 10.9
Operating expenses before exceptional items (8.8) (6.2)
Exceptional Items 0.8 (0.5)
Operating profit 7.8 4.2
Finance Cost (0.1) -
Profit before tax 7.7 4.2
Adjusted Profit before tax* 7.0 4.7
Tax (1.4) (0.8)
Profit for the period 6.3 3.4
Adjusted Profit for the period* 5.5 3.9
Revaluation of freehold property 1.2 1.3***
Deferred tax on revaluation (0.2) (0.3)***
Total Comprehensive income for the year 7.3 4.4
EBITDA** 8.8 4.9
* Calculated after adjusting for exceptional items (2022 - £782k, 2021 +
£486k) see note 10
** EBITDA is calculated as operating profit before depreciation and
amortisation
*** Prior year comparatives have been restated see note
20
Revenue
Reported revenue for the year FY22 was £33.0m. Revenue increased by 50.7%
compared to the previous financial year. This was achieved through an increase
in store like-for-like sales and with the addition of 31 new stores around the
UK in new locations including Cardiff, Exeter, Bournemouth, Plymouth,
Sunderland, Chelmsford and Nuneaton.
Gross margin
Gross profit as a percentage of sales reduced from 47.9% from 49.8%, due to an
exceptional increase in new store openings, with new store set-up margins
being lower than margins on sales of products.
EBITDA
EBITDA increased by 79.6% to £8.8m as a result of the strong increase in
sales and control over costs.
Exceptional items
Following the website data breach that occurred in 2020, the Group made a
provision of £486k in FY21 allowing for legal and professional fees and
potential fines relating to the breach. £243k of the original provision
remains in place.
In FY22, despite the excellent performance of the Group, the vesting
conditions in the Executive Share Scheme were not met, resulting in an
exceptional gain of £486k to profit.
A review of provisions resulted in a further exceptional gain of £296k from
reversing an accrual for rates in previous years.
Balance Sheet
Cake Box has a strong balance sheet with a cash balance at the year-end of
£6.6m (FY21: £5.1m). The Group's only debts are mortgages of £1.4m secured
by its freehold properties in Enfield, Bradford and Coventry.
The Group operates a franchise model and therefore has a relatively low and
flexible cost base. The Board is therefore very comfortable with the Group's
cash levels and liquidity despite the unprecedented events of the last two
years.
Property
Our three main sites at Enfield, Bradford and Coventry are all freehold. At
year end, we instructed surveyors to value all three properties in order to
have a consistent value base. This resulted in a significant revaluation gain
in respect of our head office site in Enfield of £2.5m compared to the
previous revaluation in 2019.
We also rented a 27,000 sq ft warehouse to in Enfield to support our business
expansion.
Taxation
The effective rate of taxation was 18.4% (FY21: 18.0%).
This is in line with relief obtained via the super deduction claim, which is a
temporary increase by HMRC to capital allowances for capital expenditure of
130% compared to the normal rate of 100%, as well as other corporation tax
timing differences on capital assets
Earnings per share (EPS)
Un-adjusted earnings per share were 15.8p (FY21: 8.4p). An increase of 88.1%
reflecting the increase in profitability of the Group. The number of shares in
issue was 40,000,000 and is unchanged since the Company's IPO in June 2018.
Dividend
Having delivered a year of strong growth, the Board is pleased to recommend a
final dividend of 5.1 pence per share (FY21: 3.7p), bringing the total
dividend for the year to 7.6 pence per share (FY21: 5.55p).
If approved by the shareholders at the Company's AGM on 20th September 2022,
the final dividend of 5.1 pence per share will be paid on 27(th) September
2022 to shareholders on the register on 26(th) August 2022.
As previously stated, the Company intends that the total dividend for each
year will split into one third for the first six months of the year to two
thirds for the year end.
Cash position
The Group had £6.6m of cash at year end, an increase of £1.5m. At the year
end, the Group had a net cash position of £5.2m which was up £1.6m from the
previous year.
Trade and other receivables
The Group had £2.6m of trade and other receivables at the end of FY22, equal
to the prior year. The majority of this balance relates to trade receivables
which have remained at £2.0m, showing good credit control given the increase
in revenue. Trading debts relating to purchases of products by franchisees
have a defined seven-day payment term.
Trade and other payables
The Group had £2.7m of trade and other payables at the year end, a reduction
of £0.7m on the prior year. The Group actively sources cost effective
suppliers without compromising on the quality of the products. Other payables
are paid according to terms specified.
We have been working with BDO as internal auditors to improve the control
environment across the company to ensure that it remains appropriate to needs
of a growing business.
David Forth
Interim Chief Financial Officer
Cake Box Holdings Plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
AS AT 31 MARCH 2022
Company Registration No. 08777765
As restated
2022 2021
Note £ £
3 32,964,846 21,910,862
Revenue
Cost of sales (17,133,685) (10,978,993)
Gross profit 15,831,161 10,931,869
Administrative expenses before exceptional items (8,794,413) (6,198,981)
Exceptional items 10 781,965 (486,319)
Administrative expenses 4 (8,012,448) (6,685,300)
5 7,818,713 4,246,569
Operating profit
Finance income 6 1,802 4,087
Finance expense 6 (83,190) (41,386)
Profit before income tax 7,737,325 4,209,270
Income tax expense 11 (1,425,709) (842,362)
Profit after income tax 6,311,616 3,366,908
Other comprehensive income for the year
Revaluation of freehold property 13 1,250,175 1,274,901
Deferred tax on revaluation of freehold property 12 (237,533) (242,231)
Total other comprehensive income for the year 1,012,642 1,032,670
Total comprehensive income for the year 7,324,258 4,399,578
7,324,258 4,399,587
Attributable to:
Equity holders of the parent
Earnings per share
Basic 32 15.78p 8.42p
Diluted 32 15.78p 8.42p
The notes form part of these financial statements.
Cake Box Holdings Plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
Company Registration No. 08777765
As restated
2022 2021
Note £ £
Assets
Non-current assets
Property, plant and equipment 13 10,029,209 8,501,602
Right-of-use assets 14 2,874,430 -
Other financial assets 17 710,059 656,004
Deferred tax asset 12 - 95,447
13,613,698 9,253,053
Current assets
Inventories 15 2,468,921 1,902,171
Trade and other receivables 16 2,553,209 2,490,217
Other financial assets 17 357,548 382,808
Cash and cash equivalents 31 6,571,558 5,125,864
11,951,236 9,901,060
Total Assets 25,564,934 19,154,113
Equity and liabilities
Equity
Issued share capital 18 400,000 400,000
Capital redemption reserve 19 40 40
Revaluation reserve 19 3,634,734 2,622,092
Share option reserve 21 - 488,596
Retained earnings 19 12,475,031 8,643,415
Equity attributable to the owners of the Parent company 16,509,805 12,154,143
Current liabilities
Trade and other payables 23 2,661,372 3,353,749
Lease liabilities 14 260,191 -
Short-term borrowings 22 167,754 167,754
Current tax payable 837,946 903,469
Provisions 24 243,100 486,319
4,170,363 4,911,291
Non-current liabilities
Lease liabilities 14 2,699,958 -
Borrowings 22 1,185,978 1,318,005
Deferred tax liabilities 12 998,830 770,674
4,884,766 2,088,679
Total Equity and Liabilities 25,564,934 19,154,113
The financial statements were approved and authorised for issue by the Board
on _26 June 2022__ and signed on its behalf by:
S R
Chamdal
Director
The notes form part of these financial statements.
Cake Box Holdings Plc
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
As restated
Note 2022 2021
£ £
Cash flows from operating activities
Profit before income tax 7,737,325 4,209,270
Adjusted for:
Depreciation 4 & 13 853,633 670,333
Amortisation of right-of-use assets 4 & 14 124,975 -
Exceptional items - 486,319
Profit on disposal of tangible fixed assets (13,154) (18,972)
Increase in inventories (566,749) (505,936)
Increase in trade and other receivables (82,993) (1,172,048)
Increase in other financial assets (28,794) (893,749)
(Decrease)/increase in trade and other payables (915,596) 1,860,596
Share based payment (credit)/charge (486,368) 288,000
Finance income (1,802) (4,087)
Cash generated from operations 6,620,477 4,919,726
Finance costs 83,190 41,386
Taxation paid (1,407,391) (646,995)
Net cash inflow from operating activities 5,296,276 4,314,117
Cash flows from investing activities
Purchases of property, plant and equipment (1,133,926) (704,959)
Proceeds from sale of property, plant and equipment 16,014 26,446
Interest received 1,802 4,087
Net cash outflow from in investing activities (1,116,110) (674,426)
Cash flows from financing activities
Repayment of finance leases (39,255) -
Repayment of borrowings (132,027) (128,283)
Dividends paid 8 (2,480,000) (2,020,000)
Interest paid (83,190) (41,586)
Net cash outflow from financing activities (2,734,472) (2,189,869)
Net increase in cash and cash equivalents 1,445,694 1,449,822
Cash and cash equivalents brought forward 5,125,864 3,676,042
Cash and cash equivalents carried forward 31 6,571,558 5,125,864
Prior year comparatives have been restated due to a change in presentation for
the other financial assets only.
The notes form part of these financial statements.
Cake Box Holdings Plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH
2022
Attributable to the owners of the Parent Company
As restated As restated
Share capital £ Capital redemption reserve Share option reserve Revaluation reserve Retained earnings
£ £ £ £ Total
£
At 31 March 2020 400,000 40 198,368 1,589,422 7,296,507 9,484,337
Profit for the year - - - - 3,366,908 3,366,908
Revaluation of freehold property - - - 1,274,901 - 1,274,901
Deferred tax on revaluation of freehold property - - - (242,231) - (242,231)
Total comprehensive income for the year - - - 1,032,670 3,366,908 4,399,578
Transactions with owners in their capacity as owners
Share-based payments - - 288,000 - - 288,000
Deferred tax on share-based payments 2,228 2,228
Dividends paid - - - - (2,020,000) (2,020,000)
At 31 March 2021 400,000 40 488,596 2,622,092 8,643,415 12,154,143
Profit for the year - - - - 6,311,616 6,311,616
Revaluation of freehold property - - - 1,250,175 - 1,250,175
Deferred tax on revaluation of freehold property - - - (237,533) - (237,533)
Total comprehensive income for the year - - - 1,012,642 6,311,616 7,324,258
Transactions with owners in their capacity as owners
Share-based payments - - (486,368) - - (486,368)
Deferred tax on share-based payments - - (2,228) - - (2,228)
Dividends paid - - - - (2,480,000) (2,480,000)
At 31 March 2022 400,000 40 - 3,634,734 12,475,031 16,509,805
The notes form part of these financial statements.
Cake Box Holdings Plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
1. General information
Cake Box Holdings Plc is a listed company limited by shares, incorporated and
domiciled in England and Wales. Its registered office is 20 - 22 Jute Lane,
Enfield, Middlesex, EN3 7PJ.
The financial statements cover Cake Box Holdings Plc ('Company') and the
entities it controlled at the end of, or during, the financial year (referred
to as the 'Group').
The principal activity of the Group continues to be the specialist retailer of
fresh cream cakes and franchise operator.
2. Accounting policies
2.1 Basis of preparation of financial
statements
The financial information set out in this statement does not constitute
statutory accounts as defined in section 435 of the Companies Act 2006. This
set of financial results was approved by the Board on 26 June 2022. The
financial information for the years ended 31 March 2022 and 31 March 2021 has
been extracted from the statutory accounts for each year. The auditors' report
on the 2022 statutory accounts was (i) unqualified, (ii) did not include
references to any matters to which the auditor drew attention by way emphasis
without qualifying its reports and (iii) did not contain statements under
section S498(2) or S498(3) of the Companies Act 2006. The audited statutory
accounts for the year ended 31 March 2021 have been delivered to the Registrar
of Companies.
The consolidated financial statements for the year ended 31 March 2022 have
been prepared in accordance with United Kingdom adopted International
Financial Reporting Standards (UK Adopted IFRS) and those parts of the
Companies Act 2006 that are applicable to companies which apply UK adopted
IFRS.
The consolidated financial statements have been prepared under the historical
cost convention, other than certain classes of property, plant and equipment.
The numbers presented in the financial statements have been rounded to the
nearest pound (£) unless otherwise stated.
Sources of estimation uncertainty
The preparation of financial statements under IFRS requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets, liabilities, income and
expenses. The estimates and associated assumptions are based on historical
experience and factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements about
carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates. Estimates and
assumptions are reviewed on an ongoing basis and any revision to estimates or
assumptions are recognised in the period in which they are revised and in
future periods affected.
Significant judgements and estimates
The material areas in which estimates, and judgements are applied are as
follows:
Provisions - Judgement and Estimate
The Group had previously recognised provisions following a data breach which
impacted the Group's website payment system. The provision relates to the fine
received by the merchant service provider, and estimated costs associated
including potential fines from the ICO in respect to GDPR breaches and
associated legal and professional fees. Management use judgement in respect of
potential fees and fines and estimates to calculate the quantum of costs.
Freehold property - Judgement
Freehold properties are held at valuation.
2.2 Functional and presentation currency
The currency of the primary economic environment in which the Parent and its
subsidiaries operate (the functional currency) is Pound Sterling ("GBP or £")
which is also the presentation currency.
2.3 Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group 'controls' an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity. The financial statements of subsidiaries
are included in the consolidated financial statements from the date on which
control commences until the date on which control ceases.
Changes in the Group's interest in a subsidiary that do not result in a loss
of control are accounted for as equity transactions.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses
arising from intra-group transactions, are eliminated.
A list of the significant investments in subsidiaries, including the name,
country of incorporation and proportion of ownership interest is given in note
29 to the Company's separate financial statements.
2.4 Application of New and Revised IFRS's
In the current year, the Group has applied a number of other amendments to
Standards and Interpretations issued by the IASB that are effective for an
annual period that begins on or after 1 January 2021. This has not had any
material impact on the amounts reported for the current and prior years. These
include:
Effective Date
IFRS 9, IAS 39 & IFRS 7 IBOR (Inter-Bank Offered Rates) Reforms Phase 2 1 January 2021
At the date of authorisation of these financial statements the following
Standards and Interpretations which have not been applied in these financial
statements were in issue but not yet effective and are not expected to have a
material impact on the Group:
Effective Date
IFRS 3 Amendments References to the Conceptual Framework in IFRS standards. 1 January 2022
IAS 16 Amendments prohibiting a company from deducting from the cost of property, 1 January 2022
plant and equipment amounts received from selling items produced while the
company is preparing the asset for its intended use.
IAS 37 Amendments regarding the costs to include when assessing whether a contract is 1 January 2022
onerous.
IFRS 1, IFRS 9, IFRS 16 and IAS 41 Annual Improvements to IFRS Standards 2018-2020 (Amendments). 1 January 2022
Effective Date
IAS 1 & IAS 8 Amendments regarding the disclosure of accounting policies and amendments 1 January 2023
regarding the definition of accounting estimates.
IAS 12 Amendments to deferred Tax Related to Assets and Liabilities arising from a 1 January 2023
Single Transaction.
2.5 Segment reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the executive
directors that make strategic decisions. Whilst the Group trading has numerous
components, the chief operating decision maker (CODM) is of the opinion that
there is only one operating segment. This is in line with internal reporting
provided to the executive directors.
2.6 Going concern
The directors pay careful attention to the cost base of the Group ensuring not
only that it is kept at a level to satisfy the commercial requirements but
also that it remains appropriate to the level of activity of the Group and the
financial resources available to it.
The COVID-19 pandemic has been unprecedented in scale and impact and the
directors have taken swift and decisive action to protect customers,
colleagues, franchisees, and the communities in which the Group operates, by
implementing the necessary steps to safeguard business through the crisis, in
line with UK Government guidelines.
The current cash balance has increased by £0.2m to £6.8m, the Group
continues to be cash generative.
Based on the current working capital forecast, there is no need to raise
additional funds as the Group considers that they are in a position where the
scenario of not meeting liabilities is remote. After making enquiries and
considering the assumptions upon which the forecasts have been based, the
directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the period of at least twelve months
from the date of approval of these financial statements. For these reasons,
they continue to adopt the going concern basis of accounting in preparing the
annual financial statements.
2.7 Revenue recognition
The Group recognises revenue from the following major sources:
· Sale of sponges, fresh cream and other goods to franchisees
· Online sales of cakes and related products to customers;
· Franchise package
Sale of sponges and related ingredients to franchisees
For sales of goods to franchisees, revenue is recognised when control of the
goods has transferred, being at the point at which the goods are dispatched.
Payment of the transaction price is due within 14 days after delivery. The
Group actively works with its franchisees to ensure credit terms are met and
if terms are required to be extended a suitable debt recovery plan is agreed.
It is considered highly unlikely that an impairment would ever be required.
Online sales of cakes and related products to customers
Online sales which include click and collect sales where the franchisee has
the primary responsibility for the fulfillment of the order and the Group is
collecting consideration on behalf of the franchisee as agent are not
recognised as revenue of the Group. Only the net commission amount is
recognised. Revenue is recognised at the date of order and payment is taken at
this point.
Franchise package
The franchise package consists of up-front revenues
which relate to pre and post-opening costs mainly for store fit-out; and
initial set up costs to cover site selection,pre opening support, and
franchisee and staff training Each part is considered distinct.
The pre and post-opening costs are required to get the
new franchisee trading and are therefore recognised at a point in time which
is at the end of the month in which trading commenced. Each package is
tailored to a specific franchisee's needs and elements can be added or removed
as appropriate which will affect the price. Each element carries its own
price.
2.8 Current and deferred taxation
Current tax liabilities
Current tax for the current and prior periods is, to the extent unpaid,
recognised as a liability. If the amount already paid in respect of the
current and prior periods exceeds the amount due for those periods, the excess
is recognised as an asset, limited to the extent that it is probable that
taxable profits will be available against which those deductible temporary
differences can be utilised.
A provision is recognised for those matters for which the tax determination is
uncertain, but it is considered probable that there will be a future outflow
of funds to a tax authority. The provisions are measured at the best estimate
of the amount expected to become payable.
No material uncertain tax positions exist as at 31 March 2022. This assessment
relies on estimates and assumptions and may involve a series of complex
judgments about future events. To the extent that the final tax outcome of
these matters is different than the amounts recorded, such differences will
impact income tax expense in the period in which such determination is made.
Current taxes are calculated using tax rates and laws that are enacted or
substantively enacted at the reporting date.
Deferred Tax
Deferred tax is recognised on differences between the carrying amounts of
assets and liabilities in the financial statements and their corresponding tax
bases (known as temporary differences). Deferred tax liabilities are
recognised for all temporary differences that are expected to increase taxable
profit in the future. Deferred tax assets are recognised for all temporary
differences that are expected to reduce taxable profit in the future, and any
unused tax losses or unused tax credits, limited to the extent that it is
probable that taxable profits will be available against which those deductible
temporary differences can be utilised.
The net carrying amount of deferred tax assets is reviewed at each reporting
date and is adjusted to reflect the current assessment of future taxable
profits. Deferred tax is calculated at the tax rates that are expected to
apply to the taxable profit (tax loss) of the periods in which it expects the
deferred tax asset to be realised or the deferred tax liability to be settled.
Deferred taxes are calculated using tax rates and laws that are enacted or
substantively enacted at the reporting date that are expected to apply as or
when the temporary differences reverses.
Tax Expense
Income tax expense represents the sum of the tax currently payable and
deferred tax movement for the current period. The tax currently payable is
based on taxable profit for the year.
Income taxes are recognised in profit or loss unless they relate to items
recognised in other comprehensive income or equity, in which case the income
tax is recognised in other comprehensive income or equity respectively.
2.9 Tangible fixed assets - held at cost
Property, plant and equipment, other than investment and freehold properties,
are stated at historical cost less accumulated depreciation and any
accumulated impairment losses. Historical cost includes expenditure that is
directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by
management.
Land is not depreciated. Depreciation on other assets is charged to allocate
the cost of assets less their residual value over their estimated useful
lives, using the straight‑line method.
Depreciation is provided on the following annual basis:
Freehold property & improvements - Over 4 to 50 years
Plant & machinery - 25% Straight-line method
Motor vehicles - 25% Straight-line method
Fixtures & fittings - 25% Straight-line method
Assets under construction - Not depreciated
Assets under the course of construction are carried at cost less any
recognised impairment loss. Depreciation of these assets commences when the
assets are ready for their intended use.
The assets' residual values, useful lives and depreciation methods are
reviewed, and adjusted prospectively if appropriate, or if there is an
indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with
the carrying amount and are recognised in the profit or loss.
2.10 Tangible fixed assets - held at valuation
Individual freehold properties are carried at fair value at the date of the
revaluation less any subsequent accumulated impairment losses. Revaluations
are undertaken with sufficient regularity to ensure the carrying amount does
not differ materially from that which would be determined using fair value at
each Consolidated Statement of Financial Position date.
Fair values are determined by an independent valuer and updated by the
directors from market-based evidence.
Revaluation gains and losses are recognised in Other Comprehensive Income
unless losses exceed the previously recognised gains or reflect a clear
consumption of economic benefits, in which case the excess losses are
recognised in the profit or loss.
2.11 Inventories
Inventories are stated at the lower of cost and net realisable value, being
the estimated selling price less costs to complete and sell. Cost is based on
the cost of purchase on a first in, first out basis.
2.12 Financial instruments
Recognition of Financial Instruments
Financial assets and financial liabilities are recognised when the Group
becomes party to the contractual provisions of the instrument.
Trade and other receivables
Trade and other receivables without a significant financing component are
initially measured at transaction price. All sales are made on the basis of
normal credit terms, and the receivables do not bear interest. Where credit is
extended beyond normal credit terms, receivables are measured at amortised
cost using the effective interest method. At the end of each reporting period,
the carrying amounts of trade and other receivables are reviewed. Impairment
provisions for current and non-current trade receivables are recognised based
on the simplified approach within IFRS 9 using a provision matrix in the
determination of the lifetime expected credit losses. During this process the
probability of the non-payment of the trade receivables is assessed. This
probability is then multiplied by the amount of the expected loss arising from
default to determine the lifetime expected credit loss for the trade
receivables. For trade receivables, which are reported net, such provisions
are recorded in a separate provision account with the loss being recognised
within cost of sales in the Consolidated Statement of Comprehensive Income. On
confirmation that the trade receivable will not be collectable, the gross
carrying value of the asset is written off against the associated provision.
Other financial assets - Loans to franchisees
Other financial assets are initially measured at fair value and subsequently
at amortised cost. At the end of each reporting period, the carrying amounts
of other financial assets are reviewed on an individual balance basis and
appropriate impairments is made if required.
Trade and other payables
Trade and other payables are initially measured at fair value and subsequently
at amortised cost. Trade payables are obligations on the basis of normal
credit terms and do not bear interest. Trade payables denominated in a foreign
currency are translated into Sterling using the exchange rate at the reporting
date. Foreign exchange gains or losses are included in other income or other
expenses.
Bank loans and overdrafts
All borrowings are initially recorded at fair value, net of transaction costs.
Borrowings are subsequently carried at amortised cost under the effective
interest method.
Borrowings are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12
months after the reporting date.
2.14 Finance costs
Finance costs are charged to the Consolidated Statement of Comprehensive
Income over the term of the debt using the effective interest method so that
the amount charged is at a constant rate on the carrying amount. Issue costs
are initially recognised as a reduction in the proceeds of the associated
capital instrument.
2.15 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and deposits with maturities
of three months or less from inception, and other short-term highly liquid
investments that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value.
2.16 Dividends
Equity dividends are recognised when they become legally payable. Interim
equity dividends are recognised when paid. Final equity dividends are
recognised when approved by the shareholders at an Annual General Meeting.
2.17 Leases
The Group assesses whether a contract is, or contains, a lease, at inception
of the contract. The Group recognises a right-of-use asset and a corresponding
lease liability with respect to all lease arrangements in which it is the
lessee, except for short-term leases (defined as leases with a lease term of
12 months or less) and leases of low value assets (such as tablets and
personal computers, small items of office furniture and telephones). For these
leases, the Group recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another systematic basis
is more representative of the time pattern in which economic benefits from the
leased assets are consumed.
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted by using the
rate implicit in the lease.
Lease payments included in the measurement of the lease liability comprise:
· Fixed lease payments (including in-substance fixed payments),
less any lease incentives receivable;
· Variable lease payments that depend on an index or rate,
initially measured using the index or rate at the commencement date;
· The amount expected to be payable by the lessee under residual
value guarantees;
· The exercise price of purchase options if the lessee is
reasonably certain to exercise the options;
· Payments of penalties for terminating the lease, if the lease
term reflects the exercise of an option to terminate the lease
The lease liability is presented as a separate line in the Consolidated
Statement of Financial Position.
The lease liability is subsequently measured by increasing the carrying amount
to reflect interest on the lease
liability (at a constant rate) and by reducing the carrying amount to reflect
the lease payments made.
The Group remeasures the lease liability (and makes a corresponding adjustment
to the related right-of-use asset) whenever:
· The lease term has changed or there is a significant event or
change in circumstances resulting in a change in the assessment of exercise of
a purchase option, in which case the lease liability is remeasured by
discounting the revised lease payments using a revised discount rate;
· The lease payments change due to changes in an index or rate or a
change in expected payment under a guaranteed residual value, in which cases
the lease liability is remeasured by discounting the revised lease payments
using a revised discount rate (unless the lease payments change is due to a
change in a floating interest rate, in which case a revised discount rate is
used);
· A lease contract is modified, and the lease modification is not
accounted for as a separate lease, in which case the lease liability is
remeasured based on the lease term of the modified lease by discounting the
revised lease payments using a revised discount rate at the effective date of
the modification.
The Group did not make any such adjustments during the periods presented.
The right-of-use assets comprise the initial measurement of the corresponding
lease liability, lease payments
made at or before the commencement day, less any lease incentives received and
any initial direct costs. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
Whenever the Group incurs an obligation for costs to dismantle and remove a
leased asset, restore the site on which it is located or restore the
underlying asset to the condition required by the terms and conditions of the
lease, a provision is recognised and measured under IAS 37. To the extent that
the costs relate to a right-of-use asset, the costs are included in the
related right-of-use asset, unless those costs are incurred to produce
inventories.
Right-of-use assets are depreciated over the shorter period of lease term and
useful life of the right-of-use asset. If a lease transfers ownership of the
underlying asset or the cost of the right-of-use asset reflects that the Group
expects to exercise a purchase option, the related right-of-use asset is
depreciated over the useful life of the underlying asset. The depreciation
starts at the commencement date of the lease.
The right-of-use assets are presented as a separate line in the consolidated
statement of financial position. The Group applies IAS 36 to determine whether
a right-of-use asset is impaired and accounts for any identified impairment
loss as described in the 'Property, Plant and Equipment' policy.
2.18 Employee benefits
Short Term Employee Benefits
The cost of short-term employee benefits, (those payable within 12 months
after the service is rendered, such as leave pay and sick leave, bonuses, and
non-monetary benefits such as medical care), are recognised in the period in
which the service is rendered and are not discounted.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined
contribution plan is a pension plan under which the Group pays fixed
contributions into a separate entity. Once the contributions have been paid
the Group has no further payment obligations.
The contributions are recognised as an expense in the profit or loss when they
fall due. Amounts not paid are shown in accruals as a liability in the
Consolidated Statement of Financial Position. The assets of the plan are held
separately from the Group in independently administered funds.
Termination benefits
The entity recognises the expense and corresponding liability for termination
benefits when it is demonstrably committed to either of the following
scenarios:
a. The termination of the employment of an employee or group of
employees before the normal retirement age, or
b. The provision of termination benefits in relation to an offer made
to encourage voluntary redundancy.
The value of such benefit is measured at the best estimate of the expenditure
required to settle the obligation at the reporting date.
2.19 Provisions and contingencies
Provisions are recognised when the Group has an obligation at the reporting
date as a result of a past event; it is probable that the Group will be
required to transfer economic benefits in settlement; and the amount of the
obligation can be estimated reliably.
Provisions are measured at the present value of the amount expected to be
required to settle the obligation using a pre-tax rate that reflects current
market assessments of the time value of money and the risks to a specific
obligation. The increase in the provision due to the passage of time is
recognised as interest expense.
Provisions are not recognised for future operating losses.
Contingent assets and contingent liabilities are not recognised.
2.20 Share capital
Ordinary shares are classified as equity. Equity instruments are measured at
the fair value of the cash or other resources received or receivable, net of
the direct costs of issuing the equity instruments. If payment is deferred and
the time value of money is material, the initial measurement is on a present
value basis.
2.21 Research and development
Research and development expenditure is charged to the Consolidated Statement
of Comprehensive Income in the year in which it is incurred. The expenditure
does not meet the definition of 'Development' under IAS 38.
2.22 Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair
value for recognition or disclosure purposes, the fair value is based on the
price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date;
and assumes that the transaction will take place either: in the principal
market; or in the absence of a principal market, in the most advantageous
market.
Fair value is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming they act in their economic
best interests. For non-financial assets, the fair value measurement is based
on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair
value, are used, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three
levels, using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. Classifications are reviewed at each
reporting date and transfers between levels are determined based on a
reassessment of the lowest level of input that is significant to the fair
value measurement.
For recurring and non-recurring fair value measurements, external valuers may
be used when internal expertise is either not available or when the valuation
is deemed to be significant. External valuers are selected based on market
knowledge and reputation. Where there is a significant change in fair value of
an asset or liability from one period to another, an analysis is undertaken,
which includes a verification of the major inputs applied in the latest
valuation and a comparison, where applicable, with external sources of data.
2.23 Share based payment
Where share options are awarded to employees, the fair value of the options
(measured using the Black-Scholes model) at the date of grant is charged to
the Statement of Comprehensive Income over the vesting period. Non-market
vesting conditions are considered by adjusting the number of equity
instruments expected to vest at each reporting date so that, ultimately, the
cumulative amount recognised over the vesting period is based on the number of
options that eventually vest. Market vesting conditions are factored into the
fair value of the options granted. The cumulative expense is not adjusted for
failure to achieve a market vesting condition.
The fair value of the award also considers non-vesting conditions. These are
either factors beyond the control of either party or factors which are within
the control of one or another of the parties. Where the terms and conditions
of options are modified before they vest, the increase in the fair value of
the options, measured immediately before and after the modification, is also
charged to profit or loss over the remaining vesting period.
Lapsed share options are derecognised as soon as it known that vesting
conditions will not be met. Previous charges to the Statement of Comprehensive
Income are credited back to this statement.
2.24 Exceptional items
Exceptional items are transactions that fall within the ordinary activities of
the Group but are presented separately due to their size or incidence.
3. Segment reporting
Components reported to the chief operating decision maker (CODM) are not
separately identifiable and as such consider there to be one reporting
segment. The Group makes varied sales to its customers but none are a
separately identifiable component. The following information is disclosed:
2022 2021
£ £
Sales of sponge 12,301,051 8,199,509
Sales of food 5,479,076 3,542,798
Sales of fresh cream 3,442,619 2,419,431
Sales of other goods 7,023,665 4,581,678
Online sales commission 937,640 470,499
Franchise packages 3,780,795 2,696,947
32,964,846 21,910,862
All revenue occurred in the United Kingdom for both
financial years.
The operating segment information is the same information as provided
throughout the consolidated financial statements and is therefore not
duplicated.
The Group was not reliant upon any major customer
during 2022 or 2021.
4. Expenses by nature
The Administrative expenses have been arrived at after charging/(crediting):
2022 2021
£ £
Wages and salaries 5,302,849 3,702,499
Travel and entertaining costs 372,303 210,587
Supplies costs 293,620 233,258
Professional costs 839,897 538,533
Depreciation 853,633 670,333
Amortisation of right-of-use assets 124,975 -
Rates and utilities costs 307,200 294,292
Property maintenance costs 338,817 193,607
Advertising costs 312,907 317,154
Other costs 48,212 38,718
Exceptional items (see note 10) (781,965) 486,319
8,012,448 6,685,300
5. Operating profit
The operating profit is stated after charging/(crediting):
As restated
2022 2021
£ £
Depreciation of tangible fixed assets 853,633 670,333
Amortisation of right-of-use asset 124,975 -
Stock recognised as an expense 17,133,685 10,978,933
Profit on disposal of property, plant & equipment (13,154) (18,972)
Research and development charged as an expense - 215,555
Fees payable to the Group's auditor and its associates for the audit of the 75,000 87,000
Group's annual financial statements
Fees payable to the Group's auditor and its associates for the audit of the - 7,500
Group's interim financial statements
Share based payment (credit)/expense (486,368) 288,000
The comparative figure for 'Stock recognised as an expense' has been corrected
to represent the true value.
6. Net finance costs
2022 2021
Finance expenses £ £
Bank loan interest 33,971 35,771
Finance lease interest 46,228 -
Interest on overdue tax 2,991 5,615
Finance income
Bank interest receivable (1,802) (4,087)
81,388 37,299
7. Staff costs
Staff costs, including directors' remuneration, were as
follows:
2022 2021
£ £
Wages and salaries 4,737,683 3,055,008
Social security costs 456,259 287,875
Pension costs 56,798 42,080
Private health 52,109 29,536
Share-based payment expense - 288,000
5,302,849 3,702,499
Reversal of share-based payment expense (note 10) (486,368) -
4,816,481 3,702,499
The average monthly number of employees, including directors, for the year was
155 (FY21 - 107). The breakdown by department is as follows;
2022 2021
£ £
Directors 7 7
Admin 31 24
Maintenance 17 11
Production & Logistics 100 65
155 107
8. Dividends
2022 2021
£ £
Interim dividend of 1.85 per ordinary share - 740,000
Final dividend of 3.2p per ordinary share proposed and paid during the year - 1,280,000
relating to the previous year's results
Interim dividend of 2.5 per ordinary share 1,000,000 -
Final dividend of 3.7p per ordinary share proposed and paid during the year 1,480,000 -
relating to the previous year's results
2,480,000 2,020,000
Since the year end the Directors recommend payment of a dividend of 5.1 pence
(FY21 - 3.7 pence) per share totalling £2,040,000 (2021 - £1,480,000) for
the year ended 31 March 2022.
During the end-of-year audit process, the Board became aware of an issue
concerning technical compliance with the Companies Act 2006 in relation to
past dividend payments. Although there were sufficient distributable
reserves and cash held in the Group which could have been distributed,
dividends were declared at a time when the Group's holding company itself,
Cake Box Holdings plc, did not hold adequate distributable reserves by
reference to its last set of annual accounts. The Group's historic reported
trading results and financial condition are entirely unaffected.
The Board proposes to put resolutions to Shareholders at the time of the 2022
Annual General Meeting to address this past issue.
9. Directors' remuneration and key management personnel
The Directors' remuneration is disclosed within the Directors' Remuneration
Report in the Group's Annual Report & Accounts. The Executive Directors
are considered key management personnel. Employers NIC paid on Directors'
remuneration in the year was £114,388 (FY21 - £62,287).
10. Exceptional items
2022 2021
£ £
Website data breach (note 23) - 486,319
Lapse of share options (note 20) (486,368) -
Reversal of accrued rates (295,597) -
(781,965) 486,319
Rates and utilities costs includes a credit of £295,597 related to an accrual
raised in a previous year, which has been released on the basis the directors
have received confirmation it is no longer required. Please see relevant notes
for further information on the website data breach and lapse of share options.
11. Taxation
2022 2021
£ £
Corporation tax
Current tax on profits for the year 1,340,469 900,406
Adjustments in respect of previous periods (838) 1,536
Deferred tax
Arising from origination and reversal of temporary differences 86,078 (59,580)
Taxation on profit on ordinary activities 1,425,709 842,362
Factors affecting tax charge for the year
The tax assessed for the year is lower than (FY21 - higher than) the standard
rate of corporation tax in the UK of 19% (FY21 - 19%). The differences are
explained below:
2022 2021
£ £
Profit on ordinary activities before tax 7,737,325 4,209,270
Profit on ordinary activities multiplied by standard rate of corporation tax 1,470,092 799,761
in the UK of 19% (FY21 - 19%)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and 11,700 95,115
impairment
Income not taxable (22,267) -
Deferred tax not provided 22 -
Use of super deduction allowance (33,808) -
Adjustment in research and development tax credit leading to a decrease in the - (53,242)
tax charge
Difference in tax rates used within share-based payments 808 (808)
Adjustments to tax charge in respect of prior periods (838) 1,536
Total tax charge for the year 1,425,709 842,362
Factors that may affect future tax charge
At the Budget 2021 on 3 March 2021, the Government announced that the
Corporation Tax rate will increase to 25% for companies with profits above
£250,000 with effect from 1 April 2023, as well as announcing a number of
other changes to allowances and treatment of losses.
12. Deferred taxation
As restated
2022 2021
£ £
Balance brought forward 675,227 494,805
Charged to other comprehensive income:
Deferred tax on revalued freehold property 237,533 242,231
Charged directly to reserves:
Employee benefits (including share-based payments) 2,228 (2,228)
Charged to profit and loss:
Accelerated capital allowances (7,557) (3,715)
Share -based payments 93,219 (55,529)
Other short-term timing differences (1,820) (337)
Balance carried forward 998,830 675,227
2022 2021
£ £
Deferred tax liabilities
Accelerated capital allowances 189,704 197,261
Other short-term timing differences (3,571) (1,751)
Property revaluations (including indexation) 812,697 575,164
998,830 770,674
Deferred tax assets
Employee benefits (including share-based payments) - (95,447)
998,830 675,227
Movements in deferred tax in direct relation to freehold property revaluation
are recognised immediately against the revaluation reserve.
See note 20 for more information for restated comparatives.
13. Property, plant and equipment
As restated
Assets under construction Freehold property & Improvements Plant & machinery Motor vehicles Fixtures & fittings Total
£ £ £ £ £ £
Cost or valuation
At 1 April 2020 1,038,177 4,786,703 985,449 601,030 1,657,638 9,068,997
Additions 82,396 115,206 88,295 146,005 273,057 704,959
Disposals - - - (44,165) - (44,165)
Revaluations - 1,274,901* - - - 1,274,901
At 31 March 2021 1,120,573 6,176,810 1,073,744 702,870 1,930,695 11,004,692
Depreciation
At 1 April 2020 - 70,539 648,033 303,263 847,613 1,869,448
Charge for the year - 116,704 138,766 132,471 282,392 670,333
Disposals - - - (36,691) - (36,691)
At 31 March 2021 - 187,243 786,799 399,043 1,130,005 2,503,090
Net book value
At 31 March 2021 1,120,573 5,989,567 286,945 303,827 800,690 8,501,602
Assets under construction Freehold property & Improvements Plant & machinery Motor vehicles Fixtures & fittings Total
£ £ £ £ £ £
Cost or valuation
At 1 April 2021 1,120,573 6,176,810 1,073,744 702,870 1,930,695 11,004,692
Additions - 555,446 107,697 373,516 97,267 1,133,926
Disposals - - - (43,910) - (43,910)
Transfers between classes (1,120,573) 1,120,573 - - - -
Revaluations - 1,250,175 - - - 1,250,175
At 31 March 2022 - 9,103,004 1,181,441 1,032,476 2,027,962 13,344,883
Depreciation
At 1 April 2021 - 187,243 786,799 399,043 1,130,005 2,503,090
Charge for the year - 236,353 84,866 180,840 351,574 853,633
Disposals - - - (41,049) - (41,049)
At 31 March 2022 - 423,596 871,665 538,834 1,481,579 3,315,674
Net book value
At 31 March 2022 - 8,679,408 309,776 493,642 546,383 10,029,209
( )
Assets under construction became operational during the year.
* During the year the Directors expanded the freehold property column in the
fixed assets note to include property improvement costs which were previously
included in fixtures and fittings in order to provide more clarity. This
included a revaluation of freehold properties as detailed in note 20. Prior
year comparatives have been restated.
As at 31 March 2022, all freehold property was valued by independent 3rd party
qualified valuers, in accordance with the RICS Valuation - Global Standards
2017 (the Red Book). The directors believe these valuations to be
representative of the fair value as at the balance sheet date.
The fair value of freehold property is categorised as a level 3 recurring fair
value measurement.
The following table summarises the quantitative information about the
significant unobservable inputs used in recurring level 3 fair value
measurements:
Property Fair value at 31 March 2022 £ Valuation technique Sq ft Rate per sq ft
Min Max Average
Enfield 7,000,000 Vacant possession 39,121 125 250 179
Coventry 1,080,000 Vacant possession 13,000 83
Bradford 525,000 Vacant possession 9,358 56
Improvements at Mollison 74,408 Net book value n/a n/a n/a n/a
Total 8,679,408
If the Freehold properties had been accounted for under the historic cost
accounting rules, the properties would have been measured as follows:
2022
2021
£ £
Historic cost 3,433,746 2,442,744
14. Leases
The Consolidated Statement of Financial Position shows the following amounts
in relation to leases:
Properties
£
Cost
At 1 April 2021 -
Additions 2,999,405
At 31 March 2022 2,999,405
Depreciation
At 1 April 2021 -
Charge for the year 124,975
At 31 March 2022 124,975
Net book value
At 31 March 2022 2,874,430
Additions relate to the lease of a new property undertaken in the year.
The group leases one property and the term is ten years. There are no variable
lease payments or commitment to short term leases.
Lease liabilities 2022 2021
£ £
Current 260,191 -
Non-current 2,699,958 -
2,960,149 -
The Group's obligations are secured by the lessor's title to the leased assets
for such leases.
Amounts recognised in the Consolidated Statement of Comprehensive Income are
as follows:
2022
2021
£ £
Depreciation expense of right-of-use assets 124,975 -
Interest expense on lease liabilities 46,228 -
The total cash outflow for leases amount to £85,483
(FY21 - £Nil).
15.
Inventories
2022 2021
£ £
Finished goods and goods for resale 2,468,921 1,902,171
Inventories are charged to cost of sales in the Consolidated Statement of
Comprehensive Income.
16. Trade and other receivables
2022 2021
£ £
Trade receivables 2002,807 2,041,673
Other receivables 280,613 17,147
Prepayments 269,789 431,397
2,553,209 2,490,217
Current 2,553,209 2,490,217
2,553,209 2,490,217
The fair value of those trade and other receivables classified as financial
assets at amortised cost are disclosed in the financial instruments (note 26).
The Group's exposure to credit and market risks, including impairments and
allowances for credit losses, relating to trade and other receivables is
disclosed in the financial risk management and impairment of financial assets
note(note 27).
17. Other financial assets
2022 2021
£ £
Loans to franchisees 1,067,607 1,038,812
1,067,607 1,038,812
Non-current 710,059 656,004
Current 357,548 382,808
1,067,607 1,038,812
Loans are interest free and payable in equal monthly instalments. All
non-current assets are due within five years of the statement of financial
position date. The carrying amount of the loans is considered to be equal to
their fair value.
18. Share capital
2022 2021
£ £
40,000,000 Ordinary shares of £0.01 each 400,000 400,000
All of the ordinary shares of £0.01 each carry voting rights, the right to
participate in dividends, and entitle the shareholders to a pro-rata share of
assets on a winding up.
19. Reserves
The following describes the nature and purpose of each
reserve within equity:
Capital redemption reserve
Amounts transferred from share capital on redemption of
issued shares.
Revaluation reserve
Gain/(losses) arising on the revaluation of the Group's
property (other than investment property).
Retained earnings
All other net gains and losses and transactions with owners (e.g., dividends,
fair value movements of investment property) not recognised elsewhere.
Share option reserve
Gains/losses arising on amounts in respect of equity-settled share options
outstanding. See note 21 for more information.
20. Prior Period Adjustment
During the year it was discovered that an uplift in fair value of freehold
properties was not properly reflected in the financial statements in the prior
year. This has been corrected in the financial statements.
The following financial statements were affected as a result:
Extract of Consolidated Statement of Comprehensive Income
As previously reported Adjustment to fair value of properties Restated
Profit after income tax 3,366,908 - 3,366,908
Other comprehensive income for the year
Revaluation of freehold property 24,901 1,250,000 1,274,901
Deferred tax on revaluation of freehold property (4,731) (237,500) (242,231)
Total other comprehensive income for the year 20,170 1,012,500 1,032,670
Total comprehensive income for the year 3,387,078 1,012,500 4,399,578
Extract of Consolidated Statement of Financial Position
As previously reported Adjustment to fair value of properties Restated
Property, plant and equipment 7,251,602 1,250,000 8,501,602
Total Assets 8,003,053 1,250,000 9,253,053
Revaluation reserve 1,609,592 1,012,500 2,622,092
Equity Attributable to the owners of the Parent Company 1,609,592 1,012,500 2,622,092
Deferred tax liabilities 533,174 237,500 770,674
Total Equity and Liabilities 17,904,113 237,500 19,154,113
There is no impact on the Group's basic or diluted earnings per share and no
impact on the total operating, investing or financing cash flows for the years
ended 31 March 2021 or 2022.
21. Share-Based Payments
The Group operates two equity-settled share-based remuneration schemes for
certain employees at management and executive director level: A United Kingdom
tax authority approved scheme for senior managers and an executive director
and an unapproved scheme for executive directors. The main vesting condition
for senior managers is aggregated EBITDA reaching £19 million by the third
anniversary of the date of the grant. The main vesting condition for the
executive director is aggregated Earnings Per Share reaching a minimum of
36.41p by the third anniversary of the date of the grant on which 30% will be
exercisable. This increases by 0.0963% for every penny over the minimum level.
The individuals must remain employees of the Group over the 3 or 4 year
period. Under the unapproved scheme, options vest on the same basis as the
approved scheme for the executive director. In addition, the options will
lapse 10 years after the grant date.
2022 2022 2021 2021
Weighted average exercise price (pence) Number Weighted average exercise price (pence) Number
Outstanding as at 1 April 64 688,400 64 688,400
Lapsed during the year (64) (688,400) - -
Outstanding as at 31 March - - 64 688,400
No share options were granted, forfeited, or exercised during current or prior
year. The share options lapsed during the year as the vesting conditions were
not met.
22. Borrowings
2022 2021
£ £
Non-current borrowings
Bank loans 1,185,978 1,318,005
1,185,978 1,318,005
Current borrowings
Bank loans 167,754 167,754
167,754 167,754
Bank loans have fixed charges over the properties to which they relate and
interest of 2.15% - 2.23% above Bank of England base rate are charged on the
loans. The loans are repayable in monthly instalments with final payments due
between March 2024 and November 2025.
23. Trade and other payables
2022 2021
£ £
Trade payables 1,994,411 2,495,741
Other taxation and social security 340,035 242,473
Other payables 36,497 21,099
Accruals 290,429 594,436
2,661,372 3,353,749
The fair value of the trade and other payables classified as financial
instruments are disclosed in the financial instruments (note 27).
The Group's exposure to market and liquidity risks related to trade and other
payables is disclosed in the financial risk management and impairment of
financial assets note. The Group pays its trade payables on terms and as such
trade payables are not yet due at the statement of financial position
dates.
24. Provisions
2022 2021
£ £
Website data breach 243,100 486,319
The provision represents a website data breach in 2020. The amount remaining
represents potential fines in respect of the website data breach and is based
upon independent legal advice.
Website data breach
£
Carrying amount at the start of the year 486,319
Reversed during the year (243,219)
Carrying amounts at the end of the year 243,100
25. Pension commitments
The Group operates a defined contributions pension scheme. The assets of the
scheme are held separately from those of the Group in an independently
administered fund. The pension cost charge represents contributions payable by
the Group to the fund and amounted to £56,798 (FY21 - £42,080).
Contributions totalling £19,890 (FY21 - £10,089) were payable to the fund at
the statement of financial position date and are included in other payables
(see note 23).
26. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation. Related party transactions are
considered to be at arms-length.
Details of amounts paid to key management personnel
which includes executive and non-executive directors are included within note
9 and the Directors Remuneration Report in the Group's Annual Report &
Accounts.
Key management personnel had an interest in dividends
as follows:
2022 2021
£ £
Sukh Chamdal 792,851 645,790
Pardip Dass 133,995 196,719
Jaswir Singh 34,473 28,079
Neil Sachdev 1,148 935
Alison Green 222 -
962,689 871,523
During the year the Group made sales to companies under the control of the
directors. All sales were made on an arms-length basis. These are detailed as
follows with director shareholding % shown in brackets:
Mr. Sukh Chamdal 2022 2021
£ £ £ £
Sales Balance Sales Balance
Cake Box (Crawley) Limited (0%) 168,684 11,095 111,825 2,639
Cake Box CT Limited (0%) 280,706 19,326 222,752 20,157
Cake Box (Strood) Limited (0%) 157,247 2,241 147,985 3,361
Cake Box (Gravesend) Limited (0%)** - - 123,162 (1,021)
606,637 32,662 605,724 25,136
* 100% Owned by Mr. Chamdal's daughter
** This store no longer considered a related party
Mr. Pardip Dass 2022 2021
£ £ £ £
Sales Balance Sales Balance
Eggfree Cake Box Barking Limited (30%) 250,382 6,803 242,150 2,840
250,382 6,803 242,150 2,840
Dr Jaswir Singh 2022 2021
£ £ £ £
Sales Balance Sales Balance
Luton Cake Box Limited (10%) 419,676 15,544 361,150 7,563
Peterborough Cake Box Limited (30%) 258,807 5,983 219,363 10,227
Cream Cake Limited (30%) 230,591 12,971 171,051 6,107
MK Cakes Limited (0%)*** 292,202 10,532 218,676 (3,578)
Bedford Cake Box Limited (0%)*** 199,553 5,436 145,883 1,432
Chaz Cakes Limited (50%) 266,563 6,446 161,371 1,231
Eggless Cake Company (50%) 194,201 9,366 165,623 2,698
1,861,593 66,278 1,443,117 25,680
*** 100% owned by Dr Singh's son or daughter
27. Financial instruments
The Group is exposed to risks that arise from its use of financial
instruments. This note describes the Group's objectives, policies and
processes for managing those risks and the methods used to measure them.
Further quantitative information in respect of these risks is presented
throughout these financial statements.
The significant accounting policies regarding financial instruments are
disclosed in note 2.
There have been no substantive changes in the Group's exposure to financial
instrument risks, its objectives, policies and processes for managing those
risks or the methods used to measure them from previous years unless otherwise
stated in this (See note 87).
The principal financial instruments used by the Group, from which financial
instrument risk arises, are as follows:
Financial Assets
Held at amortised cost
2022 2021
£ £
Cash and cash equivalents 6,571,558 5,125,864
Trade and other receivables 2,116,254 2,058,820
Other financial assets 1,067,607 1,038,812
9,755,419 8,223,496
Financial Liabilities
Held at amortised cost
2022 2021
£ £
Trade and other payables 2,584,437 3,111,275
Secured Borrowings 1,353,732 1,485,759
3,938,169 4,597,034
28. Financial risk management
The Board has overall responsibility for the determination of the Group's risk
management objectives and policies and, while retaining ultimate
responsibility for them, it has delegated the authority for designing and
operating processes that ensure the effective implementation of the objectives
and policies to the Group's finance function. The board receives regular
reports from the Chief Financial Officer through which it reviews the
effectiveness of processes put in place and the appropriateness of the
objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk
as far as possible without unduly affecting the Group's competitiveness and
flexibility. Further details regarding these policies are set out below:
Credit risk and impairment
Credit risk arises principally from the Group's trade and other receivables.
It is the risk that the counter party fails to discharge its obligation in
respect of the instrument. The maximum exposure to credit risk equals the
carrying value of these items in the financial statements as the Group has the
power to stop supplying the customer until payment is received in full.
Definition of default
The loss allowance on all financial assets is measured
by considering the probability of default.
Receivables are considered to be in default when the principal or any interest
is more than 90 days past due, based on an assessment of past payment
practices and the likelihood of such overdue amounts being recovered.
Determination of credit-impaired financial assets
The Group considers financial assets to be 'credit-impaired' when the
following events, or combinations of several events, have occurred before the
year-end:
• significant financial difficulty of the counterparty arising from
significant downturns in operating results and/or significant unavoidable cash
requirements when the counterparty has insufficient finance from internal
working capital resources, external funding and/or group support;
• a breach of contract, including receipts being more than 240 days
past due;
• it becoming probable that the counterparty will enter bankruptcy
or liquidation.
Write-off policy
Receivables are written off by the Company when there is no reasonable
expectation of recovery, such as when the counterparty is known to be going
bankrupt, or into liquidation or administration. Receivables will also be
written off when the amount is more than 300 days past due and is not covered
by security over the assets of the counterparty or a guarantee.
Impairment of trade receivables and other financial
assets
The Group calculates lifetime expected credit losses for trade receivables and
other financial assets using a portfolio approach. All items are grouped
based on the credit terms offered and the type of product sold. The
probability of default is determined at the year-end based on the aging of the
receivables and historical data about default rates on the same basis. That
data is adjusted if the Group determines that historical data is not
reflective of expected future conditions due changes in the nature of its
customers and how they are affected by external factors such as economic and
market conditions.
In accordance with IFRS 9, the Group performed a year end impairment exercise
to determine whether any write down in amounts receivable was required, using
an expected credit loss model. The expected loss rate for receivables
including other financial assets is 0% on the basis of the Group's history of
bad debt write offs.
As at 31 March 2022, the total loss allowances against the Group's financial
assets were immaterial and no charge to the income statement was recognised.
Liquidity risk
The Group's policy is to ensure that it will always have sufficient cash to
allow it to meet its liabilities when they become due.
The Board receives cash flow projections on a regular basis which are
monitored regularly. The Board will not commit to material expenditure in
respect of its ongoing development programme prior to being satisfied that
sufficient funding is available to the Group to finance the planned
programmes.
The following table sets out the contractual maturities (representing
undiscounted contractual cash-flows) of financial liabilities:
Borrowings
2022 2021
£ £
Borrowings - Due within one year 167,754 167,754
Borrowings - Due between one to two years 167,754 167,754
Borrowings - Due between two to five years 1,018,224 1,150,251
1,353,732 1,485,759
Right-of-use assets - Due within one year 260,191 -
Right-of-use assets - Due between one to two years 270,119 -
Right-of-use assets - Due between two to five years 873,777 -
Right-of-use assets - Due after more than five years 1,556,062
2,960,149 -
Trade and other payables
2022 2021
£ £
0 to 30 Days 2,049,774 2,364,512
30 to 60 Days 249,613 447,476
60 to 90 Days 17,646 41,348
90 to 120 Days 73,891 40,300
120 Days to 1 year 193,513 217,639
2,584,437 3,111,275
Interest rate risk
The Group is exposed to interest rate risk because entities in the Group
borrow funds at both fixed and floating interest rates. The risk is managed by
the Group by maintaining good relationships with banks and other lending
providers and by ensuring cash reserves are high enough to cover the debt.
Where possible fixed terms of interest will be sought.
The Group analyses the interest rate exposure on a regular basis. A
sensitivity analysis is performed by applying a simulation technique to the
liabilities that represent major interest-bearing positions. Various scenarios
are run taking into consideration refinancing, renewal of the existing
positions, alternative financing and hedging. Based on the simulations
performed, the impact on profit or loss and net assets of a 25 basis-point
shift (being the maximum reasonable expectation of changes in interest rates)
would be a change of £3,384 (FY21 - £3,714).
Capital risk management
The Group considers its capital to comprise its ordinary share capital and
retained profits as its equity capital. In managing its capital, the Group's
primary objective is to provide return for its equity shareholders through
capital growth and future dividend income. The Group's policy is to seek to
maintain a gearing ratio that balances risks and returns at an acceptable
level and also to maintain a sufficient funding base to enable the Group to
meet its working capital and strategic investment needs. In making decisions
to adjust its capital structure to achieve these aims, either through new
share issues or the issue of debt, the Group considers not only its short-term
position but also its long-term operational and strategic objectives.
Details of the Group's capital are disclosed in the Consolidated Statement of
Changes in Equity.
There have been no other significant changes to the Group's management
objectives, policies and procedures in the year nor has there been any change
in what the Group considers to be capital.
Currency risk
The Group is not exposed to any significant currency risk. The Group manages
any currency exposure by retaining a small holding in US Dollars however all
other cash balances are held in Sterling.
29. Post statement of financial position events
Post year end the directors have recommended dividends of 5.1p per share (FY21
- 3.7p per share).
30. Subsidiary undertakings
The following were subsidiary undertakings of the
Company included in the Group results:
Name Country of Class of shares Holding Principal activity
incorporation
Eggfree Cake Box Limited United Kingdom Ordinary 100% Franchisor of specialist cake
stores
Chaz Limited United Kingdom Ordinary 100% Property rental company
The above subsidiaries have the same registered office
address as Cake Box Holdings Plc.
31. Notes supporting statement of cashflows
Cash and cash equivalents for the purposes of the
statement of cashflows comprise of:
2022 2021
£ £
Cash at bank available on demand 6,570,739 5,123,796
Cash on hand 819 2,068
6,571,558 5,125,864
There were no significant non-cash transactions from financing activities
(FY21 - none).
Non-cash transactions from financing activities are shown in the
reconciliation of liabilities from financing transactions below:
Non-current lease liabilities Current lease liabilities Non-current borrowings Current borrowings Total
£ £ £ £ £
As at 1 April 2020 - - 1,446,288 167,754 1,614,042
Cash flows
Repayments - - - (167,754) (167,754)
Non-Cash flows:
Interest - - 39,471 - 39,471
Non-current liabilities becoming current during the year - - (167,754) 167,754 -
As at 31 March 2021 - - 1,318,005 167,754 1,485,759
Cash flows
New leases 2,999,405 - 2,999,405
Repayments (85,484) - - (167,754) (253,238)
Non-Cash flows:
Interest 46,228 - 35,727 - 81,955
Non-current liabilities becoming current during the year (260,191) 260,191 (167,754) 167,754 -
As at 31 March 2022 2,699,958 260,191 1,185,978 167,754 4,313,881
32. Ultimate controlling party
The Group considers there is no ultimate controlling
party.
32. Earnings per share
2022 2021
£ £
Profit after tax attributable to the owners of Cake Box Holdings Plc 6,311,616 3,366,908
Number Number
Weighted average number of ordinary shares used in calculating basic earnings 40,000,000 40,000,000
per share
Weighted average number of ordinary shares used in calculating diluted 40,000,000 40,000,000
earnings per share
Pence Pence
Basic earnings per share 15.78 8.42
Diluted earnings per share 15.78 8.42
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