REG - Cranswick PLC - Final Results <Origin Href="QuoteRef">CWK.L</Origin> - Part 2
24/05/2016 07:06
- Part 2: For the preceding part double click ID:nRSX0616Za
cash equivalents at end of year 7 17,817 3,941
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2016
Sharecapital £'000 Sharepremium £'000 Share-basedpayments£'000 Hedgingreserve £'000 Retainedearnings £'000 Totalequity £'000
At 31 March 2014 4,896 64,173 7,779 (15) 225,878 302,711
Profit for the year - - - - 41,252 41,252
Other comprehensive income - - - (154) (246) (400)
Total comprehensive income - - - (154) 41,006 40,852
Share-based payments - - 2,463 - - 2,463
Scrip dividend 5 640 - - - 645
Share options exercised (proceeds) 25 876 - - - 901
Dividends - - - - (15,995) (15,995)
Deferred tax related to changes in equity - - - - 437 437
Current tax related to changes in equity - - - - 359 359
At 31 March 2015 4,926 65,689 10,242 (169) 251,685 332,373
Profit for the year - - - - 45,395 45,395
Other comprehensive income - - - 219 11 230
Total comprehensive income - - - 219 45,406 45,625
Share-based payments - - 2,791 - - 2,791
Scrip dividend 16 2,761 - - - 2,777
Share options exercised (proceeds) 42 564 - - - 606
Dividends - - - - (17,370) (17,370)
Deferred tax related to changes in equity - - - - 343 343
Current tax related to changes in equity - - - - 858 858
At 31 March 2016 4,984 69,014 13,033 50 280,922 368,003
NOTES TO THE ACCOUNTS
1. Basis of preparation
The results comprise those of Cranswick plc and its subsidiaries for the year
ended 31 March 2016. This preliminary announcement has been prepared on the
basis of accounting policies as set out in the statutory accounts for the year
ended 31 March 2015 (except as detailed below) and International Financial
Reporting Standards and interpretations issued by the International Accounting
Standards Board as adopted by the European Union ("IFRS") and does not
constitute the Company's statutory accounts within the meaning of Section 435
of the Companies Act 2006.
Statutory accounts for the years ended 31 March 2016 and 31 March 2015 have
been reported on by the auditors who issued an unqualified opinion in respect
of both periods and the auditors' reports for 2016 and 2015 did not contain
statements under 498(2) or 498(3) of the Companies Act 2006. Statutory
accounts for the year ended 31 March 2015 have been filed with the Registrar
of Companies. The statutory accounts for the year ended 31 March 2016, which
were approved by the Board on 24 May 2016, will be delivered to the Registrar
of Companies following the Company's Annual General Meeting.
2. Accounting policies
The accounting policies applied by the Group in this preliminary announcement
are the same as those applied by the Group in the financial statements for the
year ended 31 March 2015.
New standards and interpretations applied
The application of other new and revised standards and interpretations has not
had a material effect on the net assets, results and disclosures of the
Group.
3. Business and geographical segments
IFRS 8 requires operating segments to be identified on the basis of the
internal financial information reported to the Chief Operating Decision Maker
('CODM'). The Group's CODM is deemed to be the Executive Directors on the
Board, who are primarily responsible for the allocation of resources to
segments and the assessment of performance of the segments.
The CODM assesses profit performance using profit before taxation measured on
a basis consistent with the disclosure in the Group accounts.
The Group reports on one reportable segment:
· Food - manufacture and supply of food products to UK grocery retailers,
the food service sector and other food producers.
All Group revenues are received for the provision of goods; no revenues are
received from the provision of services.
4. Group operating profit
Group operating costs comprise:
2016£'000 2015£'000
Cost of sales excluding net IAS 41 valuation movement on biological assets 925,918 878,968
Net IAS 41 valuation movement on biological assets* 951 4,245
Cost of sales 926,869 883,213
Gross profit 142,735 120,123
Selling and distribution costs 42,814 38,418
Administrative expenses excluding amortisation of customer relationship intangible assets and impairment of goodwill 34,683 27,297
Amortisation of customer relationship intangible assets 1,396 671
Impairment of goodwill 4,635 -
Administrative expenses 40,714 27,968
Total operating costs 1,010,397 949,599
* This represents the difference between operating profit prepared under IAS
41 and operating profit prepared under historical cost accounting, which forms
part of the reconciliation to adjusted operating profit.
5. Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the
year attributable to members of the parent company of £45,395,000 (2015:
£41,252,000) by the weighted average number of shares outstanding during the
year. In calculating diluted earnings per share amounts, the weighted average
number of shares is adjusted for the weighted average number of ordinary
shares that would be issued on the conversion of all dilutive potential
ordinary shares into ordinary shares.
The weighted average number of ordinary shares for both basic and diluted
amounts was as per the table below:
2016 2015
Thousands Thousands
Basic weighted average number of shares 49,601 49,071
Dilutive potential ordinary shares - share options 191 151
49,792 49,222
Adjusted earnings per share
The Directors consider it appropriate to present an adjusted measure of
earnings per share on the face of the income statement which excludes certain
non-cash items to provide a more meaningful measure of the underlying
performance of the business. These items include impairment of goodwill, the
amortisation of customer relationship intangible assets and gains and losses
from the IAS 41 valuation movement on biological assets due to the volatility
of pig prices.
Adjusted earnings per share are calculated using the weighted average number
of shares for both basic and diluted amounts as detailed above.
Adjusted profit for the year is derived as follows:
2016 2015
£'000 £'000
Profit for the year 45,395 41,252
Impairment of goodwill 4,635 -
Amortisation of customer relationship intangible assets 1,396 671
Tax on amortisation of customer relationship intangible assets (251) (134)
Net IAS 41 valuation movement on biological assets 951 4,245
Tax on net IAS 41 valuation movement on biological assets (171) (849)
Adjusted profit for the year 51,955 45,185
6. Dividends
Subject to Shareholders' approval the final dividend will be paid on 2
September 2016 to Shareholders on the register at the close of business on 1
July 2016.
7. Analysis of changes in net funds/(debt)
At 31 March2015 Cash flow Othernon-cashchanges At 31 March2016
Group £'000 £'000 £'000 £'000
Cash and cash equivalents 3,941 13,876 - 17,817
Revolving credit (21,265) 22,000 (735) -
Net funds/(debt) (17,324) 35,876 (735) 17,817
Net funds/(debt) is defined as cash and cash equivalents and loans receivable
less interest-bearing liabilities net of unamortised issue costs.
8. Related party transactions
During the year the Group and Company entered into transactions, in the
ordinary course of business, with related parties, including transactions
between the Company and its subsidiary undertakings. In the Group accounts
transactions between the Company and its subsidiaries are eliminated on
consolidation but these transactions are reported for the Company below:
Company Services rendered to related party£'000 Interest paid to related party £'000 Dividends received from related party£'000
Related party - Subsidiaries
2016 20,200 4,071 14,593
2015 12,103 3,125 15,350
Amounts owed by or to subsidiary undertakings are unsecured and repayable on
demand.
9. Events after the balance sheet date
On 8 April 2016, the Group acquired 100 per cent of the issued share capital
of CCL Holdings Limited and its wholly owned subsidiary Crown Chicken Limited
('Crown') for net cash consideration of £39.3 million. The principal
activities of Crown Chicken Limited are the breeding, rearing and processing
of fresh chicken, as well as the milling of grain for the production of animal
feed. The acquisition provides the Group with a fully integrated supply chain
for its growing poultry business.
Book and fair values of the net assets at the date of acquisition were as
follows:
Provisionalfair value£'000
Net assets acquired:
Property, plant and equipment 17,501
Biological assets 4,805
Inventories 1,865
Trade and other receivables 9,845
Bank and cash balances 3,946
Trade and other payables (7,900)
Corporation tax liability (541)
Deferred tax liability (1,815)
Finance lease obligations (370)
27,336
Goodwill arising on acquisition 15,878
Total consideration 43,214
Satisfied by:
Cash 43,214
Net cash outflow arising on acquisition:
Cash consideration paid 43,214
Cash and cash equivalents acquired (3,946)
39,268
The fair values on acquisition are provisional due to the timing of the
transaction and will be finalised within twelve months of the acquisition
date.
Included in the £15,878,000 of goodwill recognised above, are certain
intangible assets that cannot be individually separated from the acquiree and
reliably measured due to their nature. These items include the expected value
of synergies and an assembled workforce and the strategic benefits of vertical
integration including security of supply.
Transaction costs in relation to the acquisition are expected to total £0.4
million, expensed within administrative expenses.
All of the trade receivables acquired are expected to be collected in full.
10. Report and accounts
The Report and Accounts will be available on the Company's website at
www.cranswick.plc.uk on 24 June 2016. Further copies will be available upon
request from the Company Secretary, Cranswick plc, 74 Helsinki Road, Sutton
Fields, Hull, HU7 0YW.
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Cranswick
See all newsREG - Cranswick PLC Schroders PLC - Holding(s) in Company
AnnouncementREG - Cranswick PLC - Director/PDMR Shareholding
AnnouncementREG - Cranswick PLC - Holding(s) in Company
AnnouncementREG - Cranswick PLC - Holding(s) in Company
AnnouncementREG - Cranswick PLC - Total Voting Rights
Announcement