REG - Finsbury Food Group - Interim Results <Origin Href="QuoteRef">FIF.L</Origin> - Part 2
20/03/2017 07:06
- Part 2: For the preceding part double click ID:nRST8782Za
£'000 £'000
Investments 243 Loans and borrowings (22,629)
Financial instruments 59 Financial instruments (261)
Cash and cash equivalents 1,759 Cash and cash equivalents -
Unallocated assets 2,061 Unallocated liabilities (22,890)
Certain operating costs have been incurred centrally and have been allocated
to the reporting segments on an appropriate basis.
3) SEGMENT INFORMATION (continued)
53 week period ended 2 July 2016
UK Bakery£000 Overseas£000 Group Operations£000 Total Group£000
Revenue
External 291,196 28,484 - 319,680
Underlying operating profit 15,887 1,511 (300) 17,098
Fair value foreign exchange contracts (134)
Defined benefit pension scheme 117
Significant non-recurring (4,290)
Results from operating activities 12,791
Finance income 221
Finance cost (1,208)
Net financing expense (987)
Share of losses of equity accounted investees after tax (14)
Profit before taxation 11,790
Taxation (3,286)
Profit after taxation 8,504
Segment assets 187,827 6,337 292 194,456
Unallocated assets - - - 3,305
Consolidated total assets 197,761
Segment liabilities (61,557) (5,355) (7,052) (73,964)
Unallocated liabilities (22,727)
Consolidated total liabilities (96,691)
Other segment information
Capital expenditure 12,115 26 - 12,141
Depreciation included in segment profit 7,063 27 - 7,090
Amortisation 539 - - 539
Impairment of goodwill 4,290 - - 4,290
Inter-segmental sale/(purchase) 8,488 (8,488) - -
Analysis of unallocated assets and liabilities:
Assets Liabilities
£'000 £'000
Investments 253 Loans and borrowings (22,570)
Financial instruments - Financial instruments (157)
Cash and cash equivalents 3,024 Cash and cash equivalents -
Taxation balances 28 Taxation balances -
Unallocated assets 3,305 Unallocated liabilities (22,727)
Certain operating costs have been incurred centrally and have been allocated
to the reporting segments on an appropriate basis.
Impairment loss relates to the Anthony Alan Foods Ltd acquisition in 2007
which falls under UK Bakery segment.
4) SIGNIFICANT NON-RECURRING ITEMS
The Group presents certain items as non-recurring and significant. These
relate to items which, in management's judgement, need to be disclosed by
virtue of their size or incidence in order to obtain a more meaningful
understanding of the financial information.
5) SHARE BASED PAYMENTS
The Group operates both approved and unapproved share option schemes.
Following the adoption of IFRS2 'Share-based payments' charges have been made
to the Income Statement to reflect the calculated fair value of employee share
options. The cost is calculated at the date of grant and is charged equally
over the vesting period. The fair value is based on the best available
estimate of the number of options expected to vest. The corresponding
adjustment is made to reserves.
During the 26 weeks to 31 December 2016 1,462,095 options were granted (H1
2015: 1,624,126).
Administration costs include a charge in the first six months of £137,000 (H1
2015: £11,000) in relation to the fair value of share options.
6) FINANCE INCOME AND EXPENSES
Unaudited26 weeks ended 31 December2016 Unaudited26 weeks ended 26 December2015 Audited 53 weeks ended 2 July 2016
£'000 £'000 £'000
Change in fair value of interest rate swaps 461 98 219
Bank interest receivable - - 2
Finance income 461 98 221
Net interest on net pension position - - (148)
Net bank interest payable (364) (383) (787)
Charge on interest rate swaps (69) (134) (273)
Change in fair value of interest rate swaps - - -
Interest on deferred consideration - - -
Finance expense (433) (517) (1,208)
Net finance income/(expense) 28 (419) (987)
The Group has three interest rate swap arrangements to hedge its risks
associated with interest rate fluctuations:
£3.0 million for four years from 22 May 2013 at 1.7% maturing 22 May 2017
£6.0 million for three years from 2 June 2014 at 1.9% maturing 1 June 2017
£20.0 million for five years from 3 July 2017 at 0.455% maturing 3 July 2022
These arrangements do not meet the conditions necessary for hedge accounting
to be applied and, therefore, changes in their fair value are recognised
immediately in the income statement resulting in a credit of £461,000 (H1
2015: credit £98,000).
7) EARNINGS PER ORDINARY SHARE
Basic earnings per share for the period is calculated on the basis of profit
for the period after tax, divided by the weighted average number of shares in
issue of 126,874,000 (26 December 2015: 127,090,000).
Basic diluted earnings per share for the period is calculated by adjusting the
weighted average number of shares in issue to assume conversion of all
potential dilutive ordinary shares, which for 31 December 2016 is 130,497,000
(26 December 2015: 132,285,000).
An adjusted earnings per share has also been calculated as, in the opinion of
the Board, this will allow shareholders to gain a clearer understanding of the
trading performance of the Group.
The adjusted earnings per share exclude amounts shown under significant and
non-recurring items in the Consolidated Statement of Comprehensive Income and
exclude amortisation of intangibles.
26 weeks to31 Dec 2016 26 weeks to26 Dec 2015
Profit
Profit attributable to equity holders of the Company (basic) £000 6,145 5,550
Significant non-recurring and other items £000 (389) (32)
Amortisation of intangibles £000 268 238
Numerator for adjusted earnings per share calculation (adjusted basic) £000 6,024 5,756
Shares Basic Diluted Basic Diluted
Weighted average number of ordinary shares in issue during the period '000 126,874 126,874 127,090 127,090
Dilutive effect of share options '000 - 3,623 - 5,195
126,874 130,497 127,090 132,285
Earnings per share
Basic and diluted earnings per share Pence 4.8 4.7 4.4 4.2
Adjusted basic and adjusted diluted earnings per share Pence 4.7 4.6 4.5 4.4
8) ANALYSIS OF NET DEBT
Unaudited26 weeks ended 31 December2016 Unaudited26 weeks ended 26 December2015 Audited53 weeks ended 2 July 2016
£'000 £'000 £'000
Net cash at bank 4,777 1,759 3,024
Loans within one year (7,937) (5,672) (2,937)
Loans after more than one year (7,325) (10,262) (8,794)
Invoice discounting within one year (10,451) (6,595) (10,824)
Asset finance within one year (71) (214) (133)
Asset finance after more than one year (24) (94) (57)
Net bank debt excluding unamortised transaction costs (21,031) (21,078) (19,721)
Unamortised transaction costs:
within one year 65 65 65
more than one year 78 143 111
Total unamortised transaction costs 143 208 176
Bank debt net of unamortised transaction costs within one year (13,617) (10,657) (10,805)
Bank debt net of unamortised transaction costs more than one year (7,271) (10,213) (8,740)
Bank debt net of unamortised transaction costs (20,888) (20,870) (19,545)
Total net debt including deferred consideration
Net bank debt (21,031) (21,078) (19,721)
Discounted deferred consideration payable - (50) -
(21,031) (21,128) (19,721)
9) SHARE CAPITAL
No shares were issued during the period or the comparative prior year period.
At 31 December 2016 3,360,030 shares (2015: 1,275,817) were held by the
Finsbury Food Group Plc Employee Benefit Trust.
Advisers
Secretary Auditor
Melanie Cox KPMG LLP
Finsbury Food Group Plc Chartered Accountants
Maes-y-coed Road CardiffCF14 4XRTel: 029 2035 7500 3 Assembly SquareBritannia QuayCardiff BayCF10 4AX
Registered OfficeMaes-y-coed RoadCardiffCF14 4XRTel: 029 2035 7500 Registrars Capita Registrars 34 Beckenham Road Beckenham KentBR3 4TU
Nominated Adviser & Broker Solicitors
Cenkos Securities plc CMS Cameron McKenna LLP
6.7.8 Tokenhouse Yard Cannon Place
London 78 Cannon Street
EC2R 7AS London
EC4N 6AF
Registered Number
00204368
This information is provided by RNS
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