- Part 2: For the preceding part double click ID:nRSW1092Ia
Unallocated assets 1,444 Unallocated liabilities (26,682)
Certain operating costs have been incurred centrally, these costs have been
allocated to the reporting segments on an appropriate basis.
3) SEGMENT INFORMATION (continued)
26 week period ended 28 December 2013
UK Bakery£000 Overseas£000 Group Operations£000 Total Group£000
Revenue
External 75,408 11,235 - 86,643
Underlying operating profit 1,951 462 183 2,596
Significant non-recurring items (297)
Fair value foreign exchange contracts 75
Share options charge (11)
Results from operating activities 2,363
Net financing expense (46)
Profit before taxation 2,317
Taxation (630)
Profit after taxation 1,687
Segment assets 102,406 6,109 3,910 112,425
Unallocated assets 890
Consolidated total assets 113,315
Segment liabilities (32,799) (4,229) (1,591) (38,619)
Unallocated liabilities (13,078)
Consolidated total liabilities (51,697)
Other segment information
Capital expenditure 3,709 31 - 3,740
Depreciation included in segment profit 1,336 11 - 1,347
Inter-segmental sale/(purchase) 3,029 (3,029) - -
Analysis of unallocated assets and liabilities:
Assets Liabilities
£'000 £'000
Investments 28 Loans and borrowings (12,309)
Financial instruments - Financial instruments (769)
Cash and cash equivalents 700 Cash and cash equivalents -
Taxation balances 162 Taxation balances -
Unallocated assets 890 Unallocated liabilities (13,078)
Certain operating costs have been incurred centrally, these costs have been
allocated to the reporting segments on an appropriate basis.
3) SEGMENT INFORMATION (continued)
52 week period ended 28 June 2014
UK Bakery£000 Overseas£000 Group Operations£000 Total Group£000
Revenue
External 153,740 21,968 - 175,708
Underlying operating profit 6,094 1,139 475 7,708
Significant non-recurring items (759)
Fair value foreign exchange contracts 81
Share options charge (9)
Defined benefit pension scheme 71
Results from operating activities 7,092
Net financing expense (516)
Profit before taxation 6,576
Taxation (1,651)
Profit after taxation 4,925
Segment assets 99,891 4,522 3,613 108,026
Unallocated assets 710
Consolidated total assets 108,736
Segment liabilities (30,588) (3,312) (1,352) (35,252)
Unallocated liabilities (9,781)
Consolidated total liabilities (45,033)
Other segment information
Capital expenditure 6,121 46 - 6,167
Depreciation included in segment profit 2,813 21 - 2,834
Amortisation 165 - - 165
Inter-segmental sale/(purchase) 6,039 (6,039) - -
Analysis of unallocated assets and liabilities:
Assets Liabilities
£'000 £'000
Investments 28 Loans and borrowings (9,330)
Financial instruments - Financial instruments (451)
Cash and cash equivalents 592 Cash and cash equivalents -
Taxation balances 90 Taxation balances -
Unallocated assets 710 Unallocated liabilities (9,781)
Five customers with sales of £35m, £35m, £26m, £17m and £16m account for 73%
of revenue, which is attributable to the 'UK Bakery' and 'Overseas' segments
above.
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.
Costs of £1,328,000 relate to acquisition transaction costs during the period.
In the 26 weeks to 28 December 2013 £297,000 relate to restructuring and
reorganisation costs.
In the 52 weeks to 28 June 2014 £643,000 relate to restructuring and
reorganisation costs and £116,000 relate to due diligence and consultancy
expenses associated with an aborted acquisition.
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 corresponding adjustment is made to reserves.
During the 26 weeks to 27 December 2014 155,172 options were granted (H1 2013:
nil). The estimated fair values of options granted for the 26 weeks to 27
December 2014 was £13,000 (H1 2013: nil).
Significant non-recurring and other items include a charge of £11,000 in
relation to the fair value of share options for the 26 weeks ended 27 December
2014. The comparative charges for the 26 weeks to 28 December 2013 and for the
year ended 28 June 2014 were £11,000 and £9,000 respectively.
6) FINANCE INCOME AND EXPENSES
Unaudited26 weeks ended 27 December2014 Unaudited26 weeks ended 28 December2013 Audited 52 weeks ended 28 June 2014
£'000 £'000 £'000
Expected return on defined benefit pension plan assets - - 862
Change in fair value of interest rate swaps - 396 708
Unwinding of discount of deferred consideration receivable 77 74 150
Finance income 77 470 1,720
Interest on defined benefit pension plan liabilities - - (994)
Net bank interest payable (305) (194) (643)
Charge on interest rate swaps (142) (315) (595)
Change in fair value of interest rate swaps (94) - -
Interest on deferred consideration - (3) -
Unwinding of discount on deferred consideration - (4) (4)
Finance expense (541) (516) (2,236)
Net finance expense (464) (46) (516)
The Group has entered into three interest rate swap arrangements to hedge its
risks associated with interest rate fluctuations:
£5.0 million for five years from 1 July 2011 (fixed) at 3.6% maturing 30 June
2016
£3.0 million for four years from 22 May 2013 at 1.7% maturing 24 May 2017
£6.0 million for three years from 2 June 2014 at 1.9% maturing 1 June 2017
One four year interest rate swap of £10.0 million (fixed) at 4.9% matured 31
May 2014.
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 charge of £94,000 (H1
2013: credit £396,000).
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 86,149,000 (28 December 2013: 64,967,000).
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 27 December 2014 is 90,606,000
(28 December 2013: 70,688,000).
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. These adjusted earnings per share exclude
amounts shown under significant and non-recurring items in the Consolidated
Statement of Comprehensive Income.
26 weeks to27 Dec 2014 26 weeks to28 Dec 2013
Profit
Profit attributable to equity holders of the Company (basic) £000 1,848 1,454
Significant non-recurring and other items £000 1,027 (156)
Numerator for adjusted earnings per share calculation (adjusted basic) £000 2,875 1,298
Shares Basic Diluted Basic Diluted
Weighted average number of ordinary shares in issue during the period '000 86,149 86,149 64,967 64,967
Dilutive effect of share options '000 - 4,457 - 5,721
86,149 90,606 64,967 70,688
Earnings per share
Basic and diluted earnings per share Pence 2.1 2.0 2.2 2.1
Adjusted basic and adjusted diluted earnings per share Pence 3.3 3.2 2.0 1.8
8) ANALYSIS OF NET DEBT
Unaudited26 weeks ended 27 December2014 Unaudited26 weeks ended 28 December2013 Audited52 weeks ended 28 June 2014
£'000 £'000 £'000
Net cash at bank 1,305 700 592
Loans within one year (10,938) (4,399) (2,399)
Loans after more than one year (13,934) (3,379) (3,194)
Invoice discounting within one year (770) (3,614) (2,959)
Asset finance within one year (355) (396) (382)
Asset finance after more than one year (305) (662) (472)
Net bank debt excluding unamortised transaction costs (24,997) (11,750) (8,814)
Unamortised transaction costs: