REG - Finsbury Food Group - Interim Results <Origin Href="QuoteRef">FIF.L</Origin> - Part 2
16/03/2016 07:07
- Part 2: For the preceding part double click ID:nRSP2016Sa
(58)
Share options charge -
Results from operating activities 7,944
Net financing expense (419)
Share of losses of associates after tax (10)
Profit before taxation 7,515
Taxation (1,646)
Profit after taxation 5,869
Segment assets 187,184 6,240 2,203 195,627
Unallocated assets 2,061
Consolidated total assets 197,688
Segment liabilities (61,110) (4,673) (3,701) (69,484)
Unallocated liabilities (22,890)
Consolidated total liabilities (92,374)
Other segment information
Capital expenditure 3,702 6 - 3,708
Depreciation included in segment profit 3,359 13 - 3,372
Inter-segmental sale/(purchase) 3,976 (3,976) - -
Analysis of unallocated assets and liabilities:
Assets Liabilities
£'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.
26 week period ended 27 December 2014
UK Bakery£000 Overseas£000 Group Operations£000 Total Group£000
Revenue
External pre acquisition 80,258 11,279 - 91,537
Acquired 16,028 - - 16,028
Total revenue 96,286 11,279 - 107,565
Profit pre acquisition 3,363 595 127 4,085
Profit from acquired business 420 420
Total underlying operating profit 3,783 595 127 4,505
Significant non-recurring items (1,328)
Fair value foreign exchange contracts 61
Share options charge (11)
Results from operating activities 3,227
Net financing expense (464)
Profit before taxation 2,763
Taxation (671)
Profit after taxation 2,092
Segment assets pre acquisition 105,312 5,141 3,958 114,411
Segment assets acquired business 74,571 74,571
Unallocated assets 1,444
Consolidated total assets 190,426
Segment liabilities pre acquisition (36,644) (3,668) (2,200) (42,512)
Segment liabilities acquired business (22,265) (22,265)
Unallocated liabilities (26,682)
Consolidated total liabilities (91,459)
Other segment information
Capital expenditure 1,705 29 - 1,734
Depreciation included in segment profit 2,126 10 - 2,136
Inter-segmental sale/(purchase) 3,026 (3,026) - -
Analysis of unallocated assets and liabilities:
Assets Liabilities
£'000 £'000
Investments 28 Loans and borrowings (26,029)
Financial instruments - Financial instruments (484)
Cash and cash equivalents 1,305 Cash and cash equivalents -
Taxation balances 111 Taxation balances (169)
Unallocated assets 1,444 Unallocated liabilities (26,682)
Certain operating costs have been incurred centrally and have been allocated
to the reporting segments on an appropriate basis.
52 week period ended 27 June 2015
UK Bakery£000 Overseas£000 Group Operations£000 Total Group£000
Revenue
External pre acquisition 164,255 22,186 - 186,441
External acquired 69,725 - - 69,725
Total revenue 233,980 22,186 - 256,166
Profit pre acquisition 7,748 1,154 347 9,249
Profit from acquired businesses 3,167 - - 3,167
Underlying operating profit 10,915 1,154 347 12,416
Significant non-recurring items (3,181)
Fair value foreign exchange contracts 181
Share options charge 10
Defined benefit pension scheme 100
Results from operating activities 9,526
Net financing expense (1,044)
Profit before taxation 8,482
Taxation (1,862)
Profit after taxation 6,620
Segment assets 183,623 5,042 1,508 190,173
Unallocated assets - - - 502
Consolidated total assets 190,675
Segment liabilities (53,660) (4,056) (8,786) (66,502)
Unallocated liabilities (21,577)
Consolidated total liabilities (88,079)
Other segment information
Capital expenditure 7,320 34 - 7,354
Depreciation included in segment profit 5,414 19 - 5,433
Amortisation 403 - - 403
Inter-segmental sale/(purchase) 6,072 (6,072) - -
Analysis of unallocated assets and liabilities:
Assets Liabilities
£'000 £'000
Investments 253 Loans and borrowings (21,034)
Financial instruments 117 Financial instruments (359)
Cash and cash equivalents 61 Cash and cash equivalents -
Taxation balances 71 Taxation balances (184)
Unallocated assets 502 Unallocated liabilities (21,577)
Certain operating costs have been incurred centrally and have been allocated
to the reporting segments on an appropriate basis.
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 26 December 2015 1,624,126 options were granted (H1
2014: 155,172). The estimated fair value of options based on the number of
options expected to vest for those granted during the 26 weeks to 26 December
2015 was £709,000 (H1 2014: £13,000).
Significant non-recurring and other items include a charge in the first six
months of the prior year of £11,000 in relation to the fair value of share
options. Charges relating to annual awards are £58,000 for the period and are
taken into administration costs.
6) FINANCE INCOME AND EXPENSES
Unaudited26 weeks ended 26 December2015 Unaudited26 weeks ended 27 December2014 Audited 52 weeks ended 27 June 2015
£'000 £'000 £'000
Change in fair value of interest rate swaps 98 - 28
Bank interest receivable - - 1
Unwinding of discount of deferred consideration receivable - 77 105
Finance income 98 77 134
Net interest on net pension position - - (154)
Net bank interest payable (383) (305) (748)
Charge on interest rate swaps (134) (142) (276)
Change in fair value of interest rate swaps - (94) -
Interest on deferred consideration - - -
Finance expense (517) (541) (1,178)
Net finance expense (419) (464) (1,044)
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 22 May 2017
£6.0 million for three years from 2 June 2014 at 1.9% maturing 1 June 2017
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 £98,000 (H1
2014: charge £94,000).
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 127,090,000 (27 December 2014: 86,149,000 ).
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 26 December 2015 is 132,285,000
(27 December 2014: 90,606,000).
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 to26 Dec 2015 26 weeks to27 Dec 2014
Profit
Profit attributable to equity holders of the Company (basic) £000 5,550 1,848
Significant non-recurring and other items £000 (32) 1,027
Amortisation of intangibles £000 238 -
Numerator for adjusted earnings per share calculation (adjusted basic) £000 5,756 2,875
Shares Basic Diluted Basic Diluted
Weighted average number of ordinary shares in issue during the period '000 127,090 127,090 86,149 86,149
Dilutive effect of share options '000 - 5,195 - 4,457
127,090 132,285 86,149 90,606
Earnings per share
Basic and diluted earnings per share Pence 4.4 4.2 2.1 2.0
Adjusted basic and adjusted diluted earnings per share Pence 4.5 4.4 3.3 3.2
8) ANALYSIS OF NET DEBT
Unaudited26 weeks ended 26 December2015 Unaudited26 weeks ended 27 December2014 Audited52 weeks ended 27 June 2015
£'000 £'000 £'000
Net cash at bank 1,759 1,305 61
Loans within one year (5,672) (10,938) (5,672)
Loans after more than one year (10,262) (13,934) (11,731)
Invoice discounting within one year (6,595) (770) (3,397)
Asset finance within one year (214) (355) (284)
Asset finance after more than one year (94) (305) (190)
Net bank debt excluding unamortised transaction costs (21,078) (24,997) (21,213)
Unamortised transaction costs:
within one year 65 65 65
more than one year 143 208 175
Total unamortised transaction costs 208 273 240
Bank debt net of unamortised transaction costs within one year (10,657) (10,693) (9,227)
Bank debt net of unamortised transaction costs more than one year (10,213) (14,031) (11,746)
Bank debt net of unamortised transaction costs (20,870) (24,724) (20,973)
Total net debt including deferred consideration
Net bank debt (21,078) (24,997) (21,213)
Discounted deferred consideration payable (50) - (50)
(21,128) (24,997) (21,263)
9) SHARE CAPITAL
No shares were issued during the period (H1 2014: 59,561,584 shares). The
consideration paid during the first half of the prior year (excluding costs)
of £53.8 million for the Fletchers acquisition was partially funded by the
issue of 59,322,034 ordinary shares.
At 26 December 2015 1,275,817 shares were held by the Finsbury Food Group Plc
Employee Benefit Trust.
Advisers
Secretary Auditor
Melanie Cox KPMG LLP
Maes-y-coed Road Chartered Accountants
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 Registered Number
Cenkos Securities plc 00204368
6.7.8 Tokenhouse Yard
London
EC2R 7AS
6.7.8 Tokenhouse Yard
London
EC2R 7AS
This information is provided by RNS
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