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RNS Number : 6692N
Greggs PLC
30 July 2014 
 
30 July 2014 
 
INTERIM RESULTS FOR THE 26 WEEKS ENDED 28 JUNE 2014 
 
Greggs is the leading bakery food-on-the-go retailer in the UK, 
 
with almost 1,700 retail outlets throughout the country 
 
GOOD TRADING YEAR TO DATE 
 
CONTINUED PROGRESS AGAINST STRATEGIC PLAN 
 
Financial highlights 
 
·    Total sales up 3.1% to £373m (2013: £362m) 
 
·    Own shop like-for-like sales up 3.2% (2013: 2.9% decline) 
 
·    Property gains on disposal of £1.4m (2013: £0.2m) 
 
·    Pre-tax profit £16.9m (2013: £11.4m) excluding exceptional items 
 
·    Continued strong cash generation 
 
·    Dividend per share maintained at 6.0p (2013: 6.0p) 
 
Operational highlights 
 
·    Favourable trading conditions 
 
·    Encouraging results from sales initiatives: 
 
- New coffee blend well received 
 
- Improved sandwich range, including greater choice below 400 calories 
 
·    131 refits completed 
 
·    26 new shops opened, 36 closures 
 
·    1,661 shops trading at 28 June 
 
·    Shop refurbishment programme progressing well 
 
·    Benefiting from efficiencies of change programme 
 
"Whilst our year-on-year performance has benefited from comparison with a
period of weak trading in 2013, sales growth is also being driven by
initiatives that have further improved our products, availability, service and
value. Our new and improved coffee blend and sandwich range are great examples
of this. 
 
"Although sales comparables strengthen in the second half the risk of input
cost inflation appears to be reducing. Overall, we expect to deliver an
improved financial result for the year and further progress against our
strategic plan." 
 
-     Roger Whiteside, Chief Executive 
 
 ENQUIRIES:Greggs plcRoger Whiteside, Chief ExecutiveRichard Hutton, Finance DirectorTel: 020 7796 4133 on 30 July only       0191 281 7721 thereafter  Hudson SandlerWendy Baker / Alex BrennanTel: 020 7796 4133  
 
 
An audio webcast of the analysts' presentation will be available to download
later today at http://corporate.greggs.co.uk/results-centre 
 
CHIEF EXECUTIVE'S REPORT 
 
Financial performance 
 
We have continued to trade well through the first half of the year. Our total
sales for the 26 weeks to 28 June 2014 grew by 3.1 per cent.  Like-for-like
sales in our own shops grew by 3.2 per cent over the same period and our
franchised estate has grown to 39 shops (29 June 2013: 21).  Whilst our
year-on-year performance has benefited from comparison with a period of weak
trading in 2013, sales growth is also being driven by initiatives that have
further improved our products, availability, service and value. 
 
In addition to improved like-for-like sales the first half result benefited
from good cost control and low input cost pressure.  We also disposed of a
number of surplus freehold properties in the year to date realising property
profits of £1.4 million (2013: £0.2 million). Including these gains, operating
profit before exceptional items was £16.8 million in the first half of the
year (2013: £11.5 million). 
 
After net finance income of £0.1 million (2013: £0.1 million charge) pre-tax
profit before exceptional items was £16.9 million (2013: £11.4 million).  As
previously highlighted we are incurring exceptional costs in 2014 relating to
the restructuring of our in-store bakeries and support operations.  This is
progressing to plan and we have recognised the current expected costs of £8.3
million in the first half of the year.  Pre-tax profit including exceptional
items was £8.7 million (2013: £11.4 million). 
 
Excluding the exceptional items, but including property profits, diluted
earnings per share were 12.5 pence (2013: 8.5 pence). 
 
Dividend 
 
The Board has declared an interim dividend of 6.0 pence per share (2013: 6.0
pence).  This is in line with previous guidance that we will aim to maintain
the dividend until it is around two times covered by annual earnings, and then
resume a progressive dividend policy at this level of cover.  The interim
dividend will be paid on 3 October 2014 to those shareholders on the register
at the close of business on 5 September 2014. 
 
Financial position 
 
Capital expenditure during the first half was £20.4 million (2013: £19.1
million).  We have been pleased with the results of our shop refurbishment
programme and continue to expect capital expenditure in 2014 to be around £50
million as we invest in upgrading our shop estate and commence the programme
that will result in improved processes and systems. 
 
The Group is cash generative and financially robust.  Net cash inflow from
operating activities in the period was £30.5 million (2013: £24.7 million). 
We ended the period with a cash balance of £16.8 million and £5.0 million
invested in a short term deposit (29 June 2013: cash balance of £12.0
million). 
 
Operational highlights 
 
Trading conditions in the first half of 2014 were more favourable than last
year; the weather has been more settled and general economic indicators have
been positive. In addition low commodity price inflation has been helpful in
supporting margin. The food-on-the-go market continues to grow; however we are
also seeing ongoing expansion by existing and new operators and so the
marketplace remains very competitive. 
 
We are making good progress in delivering our plans in line with the revised
strategy outlined last year: 
 
1. Great tasting fresh food 
 
We have continued to see improved sales as a result of the product changes
made last year and, in addition, are now starting to see encouraging results
from our 2014 initiatives.  Our new and improved coffee blend has been well
received and sales are continuing to grow strongly. Our reputation for value
for money is growing as we extend our popular meal deals to include hot
drinks, cakes, pastries and a wider range of sandwiches. 
 
Most recently we have successfully launched our new and improved sandwich
range including new 'Balanced Choice' products offering great tasting options
with fewer than 400 calories. The new range presentation emphasises that all
of our sandwiches are made fresh in shops every day, setting us apart from
many competitors including the supermarkets. 
 
2. A great shopping experience 
 
As well as improvements to our product offer we have continued to benefit from
the changes we have made to service levels in our shops, including improved
availability and extended trading hours. Our new customer loyalty scheme,
Greggs Rewards, has been launched successfully and we are now planning to
build on this as we develop our capability to engage with customers and better
meet their needs. 
 
Our investment programme to improve the quality of our estate is progressing
well. During the first 26 weeks we completed 131 shop refurbishments, in line
with our plan to refit around 200 shops during 2014. 
 
Our plan to reshape the estate, rebalancing it towards more sustainable
long-term locations, is also on track.  We opened 26 new shops (including 14
franchise units) and closed 36 shops, giving a total of 1,661 shops (of which
39 are franchise units) trading at 28 June 2014. We expect shop numbers for
the year as a whole to be broadly flat.  Almost all of our new shops were
opened in locations away from high streets. 
 
3.  Simple and efficient operations 
 
Alongside our focus on driving like-for-like sales from our existing estate of
shops we continue to concentrate on developing simpler and more efficient
operations in our supply chain and support areas. We have completed the
restructure of our support areas and are making good progress with our plan to
consolidate our in-store bakeries into our regional bakery network. We now
anticipate that the majority of these in-store bakery transfers will be
completed by the end of this year.  The combined financial benefits from these
changes remain on track to deliver savings of £2.5 million in 2014 and £6.0
million per year from 2015 onwards. 
 
4. Improvement through change 
 
In August 2013 we announced a five year change programme whereby we will
invest in process and systems platforms that will enable us to compete more
effectively in the fast-moving food-on-the-go market.  We are on track to
deliver the first two elements of this programme, relating to workforce
management and supplier relationship management, in 2014.  We have selected
SAP as our core ERP software supplier and are moving forward to the next phase
of the programme. 
 
Keeping our people, communities and values at the heart of our business 
 
The scale of change involved in our new strategic plan has inevitably had an
impact on our people.  It is at times like these that our values as a business
are put to the test and I am immensely proud of our teams for the
professionalism and fortitude they have displayed as we move forward with our
plan. 
 
While business pressures have been unrelenting our people have remained
committed to making a difference to our local communities. This is evident
through their support of the Greggs Foundation which recently celebrated the
launch of its 250th Breakfast Club. We are also proud of the public
recognition we have received for our 'work inclusion' and 'employee
volunteering' programmes. 
 
Outlook 
 
Our first half performance has been good but has benefited from comparison
with a period of weak trading last year and earlier phasing of property
profits. Sales growth in July has continued to be strong as we have not
experienced the widespread heatwave conditions that depressed sales last year,
but this is expected to fall back in the months ahead as we compare with
better trading in the remainder of the year. 
 
Input cost inflation has been lower than we expected, driven by ingredients
and energy and we expect this to continue through the rest of the year. 
 
We have a strong pipeline of activity in the second half including further
investment in product changes and improved customer service alongside our
programme of investment in new systems and processes. 
 
Overall, we expect to deliver an improved financial result for the year and
further progress against our strategic plan. 
 
Roger Whiteside 
 
Chief Executive 
 
30 July 2014 
 
Greggs plc 
 
Consolidated income statement 
 
For the 26 weeks ended 28 June 2014 
 
                                                                     26 weeks ended 28 June 2014    26 weeks ended 29  June 2013      52 weeks ended 28 December 2013  
                                                                     Excluding  exceptional  items  Exceptional  items  (see note 5)  Total                            Total      Excluding  exceptional  items  Exceptional  items  (see note 5)  Total      
                                                                                                                                                                                                                                                              
                                                                     £'000                          £'000                             £'000                            £'000      £'000                          £'000                             £'000      
                                                                                                                                                                                                                                                              
 Revenue                                                             372,791                        -                                 372,791                          361,678    762,379                        -                                 762,379    
 Cost of sales                                                       (146,442)                      (5,952)                           (152,394)                        (148,231)  (305,914)                      (1,684)                           (307,598)  
                                                                                                                                                                                                                                                              
 Gross profit                                                        226,349                        (5,952)                           220,397                          213,447    456,465                        (1,684)                           454,781    
                                                                                                                                                                                                                                                              
 Distribution and selling costs                                      (190,775)                      -                                 (190,775)                        (184,403)  (378,047)                      (6,453)                           (384,500)  
 Administrative expenses                                             (18,733)                       (2,302)                           (21,035)                         (17,531)   (36,923)                       -                                 (36,923)   
                                                                                                                                                                                                                                                              
 Operating profit                                                    16,841                         (8,254)                           8,587                            11,513     41,495                         (8,137)                           33,358     
                                                                                                                                                                                                                                                              
 Finance income / (expense)                                          77                             -                                 77                               (136)      (206)                          -                                 (206)      
                                                                                                                                                                                                                                                              
 Profit before tax                                                   16,918                         (8,254)                           8,664                            11,377     41,289                         (8,137)                           33,152     
                                                                                                                                                                                                                                                              
 Income tax                                                          (4,229)                        1,756                             (2,473)                          (2,704)    (10,346)                       1,383                             (8,963)    
                                                                                                                                                                                                                                                              
 Profit for the period attributable to equity holders of the parent  12,689                         (6,498)                           6,191                            8,673      30,943                         (6,754)                           24,189     
                                                                                                                                                                                                                                                              
 Basic earnings per share                                            12.6p                          (6.4p)                            6.2p                             8.6p       30.8p                          (6.7p)                            24.1p      
 Diluted earnings per share                                          12.5p                          (6.4p)                            6.1p                             8.5p       30.6p                          (6.7p)                            23.9p      
                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                
 
 
Greggs plc 
 
Consolidated statement of comprehensive income 
 
For the 26 weeks ended 28 June 2014 
 
                                                               26 weeks ended  28 June 2014  26 weeks ended  29 June 2013  52 weeks ended  28 December 2013  
                                                               £'000                         £'000                         £'000                             
                                                                                                                                                             
                                                                                                                                                             
 Profit for the period                                         6,191                         8,673                         24,189                            
                                                                                                                                                             
 Other comprehensive income                                                                                                                                  
 Items that will not be recycled to profit or loss:                                                                                                          
 Re-measurements on defined benefit pension plans              (3,097)                       2,207                         4,293                             
                                                                                                                                                             
 Tax on items taken directly to equity                         619                           (508)                         (859)                             
                                                                                                                                                             
 Other comprehensive income for the period, net of income tax  (2,478)                       1,699                         3,434                             
                                                                                                                                                             
                                                                                                                                                             
 Total comprehensive income for the period                     3,713                         10,372                        27,623                            
 
 
Greggs plc 
 
Consolidated balance sheet 
 
as at 28 June 2014 
 
                                                            28 June 2014  29 June 2013  28 December 2013  
                                                            £'000         £'000         £'000             
 ASSETS                                                                                                   
 Non-current assets                                                                                       
 Intangible assets                                          1,467         72            1,012             
 Property, plant and equipment                              260,468       265,110       267,797           
 Defined benefit pension asset                              -             -             55                
                                                                                                          
                                                            261,935       265,182       268,864           
                                                                                                          
 Current assets                                                                                           
 Inventories                                                15,334        15,672        15,405            
 Trade and other receivables                                25,427        25,457        25,012            
 Cash and cash equivalents                                  16,780        11,983        21,572            
 Asset held for sale                                        7,000         -             -                 
 Other investments                                          5,000         -             3,000             
                                                                                                          
                                                            69,541        53,112        64,989            
                                                                                                          
 Total assets                                               331,476       318,294       333,853           
                                                                                                          
 LIABILITIES                                                                                              
 Current liabilities                                                                                      
 Trade and other payables                                   (78,819)      (70,561)      (72,203)          
 Current tax liabilities                                    (2,725)       (2,714)       (5,564)           
 Provisions                                                 (4,378)       (295)         (2,949)           
                                                                                                          
                                                            (85,922)      (73,570)      (80,716)          
 Non-current liabilities                                                                                  
 Other payables                                             (6,815)       (7,511)       (7,040)           
 Defined benefit pension liability                          (3,041)       (1,940)       -                 
 Deferred tax liability                                     (7,599)       (9,684)       (7,508)           
 Long term provisions                                       (2,381)       (1,176)       (2,412)           
                                                                                                          
                                                            (19,836)      (20,311)      (16,960)          
                                                                                                          
 Total liabilities                                          (105,758)     (93,881)      (97,676)          
                                                                                                          
 Net assets                                                 225,718       224,413       236,177           
                                                                                                          
 EQUITY                                                                                                   
 Capital and reserves                                                                                     
 Issued capital                                             2,023         2,023         2,023             
 Share premium account                                      13,533        13,533        13,533            
 Capital redemption reserve                                 416           416           416               
 Retained earnings                                          209,746       208,441       220,205           
                                                                                                          
 Total equity attributable to equity holders of the parent  225,718       224,413       236,177           
 
 
Greggs plc 
 
Consolidated statement of changes in equity 
 
For the 26 weeks ended 28 June 2014 
 
26 weeks ended 29 June 2013 
 
                                                        Issued capital  Share premium  Capital redemption reserve  Retained earnings  Total     
                                                        £'000           £'000          £'000                       £'000              £'000     
                                                                                                                                                
 At 30 December 2012                                    2,023           13,533         416                         210,818            226,790   
                                                                                                                                      
 Profit for the period                                  -               -              -                           8,673              8,673     
 Other comprehensive income                             -               -              -                           1,699              1,699     
 Total comprehensive income for the period              -               -              -                           10,372             10,372    
                                                                                                                                                
 Transactions with owners, recorded directly in equity                                                             
 Sale of own shares                                     -               -              -                           622                622       
 Share-based payments                                   -               -              -                           184                184       
 Dividends to equity holders                            -               -              -                           (13,555)           (13,555)  
 Total transactions with owners                         -               -              -                           (12,749)           (12,749)  
 Balance at 29 June 2013                                2,023           13,533         416                         208,441            224,413   
 
 
52 weeks ended 28 December 2013 
 
                                                        Issued capital  Share premium  Capital redemption reserve  Retained earnings  Total     
                                                        £'000           £'000          £'000                       £'000              £'000     
                                                                                                                                                
 At 30 December 2012                                    2,023           13,533         416                         210,818            226,790   
                                                                                                                                      
 Profit for the financial year                          -               -              -                           24,189             24,189    
 Other comprehensive income                             -               -              -                           3,434              3,434     
 Total comprehensive income for the year                -               -              -                           27,623             27,623    
                                                                                                                                                
 Transactions with owners, recorded directly in equity                                                             
 Sale of own shares                                     -               -              -                           860                860       
 Share-based payments                                   -               -              -                           592                592       
 Dividends to equity holders                            -               -              -                           (19,582)           (19,582)  
 Tax items taken directly to reserves                   -               -              -                           (106)              (106)     
 Total transactions with owners                         -               -              -                           (18,236)           (18,236)  
 At 28 December 2013                                    2,023           13,533         416                         220,205            236,177   
 
 
26 weeks ended 28 June 2014 
 
                                                        Issued capital  Share premium  Capital redemption reserve  Retained earnings  Total     
                                                        £'000           £'000          £'000                       £'000              £'000     
                                                                                                                                                
 At 29 December 2013                                    2,023           13,533         416                         220,205            236,177   
                                                                                                                                      
 Profit for the period                                  -               -              -                           6,191              6,191     
 Other comprehensive income                             -               -              -                           (2,478)            (2,478)   
 Total comprehensive income for the period              -               -              -                           3,713              3,713     
                                                                                                                                                
 Transactions with owners, recorded directly in equity                                                             
 Sale of own shares                                     -               -              -                           4,354              4,354     
 Purchase of own shares                                 -               -              -                           (5,137)            (5,137)   
 Share-based payments                                   -               -              -                           267                267       
 Dividends to equity holders                            -               -              -                           (13,656)           (13,656)  
 Total transactions with owners                         -               -              -                           (14,172)           (14,172)  
 Balance at 28 June 2014                                2,023           13,533         416                         209,746            225,718   
 
 
Greggs plc 
 
Consolidated statement of cash flows 
 
For the 26 weeks ended 28 June 2014 
 
                                                         26 weeks ended  28 June 2014  26 weeks ended 29 June 2013  52 weeks ended 28 December 2013  
                                                         £'000                         £'000                        £'000                            
 Operating activities                                                                                                                                
                                                                                                                                                     
 Cash generated from operating activities (see page 10)  35,133                        31,774                       82,493                           
 Income tax paid                                         (4,603)                       (7,114)                      (13,157)                         
                                                                                                                                                     
 Net cash inflow from operating activities               30,530                        24,660                       69,336                           
                                                                                                                                                     
 Cash flows from investing activities                                                                                                                
 Acquisition of property, plant and equipment            (20,471)                      (20,649)                     (47,808)                         
 Acquisition of intangible assets                        (455)                         -                            (785)                            
 Proceeds from sale of property, plant and equipment     1,966                         1,569                        3,194                            
 Interest received / (paid)                              77                            (45)                         (24)                             
 Acquisition of other investments                        (2,000)                       -                            (3,000)                          
                                                                                                                                                     
 Net cash outflow from investing activities              (20,883)                      (19,125)                     (48,423)                         
                                                                                                                                                     
 Cash flows from financing activities                                                                                                                
 Sale of own shares                                      4,354                         622                          860                              
 Purchase of own shares                                  (5,137)                       -                            -                                
 Dividends paid                                          (13,656)                      (13,555)                     (19,582)                         
                                                                                                                                                     
 Net cash outflow from financing activities              (14,439)                      (12,933)                     (18,722)                         
                                                                                                                                                     
 Net (decrease) / increase in cash and cash equivalents  (4,792)                       (7,398)                      2,191                            
                                                                                                                                                     
 Cash and cash equivalents at the start of the period    21,572                        19,381                       19,381                           
                                                                                                                                                     
 Cash and cash equivalents at the end of the period      16,780                        11,983                       21,572                           
                                                                                                                                                     
 
 
Greggs plc 
 
Consolidated statement of cash flows (continued) 
 
For the 26 weeks ended 28 June 2014 
 
 Cash flow statement - cash generated from operations                                                             
                                                       26 weeks ended  28 June 2014  26 weeks ended 29 June 2013  52 weeks ended 28 December 2013  
                                                       £'000                         £'000                        £'000                            
                                                                                                                                                   
 Profit for the period                                 6,191                         8,673                        24,189                           
 Amortisation                                          -                             72                           161                              
 Depreciation                                          18,221                        15,947                       33,225                           
 Impairment                                            55                            554                          5,252                            
 Loss on sale of property, plant and equipment         482                           186                          1,390                            
 Release of government grants                          (233)                         (235)                        (470)                            
 Share based payment expenses                          267                           184                          592                              
 Finance (income) / expense                            (77)                          136                          206                              
 Income tax expense                                    2,473                         2,704                        8,963                            
 Decrease in inventories                               71                            1,986                        2,253                            
 (Increase) / decrease in debtors                      (415)                         1,460                        1,905                            
 Increase in creditors                                 6,700                         390                          1,220                            
 Increase / (decrease) in provisions                   1,398                         (283)                        3,607                            
 Cash generated from operating activities              35,133                        31,774                       82,493                           
 
 
Notes 
 
1.             Basis of preparation and accounting policies 
 
The condensed accounts have been prepared for the 26 weeks ended 28 June 2014.
 Comparative figures are presented for the 26 weeks ended 29 June 2013. These
condensed accounts have been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the EU.  They do not include all the
information required for full annual accounts, and should be read in
conjunction with the Group accounts for the 52 weeks ended 28 December 2013. 
 
These condensed accounts are unaudited and were approved by the Board of
Directors on 30 July 2014. 
 
The comparative figures for the 52 weeks ended 28 December 2013 are not the
Company's statutory accounts for that financial year.  Those accounts have
been reported on by the Company's auditor and delivered to the Registrar of
Companies.  The report of the auditors was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report; and (iii) did not contain a
statement under section 498(2) or (3) of the Companies Act 2006. 
 
The Group continues to have strong operational cashflows and the Directors are
of the view that the Group has sufficient funds available to meet its
foreseeable working capital requirements.  The Directors have concluded
therefore that the going concern basis remains appropriate. 
 
The accounting policies applied by the Group in these condensed accounts are
the same as those applied by the Group in its consolidated accounts for the 52
weeks ended 28 December 2013 other than those disclosed in note 2. 
 
2.             Changes in accounting policies 
 
From 29 December 2013 the following standards, amendments and interpretations
were adopted by the Group: 
 
·      Transition guidance: Amendments to IFRS 10, IFRS 11 and IFRS 12; 
 
·      IFRS 10 'Consolidated Financial Statements'; 
 
·      IFRS 11 'Joint Arrangements'; 
 
·      IFRS 12 'Disclosure of Interests in Other Entities'; 
 
·      IAS 27 'Separate Financial Statements (2011)'; 
 
·      IAS 28 'Investments in Associates and Joint Ventures (2011)'; 
 
·      Amendment to IAS 39 'Novation of Derivatives and Continuation of Hedge
Accounting; 
 
·      IFRIC 21 'Levies'; 
 
·      'Offsetting Financial Assets and Financial Liabilities' - Amendments to
IAS 32; and 
 
·      'Recoverable amount disclosures for non-financial assets' - Amendments
to IAS 36. 
 
The adoption of the above has not had a significant impact on the Group's
profit for the period or equity. 
 
3.             Principal risks and uncertainties 
 
The Directors consider that the principal risks and uncertainties which could
have a material impact on the Group's performance in the remaining 26 weeks of
the financial year remain substantially the same as those stated on pages 24
and 25 of our Annual Report and Accounts for the 52 weeks ended 28 December
2013, which are available on our website www.greggs.co.uk 
 
4.             Operating segment 
 
The Board has considered the requirements of IFRS 8: Operating Segments, and
concluded that, as there is still only one reportable segment whose revenue,
profits, assets and liabilities are measured and reported on a consistent
basis with the Group accounts, no additional numerical disclosures are
necessary. 
 
5.             Exceptional items 
 
                                     26 weeks ended  28 June 2014  26 weeks ended 29 June 2013  52 weeks ended 28 December 2013  
                                     £'000                         £'000                        £'000                            
                                                                                                                                 
 Cost of sales                                                                                                                   
 Supply sites -  asset impairment    -                             -                            1,221                            
 -  loss on disposal of assets       -                             -                            463                              
 Closure of in-store bakeries        5,952                         -                            -                                
                                     ________                      ________                     ________                         
                                     5,952                         -                            1,684                            
 Distribution and selling                                                                                                        
 Shop asset impairment               -                             -                            1,790                            
 Loss on disposal of assets          -                             -                            1,529                            
 Onerous leases                      -                             -                            3,134                            
                                     ________                      ________                     ________                         
                                     -                             -                            6,453                            
 Administrative expenses                                                                                                         
 Restructuring of support functions  2,302                         -                            -                                
                                     ________                      ________                     ________                         
 Total exceptional items             8,254                         -                            8,137                            
                                     =======                       =======                      =======                          
 
 
Supply sites 
 
The impairment arises following the decision that additional capacity in the
supply chain is not required in the medium term. 
 
Shop impairment and onerous leases 
 
The charges for impairment and onerous leases arise from the decision to focus
on reshaping the Group's existing estate through closure and re-site of shops
and withdrawal from the Greggs moment brand. 
 
Closure of in-store bakeries 
 
The charge arises from the decision to consolidate the Company's in-store
bakeries into its regional bakery network and comprise of redundancy costs,
asset write-offs and the costs of making good the shops as bakery equipment is
removed. 
 
Restructuring of support functions 
 
The charge relates to the redundancy costs incurred in respect of the
restructuring. 
 
6.             Defined benefit pension scheme 
 
The valuation of the defined benefit pension scheme for the purposes of IAS 19
(Revised) as at 28 December 2013 has been updated as at 28 June 2014 and the
movements have been reflected in these condensed accounts. 
 
7.             Taxation 
 
The taxation charge for the 26 weeks ended 28 June 2014 and 29 June 2013 is
calculated by applying the Directors' best estimate of the annual effective
tax rate to the profit for the period. 
 
8.             Earnings per share 
 
                                                                     26 weeks ended 28 June 2014  26 weeks ended 29 June 2013  52 weeks ended 28 December 2013  
                                                                     Excluding exceptional items  Exceptional items            Total                            Total  Excluding exceptional items  Exceptional items  Total   
                                                                                                                                                                                                                               
                                                                     £'000                        £'000                        £'000                            £'000  £'000                        £'000              £'000   
                                                                                                                                                                                                                               
 Profit for the period attributable to equity holders of the parent  12,689                       (6,498)                      6,191                            8,673  30,943                       (6,754)            24,189  
                                                                                                                                                                                                                               
 Basic earnings per share                                            12.6p                        (6.4p)                       6.2p                             8.6p   30.8p                        (6.7p)             24.1p   
 Diluted earnings per share                                          12.5p                        (6.4p)                       6.1p                             8.5p   30.8p                        (6.7p)             23.9p   
                                                                                                                                                                                                                               
 
 
Weighted average number of ordinary shares 
 
                                                                         26 weeks ended 28 June 2014  26 weeks ended 29 June 2013  52 weeks ended  28 December 2013  
                                                                         Number                       Number                       Number                            
                                                                                                                                                                     
 Issued ordinary shares at start of period                               101,155,901                  101,155,901                  101,155,901                       
 Effect of own shares held                                               (700,263)                    (834,646)                    (762,222)                         
                                                                                                                                                                     
 Weighted average number of ordinary shares during the period            100,455,638                  100,321,255                  100,393,679                       
 Effect of share options on issue                                        1,163,700                    1,373,768                    912,387                           
                                                                                                                                                                     
 Weighted average number of ordinary shares (diluted) during the period  101,619,338                  101,695,023                  101,306,066                       
                                                                                                                                                                     
                                                                                                                                                                     
 Issued ordinary shares at end of period                                 101,155,901                  101,155,901                  101,155,901                       
                                                                                                                                                                     
 
 
9.             Dividends 
 
The following tables analyse dividends when paid and the year to which they
relate: 
 
 Dividend declared      26 weeks ended 28 June 2014  26 weeks ended 29  June 2013  52 weeks ended 28 December 2013  
                        Pence per share              Pence per share               Pence per share                  
                                                                                                                    
 2012 final dividend    -                            13.5p                         13.5p                            
 2013 interim dividend  -                            -                             6.0p                             
 2013 final dividend    13.5p                        -                             -                                
                        13.5p                        13.5p                         19.5p                            
 
 
                                                                                  26 weeks ended 28 June 2014  26 weeks ended 29 June 2013  52 weeks ended 28 December 2013  
                                                                                  £'000                        £'000                        £'000                            
 Total dividend payable                                                                                                                                                      
 2012 final dividend                                                              -                            13,555                       13,555                           
 2013 interim dividend                                                            -                            -                            6,027                            
 2013 final dividend                                                              13,656                       -                            -                                
 Total dividend paid in period                                                    13,656                       13,555                       19,582                           
                                                                                                                                                                             
 Dividend proposed at period end and not included as a liability in the accounts                                                                                             
 2013 interim dividend (6.0p per share)                                           -                            6,026                        -                                
 2013 final dividend (13.5 p per share)                                           -                            -                            13,567                           
 2014 interim dividend (6.0p per share)                                           6,034                        -                            -                                
                                                                                  6,034                        6,026                        13,567                           
 
 
10.          Related party transactions 
 
There have been no related party transactions in the first 26 weeks of the
current financial year which have materially affected the financial position
or performance of the Group. 
 
Related parties are consistent with those disclosed in the Group's Annual
Report and Accounts for the 52 weeks ended 28 December 2013 other than the
changes in Directors detailed in Note 12. 
 
11.          Half year report 
 
The condensed accounts were approved by the Board of Directors on 30 July
2014.  They will be available on the Company's website, www.greggs.co.uk. 
 
12.          Statement of Directors' responsibilities 
 
The Directors named below confirm on behalf of the Board of Directors that to
the best of their knowledge: 
 
·      the condensed set of accounts has been prepared in accordance with IAS
34 Interim Financial Reporting as adopted by the EU; 
 
·      the interim management report includes a fair review of the information
required by: 
 
(a)   DTR4.2.7R of the Disclosure and Transparency Rules, being an indication
of important events that have occurred during the first 26 weeks of the
financial year and their impact on the condensed set of accounts; and a
description of the principal risks and uncertainties for the remaining 26
weeks of the year; and 
 
(b)   DTR4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first 26 weeks of the financial year
and that have materially affected the financial position or performance of the
Group during the period; and any changes in the related party transactions
described in the last annual report that could do so. 
 
The Directors of Greggs plc are listed in the Annual Report and Accounts for
the 52 weeks ended 28 December 2013.  The following changes have taken place
since the approval of the Annual Report and Accounts: 
 
Peter McPhillips appointed 10 March 2014 
 
Julie Baddeley resigned 1 May 2014 
 
Iain Ferguson resigned 1 May 2014 
 
Sandra Turner appointed 1 May 2014 
 
For and on behalf of the Board of Directors 
 
Roger Whiteside                                                               
                                                                 Richard
Hutton 
 
Chief Executive                                                               
                                                                    Finance
Director 
 
30 July 2014 
 
This information is provided by RNS
The company news service from the London Stock Exchange

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