REG - Hotel Chocolat Group - Interim Results <Origin Href="QuoteRef">HOTC.L</Origin>

Hotel ChocolatAnnouncement

21/02/2018 07:10

RNS Number : 4485F
Hotel Chocolat Group PLC
21 February 2018
21 February 2018
Hotel Chocolat Group plc
("Hotel Chocolat", the "Company" or the "Group")
Interim Results
Hotel Chocolat Group plc, a premium British chocolatier and omni-channel retailer, today announces its interim results for the 26 weeks ended 31 December 2017.
Financial highlights:
Revenue up 15% to 71.7m (H1 FY17: 62.5m)
Underlying EBITDA up 15% to 15.8m (H1 FY17: 13.7m)1
Underlying EBITDA margin of 22.0% (H1 FY17: 21.9%)1
Profit before tax up 15% to 12.9m (H1 FY17: 11.2m)
Profit after tax up 15% to 10.1m (H1 FY17: 8.8m)
Strong balance sheet with net cash at period end of 18.3m (H1 FY17: 16.2m)
Earnings per share up 15% to 9.0p (H1 FY17: 7.8p)
Interim dividend of 0.6 pence
Operational highlights:
Strong sales growth across retail, digital & corporate channels
Successful Christmas ranges and availability delivered growth
10 new stores opened, contributing 5% to Group sales growth
New sites featured cafe drinks offer and comprised a wide diversity of locations including city centres, market towns, retail parks, designer outlets; first store opened in the Republic of Ireland
Digital growth through own website and new 3rd party wholesale to digital retailers including Amazon and Ocado
Factory capacity increase by 25%
Underlying EBITDA margin improved +11 basis points, despite foreign exchange headwinds and costs of in-sourcing of distribution totalling -95 basis points
1 Underlying EBITDA in H1 FY18 excludes 0.4m of share-based charges (H1 FY17: 0.3m).
Angus Thirlwell, Co-founder and Chief Executive Officer of Hotel Chocolat, said:
"This has been another period of strong progress for Hotel Chocolat with growth in both sales and profits. The critical Christmas period was again successful, helped by further improvements in availability, our best ever seasonal range and the extension of our one-stop gift solutions range. We have exciting plans in place for the key spring seasons of Mother's Day and Easter, and have recently launched a new cacao beauty range and a weekly subscription called Mbox. We are confident of further progress during the year.
"I would like to thank everyone in the Hotel Chocolat team for their dedication in delivering another successful Christmas.
"Recent trading, including the Valentine's period is in line with the Board's expectations and we continue to make good progress against our three key strategic objectives of opening more stores, improving our digital capability and increasing our production capacity."


This announcement contains inside information for the purposes of the Market Abuse Regulation.
For further information:
Hotel Chocolat Group plc
c/o Citigate
 + 44 (0) 20 7638 9571
Angus Thirlwell, Co-founder and Chief Executive Officer


Peter Harris, Co-founder and Development Director


Matt Pritchard, Chief Financial Officer





Citigate Dewe Rogerson - Financial PR

+ 44 (0) 20 7638 9571
Simon Rigby


Angharad Couch


Ellen Wilton





Liberum Capital Limited - Nominated Advisor and Broker

+ 44 (0) 20 3100 2222
Clayton Bush


Lucy Sharma


Jill Li


Notes to Editors:
Hotel Chocolat is a premium British chocolatier with a strong and distinctive brand. The business was founded in 1993 by Angus Thirlwell and Peter Harris and has traded under the Hotel Chocolat brand since 2003. The Group sells its products online and through a network of stores in the UK and abroad. The Group has a cocoa plantation and eco-hotel in Saint Lucia, offering complete cocoa immersion thorough tree-to-bar experiences and wellness treatments. The Group also has a flagship restaurant and cocoa roastery in London's Borough Market: Rabot 1745. The Group was admitted to trading on AIM in 2016. 


Chief Executive's statement (inclusive of financial review)
RESULTS

Period ended
31 December 2017
000

Period ended
25 December 2016
000





Revenue

71,709

62,528
Gross profit

49,107

42,544
Operating expenses

(33,316)

(28,846)
Underlying EBITDA

15,791

13,698
Share-based payments

(367)

(277)
EBITDA

15,425

13,421
Depreciation & amortisation

(2,207)

(1,743)
Loss on disposal of property, plant & equipment

(9)

(16)
Operating profit

13,209

11,662
Finance income

16

3
Finance expense

(296)

(446)
Share of joint venture results

7

-
Profit before tax

12,936

11,219
Tax expense

(2,821)

(2,422)
Profit for the period

10,115

8,797
Earnings per share - Basic

9.0p

7.8p
Earnings per share - Diluted

8.9p

7.8p
Dividend per share

0.6p


CHIEF EXECUTIVE'S STATEMENT
I am pleased to report continued progress for the Hotel Chocolat brand during the 26 weeks to 31 December 2017. Both revenue and profit before tax for the period increased by 15%, with efficiencies offsetting known cost headwinds. Hotel Chocolat delivered growth across all its channels, benefitting from improved seasonal ranges and some encouraging early results for our new digital wholesale partners. The business remains focused on the three key pillars of its growth strategy:
1) Open stores
We opened 10 new stores in the period and completed two relocations. Of particular note is the diversity of location types; we opened a new flagship store in Oxford Westgate and tested our first ever retail park location at Teesside. We also opened our second designer outlet at Clarks Village, and a number of smaller sites in market towns including Shrewsbury and Beverley. Our first store in the Republic of Ireland in Dundrum has also performed well. The initial results generated by these new sites give us confidence that the 'pipeline' of potential new sites is greater than previously expected.
2) Increase capacity and capture efficiencies from the vertically integrated supply chain
Underlying EBITDA margins increased by a net +10 basis points. This was achieved by improved efficiencies and the benefits of increasing scale, which were partly offset by two known headwinds impacting costs by 95 basis points:
I.
The business hedges its foreign exchange Euro purchases, therefore H1 FY18 was the first period affected by the decline of Sterling in 2016, and this created a -35 basis points cost headwind in the period.
II.
In 2016 we made the decision to bring subscription distribution in-house in order to make the service more responsive and to enable us to offer a wider range of subscription types. This change was effective at the start of H1 and negatively impacted EBITDA margin by -60 basis points.
For FY19 and beyond, these two impacts will form part of the 'base' operating model, meaning that any further efficiency gains and economies of scale will more readily convert to an EBITDA margin rate improvement than in FY18.
During the period factory capacity increased by 25% driven by improved asset utilisation and more efficient production scheduling. New capital projects commissioned in January 2018 have increased liquid chocolate capacity by 180%.
3) New digital proposition to grow customer base and improve gifting proposition
Digital revenues, comprising website plus subscription club and new digital wholesale partners, grew 13% overall.
The website delivered a 16% year-on-year growth driven by an increase in traffic, particularly on mobiles, a benefit of the new website that launched in January 2017. Mobiles and tablets now account for 62% of all web traffic, mobile conversion rose by 19% from 2.6% to 3.1%.
New wholesale accounts with digital retailers including Amazon and Ocado contributed 6% to digital growth.
Excluding the costs of in-sourcing distribution, subscription EBITDA increased year-on-year. New customer recruitment activities into the club were scaled back pending the launch of the new weekly Mbox subscription and as a result like-for-like sales volumes declined by 13%.
Following successful trials in 2017, a new weekly subscription launched in February 2018. The new Mbox format offers a different proposition to the existing monthly Tasting Club, being the most convenient way to regularly receive a personal supply of Hotel Chocolat's most popular recipes each week in individually wrapped portions.
FINANCIAL REVIEW
Revenue
10 new stores opened during the period, contributing 5% to the Group's year-on-year growth in revenue. Retail, digital and corporate wholesale all delivered sales growth.
Gross margin, operating expense and underlying EBITDA
Gross margin increased 44 basis points to 68.48%, supported by the capital investment made in FY17.
Operating expenses as a per cent of sales increased by 33 basis points as a result of 60 basis points of additional costs relating to in-sourcing subscription distribution.
Underlying EBITDA margin increased by 11 basis points, delivering underlying EBITDA growth of 15% to 15.8m (H1 FY17: 13.7m).
Share based payments
Share-based payment expense of 0.4m (H1 FY17: 0.3m) related to the share-based Long-Term Incentive Plan and an all-employee Save As You Earn plan.
Foreign currency
The business manufactures the majority of its products in the UK, however it does purchase some premium ingredients in foreign currencies, predominantly Euros. The Group hedges its forecast Euro purchases up to 18 months ahead. The decline in Sterling in 2016 meant that some purchases in H1 FY18 were at the new lower rate which adversely impacted gross margin and EBITDA by 35 basis points. This impact will continue to be felt in H2 FY18 and in FY19.
Finance income and expense
Finance income of 16k in H1 FY18 represents unrealised interest on foreign exchange. Finance expense of 0.3m reflects interest on chocolate bonds, a working capital overdraft and realised interest on foreign exchange hedges of 83k. 
Earnings per share
Earnings per share in the period were 9.0p a 15% increase on H1 FY17: 7.8p.
Dividend
At the time of the IPO the Directors stated an intention to implement a progressive dividend policy to reflect the expectation of future cash flow. The Board proposes an interim dividend of 0.6p which will be paid on 3rd April 2018 to shareholders on the register on 2nd March 2018
Cash flow and closing cash position
Net cash inflow from operating activities was 24.9m (H1 FY17: 22.1m).
Net cash (being cash minus borrowings) at the end of the period was 18.3m (H1 FY17: 16.2m). The Group has access to an overdraft facility with Lloyds Bank plc to fund seasonal working capital requirements.
Major capital projects in the period included 10 new shops, two store relocations and upgrades to the manufacturing facility in Huntingdon.
OUTLOOK
Since the end of the period, trading has continued to be in line with the Board's expectations. The trading performance of the new stores is encouraging and thus the pipeline of similar potential locations is increasing.
We are in the process of finalising our next set of capacity and capability investments for our production facility in order to ensure we can both meet our growth aspirations and improve efficiency in the years ahead.
The business has successfully mitigated the anticipated foreign exchange headwinds. Continued delivery against the 3-point strategy will deliver top-line growth and improving profitability. A strong differentiated brand which offers great products and customer service and that is priced as an affordable luxury, gives the Board confidence in the Group's continued progress.
Angus Thirlwell
Co-founder and Chief Executive Officer 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 December 2017

Notes
Unaudited
26 weeks ended
31 December 2017

Unaudited
26 weeks ended
25 December 2016





Revenue

71,708,557

62,527,738
Cost of sales

(22,601,129)

(19,983,960)


49,107,428

42,543,778





Administrative expenses

(35,898,903)

(30,881,742)

2
13,208,525

11,662,036
Finance income
3
15,919

3,068
Finance expenses
3
(296,028)

(445,871)
Share of joint venture results

7,332

-
Profit before tax

12,935,748

11,219,233





Tax expense

(2,820,791)

(2,421,861)
Profit for the period

10,114,957

8,797,372





Other comprehensive income:




Derivative financial instruments

(121,114)

(198,302)
Deferred tax charge on derivative financial instruments

11,505

113,975
Currency translation differences arising from consolidation

(361,829)

780,993
Total comprehensive income for the period

9,643,519

9,494,038





Earnings per share - Basic
4
9.0p

7.8p
Earnings per share - Diluted
4
8.9p

7.8p


CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2017

Notes
Unaudited
As at
31 December 2017

Unaudited
As at
25 December 2016

Audited
As at
2 July
2017
ASSETS






Non-current assets






Intangible assets

2,547,958

2,144,098

2,338,041
Property, plant and equipment
5
34,677,619

29,194,640

31,397,582
Investment in joint ventures

7,332

300

-
Derivative financial assets

8,564

9,346

-
Other receivables and prepayments

17,851

5,034

7,250
Deferred tax asset

381,825

-

213,819


37,641,149

31,353,418

33,956,692
Current assets






Derivative financial assets

73,724

523,385

306,526
Inventories

9,034,330

7,569,092

9,878,122
Trade and other receivables

6,494,705

6,194,439

6,020,954
Cash and cash equivalents

24,994,989

23,522,550

8,470,178


40,597,748

37,809,466

24,675,780
Total assets

78,238,897

69,162,884

58,632,472







LIABILITIES






Current liabilities






Trade and other payables
6
25,808,949

25,799,854

16,632,717
Corporation tax payable

2,818,241

2,396,211

1,104,746
Derivative financial liabilities

52,491

144,974

137,480
Borrowings
7
3,482,482

3,773,994

3,371,444


32,162,163

32,115,033

21,246,387
Non-current liabilities






Other payables and accruals
6
2,546,523

1,850,884

1,934,057
Derivative financial liabilities

-

102,824

33,970
Deferred tax liabilities

-

10,729

-
Borrowings
7
3,191,677

3,542,131

3,504,544
Provisions

825,852

705,513

750,629


6,564,052

6,212,081

6,223,200
Total liabilities

38,726,215

38,327,114

27,469,587







NET ASSETS

39,512,682

30,835,770

31,162,885







EQUITY






Share capital

112,838

112,838

112,838
Share premium

11,749,487

11,749,487

11,749,487
Retained earnings

25,160,751

16,884,722

16,851,199
Translation reserve

687,392

1,134,119

1,049,221
Merger reserve

223,251

223,251

223,251
Capital redemption reserve

6,301

6,301

6,301
Other reserves

1,572,662

725,052

1,170,588
Total equity attributable to shareholders

39,512,682

30,835,770

31,162,885


CONSOLIDATED STATEMENT OF CASH FLOW
For the period ended 31 December 2017

Notes
Unaudited
26 weeks ended
31 December 2017

Unaudited
26 weeks ended
25 December 2016





Profit before tax for the period

12,935,748

11,219,233
Adjusted by:




Depreciation of property, plant and equipment
5
1,952,705

1,605,009
Amortisation of intangible assets

253,983

137,983
Net interest expense

280,109

442,803
Share-based payments

366,538

277,224
Loss on disposal of property, plant and equipment and intangible assets

9,417

15,852
Operating cash flows before movements in working capital

15,798,500

13,698,104
Decrease/(increase) in inventories

755,985

(657,176)
Increase in trade and other receivables

(484,352)

(1,036,358)
Increase in trade and other payables and provisions

10,064,095

10,908,324
Cash inflow generated from operations

26,134,228

22,912,894
Interest received

84

3,068
Income tax paid

(1,116,051)

(590,985)
Interest paid on:




- finance leases and hire purchase loans

(1,192)

(7,153)
- derivative financial instruments

(82,542)

(65,722)
- bank loans and overdraft

(777)

(113,417)
Cash flows from operating activities

24,933,750

22,138,685





Purchase of property, plant and equipment

(6,136,967)

(4,435,006)
Proceeds from disposal of property, plant and equipment

-

12,000
Purchase of intangible assets

(257,524)

(414,299)
Cash flows used in investing activities

(6,394,491)

(4,837,305)





Buy back of Chocolate bonds

(110,500)

(118,000)
Capital element of hire purchase and finance leases repaid

(136,328)

(296,827)
Dividends paid

(1,805,405)

-
Cash flows used in financing activities

(2,052,233)

(414,827)





Net change in cash and cash equivalents

16,487,026

16,886,553
Cash and cash equivalents at beginning of period

8,470,178

6,475,446
Foreign currency movements

37,785

160,551
Cash and cash equivalents at end of period

24,994,989

23,522,550

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 31 December 2017

Share capital
Share Premium
Retained earnings
Translation reserve
Merger reserve
Capital redemption reserve
Other reserves
Total









As at 26 June 2016
112,838
11,749,487
8,087,350
353,126
223,251
6,301
532,155
21,064,508
Share-based payments
-
-
-
-
-
-
277,224
277,224
Profit for the period
-
-
8,797,372
-
-
-
-
8,797,372
Other comprehensive income:








Derivative financial instruments
-
-
-
-
-
-
(198,302)
(198,302)
Deferred tax charge on derivative financial instruments
-
-
-
-
-
-
113,975
113,975
Currency translation differences arising from consolidation
-
-
-
780,993
-
-
-
780,993
Equity as at 25 December 2016
112,838
11,749,487
16,884,722
1,134,119
223,251
6,301
725,052
30,835,770









Share-based payments
-
-
-
-
-
-
285,032
285,032
Deferred tax charge on share-based payments
-
-
-
-
-
-
328,796
328,796
Loss for the period
-
-
(33,523)
-
-
-
-
(33,523)
Other comprehensive income:








Derivative financial instruments
-
-
-
-
-
-
(118,356)
(118,356)
Deferred tax credit on derivative financial instruments
-
-
-
-
-
-
(49,936)
(49,936)
Currency translation differences arising from consolidation
-
-
-
(84,898)
-
-
-
(84,898)
Equity as at 2 July 2017
112,838
11,749,487
16,851,199
1,049,221
223,251
6,301
1,170,588
31,162,885









Share-based payments
-
-
-
-
-
-
366,538
366,538
Deferred tax charge on share-based payments
-
-
-
-
-
-
145,145
145,145
Profit for the period
-
-
10,114,957
-
-
-
-
10,114,957
Dividends paid


(1,805,405)




(1,805,405)
Other comprehensive income:








Derivative financial instruments
-
-
-
-
-
-
(121,114)
(121,114)
Deferred tax charge on derivative financial instruments
-
-
-
-
-
-
11,505
11,505
Currency translation differences arising from consolidation
-
-
-
(361,829)
-
-
-
(361,829)
Equity as at 31 December 2017
112,838
11,749,487
25,160,751
687,392
223,251
6,301
1,572,662
39,512,682

NOTES TO THE INTERIM FINANCIAL INFORMATION
1. Basis of preparation
The consolidated interim financial information has been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRSs), as adopted by the European Union.
The accounts have been prepared in accordance with accounting policies that are consistent with the Group's Annual Report and Accounts for the period ended 2 July 2017 and that are expected to be applied in the Group's Annual Report and Accounts for the period ended 1 July 2018. There are new or revised standards that apply to the period beginning 3 July 2017 but they do not have a material effect on the financial statements for the period ended 31 December 2017.
The comparative financial information for the period ended 2 July 2017 in this interim report does not constitute statutory accounts for that period under 435 of the Companies Act 2006.

Statutory accounts for the period ended 2 July 2017 have been delivered to the Registrar of Companies.

The auditors' report on the accounts for 2 July 2017 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
2. Profit from operations
Profit from operations is arrived at after charging:

Unaudited
26 weeks ended
31 December 2017

Unaudited
26 weeks ended
25 December 2016





Staff cost

15,957,108

14,477,191
Depreciation of property, plant and equipment

1,952,705

1,605,009
Amortisation of intangible assets

253,983

137,983
Loss on disposal of property, plant and equipment and intangible assets

9,417

15,852
Operating leases:




- Property

5,435,700

4,530,686
- Plant and equipment

94,391

94,548
Exchange differences

85,702

149,253
Bad debt expense

20,037

23,228


3. Finance income and expenses

Unaudited
26 weeks ended
31 December 2017

Unaudited
26 weeks ended
25 December 2016





Interest on bank deposits

84

3,068
Unrealised interest on derivative financial instruments

15,835

-
Finance income

15,919

3,068





Interest on bank borrowings

57,410

157,795
Realised interest on derivative financial liabilities

82,542

65,722
Unrealised interest on derivative financial instruments

-

41,080
Finance leases and hire purchase contracts

1,192

7,153
Finance charges on Chocolate bonds

154,884

174,121
Finance expenses

296,028

445,871





4. Earnings per share
Profit for the period used in the calculation of the basic and diluted earnings per share:

Unaudited
26 weeks ended
31 December 2017

Unaudited
26 weeks ended
25 December 2016





Profit after tax for the period

10,114,957

8,797,372





The weighted average number of shares for the purposes of diluted earnings per share reconciles to the weighted average number of shares used in the calculation of basic earnings per share as follows:

Unaudited
26 weeks ended
31 December 2017

Unaudited
26 weeks ended
25 December 2016





Weighted average number of shares in issue used in the calculation of earnings per share (number) - Basic

112,837,828

112,837,828
Share-based payments - Hotel Chocolat Group plc Save As You Earn Plan

214,728

-
Weighted average number of shares in issue used in the calculation of earnings per share (number) - Diluted

113,052,556

112,837,828





Earnings per share (pence) - Basic

9.0

7.8
Earnings per share (pence) - Diluted

8.9

7.8
As at 31 December 2017, the total number of potentially dilutive shares issued under the Hotel Chocolat Group plc Long-Term Incentive Plan was 3,667,000 (25 December 2016: 3,692,000). Due to the nature of the options granted under this scheme, they are considered contingently issuable shares and therefore have no dilutive effect. 


5. Property, plant and equipment

Freehold property
Leasehold property
Furniture & fittings, Equipment, Computer software & hardware
Plant & machinery
Total






26 weeks ended 25 December 2016





Cost:





As at 26 June 2016
11,469,455
734,999
22,899,192
14,662,588
49,766,234
Additions
132,410
-
3,201,724
639,882
3,974,016
Disposals
-
-
-
(49,900)
(49,900)
Translation differences
675,049
-
113,095
-
788,144
As at 25 December 2016
12,276,914
734,999
26,214,011
15,252,570
54,478,494






Accumulated depreciation:





As at 26 June 2016
408,612
732,306
14,013,001
8,501,204
23,655,123
Depreciation charge
79,564
475
1,035,145
489,825
1,605,009
Disposal
-
-
-
(22,048)
(22,048)
Translation differences
7,168
-
38,602
-
45,770
As at 25 December 2016
495,344
732,781
15,086,748
8,968,981
25,283,854






Net book value





As at 25 December 2016
11,781,570
2,218
11,127,263
6,283,589
29,194,640






26 weeks ended 31 December 2017





Cost:





As at 2 July 2017
12,588,855
734,999
28,418,804
16,319,351
58,062,009
Additions
321,661
-
3,999,331
1,271,020
5,592,012
Disposals
-
-
(9,417)
-
(9,417)
Translation differences
(345,612)
-
(6,002)
-
(351,614)
As at 31 December 2017
12,564,904
734,999
32,402,716
17,590,371
63,292,990






Accumulated depreciation:





As at 2 July 2017
567,231
733,256
15,796,562
9,567,378
26,664,427
Depreciation charge
79,898
475
1,312,304
560,028
1,952,705
Disposal
-
-
-
-
-
Translation differences
(6,710)
-
4,949
-
(1,761)
As at 31 December 2017
640,419
733,731
17,113,815
10,127,406
28,615,371






Net book value





As at 31 December 2017
11,924,485
1,268
15,288,901
7,462,965
34,677,619






As at 31 December 2017, the net book value of freehold property includes land of 2,767,923 (25 December 2016: 3,039,349), which is not depreciated.
Included above are assets held under finance leases and hire purchase agreements. As at 31 December 2017, the net book value of such assets within plant & machinery is 269,690 (25 December 2016: 456,351) and within computer software & hardware is 456,106 (25 December 2016: 577,145).


6. Trade and other payables

Unaudited
26 weeks ended
31 December 2017

Unaudited
26 weeks ended
25 December 2016
Current




Trade payables

4,554,352

5,351,132
Other payables

2,855,517

4,140,000
Other taxes payable

7,625,446

5,985,535
Accruals

10,773,634

10,323,187


25,808,949

25,799,854
Non-current




Other payables

2,546,523

1,850,884


2,546,523

1,850,884





7. Borrowings

Unaudited
26 weeks ended
31 December 2017

Unaudited
26 weeks ended
25 December 2016





Current




Finance and lease hire purchase liabilities

201,732

433,244
Chocolate bonds

3,310,000

3,388,000


3,511,732

3,821,244
Unamortised costs of issue

(29,250)

(47,250)
Total current borrowings

3,482,482

3,773,994





Non-current




Finance and lease hire purchase liabilities

117,677

336,131
Chocolate bonds

3,074,000

3,206,000
Total non-current borrowings

3,191,677

3,542,131





Total borrowings

6,674,159

7,316,125





Chocolate bonds pay a return either in boxes of luxury chocolates or by way of a Hotel Chocolat gift card. For those bonds with a return in the form of chocolate, the coupon is fixed by number of boxes. For bonds where there is a return paid by way of a Hotel Chocolat gift card, there is a fixed rate of interest.
Chocolate bonds issued in 2010 are repayable in July 2018 if notice is given by the end of January 2018 and consequently, the full balance has been shown as a current liability. The total value of redemption notices received for this bond is 26,000 (2017: 6,000) which will be paid in July and no other amounts are contractually due before July 2019. The bonds can be repaid at any time by the Group.
In May 2017 the Group converted its bilateral revolving credit facility (RCF) into an overdraft facility. The bank overdraft is secured by a charge over the Groups assets and cross guarantees. The interest rate is charged at 1.25% over base rate.
The existing hire purchase and finance leases are secured by a charge over the related fixed assets and have incurred interest at an effective annual rate of 2.0%.

This information is provided by RNS
The company news service from the London Stock Exchange
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