REG - Kitwave Group PLC - Interim Results
01/07/2025 07:00
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RNS Number : 0882P Kitwave Group PLC 01 July 2025
1 July 2025
Kitwave Group plc
("Kitwave", the "Group" or the "Company")
Unaudited interim results for the six months ended 30 April 2025
Kitwave Group plc (AIM: KITW), the delivered wholesale business, is pleased to
announce its unaudited interim results for the six months ended 30 April 2025
("the period" or "H1 2025").
The tables and commentary below include comparatives for both the six months
ended 30 April 2024 (H1 2024) and the 12 months ended 31 October 2024 (FY
2024).
Financial Highlights
· Revenues up 26.7% (3.1% like-for-like ((2))) to £376.2 million (H1
2024: £297.0 million; FY 2024: £663.7 million).
· Consolidated gross margin up 1.1% to 22.6% (H1 2024: 21.5%; FY 2024:
22.3%).
· Adjusted operating profit((1)) up 21.9% to £13.2 million (H1 2024:
£10.8 million; FY 2024: £34.0m).
· Cash generation from operating activities of £19.6 million (H1 2024:
£12.4 million; FY 2024: £31.4 million).
· Pre-tax operational cash conversion of 106% (H1 2024: 93%; FY 2024:
90%).
· Robust balance sheet with leverage reducing to 2.3x on the bank
covenant basis ((3))
· An increased interim dividend of 4.00 pence per share (H1 2024: 3.85
pence per share) for the six months to 30 April 2025. This dividend will be
paid on 31 July 2025 to shareholders on the register at the close of business
on 11 July 2025 and the ex-dividend date will be 10 July 2025.
Operational Highlights
· Retail and Wholesale division slightly outperformed expectations
(like-for-like revenue +3.1%).
· Creed Foodservice integration ahead of timetable, with full benefits
to be realised over the next two years.
· Operational integration of Total Foodservice with Miller Foodservice
is on track and expected to be completed by the end of the financial year.
· The new South West distribution centre is operational with an
associated increase in L4L rent (in the form of IRFS 16 depreciation) and
rates of £0.4m for H1 25 and £0.8m full year compared to the prior year.
· As previously announced, the Group took the proactive decision to
incur some additional operational investment in the new South West
distribution centre. These costs were higher than expected to maintain service
levels as the business transitioned from three separate locations into a
single 80,000 sq. ft distribution centre and they are expected to continue
into H2.
· Recent acquisitions and investment have significantly increased the
scale of the Group's UK footprint and the addition of Creed has created a
fully integrated national delivery network to support long term growth and
achieve the optimal and most efficient cost to serve.
Outlook
· Since the pre-close trading update, the volatility in the
macroeconomic backdrop has caused a more pronounced fragility in consumer
confidence which is adversely affecting volumes in the destination leisure
sector. Whilst footfall is up from the prior year, consumption is down in
certain areas. This impact has been particularly visible in our higher
margin tourism-based depots.
· Employer National insurance increases (c.£1.8m in FY25 and £2.7m in
FY26) will increase the Group's costs during H2 of the financial year and
beyond. The Group no longer believes it will be able to offset these tax
increases.
· The combined effect of recent lower than expected foodservice
consumption, continued investment in the South West and the employer National
Insurance cost increases has resulted in the Directors revising their
expectations for the financial performance of the Group during the current
financial year and beyond.
· The Group now expects to report FY25 adjusted operating profit to be
in the range of £38.0m to £40.5m.
Post-Period End
· Appointment of Dr Marnie Millard as Independent Non-Executive Chair,
replacing Stephen Smith as of 30 May 2025.
Proposed change to accounting reference date
· The Board also announces its intention to change its accounting
reference date from 31 October to 31 December.
· The Group's business activities and revenues are weighted toward
the middle third of the calendar year and, having noted comments from
shareholders, the Directors recognise that presenting financial statements
that have a more balanced first half and second half weighting would be in the
best interests of the Group.
· The Group intends to still publish accounts for the 12 months to
31 October 2025, unaudited, against expectations for clarity.
· A further announcement will be made on the change in accounting
reference date once formally agreed.
Financial summary
H1 2025 H1 2024 FY 2024
Unaudited Unaudited
Audited
£m £m
£m
Revenue 376.2 297.0 663.7
Gross profit 85.1 63.7 147.8
Gross profit margin % 22.6% 21.5% 22.3%
Adjusted EBITDA((1)) 21.1 15.9 45.2
Adjusted operating profit((1)) 13.2 10.8 34.0
Profit before tax 5.6 6.9 22.5
Net cash inflow from operating activities
19.6 12.4 31.4
Pre-tax operational cash conversion((1)) 106% 93% 90%
((1)) For more information on alternative performance measures please see the
glossary at the end of the announcement.
((2)) Like-for-like revenue excludes revenue from Creed Foodservice but
includes acquired revenue from Total Foodservice now financially integrated
with Miller Foodservice.
((3)) Bank covenant leverage is defined using debt that includes IFRS16
liabilities and earnings on LTM basis including LTM earnings on a proforma
basis for acquired operations
Ben Maxted, Chief Executive Officer of Kitwave, commented:
"This period has seen record revenue and operating profits for Kitwave,
underpinned by our continued strategic transformation and supported by the
acquisition of Creed Foodservice, which has proven to be an excellent addition
to the Group. Whilst we have navigated some operational changes, particularly
the transition to a new, larger depot in the South West and the integration of
multiple businesses, we are pleased with the solid progress made and the
underlying strength of our Group.
"The acquisition and integration of Creed Foodservice, alongside recent
investments in infrastructure, have strengthened our position as a nationwide,
delivered foodservice business with a clear and active pipeline of organic
growth opportunities. The Creed Foodservice investment has strengthened our
management capabilities and advanced the Group's objective of delivering a
more streamlined, scalable platform in the Foodservice marketplace. Our Retail
and Wholesale division also performed well, benefitting from underlying
consumer demand as the spring weather was favourable.
"As a result of some short-term additional operational investment relating to
the new South West depot, the increase in employer National Insurance
contributions and the macroeconomic backdrop detrimentally impacting consumer
confidence and volumes in the destination leisure sector, the Board now
anticipates that the Group's adjusted operating profit will be below current
market expectations.
"The Group has a strong balance sheet with a highly cash generative business
model. This is expected to lead to a reduction in absolute debt and continued
reduction in leverage that will create capacity to reinvest in service-led
growth initiatives. This financial strength provides the flexibility and
resilience to continue pursuing our buy-and-build strategy, which we believe
remains the right path forward in the current market landscape, albeit
currently no acquisitions are expected during the remainder of the financial
year.
"As we look ahead, we remain confident in our long-term outlook and our
ability to deliver sustained value for all stakeholders. The fundamentals of
our business remain strong, our strategy is clear, and we continue to execute
with discipline and ambition."
- Ends-
For further information, please contact:
Kitwave Group plc Tel: +44 (0) 191 259 2277
Ben Maxted, Chief Executive Officer
David Brind, Chief Financial Officer
www.kitwave.co.uk (http://www.kitwave.co.uk/)
Canaccord Genuity Limited Tel: +44 (0) 20 7523 8150
(Nominated Adviser and Sole Broker)
Bobbie Hilliam
Elizabeth Halley-Stott
Yellow Jersey PR Tel: +44 (0) 20 3004 9512
(Financial media and PR)
Charles Goodwin
Shivantha Thambirajah
Bessie Elliot
kitwave@yellowjerseypr.com (mailto:kitwave@yellowjerseypr.com)
Company Overview
Founded in 1987, following the acquisition of a single-site confectionery
wholesale business based in North Shields, United Kingdom, Kitwave is a
delivered wholesale business, specialising in selling and delivering impulse
products, frozen, chilled and fresh foods, alcohol, groceries and tobacco to
approximately 46,000, mainly independent, customers.
With a network of 37 depots, Kitwave is able to support delivery throughout
the UK to a diverse customer base, which includes independent convenience
retailers, leisure outlets, vending machine operators, foodservice providers
and other wholesalers, as well as leading national retailers.
The Group's growth to date has been achieved both organically and through a
strategy of acquiring smaller, predominantly family-owned, complementary
businesses in the fragmented UK grocery and foodservice wholesale market.
Kitwave Group plc (AIM: KITW) was admitted to trading on AIM of the London
Stock Exchange on 24 May 2021.
For further information, please visit: www.kitwave.co.uk
(http://www.kitwave.co.uk) .
Chief Executive Officer's statement
Introduction
It has been another period of operational progress across the Group during the
first half of the financial year, with overall trading meeting the Board's
expectations. As disclosed in our update in May, this was achieved despite
weaker levels of demand from hospitality, which impacted the Foodservice
division's performance earlier in the period, before then experiencing an
improvement as we approached Easter. The revenue performance of the Retail
& Wholesale division was robust, with positive like-for-like trading over
the period.
Financial summary
H1 2025 H1 2024 FY 2024
Unaudited Unaudited
Audited
£m £m
£m
Revenue 376.2 297.0 663.7
Gross profit 85.1 63.7 147.8
Gross profit margin % 22.6% 21.5% 22.3%
Operating profit 10.3 9.3 28.8
Operating margin % 2.7% 3.1% 4.3%
In the six months to 30 April 2025, the Group achieved revenue of £376.2
million (H1 2024: £297.0 million; FY 2024: £663.7 million) and an operating
profit of £10.3 million (H1 2024: £9.3 million; FY 2024: £28.8 million).
To protect customer service during the transition to the new South West depot,
the Group took the decision to incur some additional, short-term costs,
investing above the level that it had initially planned in service delivery.
Excluding these costs, the Group's cost base remained in line with
expectations and includes the increased depreciation levels from fleet
investment over recent periods. The Group continues to look to drive synergy
and operational efficiency benefits to mitigate ongoing cost headwinds, such
as national insurance increases.
Basic earnings per ordinary share was 5.1 pence (30 April 2024: 7.3 pence).
Despite an increase in operating profit and EBITDA, the reduction in basic
earnings per ordinary share is primarily as a result of the increase in share
capital and the increase in interest costs, associated with the funding
required for the acquisitions in the prior period and that are recognised on a
linear basis as opposed to the H2 weighting of profitability from the
associated acquisitions.
Cash generation remained strong in the period with £19.6 million generated
from operating activities (H1 2024: £12.4 million; FY 2024: £31.4 million).
The Group's cash and cash equivalents increased by £0.2 million during the
period, after cash outflows to satisfy debt service payments and dividends
paid. This included cash generated from operations of £19.6 million.
The Group's balance sheet as of 30 April 2025 had reserves of £123.2
million (30 April 2024: £85.0 million; 31 October 2024: £124.5 million)
and net debt of £128.3 million (30 April 2024: £83.9 million; 31 October
2024: £127.8 million).
Net debt has increased by £0.5 million since the year-end 31 October 2024
after the net cash outflow of £5.0m, relating to the amount payable for the
Creed Catering Supplies Limited acquisition. Positive trading and working
capital control has mitigated this cash outflow, reducing leverage to 2.5x (30
April 2024: 2.0x; 31 October 2024: 2.8x).
The Group's bank covenant for leverage includes a proforma profitability for
part period acquisitions and on this basis, leverage is 2.3x as at 30 April
2025 (30 April 2024:1.9x; 31 October 2024: 2.4x). It is expected that the
strong continued cash generation of the Group, alongside the second half
weighting of the Group's financial performance, will drive the principal debt
down during the remainder of the current financial year. The Board is
committed to maintaining a prudent leverage policy moving forward.
Divisional summary
Set out below is the financial performance of the business by division:
H1 2025 H1 2024 FY 2024
Unaudited Unaudited
Audited
£m £m
£m
Group revenue 376.2 297.0 663.7
Ambient 98.1 99.1 204.6
Frozen & Chilled 112.1 104.9 235.5
Retail & wholesale 210.2 204.0 440.1
Foodservice 166.0 93.0 223.6
Corporate - - -
Group adjusted EBITDA((4)) 21.1 15.9 45.2
Ambient 5.8 5.7 13.1
Frozen & Chilled 5.4 4.9 15.2
Retail & wholesale 11.2 10.6 28.3
Foodservice 12.5 7.9 22.8
Corporate (2.6) (2.6) (5.9)
Group adjusted operating profit((4)) 13.2 10.8 34.1
Ambient 4.8 4.7 11.1
Frozen & Chilled 2.8 2.6 10.4
Retail & wholesale 7.6 7.3 21.5
Foodservice 8.3 6.2 18.7
Corporate (2.7) (2.7) (6.1)
((4)) Group and divisional EBITDA and operating profit/(loss) adjusted for
management charge, acquisition, amortisation of intangible assets arising on
acquisition, share-based payments and compensation for post-combination
services. For more information on alternative performance measures please see
the glossary at the end of the announcement.
Retail & Wholesale division
The Group's Ambient and Frozen & Chilled product businesses, which both
service the Retail & Wholesale sector of the grocery market, saw combined
revenue increase by 3.1% to £210.2 million (H1 2024: £204.0 million). The
growth was supported by new customers as well as higher ice cream sales, which
coincided with the prolonged drier weather through April 2025 compared to the
same month in the prior year.
Foodservice division
Set out below is the financial performance of the division for the period
included in the like for like is revenue and associated profit from Total
Foodservice (TFS) that is now within the combined business numbers for Miller
Foodservice because of the financial integration of the two businesses:
H1 2025 H1 2024
Unaudited Unaudited
£m £m
Divisional revenue 166.0 93.0
Like for like (including TFS) 96.0 93.0
Creed 70.0
H1 2025 H1 2024
Unaudited Unaudited
£m £m
Divisional adjusted EBITDA((4)) 12.5 7.9
Like for like (including TFS) 6.5 7.9
Creed 6.0
H1 2025 H1 2024
Unaudited Unaudited
£m £m
Divisional adjusted operating profit((4)) 8.3 6.2
Like for like (including TFS) 3.8 6.2
Creed 4.5
Foodservice's customer base comprises of independent traditional foodservice
outlets including bars, restaurants and leisure outlets, as well as the care
home and education sectors. Whilst this diverse customer mix means that the
division is not overly weighted to one sector, its performance was impacted by
softer demand from leisure and hospitality customers. The like-for-like
revenues were c.£96.0 million for the period (including the full period
revenues from TFS), resulting in reported like-for-like sales increasing by 3%
to £96 million. Although there was a slight improvement in sales during April
2025, which coincided with a period of warm weather, demand remained soft,
most notably in the South West region, where many of the destination venues
serving food are reliant on tourists and holiday-home owners.
The move to the South West depot incurred some unplanned costs in the period
and reflects the additional right of use asset depreciation, with two
freeholds being replaced by the new leasehold premises.
Operational review
The integration of Creed Foodservice and the opening of the Group's new 80,000
sq. ft Foodservice distribution centre in the South West have been the key
operational projects during the period.
The acquisition of Creed has enabled the Group to now have a national
foodservice network. This has provided both immediate customer opportunities
and distribution efficiencies. Since the completion in September 2024, we have
embarked on a significant integration programme. The available benefits and
synergies of the integration have been identified and are scheduled to be
realised over the next two years. The Board expects to see some of these
initial benefits to start contributing in H1 2026, whilst the full integration
onto the Group's ERP system is planned to be completed in early 2026.
The new South West depot has enabled the Group to consolidate three sites into
one as part of the integration of WestCountry and M.J. Baker. The Company
believes that the scale and capabilities of the new site will provide both
longer-term capacity for growth and the ability to cross-sell by providing the
full Kitwave product offering. Following the move to the new depot, a period
of transition was anticipated with some senior management changes and the
combined teams needing to familiarise themselves with the new site. Whilst the
IT implementation was very smooth, the integration of business processes,
routes and range has taken longer than anticipated. This combined with a
general reduction in visitor numbers in the region and pressure on consumer
spending following the 2024 Autumn budget has resulted in the turnover levels
and margin being below our expectations. The higher-than-expected costs are
being worked through but are expected to impact FY25 and the start of FY26
with expected integration costs to fall away by the end of H1 26.
Strategy
Kitwave is currently the 15th largest grocery and foodservice wholesaler in
the UK in terms of market share but only services circa five percent of the
potential market opportunity of circa £10.7bn. It is well documented that the
UK wholesale market is highly fragmented, which presents opportunities for the
Group to pursue strategic acquisitions to strengthen its existing business
lines and capitalise on synergies. Since 2011, the Group has completed 15
acquisitions.
The high levels of cash generation and the developing national footprint in
foodservice leaves us in a great position to continue to add complementary
strategic foodservice businesses to this growing platform. Geographic
capability and scale, we believe, will yield synergies and grow operating
margins over the long term.
The Group continues to invest in technology, systems and infrastructure to
support its organic growth objectives. Investment has been made in
voice-picking technology to deliver greater efficiencies and obtain the
highest level of customer service. The trading platform continues to be
expanded, enhancing order capability and customer engagement.
Dividend
The Board has declared an increased interim dividend of 4.00 pence per share
(H1 2024: 3.85 pence per share) for the six months to 30 April 2025. This
dividend will be paid on 31 July 2025 to shareholders on the register at the
close of business on 11 July 2025 and the ex-dividend date will be 10 July
2025.
Outlook
We have built an excellent platform for growth within the UK wholesale market.
With our focused growth strategy, both organic and through acquisitions, we
believe that we continue to be well-placed to deliver value for the Group and
its shareholders.
It has been widely reported that UK consumer confidence remains subdued.
Whilst concerns over significantly higher trade tariffs have eased, consumers
continue to be conscious of higher living costs. Despite experiencing
improvement in the Foodservice division in April, post-period sales have
remained lower than expected with the business weighted to the second half of
the year. Coupled with the additional one-off costs, the Group now expects
financial performance to be impacted against the previous expectations
forecast.
Despite these near-term challenges, Kitwave remains a fundamentally strong
business with a good pipeline of operational synergies and growth
opportunities. The Group's focus remains on service excellence, operational
improvement, and disciplined cost management.
Ben Maxted
Chief Executive Officer
1 July 2025
Condensed consolidated statement of profit and loss and other comprehensive
income
Note 6 months ended Year ended
31 October 2024 Audited
6 months ended 30 April 2024 Unaudited
30 April 2025 Unaudited
£000 £000 £000
Revenue 2 376,209 296,960 663,652
Cost of sales (291,084) (233,223) (515,832)
Gross profit 85,125 63,737 147,820
Other operating income 3 85 98 603
Distribution expenses (39,564) (27,949) (63,473)
Administrative expenses (35,364) (26,590) (56,146)
Operating profit 10,282 9,296 28,804
Analysed as:
Adjusted EBITDA 21,067 15,863 45,229
Amortisation of intangible assets 4 (1,788) (557) (1,527)
Depreciation 4 (7,781) (4,967) (11,068)
Acquisition expenses 4 - (416) (2,153)
Compensation for post combination services 4 (79) (79) (324)
Share based payment expense 4 (634) (548) (1,244)
Restructuring expenses 4 (503) - (109)
Total operating profit 10,282 9,296 28,804
Finance expenses (4,708) (2,417) (6,276)
Profit before tax 5,574 6,879 22,528
Tax on profit on ordinary activities (1,397) (1,796) (5,810)
Profit for the financial period 4,177 5,083 16,718
Other comprehensive income - - -
Total comprehensive income for the period 4,177 5,083 16,718
Basic earnings per share (pence) 5 5.1 7.3 23.5
Diluted earnings per share (pence) 5 5.1 6.9 22.5
Condensed consolidated balance sheet
30 April 2025 Unaudited 30 April 2024 Unaudited 31 October 2024
Audited
£000 £000 £000
Non-current assets
Goodwill 105,717 70,090 105,717
Intangible assets 28,935 8,112 30,554
Tangible assets 28,316 22,767 29,096
Right-of-use assets 52,956 32,611 50,869
Investments 27 61 42
215,951 133,641 216,278
Current assets
Inventories 56,102 53,836 47,749
Trade and other receivables 102,634 75,677 91,122
Cash and cash equivalents 4,337 5,015 4,137
163,073 134,528 143,008
Total assets 379,024 268,169 359,286
Current liabilities
Other interest bearing loans and borrowings (30,935) (33,125) (27,821)
Lease liabilities (11,104) (7,020) (10,244)
Trade and other payables (118,535) (90,729) (102,083)
Tax payable (657) (1,217) (1,127)
(161,231) (132,091) (141,275)
Non-current liabilities
Other interest bearing loans and borrowings (40,000) (20,000) (40,000)
Lease liabilities (44,785) (28,116) (43,323)
Deferred tax liabilities (9,846) (2,956) (10,143)
(94,631) (51,072) (93,466)
Total liabilities (255,862) (183,163) (234,741)
Net assets 123,162 85,006 124,545
Equity attributable to equity holders of the
Parent Company
Called up share capital 836 701 804
Share premium account 97,376 64,349 94,185
Consolidation reserve (33,098) (33,098) (33,098)
Share based payment reserve 689 2,576 3,240
Retained earnings 57,359 50,478 59,414
Equity 123,162 85,006 124,545
Condensed consolidated statement of change in equity
Called up Share Share based payment reserve Profit
share premium Consolidation and loss Total
capital account reserve account equity
£000 £000 £000 £000 £000 £000
Balance at 1 November 2023 (audited) 700 64,183 (33,098) 2,042 50,618 84,445
Total comprehensive income for the 6 month period
Profit - - - - 5,083 5,083
Other comprehensive income - - - - - -
Total comprehensive income for
the 6 month period - - - - 5,083 5,083
Transaction with owners, recorded directly in equity
New share issuance 1 166 - - - 167
Dividends - - - - (5,223) (5,223)
Share based payment expense - - - 534 - 534
Total contribution by and transactions with the owners
1 166 - 534 (5,223) (4,522)
Balance at 30 April 2024 (unaudited) 701 64,349 (33,098) 2,576 50,478 85,006
Total comprehensive income for the 6 month period
Profit - - - - 11,635 11,635
Other comprehensive income - - - - - -
Total comprehensive income
for the 6 month period - - - - 11,635 11,635
New share issuance 103 31,397 - - - 31,500
Costs directly attributable to new shares issues - (1,561) - - - (1,561)
Dividends - - - - (2,699) (2,699)
Share based payment expense - - - 664 - 664
Total contribution by and transactions with the owners 103 29,836 - 664 (2,699) 27,904
Balance at 31 October 2024 (audited) 804 94,185 (33,098) 3,240 59,414 124,545
Total comprehensive income for the 6 month period
Profit - - - - 4,177 4,177
Other comprehensive income - - - - - -
Total comprehensive income for
the 6 month period - - - - 4,177 4,177
Transaction with owners, recorded directly in equity
New share issuance 32 3,191 - (3,104) - 119
Dividends - - - - (6,232) (6,232)
Share based payment expense - - - 553 - 553
Total contribution by and transactions with the owners 32 3,191 - (2,551) (6,232) (5,560)
Balance at 30 April 2025 (unaudited) 836 97,376 (33,098) 689 57,359 123,162
Condensed consolidated cash flow statement
Note 6 months ended 30 April 2025 Unaudited 6 months ended 30 April 2024 Unaudited Year ended
31 October 2024 Audited
£000 £000 £000
Cash flow from operating activities
Profit for the period 4,177 5,083 16,718
Adjustments for:
Depreciation and amortisation 9,569 5,524 12,595
Financial expense 4,708 2,417 6,276
Profit on sale of property, plant and equipment (75) (74) (573)
Net gain on remeasurement of right-of-use assets and lease liabilities (12) (29) (30)
Compensation for post combination services 79 79 324
Equity settled share based payment expense 634 548 1,244
Taxation 1,397 1,796 5,810
20,477 15,344 42,364
(Increase) in trade and other receivables (11,512) (9,398) (8,712)
(Increase) in inventories (8,353) (15,584) (2,392)
Increase in trade and other payables 21,194 23,952 6,755
21,806 14,314 38,015
Tax paid (2,164) (1,911) (6,612)
Net cash inflow from operating activities 19,642 12,403 31,403
Cash flows from investing activities
Acquisition of property, plant and equipment (1,308) (3,768) (7,275)
Proceeds from sale of property, plant and equipment 151 143 3,513
Payment of compensation for post combination services - (424) -
Acquisition of subsidiary undertakings (including 2 (5,000) (19,370) (73,329)
overdrafts and cash acquired)
Net cash outflow from investing activities (6,157) (23,419) (77,091)
Cash flows from financing activities
Issuance of new shares 120 167 30,106
Proceeds from new loan - - 20,000
Net movement in bank trade loan (7,750) 3,000 7,750
Net movement in invoice discounting 10,864 23,720 13,666
Interest paid (4,612) (2,417) (6,121)
Repayment of lease liabilities (5,675) (3,889) (8,327)
Dividends paid (6,232) (5,223) (7,922)
Net cash (outflow)/inflow from financing activities (13,285) 15,358 49,152
Net increase in cash and cash equivalents 200 4,342 3,464
Opening cash and cash equivalents 4,137 673 673
Cash and cash equivalents at period end 4,337 5,015 4,137
Notes
1 Accounting policies
Kitwave Group plc (the "Company") is a public company limited by shares and
incorporated, domiciled and registered in England in the UK. The registered
number is 9892174 and the registered address is Unit S3, Narvik Way, Tyne
Tunnel Trading Estate, North Shields, Tyne and Wear, NE29 7XJ.
The Company's principal activity is to act as a holding company for its
subsidiaries (together "the Group"), which together make up the Group's
consolidated financial information.
The condensed consolidated financial information presented in this statement
for the six months ended 30 April 2025 and the comparative figures for the six
months ended 30 April 2024 are neither audited nor reviewed.
The comparative financial information in the condensed consolidated financial
information in respect of the year ended 31 October 2024 have been extracted
from the 2024 financial statements. The statutory accounts for the year ended
31 October 2024 have been delivered to the Registrar of Companies and the
report of the auditor 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 condensed consolidated financial information does not constitute statutory
accounts as defined in Section 435 of the Companies Act 2006 and does not
include all the information required for the full annual financial
statements. Selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the changes in the
Group's financial position and performance since the last annual consolidated
financial statements.
There have been no new accounting standards or changes to existing accounting
standards applied for the first time which have a material effect on these
interim results.
1.1 Critical accounting estimates and judgements
The critical accounting estimates and judgements affecting the Group are
unchanged from those set out in the Group's last annual consolidated financial
statements for the year ended 31 October 2024.
The Directors have reviewed financial forecasts and are satisfied that the
Group has sufficient levels of financial resources available to both fund
operations and to pursue its stated growth strategy. The Directors are
confident that the Group will have sufficient funds to meet its liabilities as
they fall due for the foreseeable future and therefore adopt the going concern
basis in preparing the condensed consolidated interim financial information.
1.2 Accounting policies
The accounting policies applied in preparing the condensed consolidated
interim financial information are the same as those applied in the preparation
of the consolidated financial statements for the year ended 31 October 2024,
as described in those financial statements.
2 Segmental information
The following analysis by segment is presented in accordance with IFRS 8 on the basis of those segments whose operating results are regularly reviewed by the Executive Board (the Chief Operating Decision Maker as defined by IFRS 8) to assess performance and make strategic decisions about allocation of resources
The Group has the following operating segments:
· Ambient: Provides delivered wholesale of ambient food, drink and
tobacco products;
· Frozen & Chilled: Provides delivered wholesale of frozen and
chilled food products; and
· Foodservice: Provides delivered wholesale of alcohol, frozen and
chilled food to trade customers.
Corporate contains the central functions that are not devolved to the business
units
These segments offer different products that attract different margins. They each have separate management teams.
The segments share a commonality in service being delivered wholesale of food
and drink products. The Group therefore benefits from a range of expertise,
cross-selling opportunities and operational synergies in order to run each
segment as competitively as possible.
The Group's forward-looking strategy is to provide enhanced customer service
by making available the wider Group product range to its existing customer
base. As a result, the Board assess the segments based on customer type with
the customers in the Ambient and Frozen & Chilled divisions operating in
the retail and wholesale channels.
The following analysis shows how this is monitored whilst demonstrating the
link to the previously reported segmental information which continues to be
monitored by the Board alongside the segments based on customer type.
Each segment is measured on its adjusted operating profit and internal
management reports are reviewed monthly by the Board. This performance
measure is deemed the most relevant by the Board to evaluate the results of
the segments relative to entities operating in the same industry.
2 Segmental information (continued)
Six months ended 30 April 2025 Ambient Frozen & Total retail & wholesale Foodservice Corporate Total
Chilled
£000 £000 £000 £000 £000 £000
Revenue 98,127 112,113 210,240 165,969 - 376,209
Inter-segment revenue 9,601 1,698 11,299 1,290 - 12,589
Segment revenue 107,728 113,811 221,539 167,259 - 388,798
Segment gross profit 14,963 23,095 38,058 47,067 - 85,125
Adjusted EBITDA* 5,774 5,419 11,193 12,455 (2,581) 21,067
Amortisation of intangibles - (35) (35) (15) (26) (76)
Depreciation (1,031) (2,568) (3,599) (4,111) (71) (7,781)
Adjusted operating profit* 4,743 2,816 7,559 8,329 (2,678) 13,210
Group management charge (734) (1,026) (1,760) (1,376) 3,136 -
Amortisation of intangible assets arising on acquisition - - - - (1,712) (1,712)
Compensation for post combination services - (79) (79) - - (79)
Share based payment expense - - - - (634) (634)
Restructuring costs - (77) (77) (394) (32) (503)
Interest expense (626) (1,015) (1,641) (1,392) (1,675) (4,708)
Segment profit/(loss) before tax 3,383 619 4,002 5,167 (3,595) 5,574
Segment assets 52,604 76,599 129,203 147,156 102,665 379,024
Segment liabilities (37,492) (72,975) (110,467) (86,873) (58,522) (256,862)
Segment net assets 15,112 3,624 18,736 60,283 44,143 123,162
Within Corporate assets is £115,717,000 of goodwill on consolidation. This is
allocated to the trading segments as follows:
Goodwill by segment 13,516 12,539 26,055 79,662 - 105,717
2 Segmental information (continued)
Six months ended 30 April 2024 Ambient Frozen & Total retail & wholesale Foodservice Corporate Total
Chilled
£000 £000 £000 £000 £000 £000
Revenue 99,073 104,933 204,006 92,954 - 296,960
Inter-segment revenue 9,198 1,878 11,076 449 - 11,525
Segment revenue 108,271 106,811 215,082 93,403 - 308,485
Segment gross profit 15,017 22,721 37,738 25,999 - 63,737
Adjusted EBITDA* 5,694 4,936 10,630 7,875 (2,642) 15,863
Amortisation of intangibles - (31) (31) (3) (26) (60)
Depreciation (952) (2,310) (3,262) (1,643) (62) (4,967)
Adjusted operating profit* 4,742 2,595 7,337 6,229 (2,730) 10,836
Group management charge (734) (1,026) (1,760) (1,377) 3,137 -
Amortisation of intangible assets arising on acquisition - - - - (497) (497)
Acquisition expense - - - (416) - (416)
Compensation for post combination services - (79) (79) - - (79)
Share based payment expense - - - - (548) (548)
Interest expense (471) (613) (1,084) (436) (897) (2,417)
Segment profit/(loss) before tax 3,537 877 4,414 4,000 (1,535) 6,879
Segment assets 52,081 74,670 126,751 69,468 71,910 268,129
Segment liabilities (39,812) (75,410) (115,222) (46,250) (21,651) (183,123)
Segment net assets 12,269 (740) 11,529 23,218 50,259 85,006
Within Corporate assets is £70,090,000 of goodwill on consolidation. This is
allocated to the trading segments as follows:
Goodwill by segment 13,516 12,499 26,015 44,075 - 70,090
2 Segmental information (continued)
Year ended 31 October 2024 Ambient Frozen & Total retail & wholesale Foodservice Corporate Total
Chilled
£000 £000 £000 £000 £000 £000
Revenue 204,568 235,511 440,079 223,573 - 663,652
Inter-segment revenue 18,463 4,355 22,818 1,242 - 24,060
Segment revenue 223,031 239,866 462,897 224,815 - 687,712
Segment gross profit 31,613 52,353 83,966 63,854 - 147,820
Adjusted EBITDA* 13,125 15,215 28,340 22,797 (5,908) 45,229
Amortisation of intangibles - (74) (74) (6) (50) (130)
Depreciation (2,010) (4,781) (6,791) (4,118) (159) (11,068)
Adjusted operating profit* 11,115 10,360 21,475 18,673 (6,117) 34,031
Group management charge (1,968) (2,051) (4,019) (2,751) 6,770 -
Amortisation of intangible assets arising on acquisition - - - - (1,397) (1,397)
Acquisition expense - - - (447) (1,706) (2,153)
Compensation for post combination services - (324) (324) - - (324)
Share based payment expense - - - - (1,244) (1,244)
Restructuring costs - (103) (103) (6) - (109)
Interest expense (1,099) (1,948) (3,047) (1,204) (2,025) (6,276)
Segment profit/(loss) before tax 8,048 5,934 13,982 14,265 (5,719) 22,528
Segment assets 49,876 61,691 111,567 111,927 135,792 359,286
Segment liabilities (37,363) (58,531) (95,894) (79,212) (59,635) (234,741)
Segment net assets 12,513 3,160 15,673 32,715 76,157 124,545
Within Corporate assets is £105,717,000 of goodwill on consolidation. This is
allocated to the trading segments as follows:
Goodwill by segment 13,516 12,539 26,055 79,662 - 105,717
An analysis of revenue by destination is given below:
Geographical information:
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
United Kingdom 374,317 294,738 659,833
Overseas 1,892 2,222 3,819
Group revenue 376,209 296,960 663,652
No one customer accounts for more than 7% (H1 2024: 10%; FY 2024: 8%) of Group
revenue.
3 Other operating income
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Net gain on disposal of fixed assets 75 74 573
Net gain on remeasurement of right-of-use assets and lease liabilities 12 29 30
Net (loss) on foreign exchange (2) (5) -
85 98 603
4 Expenses
Included in profit/loss are the following:
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Depreciation of tangible assets:
Owned 2,027 1,343 3,052
Right-of-use assets 5,754 3,624 8,016
Amortisation of intangible assets 1,788 557 1,527
Expenses relating to short term leases and low value assets 1,416 1,327 2,155
Impairment loss on trade receivables 267 62 -
The Group incurred a number of expenses not relating to the principal trading
activities of the Group as follows:
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
Exceptional expenses £000 £000 £000
Acquisition expenses - 416 2,153
Compensation for post combination services 79 79 324
Restructuring expenses 503 - 109
Total exceptional expenses 79 495 2,586
Share based payment expense 634 548 1,244
Total exceptional expenses and share based payments
713 1,043 3,830
The Board consider the exceptional items to be non-recurring in nature. Both
exceptional and share-based payment expenses are adjusted for in the statement
of profit and loss to arrive at the adjusted EBITDA. This measure provides the
Board with a better understanding of the Group's operating performance.
Acquisition expenses in both prior periods include the legal and professional
fees connected to the acquisition of WLG (Holdings) Limited, Total Foodservice
Solutions Limited and Creed Catering Supplies Limited.
Compensation for post-combination services relates to the value of a liability
in connection the acquisition of the remaining share capital of Central
Supplies (Brierley Hill) Ltd which is subject to an agreement to acquire which
can now be called at any time.
Share-based payments relate to the Management Incentive Plan ("MIP") and
Long-Term Incentive Plan ("LTIP") and are non-cash expenses.
Restructuring expenses in the period relate to redundancy and operational
restructuring costs across the Foodservice and Frozen & Chilled divisions.
5 Earnings per share
Basic earnings per share
Basic earnings per share for the six-month period ending 30 April 2025, and
the previous six-month period ending 30 April 2024 and the year ended 31
October 2023 is calculated by dividing profit attributable to ordinary
shareholders by the weighted average number of ordinary shares outstanding
during each period as calculated below.
Diluted earnings per share
Diluted earnings per share for the six-month period ending 30 April 2025, and
the previous six-month period ending 30 April 2024 and the year ended 31
October 2024 is calculated by dividing profit attributable to ordinary
shareholders by the weighted average number of ordinary shares, adjusted for
the effects of all dilutive potential ordinary shares. In this case dilutive
potential ordinary shares include issued equity warrants outstanding during
each period and shares that may vest under the terms of equity incentive
plans, as calculated below.
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Profit attributable to all shareholders 4,177 5,083 16,718
pence pence pence
Basic earnings per ordinary share 5.1 7.1 23.5
Diluted earnings per ordinary share 5.1 6.9 22.5
Weighted average number of ordinary shares
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
Number Number Number
Weighted average number of ordinary shares (basic) during the period 81,418,361 70,032,967 71,034,498
Weighted average number of ordinary shares (diluted) during the period 81,571,828 73,158,081 74,453,758
Adjusted earnings per share
Adjusted earnings per share is calculated below on the grounds that it is a
metric used by the market in monitoring the Group and similar businesses.
These figures are relevant to the Group and are provided to enable comparison
to similar businesses. Amortisation of acquired intangibles and share based
payment charges are deemed to be non-cash at the pint of recognition, and
exceptional items by their very nature are considered non-recurring by the
Board. Together with acquisition costs, these are excluded to derive the
adjusted earnings per share and to assist with the understanding of underlying
trading.
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Profit attributable to all shareholders 4,177 5,083 16,718
Exceptional and share based payment expenses net of tax 2,216 1,279 4,559
Adjusted profit attributable to ordinary shareholders 6,393 6,362 21,277
pence pence pence
Basic adjusted earnings per ordinary share 7.9 9.1 30.0
For more information on this alternative performance measure, please see the
glossary at the end of the announcement.
Alternative performance measure glossary
This report provides alternative performance measures ("APMs"), which are note
defined or specified under the requirements of International Financial
Reporting Standards. The Board believes that these APMs provide readers with
important additional information on the Group.
Alternative performance measure Definition and purpose
Adjusted operating profit Represents the operating profit prior to exceptional expenses, share based
payment expenses and amortisation of intangible assets recognised on
acquisitions. This measure is consistent with how the Group measures
performance and is reported to the Board.
6months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Total operating profit 10,282 9,296 28,804
Amortisation of intangible assets arising on acquisition
1,712 497 1,397
Acquisition expenses - 416 2,153
Compensation for post combination services
79 79 324
Share based payment expense
634 548 1,244
Restructuring expenses 503 - 109
Adjusted operating profit
13,210 10,836 34,031
Adjusted EBITDA Represents the operating profit prior to exceptional (income) / expenses,
share based payment expenses, fixed asset depreciation and intangible
amortisation. This measure is consistent with how the Group measures trading
and cash generative performance and is reported to the Board.
6months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Total operating profit 10,282 9,296 28,804
Amortisation of intangible assets
1,788 557 1,527
Depreciation 7,781 4,967 11,068
Acquisition expenses - 416 2,153
Compensation for post combination services
79 79 324
Share based payment expense
634 548 1,244
Restructuring expenses 503 - 109
Adjusted EBITDA 21,067 15,863 45,229
Pre-tax operational cash conversion Represents the cash generated from operating activities pre tax as a
proportion of cash flow from operating activities pre movements in working
capital and tax. This measure informs the Board of the Group's cash conversion
from operating activities and is used to monitor liquidity by the Board.
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Net cash inflow from operating activities 19,642 12,403 31,403
Tax paid 2,164 1,911 6,612
Cash flow from operating activities pre-tax and compensation for post
combination services (1)
21,806 14,314 38,015
Movement in working capital
(1,329) 1,030 4,349
Cash flow from operating activities pre-tax and compensation for post
combination services and movement in working capital (2)
20,477 15,344 42,364
Pre-tax operational cash conversion (1) divided by (2)
106% 93% 90%
Adjusted EBITDA
Represents the operating profit prior to exceptional (income) / expenses,
share based payment expenses, fixed asset depreciation and intangible
amortisation. This measure is consistent with how the Group measures trading
and cash generative performance and is reported to the Board.
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Total operating profit 10,282 9,296 28,804
Amortisation of intangible assets
1,788 557 1,527
Depreciation 7,781 4,967 11,068
Acquisition expenses - 416 2,153
Compensation for post combination services
79 79 324
Share based payment expense
634 548 1,244
Restructuring expenses 503 - 109
Adjusted EBITDA 21,067 15,863 45,229
Pre-tax operational cash conversion
Represents the cash generated from operating activities pre tax as a
proportion of cash flow from operating activities pre movements in working
capital and tax. This measure informs the Board of the Group's cash conversion
from operating activities and is used to monitor liquidity by the Board.
6 months ended 6 months ended Year ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Net cash inflow from operating activities 19,642 12,403 31,403
Tax paid 2,164 1,911 6,612
Cash flow from operating activities pre-tax and compensation for post
combination services (1)
21,806 14,314 38,015
Movement in working capital
(1,329) 1,030 4,349
Cash flow from operating activities pre-tax and compensation for post
combination services and movement in working capital (2)
20,477 15,344 42,364
Pre-tax operational cash conversion (1) divided by (2)
106% 93% 90%
After tax return on invested capital Represents adjusted profit after tax for the 12 months ending on the period
end date as a proportion of invested capital as at the period end date. This
measure informs the Board of how effective the Group is in generating returns
from the capital invested.
LTM ended LTM ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Adjusted operating profit 36,405 31,111 34,031
Operating lease interest (2,929) (1,837) (2,167)
33,476 29,274 31,864
Tax charge at effective rate of tax of 25% (2024: 25%)
(8,369) (7,319) (7,966)
Adjusted operating profit after tax (1) 21,955 23,898
25,107
Invested capital comprising:
Invoice discounting facilities 30,935 20,071
30,125
Lease liabilities 55,889 35,136 53,567
Revolving Credit Facility 40,000 20,000 40,000
Trade loan - 3,000 7,750
Share capital 836 701 804
Share premium 97,376 64,349 94,185
Less cash at bank and in hand (4,337) (5,015) (4,137)
Total invested capital (2) 220,699 148,296 212,240
After tax return on invested capital (1) divided by (2)
11% 15% 11%
Return on net assets Represents adjusted profit after tax as a proportion of the Group's investment
in fixed assets and working capital. This measure informs the Board of how
effective the Group is in generating returns from its fixed assets and net
working capital.
LTM ended LTM ended
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Adjusted operating profit 36,405 31,111 34,031
Tax charge at effective rate of tax of 25% (2024: 25%) (9,101) (7,778) (8,508)
Adjusted operating profit after tax (1) 27,304 23,333 25,523
Fixed assets and net working capital comprising:
Intangible assets* 710 663 618
Fixed assets 28,316 22,767 29,096
Right-of-use assets 52,956 32,611 50,869
Investments 27 61 42
Inventories 56,102 53,836 47,749
Trade and other receivables 102,634 75,677 91,122
Trade and other payables (118,535) (90,729) (102,083)
Liability for post combination services** 985 661 906
Total invested capital (2) 122,485 94,884 118,319
After tax return on invested capital (1) divided by (2) 22% 25% 22%
*excluding acquired intangibles arising on acquisition
**adjustment to exclude the liability for post combination services from trade
and other payables
Leverage Management assess leverage by reference to adjusted EBITDA against net debt
including and excluding IFRS 16 lease liabilities and including the liability
for post combination services held within other creditors. This indicates how
much income is available to service debt before interest, tax, depreciation
and amortisation.
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Adjusted EBITDA 50,433 40,987 45,229
Invoice discounting advances 30,935
30,125 20,071
Lease liabilities 55,889 35,136 53,567
Revolving Credit Facility 40,000 20,000 40,000
Trade loans - 3,000 7,750
Liability for post combination services 985 661 906
Contingent consideration 4,870 - 9,614
Cash at bank and in hand (4,337) (5,015) (4,137)
Net debt 128,342 83,907 127,771
Leverage (including IFRS 16 debt)
2.5 2.0 2.8
IFRS 16 lease liabilities 43,742 26,462 43,151
Net debt excluding IFRS 16 lease liabilities
84,600 57,445 84,620
Leverage (excluding IFRS 16 lease debt)
1.7 1.4 1.9
In addition to the assessment of leverage as aligned to the bank leverage
covenant calculation including all lease liabilities, Management also assess
leverage excluding lease liabilities arising on application of IFRS 16.
Included in the above are the total lease liabilities, and separately those
arising on application of IFRS 16 ("IFRS 16 lease liabilities") to calculate
both metrics.
Adjusted earnings per share Profit attributable to the equity holders of the Group prior to exceptional
items and share based payments through the consolidated statement of profit
and loss, divided by the weighted average number of ordinary shares during the
financial year.
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Profit attributable to all shareholders 4,177 5,083 16,718
Amortisation of intangible assets arising on acquisition 1,712 497 1,397
Acquisition expenses - 416 2,153
Compensation for post combination services 79 79 324
Share based payment expense 634 548 1,244
Restructuring expenses 503 - 109
Tax effect of above items (712) (261) (668)
Adjusted profit attributable to ordinary shareholders 6,393 6,362 21,277
Number Number Number
Weighted average number of ordinary shares (basic) during the period 81,418,361 70,32,967 71,034,498
pence pence pence
Basic adjusted earnings per ordinary share 7.9 9.1 30.0
Return on net assets
Represents adjusted profit after tax as a proportion of the Group's investment
in fixed assets and working capital. This measure informs the Board of how
effective the Group is in generating returns from its fixed assets and net
working capital.
LTM ended
30 April 2025
Unaudited
LTM ended
30 April 2024 Unaudited
31 October 2024 Audited
£000
£000
£000
Adjusted operating profit
36,405
31,111
34,031
Tax charge at effective rate of tax of 25% (2024: 25%)
(9,101)
(7,778)
(8,508)
Adjusted operating profit after tax (1)
27,304
23,333
25,523
Fixed assets and net working capital comprising:
Intangible assets*
710
663
618
Fixed assets
28,316
22,767
29,096
Right-of-use assets
52,956
32,611
50,869
Investments
27
61
42
Inventories
56,102
53,836
47,749
Trade and other receivables
102,634
75,677
91,122
Trade and other payables
(118,535)
(90,729)
(102,083)
Liability for post combination services**
985
661
906
Total invested capital (2)
122,485
94,884
118,319
After tax return on invested capital (1) divided by (2)
22%
25%
22%
*excluding acquired intangibles arising on acquisition
**adjustment to exclude the liability for post combination services from trade
and other payables
Leverage
Management assess leverage by reference to adjusted EBITDA against net debt
including and excluding IFRS 16 lease liabilities and including the liability
for post combination services held within other creditors. This indicates how
much income is available to service debt before interest, tax, depreciation
and amortisation.
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Adjusted EBITDA 50,433 40,987 45,229
Invoice discounting advances 30,935
30,125 20,071
Lease liabilities 55,889 35,136 53,567
Revolving Credit Facility 40,000 20,000 40,000
Trade loans - 3,000 7,750
Liability for post combination services 985 661 906
Contingent consideration 4,870 - 9,614
Cash at bank and in hand (4,337) (5,015) (4,137)
Net debt 128,342 83,907 127,771
Leverage (including IFRS 16 debt)
2.5 2.0 2.8
IFRS 16 lease liabilities 43,742 26,462 43,151
Net debt excluding IFRS 16 lease liabilities
84,600 57,445 84,620
Leverage (excluding IFRS 16 lease debt)
1.7 1.4 1.9
In addition to the assessment of leverage as aligned to the bank leverage
covenant calculation including all lease liabilities, Management also assess
leverage excluding lease liabilities arising on application of IFRS 16.
Included in the above are the total lease liabilities, and separately those
arising on application of IFRS 16 ("IFRS 16 lease liabilities") to calculate
both metrics.
Adjusted earnings per share
Profit attributable to the equity holders of the Group prior to exceptional
items and share based payments through the consolidated statement of profit
and loss, divided by the weighted average number of ordinary shares during the
financial year.
30 April 2024 Unaudited
30 April 2025 31 October 2024 Audited
Unaudited
£000 £000 £000
Profit attributable to all shareholders 4,177 5,083 16,718
Amortisation of intangible assets arising on acquisition 1,712 497 1,397
Acquisition expenses - 416 2,153
Compensation for post combination services 79 79 324
Share based payment expense 634 548 1,244
Restructuring expenses 503 - 109
Tax effect of above items (712) (261) (668)
Adjusted profit attributable to ordinary shareholders 6,393 6,362 21,277
Number Number Number
Weighted average number of ordinary shares (basic) during the period 81,418,361 70,32,967 71,034,498
pence pence pence
Basic adjusted earnings per ordinary share 7.9 9.1 30.0
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