REG - Kitwave Group PLC - Unaudited Interim Results
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RNS Number : 8718P Kitwave Group PLC 22 January 2026
Kitwave Group plc
("Kitwave", the "Group" or the "Company")
Unaudited interim results for the year ended 31 October 2025
Kitwave Group plc (AIM: KITW), the delivered wholesale business, is pleased to
announce its unaudited interim results for the year ended 31 October 2025
("the period", "FY 2025").
The tables and commentary below include comparatives for the year ended 31
October 2024 (FY 2024).
Financial Highlights
· Revenues up 20.9% (1% down like-for-like ((2))) to £802.7 million
(FY 2024: £663.7 million).
· Consolidated gross margin up 0.6% to 22.9% (FY 2024: 22.3%).
· Adjusted operating profit((1)) up 11.7% to £38.0 million (FY 2024:
£34.0m).
· Cash generation from operating activities of £46.4 million (FY 2024:
£31.4 million).
· Pre-tax operational cash conversion of 104% (FY 2024: 90%).
· Robust balance sheet with leverage reducing to 2.3x (FY 2024: 2.8x)
including IFRS 16 lease liabilities, and reducing to 1.4x (FY 2024: 19.x)
excluding IFRS 16 lease liabilities.
· As previously communicated, it is the Board's intention to distribute
a single dividend for the 8-month period to 31 December 2025, which, together
with the interim dividend of 4.0 pence per share previously announced on 1
July 2025, will cover dividend distributions for the 14-month period to 31
December 2025.
Operational Highlights
· The Retail & Wholesale division outperformed FY 2024 in both
revenue and adjusted operating profit.
· The integration of Total Foodservice and Miller Foodservice was
completed, and progress is being made on the operational integration of the
combined business into Creed Foodservice.
· The new South West distribution centre is now operating at the
required service levels, following capital and operational investment made
during the period.
· As previously announced, the Group took the proactive decision to
incur some additional operational investment in the new South West
distribution centre. These costs continued into H2 as expected.
· Creed Foodservice achieved growth in both revenue and adjusted
operating profit, despite facing economic headwinds in retail and leisure
spend.
Outlook
Trading has been in line with management expectations since the Group's last
trading update.
Kitwave continues to pursue operational and commercial synergies from the
integration of its Foodservice business to mitigate cost headwinds and provide
a platform for future growth.
The Board acknowledges the current trading environment, which is characterised
by macroeconomic uncertainty and inflationary pressures affecting margins and
costs, driven by compound minimum wage increases and changes to National
Insurance contributions.
The Company has today announced the terms of its proposed Acquisition by OEP
Capital Advisors L.P. representing an attractive proposition for shareholders
and stakeholders.
Financial summary
Year ended Year ended
31 October 2025 31 October 2024
Unaudited
Audited
£m
£m
Revenue 802.7 663.7
Gross profit 183.2 147.8
Gross profit margin % 22.8% 22.3%
Adjusted EBITDA((1)) 53.4 45.2
Adjusted operating profit((1)) 38.0 34.0
Profit before tax 22.4 22.5
Net cash inflow from operating activities
46.4 31.4
Pre-tax operational cash conversion((1)) 104% 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.
Ben Maxted, Chief Executive Officer of Kitwave, commented:
"During this period, Kitwave has achieved record revenue and adjusted
operating profit. Additionally, significant operational changes have been
implemented across its expanded foodservice division through the integration
of Creed Foodservice with our Northern and South West foodservice businesses.
This work will create opportunities for operational synergies and provide a
platform for sustainable growth.
"Our Retail and Wholesale division continues to deliver robust performance,
benefitting from underlying consumer demand and leveraging its expertise in
service excellence.
"The Group remains highly cash generative, maintaining a strong balance sheet
and facility headroom, and has de-levered in the period through reduction in
net debt as expected. "
- 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
Harry Rees
Elizabeth Halley-Stott
Yellow Jersey PR Tel: +44 (0) 20 3004 9512
(Financial media and PR)
Charles Goodwin
Shivantha Thambirajah
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
The Group has continued to progress the integration of the foodservice
division. While weaker demand in the hospitality sector has impacted revenues,
particularly in Foodservice, the Retail & Wholesale division has
demonstrated robust performance. Additionally, Creed Foodservice has shown
growth, supported by its integration with the wider Foodservice division.
Overall trading was in line with the Board's expectations for the year.
Financial summary
FY 2025 FY 2024
Unaudited
Audited
£m
£m
Revenue 802.7 663.7
Gross profit 183.2 147.8
Gross profit margin % 22.8% 22.3%
Operating profit 31.7 28.8
Operating margin % 3.9% 4.3%
In the year to 31 October 2025, the Group achieved revenue of £802.7 million
(FY 2024: £663.7 million) and an operating profit of £31.7 million (FY 2024:
£28.8 million).
The gross profit margin improved to 22.8% (FY 2024: 22.3%), driven by an
increased revenue mix towards the higher-margin Foodservice division,
following the full year effect of the FY24 acquisitions.
During the reporting period, the Group decided to incur additional short-term
costs in order to maintain service levels in the South West while
consolidating operations from three depots into a single distribution centre.
The Group also accelerated the planned operational integrations in the
Northern Foodservice business by reducing the number of distribution centres
from four to two. These operational integrations resulted in exceptional
restructuring expenses of £2.4 million (FY 2024: £0.1 million). This
activity will allow the Group to drive synergies and operational benefits to
mitigate future cost headwinds. Excluding these costs, the Group's cost base
remained in line with expectations.
Basic earnings per ordinary share was 20.1 pence (FY 2024: 23.5 pence).
Despite an increase in operating profit and EBITDA, the reduction in basic
earnings per ordinary share is primarily due to the increase in share capital.
Cash generation remained strong in the period with £46.4 million generated
from operating activities (FY 2024: £31.4 million).
The Group's cash and cash equivalents decreased by £3.2 million during the
period, following cash outflows related to deferred consideration paid on the
Creed acquisition, a reduction in trade loans and invoice discounting advances
of £9.5 million, as well as debt service payments and dividends.
The Group's balance sheet as of 31 October 2025 had reserves of £132.0
million (31 October 2024: £124.5 million) and net debt of £122.0
million (31 October 2024: £127.8 million).
Net debt has reduced by £5.8 million since 31 October 2024. The reduction in
bank facilities was offset by an increase in lease liabilities of £6.0m
principally relating to leased fleet replacement. Leverage reduced to 2.3x (31
October 2024: 2.8x) including IFRS 16 lease liabilities, and reduced to 1.4x
(FY 2024: 19.x) excluding IFRS 16 lease liabilities.
Divisional summary
Set out below is the financial performance of the business by division:
FY 2025 FY 2024
Unaudited
Audited
£m
£m
Group revenue 802.7 663.7
Ambient 205.8 204.6
Frozen & Chilled 247.3 235.5
Retail & wholesale 453.1 440.1
Foodservice 349.6 223.6
Corporate - -
Group adjusted EBITDA((4)) 53.4 45.2
Ambient 14.1 13.1
Frozen & Chilled 16.8 15.2
Retail & wholesale 30.9 28.3
Foodservice 28.0 22.8
Corporate (5.5) (5.9)
Group adjusted operating profit((4)) 38.0 34.0
Ambient 12.0 11.1
Frozen & Chilled 11.8 10.4
Retail & wholesale 23.8 21.5
Foodservice 19.9 18.7
Corporate (5.7) (6.1)
((4)) Group and divisional EBITDA and operating profit/(loss) adjusted for
management charge, acquisition, restructuring expenses, 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 serve
the Retail & Wholesale sector of the grocery market, saw combined revenue
increase by 3.0% reaching £475.1 million (FY 2024: £440.1 million). The
growth was driven by new customers as well as higher ice cream sales, which
coincided with the prolonged dry weather through the summer trading period.
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:
FY 2025 FY 2024
Unaudited Audited
£m £m
Divisional revenue 349.6 223.6
Like for like (including TFS) 203.2 210.5
Creed 146.4 13.1
FY 2025 FY 2024
Unaudited Audited
£m £m
Divisional adjusted EBITDA((4)) 28.0 22.8
Like for like (including TFS) 15.2 21.5
Creed 12.8 1.3
FY 2025 FY 2024
Unaudited
Audited
£m
£m
Divisional adjusted operating profit((4)) 19.9 18.7
Like for like (including TFS) 10.0 17.6
Creed 9.9 1.1
Creed Foodservice produced a robust performance with year-on-year growth in
both revenue and operating profit. The Foodservice division benefitted from
the operational and commercial integration with Creed, which supported sales
growth through the utilisation of the Group's nationwide delivery
infrastructure.
The division's performance was affected by softer demand from leisure and
hospitality customers. Like-for-like revenues were c.£203.2 million for the
period (including the full period revenues from TFS), resulting in a decrease
in reported like-for-like sales from £210.5 million.
As previously reported, the move to the South West distribution centre
incurred some unplanned costs in the period, as well as additional right of
use asset depreciation, with two freeholds being replaced by the new leasehold
premises.
Operational review
The integration of Creed Foodservice, the consolidation of foodservice depots
in the North and the consolidation of operations into the new 80,000 sq. ft
Foodservice distribution centre in the South West have been the key
operational projects during the period.
The new South West distribution centre is fully operational and meeting the
required service levels. Although the integration took longer than
anticipated, the higher-than-expected costs have been worked through and are
being managed. The implementation of IT and technological improvements will
provide future opportunities for growth and operational efficiency.
Strategy
Kitwave remains committed to its strategy of pursuing strategic acquisitions
to sustainable growth, while also fostering organic growth through investment
in infrastructure and technology.
The national footprint and integration work completed during the period
provides the platform to further our long-term strategic aims. We would expect
further opportunities to enhance operational efficiencies across the Group,
ensuring we continue to provide service excellence to all our customers while
maintaining sustainable growth.
Ben Maxted
Chief Executive Officer
22 January 2026
Condensed consolidated statement of profit and loss and other comprehensive
income
Note Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Revenue 2 802,685 663,652
Cost of sales (619,472) (515,832)
Gross profit 183,213 147,820
Other operating income 3 92 603
Distribution expenses (80,559) (63,473)
Administrative expenses (71,058) (56,146)
Operating profit 31,688 28,804
Analysed as:
Adjusted EBITDA 53,423 45,229
Amortisation of intangible assets 4 (3,563) (1,527)
Depreciation 4 (15,246) (11,068)
Acquisition expenses 4 (77) (2,153)
Compensation for post combination services 4 (131) (324)
Share based payment expense 4 (312) (1,244)
Restructuring expenses 4 (2,406) (109)
Total operating profit 31,688 28,804
Finance expenses (9,317) (6,276)
Profit before tax 22,371 22,528
Tax on profit on ordinary activities (5,746) (5,810)
Profit for the financial period 16,625 16,718
Other comprehensive income - -
Total comprehensive income for the period 16,625 16,718
Basic earnings per share (pence) 5 20.1 23.5
Diluted earnings per share (pence) 5 20.1 22.5
Condensed consolidated balance sheet
31 October 2025 Unaudited 31 October 2024
Audited
£000 £000
Non-current assets
Goodwill 105,967 105,717
Intangible assets 27,163 30,554
Tangible assets 28,809 29,096
Right-of-use assets 57,138 50,869
Investments 27 42
219,104 216,278
Current assets
Inventories 44,651 47,749
Trade and other receivables 95,528 91,122
Cash and cash equivalents 952 4,137
141,131 143,008
Total assets 360,235 359,286
Current liabilities
Other interest bearing loans and borrowings (18,295) (27,821)
Lease liabilities (12,224) (10,244)
Trade and other payables (99,647) (102,083)
Tax payable (1,290) (1,127)
(131,456) (141,275)
Non-current liabilities
Other interest bearing loans and borrowings (40,000) (40,000)
Lease liabilities (47,395) (43,323)
Deferred tax liabilities (9,400) (10,143)
(96,795) (93,466)
Total liabilities (228,251) (234,741)
Net assets 131,984 124,545
Equity attributable to equity holders of the
Parent Company
Called up share capital 837 804
Share premium account 94,324 94,185
Consolidation reserve (33,098) (33,098)
Share based payment reserve 359 3,240
Retained earnings 69,562 59,414
Equity 131,984 124,545
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 year
Profit - - - - 16,718 16,718
Other comprehensive income - - - - - -
Total comprehensive income
for the year - - - - 16,718 16,718
New share issuance 104 31,563 - - - 31,667
Costs directly attributable to new shares issues - (1,561) - - - (1,561)
Dividends - - - - (7,922) (7,922)
Share based payment expense - - - 1,198 - 1,198
Total contribution by and transactions with the owners 104 30,002 - 1,198 (7,922) 23,382
Balance at 31 October 2024 (audited) 804 94,185 (33,098) 3,240 59,414 124,545
Total comprehensive income for the year
Profit - - - - 16,625 16,625
Other comprehensive income - - - - - -
Total comprehensive income for
the year - - - - 16,625 16,625
Transaction with owners, recorded directly in equity
New share issuance 33 139 - (3,104) 3,104 172
Dividends - - - - (9,581) (9,581)
Share based payment expense - - - 223 - 223
Total contribution by and transactions with the owners 33 139 - (2,881) (6,477) (9,186)
Balance at 31 October 2025 (unaudited) 837 94,324 (33,098) 359 69,562 131,984
Condensed consolidated cash flow statement
Year ended Year ended
31 October 2025 Unaudited 31 October 2024 Audited
£000 £000
Cash flow from operating activities
Profit for the period 16,625 16,718
Adjustments for:
Depreciation and amortisation 18,809 12,595
Financial expense 9,317 6,276
Profit on sale of property, plant and equipment (48) (573)
Net gain on remeasurement of right-of-use assets and lease liabilities (48) (30)
Compensation for post combination services 131 324
Equity settled share based payment expense 270 1,244
Taxation 5,746 5,810
50,802 42,364
(Increase) in trade and other receivables (2,351) (8,712)
Decrease/(increase) in inventories 3,098 (2,392)
Increase in trade and other payables 1,191 6,755
52,740 38,015
Tax paid (6,324) (6,612)
Net cash inflow from operating activities 46,416 31,403
Cash flows from investing activities
Acquisition of property, plant and equipment (3,978) (7,275)
Proceeds from sale of property, plant and equipment 409 3,513
Acquisition of subsidiary undertakings (including (6,287) (73,329)
overdrafts and cash acquired)
Net cash outflow from investing activities (9,856) (77,091)
Cash flows from financing activities
Issuance of new shares 120 30,106
Proceeds from new loan - 20,000
Net movement in bank trade loan (7,750) 7,750
Net movement in invoice discounting (1,776) 13,666
Interest paid (9,085) (6,121)
Repayment of lease liabilities (11,673) (8,327)
Dividends paid (9,581) (7,922)
Net cash (outflow)/inflow from financing activities (39,745) 49,152
Net (decrease)/increase in cash and cash equivalents (3,185) 3,464
Opening cash and cash equivalents 4,137 673
Cash and cash equivalents at period end 952 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 twelve months ended 31 October 2025 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)
Year ended 31 October 2025 Ambient Frozen & Total retail & wholesale Foodservice Corporate Total
Chilled
£000 £000 £000 £000 £000 £000
Revenue 205,755 247,365 453,120 349,565 - 802,685
Inter-segment revenue 17,194 4,816 22,010 3,556 - 25,566
Segment revenue 222,949 252,181 475,130 353,121 - 828,251
Segment gross profit 32,084 52,705 84,789 98,424 - 183,213
Adjusted EBITDA* 14,088 16,845 30,933 27,997 (5,507) 53,423
Amortisation of intangibles - (70) (70) (28) (53) (151)
Depreciation (2,076) (5,013) (7,089) (8,010) (147) (15,246)
Adjusted operating profit* 12,012 11,762 23,774 19,959 (5,707) 38,026
Group management charge (1,968) (2,051) (4,019) (2,751) 6,770 -
Amortisation of intangible assets arising on acquisition - - - - (3,412) (3,412)
Acquisition expense - - - (77) - (77)
Compensation for post combination services - (131) (131) - - (131)
Share based payment expense - - - - (312) (312)
Restructuring costs (28) (336) (364) (1,864) (178) (2,406)
Interest expense (1,200) (2,101) (3,301) (2,763) (3,253) (9,317)
Segment profit/(loss) before tax 8,816 7,143 15,959 12,504 (6,092) 22,371
Segment assets 54,483 62,830 117,313 121,195 121,727 360,235
Segment liabilities (35,235) (54,314) (89,549) (85,133) (53,621) (228,303)
Segment net assets 19,248 8,516 27,764 36,062 68,106 131,932
Within Corporate assets is £105,967,000 of goodwill on consolidation. This is
allocated to the trading segments as follows:
Goodwill by segment 13,516 12,539 26,055 79,912 - 105,967
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:
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
United Kingdom 800,310 659,833
Overseas 2,375 3,819
Group revenue 802,685 663,652
No one customer accounts for more than 7% (FY 2024: 8%) of Group revenue.
3 Other operating income
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Net gain on disposal of fixed assets 48 573
Net gain on remeasurement of right-of-use assets and lease liabilities 48 30
Net (loss) on foreign exchange (4) -
92 603
4 Expenses
Included in profit/loss are the following:
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Depreciation of tangible assets:
Owned 3,742 3,052
Right-of-use assets 11,504 8,016
Amortisation of intangible assets 151 1,527
Expenses relating to short term leases and low value assets 2,570 2,155
The Group incurred a number of expenses not relating to the principal trading
activities of the Group as follows:
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
Exceptional expenses £000 £000
Acquisition expenses 77 2,153
Compensation for post combination services 131 324
Restructuring expenses 2,406 109
Total exceptional expenses 2,614 2,586
Share based payment expense 312 1,244
Total exceptional expenses and share based payments
2,926 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 the prior period 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 to the acquisition of the remaining share capital of Central
Supplies (Brierley Hill) Ltd. The remaining share capital has now been
acquired in full.
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 Group.
5 Earnings per share
Basic earnings per share
Basic earnings per share for the year ended 31 October 2025, and the previous
year ended 31 October 2024 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 year ended 31 October 2025, and the
previous 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).
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Profit attributable to all shareholders 16,625 16,718
pence pence
Basic earnings per ordinary share 20.1 23.5
Diluted earnings per ordinary share 20.1 22.5
Weighted average number of ordinary shares
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
Number Number
Weighted average number of ordinary shares (basic) during the period 82,586,976 71,034,498
Weighted average number of ordinary shares (diluted) during the period 82,726,767 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 point 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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Profit attributable to all shareholders 16,625 16,718
Exceptional and share based payment expenses net of tax 4,806 4,559
Adjusted profit attributable to ordinary shareholders 21,431 21,277
Pence pence
Basic adjusted earnings per ordinary share 25.9 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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Total operating profit 31,688 28,804
Amortisation of intangible assets arising on acquisition
3,412 1,397
Acquisition expenses 77 2,153
Compensation for post combination services
131 324
Share based payment expense
312 1,244
Restructuring expenses 2,406 109
Adjusted operating profit
38,026 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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Total operating profit 31,688 28,804
Amortisation of intangible assets
3,563 1,527
Depreciation 15,246 11,068
Acquisition expenses 77 2,153
Compensation for post combination services
131 324
Share based payment expense
312 1,244
Restructuring expenses 2,406 109
Adjusted EBITDA 53,423 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.
Year ended Year ended
31 October 2025
31 October 2024 Audited
Unaudited
£000 £000
Net cash inflow from operating activities 46,416 31,403
Tax paid 6,324 6,612
Cash flow from operating activities pre-tax and compensation for post
combination services (1)
52,740 38,015
Movement in working capital
(1,938) 4,349
Cash flow from operating activities pre-tax and compensation for post
combination services and movement in working capital (2)
50,802 42,364
Pre-tax operational cash conversion (1) divided by (2)
104% 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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Total operating profit 31,688 28,804
Amortisation of intangible assets
3,563 1,527
Depreciation 15,246 11,068
Acquisition expenses 77 2,153
Compensation for post combination services
131 324
Share based payment expense
312 1,244
Restructuring expenses 2,406 109
Adjusted EBITDA 53,423 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.
Year ended Year ended
31 October 2025
31 October 2024 Audited
Unaudited
£000 £000
Net cash inflow from operating activities 46,416 31,403
Tax paid 6,324 6,612
Cash flow from operating activities pre-tax and compensation for post
combination services (1)
52,740 38,015
Movement in working capital
(1,938) 4,349
Cash flow from operating activities pre-tax and compensation for post
combination services and movement in working capital (2)
50,802 42,364
Pre-tax operational cash conversion (1) divided by (2)
104% 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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Adjusted operating profit 38,026 34,031
Operating lease interest (3,567) (2,167)
34,459 31,864
Tax charge at effective rate of tax of 25% (2024: 25%)
(8,615) (7,966)
Adjusted operating profit after tax (1) 25,844 23,898
Invested capital comprising:
Invoice discounting facilities 20,071
18,295
Lease liabilities 59,619 53,567
Revolving Credit Facility 40,000 40,000
Trade loan - 7,750
Share capital 837 804
Share premium 94,324 94,185
Less cash at bank and in hand (952) (4,137)
Total invested capital (2) 212,123 212,240
After tax return on invested capital (1) divided by (2)
12% 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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Adjusted operating profit 38,026 34,031
Tax charge at effective rate of tax of 25% (2024: 25%) (9,507) (8,508)
Adjusted operating profit after tax (1) 28,519 25,523
Fixed assets and net working capital comprising:
Intangible assets* 639 618
Fixed assets 28,809 29,096
Right-of-use assets 57,138 50,869
Investments 27 42
Inventories 44,651 47,749
Trade and other receivables 95,528 91,122
Trade and other payables (99,699) (102,083)
Liability for post combination services** - 906
Total invested capital (2) 127,093 118,319
After tax return on invested capital (1) divided by (2) 22% 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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Adjusted EBITDA 53,423 45,229
Invoice discounting advances
18,295 20,071
Lease liabilities 59,619 53,567
Revolving Credit Facility 40,000 40,000
Trade loans - 7,750
Liability for post combination services
- 906
Contingent consideration 5,000 9,614
Cash at bank and in hand (952) (4,137)
Net debt 121,962 127,771
Leverage (including IFRS 16 debt)
2.3 2.8
IFRS 16 lease liabilities 47,854 43,151
Net debt excluding IFRS 16 lease liabilities
74,108 84,620
Leverage (excluding IFRS 16 lease debt)
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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Profit attributable to all shareholders 16,625 16,718
Amortisation of intangible assets arising on acquisition 3,412 1,397
Acquisition expenses 77 2,153
Compensation for post combination services 131 324
Share based payment expense 312 1,244
Restructuring expenses 2,406 109
Tax effect of above items (1,533) (668)
Adjusted profit attributable to ordinary shareholders 21,430 21,277
Number Number
Weighted average number of ordinary shares (basic) during the period 82,586,976 71,034,498
Pence pence
Basic adjusted earnings per ordinary share 25.9 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.
Year ended
31 October 2025 Unaudited
Year ended
31 October 2024 Audited
£000
£000
Adjusted operating profit
38,026
34,031
Tax charge at effective rate of tax of 25% (2024: 25%)
(9,507)
(8,508)
Adjusted operating profit after tax (1)
28,519
25,523
Fixed assets and net working capital comprising:
Intangible assets*
639
618
Fixed assets
28,809
29,096
Right-of-use assets
57,138
50,869
Investments
27
42
Inventories
44,651
47,749
Trade and other receivables
95,528
91,122
Trade and other payables
(99,699)
(102,083)
Liability for post combination services**
-
906
Total invested capital (2)
127,093
118,319
After tax return on invested capital (1) divided by (2)
22%
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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Adjusted EBITDA 53,423 45,229
Invoice discounting advances
18,295 20,071
Lease liabilities 59,619 53,567
Revolving Credit Facility 40,000 40,000
Trade loans - 7,750
Liability for post combination services
- 906
Contingent consideration 5,000 9,614
Cash at bank and in hand (952) (4,137)
Net debt 121,962 127,771
Leverage (including IFRS 16 debt)
2.3 2.8
IFRS 16 lease liabilities 47,854 43,151
Net debt excluding IFRS 16 lease liabilities
74,108 84,620
Leverage (excluding IFRS 16 lease debt)
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.
Year ended Year ended
31 October 2025 Unaudited
31 October 2024 Audited
£000 £000
Profit attributable to all shareholders 16,625 16,718
Amortisation of intangible assets arising on acquisition 3,412 1,397
Acquisition expenses 77 2,153
Compensation for post combination services 131 324
Share based payment expense 312 1,244
Restructuring expenses 2,406 109
Tax effect of above items (1,533) (668)
Adjusted profit attributable to ordinary shareholders 21,430 21,277
Number Number
Weighted average number of ordinary shares (basic) during the period 82,586,976 71,034,498
Pence pence
Basic adjusted earnings per ordinary share 25.9 30.0
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