REG - Ocado Group PLC - Statement regarding Potential Financing <Origin Href="QuoteRef">OCDO.L</Origin> - Part 2
12/06/2017 09:05
- Part 2: For the preceding part double click ID:nRSL7857Ha
other borrowings (current and non-current) and cash and cash
equivalents.
6 Gross sales
22 weeks ended 30 April 2017 20 weeks ended 17 April 2016 52 weeks ended 27 November 2016
£m £m £m
(unaudited) (unaudited) (audited)
Revenue 600.5 481.7 1,271.0
VAT 46.4 36.5 98.9
Marketing vouchers 8.3 6.7 16.8
Gross sales 655.2 524.9 1,386.7
7 Finance income and finance costs
22 weeks ended 30 April 2017 20 weeks ended 17 April 2016 52 weeks ended 27 November 2016
£m £m £m
(unaudited) (unaudited) (audited)
Interest on cash balances 0.2 0.1 0.2
Finance income 0.2 0.1 0.2
Borrowing costs
- Obligations under finance leases (3.5) (3.5) (9.4)
- Borrowings (0.2) (0.2) (0.3)
Finance costs (3.7) (3.7) (9.7)
Net finance costs (3.7) (3.7) (9.5)
8 Capital expenditure and commitments
During the period the Group acquired property, plant and equipment of £42.7
million (FYE 2016: £118.0 million, P5 2016: £34.6 million). During the period,
the Group acquired intangible assets of £2.5 million (FYE 2016: £4.9 million,
P5 2016: £1.2 million) and internal development costs capitalised were £16.7
million (FYE 2016: £34.8 million, P5 2016: £10.9 million).
9 Borrowings and obligations under finance leases
30 April 2017 17 April 2016 27 November 2016
£m £m £m
(unaudited) (unaudited) (audited)
Current liabilities
Borrowings 86.5 11.4 52.9
Obligations under finance leases 35.8 32.2 29.8
122.3 43.6 82.7
Non-current liabilities
Borrowings 5.6 6.9 6.1
Obligations under finance leases 120.8 138.5 127.0
126.4 145.4 133.1
Total Group borrowings and finance leases 248.7 189.0 215.8
10 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the period, excluding ordinary shares held pursuant to
the Group's Joint Share Ownership Scheme which are accounted for as treasury
shares.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all potentially
dilutive shares. The Company has three categories of potentially dilutive
shares, namely share options, shares held pursuant to the Group's Joint Share
Ownership Scheme and shares under the Group's staff incentive plans.
Basic and diluted earnings per share have been calculated as follows:
22 weeks ended 30 April 2017 20 weeks ended 17 April 2016 52 weeks ended 27 November 2016
million million million
(unaudited) (unaudited) (audited)
Number of shares
Issued shares at the beginning of the period 598.8 586.1 590.6
Weighted average effect of share options exercised in the period 0.2 0.4 2.5
Weighted average effect of treasury shares disposed of in the period - - 1.3
Weighted average number of shares at the end of the period for the purposes of basic earnings per share 599.0 586.5 594.4
Potentially dilutive share options and shares 15.1 18.4 19.1
Weighted average numbers of diluted ordinary shares 614.1 604.9 613.5
Earnings £m £m £m
Profit for the period 6.7 4.8 12.0
pence pence pence
Basic earnings per share 1.13 0.80 2.02
Diluted earnings per share 1.10 0.78 1.96
11 Related party transactions
Key management personnel
Only the Executive and Non-Executive Directors are deemed to be key management
personnel. It is the Board which has responsibility for planning, directing
and controlling the activities of the Group. Save for key management personnel
remuneration, related party transactions with key management personnel made
during the period related to the purchase of professional services and
amounted to £1,800 (P5 2016: £750). All transactions with Directors are on an
arm's length basis and no period end balances have arisen as a result of these
transactions.
At the end of the period, key management personnel did not owe the Group any
amounts (P5 2016: £nil). There were no other material transactions or balances
between the Group and its key management personnel or members of their close
family.
Investment
The Group holds a 25% interest in Paneltex Limited whose registered office is
at Paneltex House, Somerden Road, Hull, HU9
5PE. The Group's interest in Paneltex Limited has not been treated as an
associated undertaking as Ocado does not have significant influence over
Paneltex Limited.
The following direct transactions were carried out with Paneltex Limited:
22 weeks ended 30 April 2017 20 weeks ended 17 April 2016 52 weeks ended 27 November 2016
£m £m £m
(unaudited) (unaudited) (audited)
Purchase of goods
- Plant and machinery - - -
- Consumables 0.2 0.2 0.5
Sale of goods - - 0.1
0.2 0.2 0.6
Indirect transactions, consisting of the purchase of plant and machinery
through some of the Group's finance lease counterparties, were carried out
with Paneltex Limited to the value of £2.7 million (P5 2016: £3.4 million).
At period end, the Group owed £67,000 to Paneltex and is owed £5,000 from
Paneltex (P5 2016: the Group owed £45,000 to Paneltex and was owed £6,000 from
Paneltex).
Joint Venture
The following transactions were carried out with MHE JVCo, a joint venture
company in which the Group holds a 50% interest:
22 weeks ended 30 April 2017 20 weeks ended 17 April 2016 52 weeks ended 27 November 2016
£m £m £m
Sale and Leaseback Transaction
Capital contributions made to MHE JVCo - - 1.1
Dividend received from MHE JVCo - - 8.4
Reimbursement of supplier invoices paid on behalf of MHE JVCo 0.1 3.6 4.9
Lease of assets from MHE JVCo - - 3.1
Capital element of finance lease instalments paid to MHE JVCo 0.6 - 13.8
Interest element of finance lease instalments accrued or paid to MHE JVCo 2.2 2.1 5.8
Included within trade and other receivables is a balance of £7.1 million owed
by MHE JVCo (P5 2016: £5.1 million). Included within trade and other payables
is a balance of £7.1 million owed to MHE JVCo (P5 2016: £4.8 million).
Included within obligations under finance leases is a balance of £108.1
million owed to MHE JVCo (P5 2016: £121.6 million).
No other transactions that require disclosure under IAS 24 "Related Party
Transactions" have occurred during the current financial period.
12 Analysis of net debt
(a) Net debt
30 April 2017 17 April 2016 27 November 2016
£m £m £m
(unaudited) (unaudited) (audited)
Current assets
Cash and cash equivalents 41.9 61.5 50.9
41.9 61.5 50.9
Current liabilities
Borrowings (86.5) (11.4) (52.9)
Obligations under finance leases (35.8) (32.2) (29.8)
(122.3) (43.6) (82.7)
Non-current liabilities
Borrowings (5.6) (6.9) (6.1)
Obligations under finance leases (120.8) (138.5) (127.0)
(126.4) (145.4) (133.1)
Net debt (206.8) (127.5) (164.9)
Net debt is calculated as total debt (obligations under finance leases and
borrowings as shown in the condensed consolidated balance sheet), less cash
and cash equivalents.
(b) Reconciliation of net cash flow to movement in net debt
22 weeks ended 30 April 2017 20 weeks ended 17 April 2016 52 weeks ended 27 November 2016
£m £m £m
(unaudited) (unaudited) (audited)
Net (increase) / decrease in cash and cash equivalents (9.0) 15.7 5.1
Net (increase) in debt and lease financing (26.8) (3.3) (23.4)
Non-cash movements:
- Assets acquired under finance lease (6.1) (12.9) (19.6)
Movement in net debt in the period (41.9) (0.5) (37.9)
Opening net debt (164.9) (127.0) (127.0)
Closing net debt (206.8) (127.5) (164.9)
13 Financial instruments
The Group has commodity swap contracts to manage its exposure to fuel prices.
The commodity swap is classed in level two of the financial instruments
hierarchy. Level two fair value measurements are those derived from inputs
other than quoted prices that are observable for the asset or liability,
either directly or indirectly.
The directors consider that the carrying value amounts of financial asset and
financials liabilities recorded at amortised cost in the financial statements
are approximately equal to their fair values.
14 Post balance sheet events
There were no events after the balance sheet date which require adjustment to,
or disclosure in, the financial information.
Announcement Information
This announcement is made in accordance with the Market Abuse Regulation and
the Disclosure Guidance and Transparency Rules.
The person responsible for arranging the release of this announcement:
Neill Abrams
Company Secretary and Group General Counsel
Ocado Group plc
Email: company.secretary@ocado.com
This information is provided by RNS
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