TIDMJQV
RNS Number : 2247U
Jacques Vert PLC
19 December 2011
19 December 2011
Jacques Vert plc
Interim Results
Unaudited group income statement
For the 26 weeks ended 29 October 2011
Note 26 weeks 26 weeks 53 weeks ended
ended ended 30 April 2011
29 October 23 October
2011 2010
GBP000 GBP000 GBP000
(audited)
Continuing operations
Revenue 56,407 56,479 118,371
Cost of sales (20,837) (19,788) (44,003)
Gross profit 35,570 36,691 74,368
Operating expenses
Distribution costs (28,018) (28,374) (58,346)
Administrative expenses (5,256) (5,165) (10,638)
Operating profit 2,296 3,152 5,384
Finance income 2a 45 35 118
Finance expenses 2b (41) (80) (224)
Profit before income
tax 2,300 3,107 5,278
Income tax expense 3 (195) (200) (281)
Profit for the period
attributable to
equity holders of
the Group 2,105 2,907 4,997
========= ========= ============
Earnings per share
for profit attribute
to the equity holders
of the Group during
the period
Basic earnings per
share 4 1.14p 1.55p 2.69p
========= ========= ============
Diluted earnings
per share 4 1.07p 1.46p 2.55p
========= ========= ============
Unaudited group statement of comprehensive income
For the 26 weeks ended 29 October 2011
26 weeks 26 weeks 53 weeks
ended ended ended
29 October 23 October 30 April
2011 2010 2011
GBP000 GBP000 GBP000
(audited)
Profit for the period 2,105 2,907 4,997
Other comprehensive
expense
Cash flow hedges 782 (105) (618)
Currency translation
differences (9) (376) (355)
Actuarial loss arising
in defined benefit
pension scheme - - 67
Other comprehensive
expense for the period 773 (481) (906)
Total comprehensive
income for the period
attributable to equity
holders of the Group 2,878 2,426 4,091
============ ============ ===========
Unaudited group statement of changes in equity
26 weeks ended 29 October 2011
Share Share Merger Hedge Translation Retained Total
Capital Premium Reserve Reserve Reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 24
April 2010 19,244 4,599 969 (46) 576 (1,932) 23,410
Profit for the
period - - - - - 2,907 2,907
Net change in
fair value of
cash flow hedges - - - (280) - - (280)
Fair value of
cash flow hedges
transferred to
inventories - - - 175 - - 175
Exchange rate
movements - - - - (376) - (376)
Total comprehensive
income for the
period ended 23
October 2010 - - - (105) (376) 2,907 2,426
Dividends relating
to the year ended
24 April 2010 - - - - - (1,196) (1,196)
Purchase of own
shares - - - - - (1,057) (1,057)
Adjustment for
employee share
schemes - - - - - 143 143
Balance at 23
October 2010 19,244 4,599 969 (151) 200 (1,135) 23,726
Share Share Merger Hedge Translation Retained Total
Capital Premium Reserve Reserve Reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 30
April 2011 19,244 4,599 969 (664) 221 1,159 25,528
Profit for the
period - - - - - 2,105 2,105
Net change in
fair value of
cash flow hedges - - - 892 - - 892
Fair value of
cash flow hedges
transferred to
inventories - - - (110) - - (110)
Exchange rate
movements - - - - (9) - (9)
Total comprehensive
income for the
period ended 29
October 2011 - - - 782 (9) 2,105 2,878
Dividends relating
to the year ended
30 April 2011 (1,243) (1,243)
Adjustment for
employee share
schemes - - - - - 167 167
Balance at 29
October 2011 19,244 4,599 969 118 212 2,188 27,330
The merger reserve arose on a business combination prior to
transition to IFRS which had been accounted for according to the
provisions of merger accounting.
The hedge reserve reflects the fair value of the effective cash
flow hedges, deferred in equity under the provisions of hedge
accounting, less amounts recognised in hedged inventories received
prior to the period end.
The translation reserve rejects the cumulative movement in the
value of foreign denominated subsidiaries in the financial
statements from fluctuations in exchange rates.
Unaudited balance sheet
26 weeks ended 29 October 2011
Note 29 October 23 October 30 April
2011 2010 2011
GBP000 GBP000 GBP000
(audited)
Non current assets
Goodwill 2,431 2,431 2,431
Property, plant
and equipment 6,333 4,170 5,087
Deferred tax asset 1,900 1,900 1,900
10,664 8,501 9,418
----------- ----------- -----------
Current assets
Inventories 28,145 27,195 24,580
Trade and other
receivables 11,063 10,421 10,845
Derivative financial
instruments 283 358 101
Cash and cash equivalents 7,293 11,243 10,086
----------- ----------- -----------
46,784 49,217 45,612
Current liabilities
Trade and other
payables (24,229) (26,763) (22,504)
Derivative financial
instruments (125) (384) (993)
(24,354) (27,147) (23,497)
----------- ----------- -----------
Non current liabilities
Deferred income (358) (443) (386)
Long term provisions 5 (5,163) (5,879) (5,260)
Pension schemes 5 (243) (523) (359)
Total liabilities (30,118) (33,992) (29,502)
Net assets 27,330 23,726 25,528
=========== =========== ===========
Equity
Called up share
capital 19,244 19,244 19,244
Share premium 4,599 4,599 4,599
Merger reserve 969 969 969
Hedge reserve 118 (151) (664)
Translation reserve 212 200 221
Retained earnings 2,188 (1,135) 1,159
----------- ----------- -----------
Total equity 27,330 23,726 25,528
=========== =========== ===========
Unaudited group statement of cash flows
For the 26 weeks ended 29 October 2011
26 weeks 26 weeks 53 weeks
ended ended ended
29 October 23 October 30 April
2011 2010 2011
GBP000 GBP000 GBP000
(audited)
Cash flows from
operating activities
Operating profit 2,296 3,152 5,384
Depreciation charge 713 757 1,512
(Increase) / decrease
in working capital (2,427) (1,313) (2,717)
Decrease in provisions (254) (625) (1,485)
Charge relating
to share based
payments 170 143 278
------------ ------------ -----------
Net cash inflow
from continuing
operations 498 2,114 2,972
Income tax paid (100) (60) (221)
Net cash generated
from operating
activities 398 2,054 2,751
Cash flows from
investing activities
Purchase of property,
plant and equipment (2,032) (1,079) (2,938)
Interest received 45 35 118
Net cash flow used
in investing activities (1,987) (1,044) (2,820)
------------ ------------ -----------
Cash flows from
financing activities
Dividend paid to
company's shareholders (1,243) (1,196) (1,196)
Purchase of shares
by ESOP Trust - (1,057) (1,055)
------------ ------------ -----------
Net cash used in
financing activities (1,243) (2,253) (2,251)
------------ ------------ -----------
Net decrease in
cash and cash equivalents (2,832) (1,243) (2,320)
Cash and cash equivalents
at beginning of
period 10,086 12,602 12,602
Exchange rate movements
on cash and cash
equivalents 39 (116) (196)
------------ ------------ -----------
Cash and cash equivalents
at end of period 7,293 11,243 (10,086)
============ ============ ===========
Unaudited notes to the interim financial statements
For the 26 weeks ended 29 October 2011
1. Basis of preparation
The consolidated interim financial information is not audited
and does not constitute statutory financial statements within the
meaning of section 434 of the Companies Act 2006. The consolidated
interim financial information for the 26 weeks ended 29 October
2011 has been prepared under AIM rule 18 and the Group has not
adopted IAS 34,'Interim financial reporting' for preparation of
this information. The consolidated interim financial information
should be read in conjunction with the annual financial statements
for the year ended 30 April 2011, which have been prepared in
accordance with IFRS.
Statutory accounts for the year ended 30 April 2011 were
approved by the Board of directors on 4 July 2011 and delivered to
the Registrar of Companies. The report of the auditors on those
accounts was unqualified; did not contain an emphasis of matter
paragraph and did not contain a statement under section 498 of the
Companies Act 2006.
2. Finance income and costs
26 weeks 26 weeks 53 weeks
ended ended ended
29 October 23 October 30 April
2011 2010 2011
GBP000 GBP000 GBP000
(audited)
a. Finance income
Interest receivable 45 35 118
============ ============ ===========
b. Finance expense
Unwinding of discount
relating to provisions (41) (80) (210)
Net finance cost of
pension schemes - - (14)
------------ ------------ -----------
(41) (80) (224)
============ ============ ===========
3. Income tax
The income tax expense comprises:
26 weeks 26 weeks 53 weeks
ended ended ended
29 October 23 October 30 April
2011 2010 2011
GBP000 GBP000 GBP000
(audited)
Current Tax
Overseas tax charge (195) (200) (281)
============ ============ ===========
The Group has significant tax losses and unclaimed capital
allowances, generating a deferred tax asset. In line with its
accounting policies, the Group has restricted this asset in the
Group balance sheet at 29 October 2011 to GBP1,900,000 (24 October
2010: GBP1,900,000; 30 April 2011: GBP1,900,000).
Unaudited notes to the interim financial statements
continued
For the 26 weeks ended 29 October 2011
4. Earnings per share
Basic / diluted earnings per share
The basic earnings per share have been calculated by dividing
the profit after taxation for the period by the weighted average
number of shares in issue during the period excluding those held by
the Employee Share Ownership Trust ("the Trust"). At 29 October
2011 the Trust held 6,799,144 shares (23 October 2010: 8,398,178
shares; 30 April 2011: 8,398,178 shares).
For diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. The Group has two classes of
dilutive potential ordinary shares: those share options granted to
Directors where the exercise price is lower than the average market
price of the Company's ordinary shares during the year and the
awards under the Jacques Vert Plc Long-term Incentive Plan ("the
Plan") to the extent that performance criteria attached to those
awards are expected to be met.
26 weeks 26 weeks 53 weeks
ended ended ended
29October 23October 30 April
2011 2010 2011
GBP000 GBP000 GBP000
Profit for the period 2,105 2,907 997
=========== =========== ===========
Thousands Thousands Thousands
of of shares of shares
shares
Weighted average number
of ordinary shares in
issue 192,444 192,444 192,444
Adjustment for shares
held by the Trust (7,519) (5,244) (6,851)
----------- ----------- -----------
Weighted average number
of ordinary shares for
basic earnings per share 184,924 187,200 185,593
Dilutive shares - shares
committed under the
plan 11,298 12,303 10,542
----------- ----------- -----------
Weighted average number
of ordinary shares for
diluted earnings per
share 196,222 199,503 196,135
=========== =========== ===========
Basic earnings per share 1.14p 1.55p 2.69p
=========== =========== ===========
Diluted earnings per
share 1.07p 1.46p 2.55p
=========== =========== ===========
Unaudited notes to the interim financial statements
continued
For the 26 weeks ended 29 October 2011
5. Provisions
Pension Other legacy Total
schemes business
provisions
GBP000 GBP000 GBP000
At 24 April 2010 644 3,303 6,947
Charged / (credited)
to income statement - (201) (201)
Utilised (121) (303) (424)
Unwinding of discount - 80 80
--------- ------------- -------
At 23 October 2010 523 5,879 6,402
========= ============= =======
Pension Other legacy Total
schemes business
provisions
GBP000 GBP000 GBP000
At 1 May 2011 359 5,260 5,619
Utilised (116) (138) (254)
Unwinding of discount - 41 41
At 29 October 2011 243 5,163 5,406
Legacy business provisions relate to costs faced by the Group
which do not relate to current trading activity. They include: the
costs of onerous leasehold property including dilapidations;
potential claims against the Group in respect of industrial
diseases; and the expected cost to the Group associated with the
Group's pension schemes.
6. Accounting policies
Accounting convention
The consolidated financial statements have been prepared under
the historical cost convention, as modified by the revaluation of
financial assets and liabilities at fair value.
Basis of consolidation
The Group financial statements consolidate the results of
Jacques Vert Plc ("the Company") and its subsidiary undertakings
(together "the Group") under acquisition accounting for the 26
weeks ended 29 October 2011 Under this method, the assets and
liabilities of subsidiary undertakings acquired are incorporated at
their fair value at the date of acquisition and the Group income
statement includes only that proportion of the result of
subsidiaries arising whilst meeting the definition of a
subsidiary.
Subsidiaries are entities controlled by the Company. Control
exists when the Company has the power, directly or indirectly, to
govern the financial and operating policies of an entity so as to
obtain benefits from its activities.
Revenue recognition
Revenue represents sales by the Group to third parties, net of
returns, trade discounts and value added tax. Retail revenue is
shown net of provisions for customer returns representing the
Group's estimate of the amount of product sold during the period
that will be returned in the following period. Revenue is
recognised when the significant risks and rewards of ownership of
the goods have passed to the buyer which is generally when goods
are delivered to the customer.
Finance income and expense
Interest income and interest payable is recognised in the Group
income statement as it accrues.
Unaudited notes to the interim financial statements
continued
For the 26 weeks ended 29 October 2011
6. Accounting policies continued
Share based payments
The Group operates an equity settled Employee Share Ownership
Plan ("ESOP"). The Group has also granted equity settled share
options ("Options"). Share awards made under the ESOP and the
Options are measured at fair value at the date of grant. The fair
value is measured by use of the Black-Scholes model and expensed on
a straight-line basis over the vesting period based on an estimate
of the number of shares that will eventually vest.
The level of vesting is reviewed annually and the charge is
adjusted to reflect actual and estimated levels of vesting.
Shares held by the Employee Share Ownership Trust ("the Trust")
to meet the commitments of the ESOP are shown as a deduction from
shareholders' equity. The cost of the ESOP is borne by the
Group.
Pensions
The Group operates several defined contribution and defined
benefit schemes for its employees. Defined contribution schemes are
pension schemes under which the Group pays fixed contributions into
separate entities. The Group has no legal or constructive
obligations to pay further contributions if the fund does not hold
sufficient assets to pay all employees the benefits relating to
employee service in the current and prior periods. Defined benefit
schemes are pension schemes that are not defined contribution
schemes.
The liability recognised in the balance sheet in respect of
defined benefit pension schemes is the present value of the defined
benefit obligation at the balance sheet date less the fair value of
plan assets, together with adjustments for unrecognised
past-service costs. The defined benefit obligation is calculated
annually by independent actuaries using the projected unit credit
method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using
interest rates of high-quality corporate bonds that are denominated
in the currency in which the benefits will be paid, and that have
terms to maturity approximating to the terms of the related pension
liability.
Actuarial gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged or credited to
equity in the Group statement of comprehensive income in the period
in which they arise.
Actuarial surpluses in defined benefit schemes are recognised in
the Group balance sheet to the extent of the expected future cash
receipts from the schemes.
Goodwill
Goodwill arising on consolidation represents the excess of the
cost of acquisitions over the Group's interest in the fair value of
the identifiable assets and liabilities of the acquired entities at
the date of acquisition.
Goodwill is recognised as an asset and is assessed for
impairment at least annually. Any impairment is recognised
immediately in the Group income statement and is not subsequently
reversed. Upon disposal of a subsidiary the attributable goodwill
is included in the calculation of the profit or loss arising on
disposal.
Taxation
The tax charge comprises current tax payable and movement on
deferred tax. The current tax payable is provided on taxable
profits using tax rates enacted or substantively enacted at the
balance sheet date.
Deferred tax is recognised in respect of all timing differences
that have originated but not reversed at the balance sheet date,
where transactions or events that result in an obligation to pay
more tax in the future or a right to pay less tax in the future
have occurred at the balance sheet date.
A net deferred tax asset is recognised as recoverable and
therefore recognized only when, on the basis of all available
evidence, it can be regarded as more likely than not that there
will be suitable taxable profits against which to recover carried
forward tax losses and from which the future reversal of underlying
timing differences can be deducted.
Unaudited notes to the interim financial statements
continued
For the 26 weeks ended 29 October 2011
6. Accounting policies continued
Deferred tax is measured at the average tax rates that are
expected to apply in the periods in which the timing differences
are expected to reverse, based on tax rates and laws that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax is measured on an undiscounted basis.
Deferred tax is recognised in respect of the retained earnings
of overseas subsidiaries only to the extent that, at the balance
sheet date, dividends have been accrued as receivable or a binding
agreement to distribute past earnings in future periods has been
entered into by the subsidiary.
Property, plant and equipment
Property, plant and equipment are stated at the lower of cost
less accumulated depreciation and recoverable amount cost includes
the original purchase price of the asset plus the costs
attributable to bring the asset into working condition for its
intended use. Depreciation is calculated so as to write off the
cost of property, plant and equipment less any residual value over
their estimated useful economic lives by equal annual instalments
at the following rates:
Leasehold improvements Remaining period of the
lease
Plant, fixtures and equipment 10% - 33%
Land is not depreciated.
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at each balance sheet date. Asset carrying
values are written down immediately to the estimated recoverable
amount where the estimated recoverable amount is less than the
carrying value.
Operating leases
Rentals payable under operating leases are charged to the Group
income statement on a straight-line basis over the life of the
lease.
The value of any lease incentives received on leasehold
properties is recognised as deferred income and released to the
income statement on a straight-line basis over the life of the
lease.
Inventories
Inventories and work in progress are valued at the lower of cost
and net realisable value. Cost comprises the cost of direct
materials and labour and an appropriate proportion of overheads.
Net realisable value is the value at which inventories and work in
progress can be realised in the ordinary course of business.
Trade receivables
Trade receivable are amounts due from customers for merchandise
sold in the ordinary course of business. Trade receivables are
recognised at fair value less any provision for impairment.
Foreign currencies
Transactions denominated in foreign currencies are translated at
the exchange rates at the date of the transaction. Foreign exchange
gains and losses arising from such transactions and from the
translation at year end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the
Group income statement.
The results and financial position of subsidiaries which have a
functional currency other than Sterling are translated as
follows:
- assets and liabilities for each balance sheet presented
are translated at the closing rate at the date of
the balance sheet;
- income and expenses for each income statement presented
are translated at weighted average exchange rates;
- all resulting exchange differences are recognised
as a separate component of equity until the disposal
of the relevant subsidiary when they are recycled
to the Group income statement.
Unaudited notes to the interim financial statements
continued
For the 26 weeks ended 29 October 2011
6. Accounting policies continued
Trade payables
Trade payables are obligations to pay for goods and services
that have been acquired in the ordinary course of business from
suppliers. Trade payables are held at their nominal value.
Derivative financial instruments
The Group uses derivative financial instruments, in particular
forward currency contracts, to manage the financial risks
associated with the Group's underlying business activities and the
financing of those activities. Such financial instruments are
initially recorded at fair value and are thereafter revalued to
fair value at each balance sheet date. The Group does not enter
into speculative currency contracts.
Gains or losses on derivative financial instruments that are
designated as effective hedges against future cash flows are
recognised directly in equity ("hedge accounting"). Any gain or
loss relating to an ineffective hedge or a derivative financial
instrument that does not qualify for hedge accounting is
immediately recognised in the Group income statement, and where
material as an exceptional item.
Where a hedged commitment results in the recognition of an asset
or a liability, the gain or loss on the hedge previously recognised
in equity is thereafter included in the initial measurement of the
asset or liability. For hedges that do not result in the
recognition of an asset or liability, amounts deferred in equity
are recognised in the income statement in the same period in which
the hedged commitment affects profit and loss.
Hedge accounting ceases in respect of a financial instrument
when it expires or is sold, terminated or exercised, or no longer
qualifies for hedge accounting. The cumulative gain or loss
relating to the instrument that has previously been recognised in
equity is retained in equity until the hedged transaction occurs or
hedge accounting ceases to apply.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and short term
deposits. Bank overdrafts that are repayable on demand and form an
integral part of the Group's cash management are included as a
component of cash and cash equivalents for the purpose of the
statement of cash flows.
Provisions
Provisions are recognised when either a legal or constructive
obligation, as a result of a past event, exists at the balance
sheet date and where the likely outcome and the amount of the
obligation can be measured with reasonable certainty. Provisions
are discounted at an appropriate discount rate.
Impairments
Impairments are made against Group assets under the following
conditions:
Goodwill
Goodwill is allocated to the Group's cash generating units
(CGU's) and the recoverable amount of each CGU is determined based
on a value-in-use calculation where appropriate.
Property, plant and equipment
Property, plant and equipment is tested when circumstances
indicate a possible impairment. In those circumstances a
value-in-use calculation is performed.
Assumptions used in the calculations for Goodwill and Property,
plant and equipment are based on performance and the latest
financial plans approved by the board. If the recoverable amount of
a CGU is less than the carrying value of all assets allocated to
that CGU, an impairment is recognised.
Goodwill is the first asset class to be impaired, followed by
property, plant and equipment.
Unaudited notes to the interim financial statements
continued
For the 26 weeks ended 29 October 2011
6. Accounting policies continued
Critical estimates and judgements
The preparation of financial statements under IFRS requires
management to make estimates that affect the reported amounts of
assets and liabilities, income and expenses. These estimates are
based on historical experience and various other factors that are
believed to be reasonable in the particular circumstance. Actual
results may differ from these estimates.
The Group's critical judgement areas relate to the recognition
of pension scheme assets; legacy and other business provisions,
including industrial diseases, together with the assessment of the
highly probable nature of cashflow hedges as follows:
(a) Pension scheme assets - Jacques Vert (2006) pension
scheme
Any repayment to the Group of the surplus held within the scheme
at 29 October 2011 is at the discretion of the pension scheme
Trustee. It is currently considered that no repayment will be made
to the Group in the future.
(b) Legacy and other business provisions
The level of provisions held against legacy and current
activities is assessed with reference to payments made during the
period; expectations of future payments and receipts and, where
relevant, to independent advice.
(c) Cash flow hedges
Cash flow hedges are tested for effectiveness based on estimated
currency requirements assuming a substantially consistent supplier
base.
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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