TIDMRGD
RNS Number : 6460Z
Real Good Food Company Plc (The)
20 March 2012
THE REAL GOOD FOOD COMPANY PLC (AIM RGD)
INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2011
The Real Good Food Company plc ("the Group"), the leading UK
bakery, ingredient and sugar group, is pleased to report interim
results for the six months ended 31 December 2011.
Six Months (Dec 11)* Calendar Year*
2011 2010 2011 2010
GBP'000s GBP'000s GBP'000s GBP'000s
Revenue 139,255 109,369 249,040 200,104
EBITDA 6,415 5,055 9,112 5,635
CPBT
(Continuing Profit before Significant items ) 4,585 3,452 5,737 2,343
Working Capital
(Fixed Assets/Stock/Trade Debtors
&Trade Creditors) 36,708 29,667 36,708 29,667
Net Borrowings
(Incl Cash) 25,853 22,636 25,853 22,636
*NB: in April 2011 the Group announced it was changing its
accounting reference date from 31 December to 31 March and hence
would be producing a second set of interim results this calendar
year for the six months to 31 December 2011. In order to retain
visibility on the Group's performance both the latest 6 months and
full year (calendar) key financial highlights are presented and
commented on with the full year comparatives included as
appendices.
Highlights
-- Strong performance driven by focus on brand development and by driving sales growth
-- Continuing profit before tax up 148% to GBP5.7m (2010:
GBP2.3m) (Profit before tax from continuing businesses)
-- EBITDA up 62% to GBP9.1m (2010: GBP5.6m)
-- Particularly strong second half EBITDA performance of GBP6.4m
(2010: GBP5m), driven by sales growth and a focus on value added
activities
-- Key trading divisions of Napier Brown, Garrett and Renshaw
all increased their EBITDA performance year on year
-- Significant improvement in Net Debt / EBITDA ratio, down from
4.0 at 31 December 2010 to 2.8 at 31 December 2011
-- Lower Net Debt of GBP25.8m, down from GBP31.9m at June 2011.
Pieter Totte, Executive Chairman, commented:
"We have a clear growth plan. Our strategic focus is on creating
solid sustainable profitability based on self-help initiatives
including brand development, sales growth and risk management. We
are now seeing significant benefits coming through from this. We
are also benefitting from our adjustment to the structural
development in market supply affecting our biggest business, Sugar,
in which we moved from a surplus market to a deficit market, with
associated higher prices and the need to secure surety of
supply.
I am extremely pleased that the progress we have made is
reflected in a significant improvement in our financial performance
during 2011. With trading starting positively in January, and
divisional management achieving further progress in their
improvement programmes, I am confident of meeting our expectations
for 2012, and of remaining on track to achieve our aspiration of
doubling the size of the business within three years."
20 March 2012
ENQUIRIES:
The Real Good Food Company plc Tel: 0151 706 8200
Pieter Totte, Chairman
Mike McDonough, Group Finance Director
Shore Capital Tel: 020 7408 4090
Stephane Auton
College Hill Tel: 020 7457 2020
Mark Garraway
Helen Tarbet
Notes to Editors
The Real Good Food Company plc ("the Group"), owns the largest
independent non-refining distributor of sugar in Europe (Napier
Brown) and is a supplier of dairy ingredients (Garrett), supplies
bakery ingredients (Renshaw), jam and bakery ingredients (R&W
Scott) and manufactures patisserie and desserts (Haydens
Bakery).
Overview
Having completed the second interim period (1 July to 31
December 2011), the Group can report continuing profit before tax
at GBP5.7m for the year as a whole in line with market expectations
and up significantly, 148%, on last year (2010: GBP2.3m). EBITDA at
GBP9.1m for the year as a whole was also up significantly by 62% on
the prior year (2010: GBP5.6m). This included a strong second half
performance with EBITDA of GBP6.4m, an increase of 28% over the
comparable period (2010: GBP5m) and continuing the positive trend
reported for the first half of 2011. Sales growth and a focus on
value added activities were the key drivers behind this
improvement.
The key trading divisions of Napier Brown, Garrett and Renshaw
all increased their EBITDA performance year on year. Haydens and
the newly formed R&W Scott were affected by increased commodity
costs that weren't recovered in pricing until late in the year.
Overall, the Net Debt / EBITDA ratio has improved significantly,
down from 4.0 at 31 December 2010 to 2.8 at 31 December 2011.
Increased commodity costs during the year have pushed up working
capital levels but, as previously forecast, these have now eased
with the year closing at GBP36.7m, down from GBP39.7m at June 2011.
This is reflected, along with the benefit of higher cash generation
in the second half, in a lower Net Debt level of GBP25.8m, down
from GBP31.9m at June 2011.
Divisional Updates
Renshaw enjoyed another strong period of growth with Renshaw
branded products now in most major retailers. Rollout will continue
during 2012, both in the UK and internationally. Retailers, with
supporting media coverage, are maintaining a focus on cake
decorating and home baking which is bringing new consumers into the
category and leading to greater prominence in store and new
listings for Renshaw products. A focus on delivering operational
improvements will be key in the coming months to enable the
business to cope with increasing demand and to improve
efficiencies.
We have re-established R&W Scott (based at Carluke and
previously a part of Renshaw) as a separate trading division in
order to bring more focus to the Chocolate Coatings, Jams and
Blends range. Brand development and improved product offerings are
key in delivering growth and reducing exposure to commodity
movements.
Napier Brown has been successful in extending its Sugar supply
base, underpinning its growth plans. The experience gained in
supplying these sugars is invaluable as a point of difference with
customers looking for options outside of the traditional beet
refiners. Investment in sugar handling systems is planned to allow
sugar from a variety of sources to be imported, handled and
delivered cost effectively. We are hopeful that the revitalisation
of the Whitworths retail brand will start to bear fruit as a number
of new listings have been gained for new products and packs in
2012.
Garrett has made significant progress in 2011 remaining strong
in the ice cream sector and growing in the food manufacturing
sectors with new cheese and cultured products complementing the
existing range. Garrett has become the sole distributor for
Friesland Campina sweet condensed milk in the UK and Ireland; the
latest example of building strategic relationships by supplying
outstanding customer service and technical assurance and offering
added value to customers. Garrett is increasing its supplier base
in the UK, Ireland and in particular Eastern Europe to ensure
supply lines and help manage risk within the volatile Dairy
markets.
Haydens, after a period of difficult trading, ended the year
strongly with a record sales month and a Christmas period
considerably up year-on-year, demonstrating the continued appetite
in the market for its hand crafted bakery and chilled value added
products.
Phase I of the site modernisation was completed with the opening
of the new distribution facility in May 2011, improving service
performance and creating space in the factory for its redevelopment
which is, however, now starting six months later than planned.
Remedial action to reduce direct costs has been taken with major
changes implemented to shift patterns and further production
efficiencies are planned at the start of Q2 2012 with the
introduction of blast freezing and chilling equipment in the
manufacturing process. This should have a major impact both on
material and labour efficiencies on short manufacturing runs as
well as providing additional capacity to support growth.
Significant Items
As part of the improvement plans at Haydens we took the decision
in Q3 to accelerate major changes to the management structure as
well as the shift patterns in the factory incurring one off costs
(mainly severance payments).
Cash flow and Debt
Working Capital levels at Dec 2011 at GBP36.7m have fallen, as
predicted, from June (GBP39.7m) but remain higher than Dec 2010
(GBP29.7m) primarily driven by higher commodity costs as reported
on during the year. Capex levels in the second half at GBP1.5m were
in line with 2010 (GBP1.6m) but at GBP3.1m for the year as a whole
up GBP0.9m on 2010 (GBP2.4m) as planned.
Net Debt (incl cash) at Dec 2011 was GBP25.8m down from June at
GBP31.9m but up on the Dec 2010 level of GBP22.6m reflecting the
working capital movement. The Group retains significant headroom
within both its banking covenant and its facilities.
Outlook
The Real Good Food Company continues to pursue its strategy of
creating solid sustainable profitability based on self-help
initiatives including brand development, sales growth and risk
management.
With trading starting positively in January, and divisional
management achieving further progress in their improvement
programmes, the Group is confident in meeting expectations for
2012.
THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER
2011
INDEPENDENT REVIEW REPORT TO
THE REAL GOOD FOOD COMPANY PLC
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the six monthly interim financial report
for the six months ended 31 December 2011, which comprises the
consolidated statement of comprehensive income, consolidated
statement of financial position, consolidated statement of changes
in equity, consolidated statement of cashflows and the related
notes. We have read the other information contained in the six
monthly interim financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company, as a body, in
accordance with our instructions. Our review has been undertaken so
that we might state to the company those matters we are required to
state to them in a review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company, for our work, for
this report, or for the conclusions we have formed.
Directors' Responsibilities
The six monthly interim financial report is the responsibility
of, and has been approved by, the directors.
As disclosed in note 2, the annual financial statements of the
group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this six monthly financial report has been prepared in
accordance with International Accounting Standard 34, "Interim
Financial Reporting," as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the six monthly
interim financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
United Kingdom. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the six monthly interim financial report for the six months
ended 31 December 2011 is not prepared, in all material respects,
in accordance with International Accounting Standard 34 as adopted
by the European Union.
Crowe Clark Whitehill LLP
Chartered Accountants
10 Palace Avenue
Maidstone
Kent ME15 6NF
THE REAL GOOD FOOD COMPANY PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX
MONTHS ENDING 31 DECEMBER 2011 (UNAUDITED)
Notes Period ended 31 December Period Ended 31 Dec 2010
2011
Before Significant Total Before Significant Total
Significant Items Significant Items
Items Items
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
CONTINUING
OPERATIONS
Revenue 139,255 - 139,255 109,369 - 109,369
Cost of sales (119,137) - (119,137) (94,605) - (94,605)
------------------ ------------ ---------- ------------------ ------------ ---------
Gross profit 20,118 - 20,118 14,764 - 14,764
Distribution
costs (6,491) - (6,491) (4,301) - (4,301)
Administration
expenses (8,283) (367) (8,650) (6,415) (206) (6,621)
Operating profit
/(loss) 5,344 (367) 4,977 4,048 (206) 3,842
Finance costs (873) - (873) (651) - (651)
Net pension
finance
income 114 - 114 55 - 55
------------------ ------------ ---------- ------------------ ------------ ---------
Profit /(loss)
before
taxation 4,585 (367) 4,218 3,452 (206) 3,246
Taxation (1,006) 101 (905) (846) 58 (788)
------------------ ------------ ---------- ------------------ ------------ ---------
Profit / (loss)
from
continuing
operations 3,579 (266) 3,313 2,606 (148) 2,458
================== ============ ========== ================== ============ =========
Profit / (loss)
for
the period 3,579 (266) 3,313 2,606 (148) 2,458
------------------ ------------ ---------- ------------------ ------------ ---------
Other
comprehensive
income
Actuarial losses
on
defined benefit
plans (1,093) - (1,093) 826 - 826
Income tax
relating
to components of
other
comprehensive
income 229 - 229 (265) - (265)
Total
comprehensive
income for the
period 2,715 (266) 2,449 3,167 (148) 3,019
================== ============ ========== ================== ============ =========
Basic profit per
share 5 5.5p 5.1p 4.0p 3.8p
Diluted profit
per
share 5 5.1p 4.8p 3.8p 3.6p
THE REAL GOOD FOOD COMPANY PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER
2011
(UNAUDITED)
31 Dec 2011 31 Dec 2010 30 Jun 2011
GBP'000s GBP'000s GBP'000s
ASSETS
NON CURRENT ASSETS
Goodwill 75,796 75,796 75,796
Intangibles 442 625 559
Property, plant and equipment 16,826 15,603 16,325
Deferred tax asset 708 351 380
------------ ------------ ------------
93,772 92,375 93,060
------------ ------------ ------------
CURRENT ASSETS
Inventory 15,902 9,546 15,008
Trade and other receivables 26,924 24,373 27,246
Cash and cash equivalents 1,469 3,187 1,405
------------ ------------ ------------
44,295 37,106 43,659
------------ ------------ ------------
Total Assets 138,067 129,481 136,719
------------ ------------ ------------
LIABILITIES
CURRENT LIABILITIES
Borrowings 20,058 17,258 25,445
Trade and other payables 22,557 19,891 18,590
Current tax liabilities 829 589 838
Derived financial instruments 30 30 30
------------ ------------ ------------
43,474 37,768 44,903
------------ ------------ ------------
NON CURRENT LIABILITIES
Borrowings 7,264 8,565 7,873
Deferred tax 3,067 3,164 3,112
Retirement benefit obligations 906 - -
------------ ------------ ------------
11,237 11,729 10,985
============ ============ ============
Net Assets 83,356 79,984 80,831
============ ============ ============
SHAREHOLDERS' EQUITY
Called up share capital 1,300 1,300 1,300
Share premium account 68,874 68,870 68,870
Other reserves 237 153 165
Profit and loss account 12,945 9,661 10,496
------------ ------------ ------------
Total Equity 83,356 79,984 80,831
============ ============ ============
THE REAL GOOD FOOD COMPANY PLC
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDING 31
DECEMBER 2011 (UNAUDITED)
Issued Share IFRS 2 Retained Total
Share Premium Share Option Earnings
Capital Account reserve
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Balance at 1 July 2010 1,300 68,870 79 6,642 76,891
Shares to be issued - Options - - 74 - 74
Total comprehensive income
for the period - - - 3,019 3,019
Balances as at 31 December
2010 1,300 68,870 153 9,661 79,984
========= ========= ============== ========== =========
Balance at 1 July 2011 1,300 68,870 165 10,496 80,831
Shares to be issued - Options - 4 72 - 76
Total comprehensive income
for the period - - - 2,449 2,449
Balances as at 31 December
2011 1,300 68,874 237 12,945 83,356
========= ========= ============== ========== =========
THE REAL GOOD FOOD COMPANY PLC
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDING 31 DECEMBER
2011 (UNAUDITIED)
6 months to 6 months
31 Dec 2011 to
31 Dec 2010
GBP'000s GBP'000s
CASH FLOW FROM OPERATING ACTIVITIES
Profit / loss for the period before
taxation 4,218 3,246
Adjusted for:
Finance costs 873 656
Finance income - (5)
IAS 19 income (114) (55)
Depreciation of property, plant
& equipment 954 829
Amortisation of intangibles 117 178
Share based payment expense (12) (6)
Operating Cash Flow 6,036 4,843
(Increase) / decrease in inventories (895) 1,492
Increase in receivables 321 431
Increase in payables 3,912 1,120
-------------- --------------
Net Cash Inflow from Operating Activities 9,374 7,886
Share's issued 4 -
Income taxes paid (989) (23)
Interest paid (873) (632)
-------------- --------------
Net cash outflow from operating
activities 7,516 (7,231)
-------------- --------------
CASH FLOW FROM INVESTING ACTIVITIES
Interest received - 5
Purchase of intangible assets - (176)
Purchase of property, plant & equipment (1,456) (1,390)
-------------- --------------
Net cash used in investing activities (1,456) (1,561)
-------------- --------------
CASH FLOW USED IN FINANCING ACTIVITIES
Repayment of borrowings (5,930) (4,149)
Repayment of obligations under finance
leases (66) (130)
Net cash used in financing activities (5,996) (4,279)
-------------- --------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 64 1,391
============== ==============
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning
of year 1,405 1,796
Net movement in cash and cash equivalents 64 1,391
-------------- --------------
Cash and cash equivalents at balance
sheet date 1,469 3,187
============== ==============
Cash and cash equivalents comprise:
Cash 1,469 3,187
1,469 3,187
============== ==============
THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER
2011
1. General Information
The Real Good Food Company Plc is a public limited company
("company") incorporated in the United Kingdom under the Companies
Act (registration number 4666282). The company is domiciled in the
United Kingdom and its registered address is 229 Crown Street
Liverpool Merseyside L8 7RF. The company's shares are traded on the
Alternative Investment Market ("AIM").
The principal activities of the group are the sourcing,
manufacture, marketing and distribution of food and industrial
ingredients.
Copies of the interim report are being sent to shareholders.
Further copies of the interim report and Annual Report and Accounts
may be obtained from the address above.
2. Basis of preparation
These condensed consolidated financial statements are presented
on the basis of International Financial Reporting Standards (IFRS)
as adopted by the European Union and interpretations issued by the
International Financial Reporting Interpretations Committee (IFRIC)
and have been prepared in accordance with AIM rules and the
Companies Act 2006, as applicable to companies reporting under
IFRS.
The financial information set out in this document does not
comprise the statutory accounts of the company within the meaning
of Part 15 of the Companies Act 2006.
The same accounting policies and methods of computation are
followed within these interim financial statements as adopted in
the most recent annual financial statements.
New IFRS standards and interpretations not adopted
Certain new standards, amendments and interpretations of
existing standards that have been published and which are effective
for the company's accounting periods beginning on or after 1
January 2012 and which are applicable to the company, but which
have not been adopted early are:
-- IAS 12 Amendments to Deferred tax: Recovery of Underlying Assets
-- IAS 1 Amendment - Presentation of items of other comprehensive income
-- IAS 19 Amendment - Employee Benefits
-- IAS 27 Separate Financial Statements
-- IAS 28 Investments in Associates and Joint Ventures
-- IFRS 10 Consolidated Financial Statements
-- IFRS 11 Joint Arrangements
-- IFRS 12 Disclosure of Interests in Other Entities
-- IFRS 13 Fair Value Measurement
-- IFRS 9 Financial Instruments
The adoption of these standards, amendments and interpretations
is not expected to have a material impact on the group's profit for
the period or equity. Application of these standards will result in
some changes in presentation of information within the condensed
interim financial statements.
3. Significant items
It is the group's policy to show items that it considers being
of a significant nature seperately on the face of the Consolidated
Statement of Comprehensive Income in order to assist the reader to
understand the accounts. The company defines the term significant
as items that are material in respect of their size and nature. For
example a major restructuring of the activities of the group.
Summary details of significant items are shown in the Chairman's
statement which forms part of this six monthly interim financial
report.
4. Segment analysis
Business segments
The group's operating segments are Napier, Garrett , Renshaw ,
R&W Scott and Haydens reflecting the group's management and
reporting structure .
The following table shows the group's revenue and results for
the period under review analysed by operating segment. Segment
profit represents the trading profit after depreciation but before
significant items.
Six months to 31 December
2011
Total Total
Before After
Renshaw R&W Significant Significant
Napier Garrett Scott Haydens Items Items
GBP'000s Significant
Items
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Total revenue 85,906 16,641 24,370 6,431 12,844 146,192 - 146,192
Revenue -
internal (6,033) (316) (588) - - (6,937) - (6,937)
External revenue 79,873 16,325 23,782 6,431 12,844 139,255 - 139,255
Operating
profit/(loss) 2,508 950 4,121 (1,057) (378) 6,144 (367) 5,777
Finance costs
(net
of interest
received) (565) (91) (100) (71) (46) (873) - (873)
Pension finance costs 114 - 114
Head office and consolidation
adjustments (800) - (800)
------------ ------------ ------------
Profit before
tax 4,585 4,218
Tax (1,006) 101 (905)
------------ ------------ ------------
Profit after tax as per income statement 3,579 (266) 3,313
----------------------------------------------------------- --------- ---------- ------------ ------------ ------------
Inter-segment sales are charged at prevailing market rates.
Total
As At 31December 2011 Napier Garrett Renshaw R&W Scott Haydens Unallocated Group
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Segment assets 23,985 5,247 17,084 7,189 7,790 61,295
Unallocated assets
Goodwill 75,796
Property, plant and
equipment 31
Deferred tax assets 708
Trade and other receivables 237
Total assets 138,067
---------
Segment liabilities (20,464) (5,065) (11,081) (1,288) (3,998) (41,896)
Unallocated liabilities
Trade and other payables (494)
Borrowings (9,487)
Current tax liabilities 385
Deferred tax liabilities (2,313)
Retirement Benefits
Obligation (906)
Total liabilities (54,711)
---------
Net operating assets 3,521 182 6,003 5,901 3,792 83,356
--------- --------- --------- ---------- --------- ---------
Non current asset
additions 116 - 417 153 748 22 1456
Depreciation 289 - 285 114 260 6 954
Amortisation 34 - 69 - 14 - 117
Geographical segments
The group earns revenue from countries outside the United
Kingdom, but as these only represent 3.2% of the total revenue of
the group, segmental reporting of a geographical nature is not
considered necessary in accordance with the provisions of IFRS
8.
5. Earnings per ordinary share
Earnings per share is calculated on the basis of the profit for
the period after tax, divided by the weighted average number of
shares in issue for the six month period of 69,494,071 (2011
68,310,833).
Diluted profit per share is calculated by adjusting the weighted
average number of ordinary shares outstanding to assume conversion
of all potential dilutive ordinary shares. Potential dilutive
ordinary shares arise from share options and warrants. For these, a
calculation is performed to determine the number of shares that
could have been acquired at fair value (determined as the average
annual market share price of the company's shares) based on the
monetary value of the exercise price attached to outstanding share
options. Thus the dilutive weighted average number of shares
considers the number of shares that would have been issued assuming
the exercise of the share options.
An adjusted profit per share and a diluted adjusted profit per
share, which exclude significant items, has also been calculated as
in the opinion of the board this will allow shareholders to gain a
clearer understanding of the trading performance of the group.
Six months to 31 December Six months to 31 December
2011 2010
Weighted
Average Per share Weighted Per share
Earnings No. amount Earnings Average No. amount
GBP'000s of shares pence GBP'000s of shares pence
Profit attributable
to ordinary shareholders 3,579 65,019,348 5.5 2,606 65,014,348 4.0
Significant items (266) - - (148) - -
Adjusted profit per
share 3,313 65,019,348 5.1 2,458 65,014,348 3.8
Dilutive effect of
options - 4,474,723 - - 3,296,485 -
Dilutive effect of
warrants - - - - - -
Diluted profit per
share 3,579 69,494,071 5.1 2,606 68,310,833 3.8
Diluted adjusted profit
per share 3,313 69,494,071 4.8 2,458 68,310,833 3.6
6. Dividends
No dividend is proposed for the six months ended 31 December
2011 (2010 Nil).
7. Taxation
The charge for taxation is based on the results for the period
and takes into account taxation deferred because of timing
differences between the treatment of certain items for taxation and
accounting purposes.
Provision is made in full for taxation deferred in respect of
timing differences that have originated but not reversed by the
balance sheet date, except for gains on disposal of fixed assets
which will be rolled over into replacement assets. No provision is
made for taxation on permanent differences. Deferred tax is not
discounted.
Deferred tax assets are recognised to the extent that it is more
likely than not that they will be recovered.
8. Pension arrangements
A subsidiary of the Group, RenshawNapier Limited, operates a
defined benefit pension scheme, the Napier Brown Retirement
Benefits Scheme. The assets of the scheme are held separately from
those of the Group in an independently administered fund. The
contributions made by the employer over the six-month period have
been GBP73,000
Assumptions
The assets of the scheme have been included at market value and
the liabilities have been calculated using the following principal
actuarial assumptions:
31 December 30 June 2011
2011
% per annum % per annum
--------------------------------- --------------- ---------------
Rate of increase in pensions
in payment 3.10 3.10
Discount rate 5.10 5.70
Inflation assumption 2.70 3.20
Revaluation rate for deferred
pensions 1.70 2.20
The fair value of the assets in the scheme, the present value of
the liabilities in the scheme and the expected rate of return at
each balance sheet date were:
31 December 30 June 2011
2011
% %
------------ -------------- ---------------
Equities 6.00 7.50
Bonds 4.70 5.50
Gilts 2.50 4.40
Property 6.00 7.50
Cash 0.50 0.50
31 December 30 June 2011
2011 GBP'000s
GBP'000s
--------------------------------------- -------------- ---------------
Total fair value of assets 15,869 16495
Present value of scheme liabilities (16,775) (15,639)
-------------- ---------------
(Deficit) / surplus in the scheme (906) 856
The scheme is a closed scheme and therefore under the projected
unit method the current service cost would be expected to increase
as the members of the scheme approach retirement.
THE REAL GOOD FOOD COMPANY PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE TWELVE
MONTHS ENDING 31 DECEMBER 2011 (UNAUDITED)
Notes 12mths ended 31 December 12mths Ended 31 December
2011 2010
Before Significant Total Before Significant Total
Significant Items Significant Items
Items Items
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
CONTINUING OPERATIONS
Revenue 249,040 - 249,040 200,104 - 200,104
Cost of sales (215,568) - (215,568) (176,225) - (176,225)
------------- ------------ ---------- ------------- ------------ ----------
Gross profit 33,472 - 33,472 23,879 - 23,879
Distribution costs (10,585) - (10,585) (8,053) - (8,053)
Administration expenses (15,846) (367) (16,213) (12,217) (395) (12,612)
Operating profit
/(loss) 7,041 (367) 6,674 3,609 (395) 3,214
Finance Income 5 5
Finance costs (1,511)) - (1,511) (1,365) - (1,365)
Net pension finance
income 207 - 207 94 - 94
------------- ------------ ---------- ------------- ------------ ----------
Profit /(loss) before
taxation 5,737 (367) 5,370 2,343 (395) 1,948
Taxation (1,206) 101 (1,105) (536) 111 (425)
------------- ------------ ---------- ------------- ------------ ----------
Profit / (loss)
from continuing
operations 4,531 (266) 4,265 1,807 (284) 1,523
============= ============ ========== ============= ============ ==========
Profit / (loss)
for the period 4,531 (266) 4,265 1,807 (284) 1,523
------------- ------------ ---------- ------------- ------------ ----------
Other comprehensive
income
Actuarial losses
on defined benefit
plans (1,251) - (1,251) 488 - 488
Income tax relating
to components of
other comprehensive
income 270 - 270 (137) - (137)
Total comprehensive
income for the period 3,550 (266) 3,284 2,158 (284) 1,874
============= ============ ========== ============= ============ ==========
Basic profit per
share 5 7.0p 6.6p 2.8p 2.3p
Diluted profit per
share 5 6.5p 6.1p 2.6p 2.2p
THE REAL GOOD FOOD COMPANY PLC
STATEMENT OF CASH FLOWS FOR THE 12MTHS ENDING 31 DECEMBER 2011
(UNAUDITIED)
12 months 12 months
to to
31 Dec 2011 31 Dec 2010
GBP'000s GBP'000s
CASH FLOW FROM OPERATING ACTIVITIES
Profit for the period before taxation 5,370 1,948
Adjusted for:
Finance costs 1,511 1,365
Finance income - (5)
IAS 19 income (207) (94)
Depreciation of property, plant &
equipment 1,832 1,785
Amortisation of intangibles 239 241
Operating Cash Flow 8,745 5,240
(Increase) / decrease in inventories (6,356) 24
(Increase) in receivables (2,551) (922)
Increase in payables 2,553 904
-------------- --------------
Net Cash Inflow from Operating Activities 2,391 5,246
Shares Issued 4 -
Income taxes paid (989) (23)
Interest paid (1,511) (1,341)
-------------- --------------
Net cash outflow from operating activities (105) 3,882
-------------- --------------
CASH FLOW FROM INVESTING ACTIVITIES
Interest received - 5
Purchase of intangible assets (56) (215)
Purchase of property, plant & equipment (3,056) (2,162)
-------------- --------------
Net cash used in investing activities (3,112) (2,372)
-------------- --------------
CASH FLOW USED IN FINANCING ACTIVITIES
Drawdown / (repayment) of borrowings 1,683 (3,708)
Repayment of obligations under finance
leases (184) (272)
Net cash used in financing activities 1,499 (3,980)
-------------- --------------
NET DECREASE IN CASH AND CASH EQUIVALENTS (1,718) (2,470)
============== ==============
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning
of year 3,187 5,657
Net movement in cash and cash equivalents (1,718) (2,470)
-------------- --------------
Cash and cash equivalents at balance
sheet date 1,469 3,187
============== ==============
Cash and cash equivalents comprise:
Cash 1,469 3,187
1,469 3,187
============== ==============
This information is provided by RNS
The company news service from the London Stock Exchange
END
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