TIDMRGD
RNS Number : 9286Q
Real Good Food Company Plc (The)
13 November 2012
The Real Good Food Company plc (AIM: RGD)
Interim Results for the six months to 30 September 2012
The Real Good Food Company plc ("the group" or "RGFC") is a
diversified food group, which owns Napier Brown (Europe's biggest
non-refining sugar distributor) as well as Renshaw and R&W
Scott (bakery ingredients), Garrett Ingredients (dairy ingredients)
and Haydens Bakery (patisserie and desserts).
HIGHLIGHTS
Six months to Six months to
30 September 30 September
2012 2011
GBP'000s GBP'000s
Revenue 137,806 128,215
EBITDA 3,023 3,092
Continuing profit before
taxation
and significant items 1,173 1,373
Earnings per share
Basic: adjusted 1.5p 1.9p
Diluted: adjusted 1.4p 1.7p
Working capital
(Fixed Assets/Stock/Trade
Debtors
Trade Creditors and Tax) 45,479 41,687
Net borrowings
(Including Cash) 32,075 33,741
NB: These are the first interim results produced after the
change in year end and as such the period to September 2011 has
never been publicly reported.
-- Group continues to focus on brand development and driving sales growth
-- Divisional Highlights
o Key trading divisions of Napier Brown, Garrett and Renshaw all
in line with this year's EBITDA expectations
o Significantly improved performance at R&W Scott - EBITDA
up GBP0.8m over last year
o Improved performance at Haydens expected to accelerate in the
second half
-- EBITDA little changed at GBP3.0m (2011: GBP3.1m) after
increased investment in new branding initiatives of GBP0.5m at
Napier Brown and Renshaw to support growth plans
-- Working Capital at GBP45.5m up 9.4% on last year, but well
within planned levels and the normal seasonal pattern. Increase
year-on-year primarily driven by higher stocks in Renshaw and
Napier Brown, which will be worked off over the remainder of the
year
-- Net debt reduced by GBP1.7m to GBP32.1m, despite increase in working capital
Pieter Totté, Executive Chairman, comments:
"We enter the critical Christmas trading period with all
businesses in a strong position to maximise commercial
opportunities. At the same time we continue to develop our medium
term growth plans, and I am confident the group will deliver
results for the year as a whole in line with market
expectations."
13 November 2012
ENQUIRIES:
Real Good Food
Pieter Totté, Chairman Tel: 020 3056 1516
Andrew Brown, Marketing Director Tel: 020 3056 1516
Mike McDonough, Finance Director Tel: 0151 706 8200
Shore Capital & Corporate Tel: 020 7408 4090
Stephane Auton
Patrick Castle
Cubitt Consulting Tel: 020 7367 5100
Gareth David
Cebuan Bliss
Business Review
I am pleased to report that our trading performance has been in
line with expectations across our three key trading divisions,
Napier Brown, Garrett Ingredients and Renshaw, with our diversified
sales channels limiting our exposure to specific market challenges.
Significant improvements have been achieved at R&W Scott,
following its separation from Renshaw, while trading performance at
Haydens Bakery continues to improve.
Further increases in the cost of commodities, in particular
sugar, have impacted our levels of working capital, but these
levels will reduce significantly by the end of the financial year.
Meanwhile, by better matching customer and supplier terms, our net
debt levels are well under control and remain within our facility
limits.
We were delighted to announce in June a partnership agreement
with Omnicane, the biggest sugar company in Mauritius, whereby it
has taken a 20% stake in The Real Good Food Company. Discussions on
how we can co-operate continue and I am delighted that Omnicane's
Chief Executive Officer, Jacques d'Unienville, has agreed to join
our Board as a non-executive Director. The opportunities for joint
ventures on sugar sourcing and in opening up export markets,
particularly in Africa, are exciting.
Napier Brown (Sugar)
From its facility at Normanton, near Leeds, Napier Brown sources
sugar from the UK, mainland Europe and worldwide supplying
customers in the UK across all market sectors; manufacturing,
retail, wholesale and foodservice
Sales revenue increased 11% year-on-year, a combination of
higher volume and increased market prices. Most of the volume
increases were in the industrial sector where customers are
attracted by our long term multi-sourcing strategy.
In retail, the focus has been on developing a differentiated
product range around our Whitworths brand. The launch of our
innovative new Baking Sugars in re-sealable pouches has been well
received by the trade and marketing campaigns are in place to build
on this in the coming months.
The new contract season from October has resulted in further
volume increases in both industrial and retail and we continue to
work on our plans to secure new sources of sugar in line with the
growth ambitions. We expect shortly to complete the acquisition of
a site for a new sugar terminal in East Yorkshire with plans for it
to be operational during 2013.
Garrett Ingredients (Sugar and Dairy)
Based at Thornbury, near Bristol, Garrett sources dairy and
other specialist food ingredients from across the UK, Eire and
continental Europe for supply (along with sugar sourced from Napier
Brown) to large, medium and small food manufacturing businesses
across the UK.
Garrett also grew both tonnage and sales revenues. Dairy volumes
increased though prices of skimmed milk powders were below last
year's levels throughout most of the period, while the poor summer
weather also reduced sales of ice cream mix and dairy ingredients
to this sector. Meanwhile progress was made in broadening the
product range to include the likes of dextrose, sweetened condensed
milk and other complementary ingredients.
Renshaw (Bakery Ingredients)
Operating out of its Liverpool facility Renshaw is a leading
manufacturer of high quality food ingredients, primarily to the
baking sector both in the UK and for export with a strong
reputation for quality, consistency and innovation.
Renshaw volumes and sales remained strong, although EBITDA was
down as fixed costs increased, with investment in research,
development and human resources to manage growth plans in
particular in export and the setting up of a new online sales
channel.
A major evaluation has been undertaken of the Renshaw brand. As
a consequence we have redefined our vision for the brand, with a
new emphasis on exploiting its distinctive credentials within the
expert sugar-craft market. Plans are in place to expand the brand
globally, with an online sales channel live in the New Year.
Research in a number of countries has confirmed the potential
for the brand and its product range, while the online route to
market will give the brand the ability to engage directly with many
of its customers.
R&W Scott (Bakery Ingredients and Jam)
R&W Scott at its Carluke facility south-east of Glasgow
produces chocolate coatings and sauces, jams and dry powder blends
for the industrial, retail, wholesale and foodservice markets.
The new standalone R&W Scott business returned to
profitability during the first half of the year and is on track to
deliver a positive EBITDA performance for the full year. The
greater focus delivered by the new management team is producing the
desired results, with new ranges planned in retail jams and new
opportunities being pursued for coatings in wholesale and
foodservice channels. Plans are also in place to supply jam and
sauce ingredients to Haydens, which will realise significant
benefits for both businesses.
Haydens Bakery (Patisserie and Desserts)
From its site in Devizes, Wiltshire, Haydens Bakery produces an
extensive range of high added value, hand finished, ambient,
chilled and frozen patisserie and dessert products to retail and
foodservice customers. Through its Hopton Distribution facility, it
also consolidates distribution of bakery products from other
manufacturers to Waitrose.
EBITDA performance improved year-on-year though, as previously
reported, the recovery plan is taking longer than anticipated. We
are taking action across the business and remain confident that the
second half of the year will see a significant improvement in
performance, with the business moving into profitability. New sales
opportunities are being realised in both retail and increasingly
foodservice, where the frozen supply chain is commercially
attractive.
Cash flow and Debt
Working capital levels at September 2012 at GBP45.5m are GBP3.8m
higher than September 2011 (GBP41.7m) primarily driven by higher
stock levels. Debtor and creditor levels were both up but by
similar amounts reflecting an improvement in the balance of
respective trading terms. Capital expenditure at GBP1.3m is
marginally below last year's level of GBP1.5m.
Despite the increase in working capital levels net debt
(including cash) at September 2012 was GBP32.1m, down from the
September 2011 level of GBP33.7m. The group retains significant
headroom within both its banking covenant and its facilities.
The group is proactive in extending its banking arrangements
beyond the July 2013 renewal date. The completion timetable has
been agreed and it is planned to announce the new arrangements by
the end of the calendar year. In the meantime we have moved
GBP4.96m of term loans to current as they fall due within the next
12 months, borrowings due over one year are now GBP2.77m as
compared to GBP6.79m at September 2011
Outlook
We enter the critical Christmas trading period with all
businesses in a strong position to maximise commercial
opportunities. At the same time we continue to develop our medium
term growth plans, and I am confident the group will deliver
results for the year as a whole in line with market
expectations.
Pieter Totté
Executive Chairman
13 November 2012
THE REAL GOOD FOOD COMPANY PLC
INDEPENDENT REVIEW REPORT TO THE REAL GOOD FOOD COMPANY PLC FOR
THE SIX MONTHS TO 30 SEPTEMBER 2012
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 30 September 2012, 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 30 September 2012 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 30 SEPTEMBER 2012 (UNAUDITED)
Notes Six Months Ended 30 September Six Months Ended 30 September
2012 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 137,806 - 137,806 128,215 - 128,215
Cost of sales (122,048) - (122,048) (112,615) - (112,615)
------------------ ------------ ---------- ------------------ ------------ ----------
Gross profit 15,758 - 15,758 15,600 - 15,600
Distribution
costs (5,246) - (5,246) (5,530) - (5,530)
Administration
expenses (8,556) - (8,556) (8,016) - (8,016)
Operating profit 1,956 - 1,956 2,054 - 2,054
Finance costs (824) - (824) (788) - (788)
Net pension
finance
income 41 - 41 107 - 107
------------------ ------------ ---------- ------------------ ------------ ----------
Profit before
taxation 1,173 - 1,173 1,373 - 1,373
Taxation (153) - (153) (160) - (160)
------------------ ------------ ---------- ------------------ ------------ ----------
Profit from
continuing
operations 1,020 - 1,020 1,213 - 1,213
================== ============ ========== ================== ============ ==========
Profit for the
period
attributable
to the equity
holders of the
parent 1,020 - 1,020 1,213 - 1,213
------------------ ------------ ---------- ------------------ ------------ ----------
Other
comprehensive
income
Actuarial losses
on defined
benefit
plans (329) - (329) (548) - (548)
Income tax
relating
to components
of other
comprehensive
income 79 - 79 137 - 137
Total
comprehensive
income for the
period 770 - 770 802 - 802
================== ============ ========== ================== ============ ==========
Basic profit
per share 5 1.5p 1.5p 1.9p 1.9p
Diluted profit
per share 5 1.4p 1.4p 1.7p 1.7p
THE REAL GOOD FOOD COMPANY PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER
2012 (UNAUDITED)
30 Sept 2012 31 Mar 2012 30 Sept 2011
GBP'000s GBP'000s GBP'000s
ASSETS
NON CURRENT ASSETS
Goodwill 75,796 75,796 75,796
Intangibles 467 521 570
Property, plant and equipment 17,371 17,057 16,367
Deferred tax asset 874 912 488
------------- ------------ -------------
94,508 94,286 93,221
------------- ------------ -------------
CURRENT ASSETS
Inventory 22,661 17.380 19,449
Trade and other receivables 30,386 24,444 27,799
Cash and cash equivalents 3,892 2,506 1,390
------------- ------------ -------------
56,939 44,330 48,638
------------- ------------ -------------
Total Assets 151,447 138,616 141,859
------------- ------------ -------------
LIABILITIES
CURRENT LIABILITIES
Borrowings 33,193 24,366 27,865
Trade and other payables 25,015 20,082 21,960
Current tax liabilities 391 570 538
Derived financial instruments - - 30
------------- ------------ -------------
58,599 45,018 50,393
------------- ------------ -------------
NON CURRENT LIABILITIES
Borrowings 2,774 6,796 7,266
Deferred tax 2,745 2,886 3,070
Retirement benefit obligations 1,290 1,080 376
------------- ------------ -------------
6,809 10,762 10,712
============= ============ =============
Net Assets 86,039 82,836 80,754
============= ============ =============
SHAREHOLDERS' EQUITY
Called up share capital 1,389 1,300 1,300
Share premium account 71,244 68,874 68,874
Other reserves 500 526 171
Profit and loss account 12,906 12,136 10,409
------------- ------------ -------------
Total Equity 86,039 82,836 80,754
============= ============ =============
THE REAL GOOD FOOD COMPANY PLC
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDING 30
SEPTEMBER 2012 (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 April 2011 1,300 68,870 119 9,607 79,896
Shares to be issued - Options - - 52 - 52
Shares issued in period - 4 - - 4
Total comprehensive income
for the period - - - 802 802
Balances as at 30 September
2011 1,300 68,874 171 10,409 80,754
========= ========= ============== ========== =========
Balance at 1 April 2012 1,300 68,874 526 12,136 82,836
Shares to be issued - Options - - (26) - (26)
Shares issued in period 89 2,370 - - 2,459
Total comprehensive income
for the period - - - 770 770
Balances as at 30 September
2012 1,389 71,244 500 12,906 86,039
========= ========= ============== ========== =========
THE REAL GOOD FOOD COMPANY PLC
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDING 30 SEPTEMBER
2012 (UNAUDITIED)
6 months to 6 months
30 Sept 2012 to
30 Sept 2011
GBP'000s GBP'000s
CASH FLOW FROM OPERATING ACTIVITIES
Profit for the period before taxation 1,173 1,373
Adjusted for:
Finance costs 824 788
IAS 19 income (41) (106)
Depreciation of property, plant &
equipment 1,004 959
Amortisation of intangibles 56 68
Operating Cash Flow 3,016 3,082
(Increase) in inventories (5,281) (7,227)
(Increase) in receivables (5,943) (1,254)
Pension contributions (76) (65)
Increase in payables 4,959 3,657
--------------- ---------------
Cash outflow from operations (3,325) (1,807)
Income taxes paid (411) (299)
Interest paid (824) (788)
--------------- ---------------
Net cash outflow from operating activities (4,560) (2,894)
--------------- ---------------
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of intangible assets (5) (13)
Purchase of property, plant & equipment (1,313) (1,465)
--------------- ---------------
Net cash used in investing activities (1,318) (1,478)
--------------- ---------------
CASH FLOW FROM FINANCING ACTIVITIES
Shares issued 2,459 4
Additional borrowings 5,006 5,178
Repayment of obligations under finance
leases (201) (110)
Net cash used in financing activities 7,264 5,072
--------------- ---------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,386 700
=============== ===============
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning
of period 2,506 690
Net movement in cash and cash equivalents 1,386 700
--------------- ---------------
Cash and cash equivalents at balance
sheet date 3,892 1,390
=============== ===============
Cash and cash equivalents comprise:
Cash 3,892 1,390
3,892 1,390
=============== ===============
THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2012
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 same accounting policies and methods of computation are
followed within these interim financial statements as adopted in
the most recent annual financial statements. IFRS 7 Amendments to
Financial Instruments Disclosures has been adopted from 1 April
2012. The adoption of this standard has not had a material impact
on these interim financial statements.
New IFRS standards and interpretations not adopted
Certain new standards, amendments and interpretations of
existing standards that have been published and which have not been
applied in these financial statements were in issue but not yet
effective (and in some cases had not yet been adopted by the
EU)
-- IAS 1 Amendment - Presentation of items of other comprehensive income
-- IAS 12 Amendments - Deferred tax: Recovery of Underlying Assets
-- IFRS 7 and IAS 32 Offsetting financial assets and financial liabilities
-- IAS 27 Separate Financial Statements
-- IFRS 9 Financial Instruments
-- IFRS 10 Consolidated Financial Statements
-- IFRS 11 Joint Arrangements
-- IFRS 12 Disclosure of Interests in Other Entities
-- IFRS 13 Fair Value Measurement
-- IAS 19 Amendment - Employee Benefits
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 to be
of a significant nature separately 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. No
significant items are reported in the six months to September 2012
and 2011
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 30 September 2012
Total Total
Before After
R&W Significant Significant Significant
Napier Garrett Renshaw Scott Haydens Items Items Items
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Total revenue 89,806 17,440 18,820 5,879 11,764 143,709 - 143,709
Revenue -
internal (5,597) (306) - - - (5,903) - (5,903)
External revenue 84,209 17,134 18,820 5,879 11,764 137,806 - 137,806
Operating
profit/(loss) 1,109 1,143 1,574 (3) (572) 3,251 - 3,251
----------
Finance costs
(net of interest
received) (504) (102) (113) (35) (70) (824) - (824)
Pension finance
costs - - - - - 41 - 41
Head office
and unallocated - - - - - (1,295) - (1,295)
------------ --------- ---------- --------- --------- ------------ ------------ ------------
Profit before
tax 605 1,041 1,461 (38) (642) 1,173 - 1,173
Tax (132) (227) (319) 8 139 (531) - (531)
Tax unallocated - - - - - 378 - 378
Profit after
tax as per
income
statement 473 814 1,142 (30) (503) 1,020 - 1,020
============ ========= ========== ========= ========= ============ ============ ============
Inter-segment sales are charged at prevailing market rates.
THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2012
4. Segment reporting (continued)
As at
30 SEPTEMBER
2012 Napier Garrett Renshaw R&W Scott Haydens Unallocated Total Group
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Segment assets 32,184 6,577 19,587 7,078 8,442 73,868
Unallocated
assets
Goodwill 75,796
Property, plant
and equipment 24
Deferred tax
assets 874
Trade and other
receivables 885
--------------
Total assets 151,447
--------------
Segment liabilities (32,084) (6,234) (11,942) (2,432) (3,181) (55,873)
Unallocated
liabilities
Trade and other
payables (200)
Borrowings (6,326)
Current tax
liabilities 273
Deferred tax
liabilities (1,992)
Retirement
benefits obligation (1,290)
--------------
Total liabilities (65,408)
Net operating
assets 100 343 7,645 4,646 5,261 86,039
========= ========= ========= ========== ========= ==============
Non current
asset additions 147 - 356 90 720 - 1,313
Depreciation 178 - 368 138 316 4 1,004
Amortisation 26 - 24 - 6 - 56
Geographical segments
The group earns revenue from countries outside the United
Kingdom, but as this only represents 6.5% 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.
THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2012
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 67,363,509 (2011
65,016,930).
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 30 September Six months to 30 September
2012 2011
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 1,020 67,363,509 1.5 1,213 65,016,930 1.9
Significant items - - - - - -
Adjusted profit per
share 1,020 67,363,509 1.5 1,213 65,016,930 1.9
Dilutive effect of
options - 6,145,866 - - 6,961,981 -
Dilutive effect of
warrants - - - - - -
Diluted profit per
share 1,020 73,509,375 1.4 1,213 71,978,911 1.7
Diluted adjusted profit
per share 1,020 73,509,375 1.4 1,213 71,978,911 1.7
6. Dividends
No dividend is proposed for the six months ended 30 September
2012 (2011 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.
THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2012
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 GBP76,000
Assumptions
The assets of the scheme have been included at market value and
the liabilities have been calculated using the following principal
actuarial assumptions:
30 September 31 March 30 September
2012 2011
% per annum 2012 % per annum
% per annum
--------------------------------- --------------- --------------- ---------------
Rate of increase in pensions
in payment 2.10 2.80 2.50
Discount rate 4.75 5.00 5.30
Inflation assumption 2.20 2.90 2.60
Revaluation rate for deferred
pensions 1.20 1.90 1.60
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:
30 September 31 March 30 September
2012 2011
% 2012 %
%
---------------------- --------------- ----------- ---------------
Equities 7.55 7.55 7.50
Bonds 4.60 4.60 5.50
Property 7.55 7.55 7.50
Cash 0.50 0.50 0.50
Overall for scheme 5.87 5.87 5.25
30 September 31 March 30 September
2012 2012 2011
GBP'000s GBP'000s GBP'000's
------------------------------ --------------- ------------ ---------------
Total fair value of assets 15,902 16,005 15,860
Present value of scheme
liabilities (17,192) (17,085) (16,236)
--------------- ------------ ---------------
(Deficit) in the scheme (1,290) (1,080) (376)
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.
9. Share Capital
During the period the company issued 4,065,652 ordinary shares
for consideration of GBP2,439,391. In addition 380,952 of share
options were exercised and total consideration received on exercise
was GBP20,000.
10. Seasonality
Most of the trading divisions of RGFC are seasonal, creating a
large proportion of their EBITDA in the October to December period.
This was the prime reason we changed our accounting reference date
to the 31 March in order to improve both the quality and accuracy
of our budget and investor reporting.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QLLFFLFFLFBX
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