TIDMRGD
RNS Number : 4826U
Real Good Food Company Plc (The)
03 December 2013
The Real Good Food Company plc (AIM: RGD)
Interim Results for the six months to 30 September 2013
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
30 September to 30 September
2013 2012
GBP'000s GBP'000s
Revenue 130,144 137,806
EBITDA 2,205 3,023
Continuing profit
before taxation
and significant items 111 1,106
Earnings per share
Basic: adjusted 0.4p 1.4p
Diluted: adjusted 0.4p 1.3p
Working capital*
(Fixed Assets/Stock/Trade
Debtors
Trade Creditors and
Tax) 49,066 45,479
Net borrowings
(Including Cash) 31,775 32,075
-- Revenue is down on previous year reflecting lower sugar
volumes for the contract season October 2012-September 2013.
-- EBITDA this year at GBP2.2m is broadly in line with the
Company's expectations. The reduction against last year's level of
GBP3.0m is primarily a reflection of planned investment of GBP0.7m
(made up of GBP0.5m in additional commercial resource and brand
development and GBP0.2m in establishing a sales office in Brussels
(Real Good Food Europe)) across the group to support our growth and
brand strategy.
-- The GBP3.5m capital investment in a sugar handling hub at
Immingham is nearing completion on time and within budget.
-- Working Capital at GBP49.1m is GBP3.6m up on last year, but
well within planned levels and the normal seasonal pattern. The
increase year-on-year is primarily driven by the investment in the
sugar hub project.
-- Net debt levels at GBP31.8m remain well managed and are GBP3m
below planned levels and in line with last year.
Pieter Totté, Executive Chairman, comments:
"Once again we approach the key Christmas trading period with
the Group well placed to benefit from the traditional seasonal
boost in sales, and I am pleased with the continued progress we are
making in re-shaping the Group.
"In Napier Brown we face a significant challenge over the coming
months, following the well publicised dramatic drop in EU sugar
market prices as we bring our buying book in line with this
correction in market prices.
"Meanwhile, however, Napier Brown's sales volumes, in both the
industrial and retail markets have increased significantly from the
start of the new contract season in October 2013. We anticipate our
Whitworths sugar brand achieving a consumer sales value of more
than GBP100m over the next 12 months.
"Elsewhere within the Group our branding and sales initiatives
at Renshaw, R&W Scott and Haydens are delivering in line with
our expectations and we anticipate that in our next financial year
some 25% of Group sales will be represented by branded product.
This demonstrates how our business model is evolving."
3 December 2013
ENQUIRIES:
Real Good Food
Pieter Totté, Chairman Tel: 020 3056
1516
Andrew Brown, Marketing Director Tel: 020 3056
Mike McDonough, Finance Director 1516
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
The board is pleased to report that overall performance for our
first six months has been largely as we expected. We continue to
develop our strategy of re-shaping the business to be market-led,
by investing in both our branded offering and in additional sales
management to support our growth plan.
We have seen the first fruits of this already: at Napier Brown
with the successful launch of the Whitworths brand playing a big
factor in successfully re-entering the retail and foodservice
markets; at Renshaw with opportunities in the UK complementing our
existing own label business as well as delivering new sales in the
EU and the US; at R&W Scott where new branded lines are now
achieving listings in the major multiples; and in Haydens, where
the customer base is now expanding. At Garrett Ingredients we have
just implemented a new, expanded sales and customer service
structure in order to realise the growth opportunities.
Net Debt levels remain well managed, some GBP3m below planned
levels, and well within our banking facilities.
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. A new sugar handling hub near
Immingham to handle imported sugars will be fully commissioned by
January 2014.
The sharp drop in EU sugar prices will produce some short term
margin pressure, but we are countering this in a number of ways.
The re-invigorated branding and new packaging formats have been
extremely well received and proved to be a crucial factor in
securing increased retail and foodservice volumes from October this
year as we announced in October.
This has doubled the throughput of our packing plant and we have
increased our headcount to supply the new added value pack formats.
Industrial volumes have also increased substantially from the new
October contract season as customers are increasingly attracted by
our multi-sourcing proposition.
In this respect, the investment in our Sugar Hub at Immingham,
designed to enable us to import cost-effectively new supplies of
sugar, is central to our ability to grow. The facility is due to be
fully commissioned by January.
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.
Volumes and sales revenues are overall 3.5% and 9.6% higher than
last year respectively though weak spot prices on sugar have had a
negative impact on margins.
We are investing in a new sales and trading structure to give
the business the capacity to expand and grow. This is planned to be
fully in place by the end of January. As well as new sales and
business development resource, it will encompass an upgrade of our
customer service and a new look at how we manage our logistics
following a successful trial in the South West.
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.
As reported previously, Renshaw has been investing significantly
in resources boosting its commercial and operational capabilities,
as well as investing in a branded strategy aimed at realising
market opportunities, especially internationally.
We are now seeing these opportunities come through especially in
UK retail and internationally where our US sales have returned to
growth and we continue to find new markets in Europe. We now have
an office in Brussels to manage this effectively and provide the
customer service which can support the growth.
The strength of the Renshaw business is that it operates across
a broad range of sales channels and we also have a number of
initiatives in the B2B market. The business has seen an accelerated
level of growth in recent months and we are confident of hitting
our targets.
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.
R&W Scott continues to invest in and implement its branded
strategy, with new and refreshed ranges being launched during the
year as a whole. This is part of a strategy of moving from a
commodity to an added-value offering. We have invested in product
management, business development and technical expertise and are
now fully resourced to run the business commercially.
As well as new retail branded ranges in jam and sauces, R&W
Scott is also realising a number of opportunities to produce for
other Group companies such as Haydens.
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.
Haydens has continued its recovery, with first half sales up
11.6% on last year, in line with expectations. This growth has come
both from existing and new customers across both retail and
foodservice channels.
A new commercial structure has been implemented encompassing
dedicated business development resource as well as marketing and
new product development. We are already seeing positive results
from this. We are confident that the turnaround is well embedded
and we expect growth to continue and profits to improve.
Cash flow and Debt
Working capital levels at September 2013 at GBP49.1m were
GBP3.6m higher than September 2012 (GBP45.5m), primarily driven by
increased capital investment, with the main item our sugar handling
hub near Immingham.
Stock levels are down GBP3.5m in comparison with last year,
largely balanced by slightly higher debtors, up 4% at GBP1.3m, and
GBP1.9m lower creditors down 8% reflecting the different
customer/supplier mix year-on-year.
Despite the increase in working capital levels net debt
(including cash) at September 2013 was GBP31.8m, some GBP3m below
planned levels and in line with the September 2012 level of
GBP32.1m. The group retains significant headroom within its GBP50m
banking facilities.
Outlook
Once again we approach the key Christmas trading period with the
Group well placed to benefit from the traditional seasonal boost in
sales, and I am pleased with the continued progress we are making
in re-shaping the group.
In Napier Brown we face a significant challenge over the coming
months, following the well publicised dramatic drop in EU sugar
market prices as we bring our buying book in line with this
correction in market prices.
Meanwhile, however, Napier Brown's sales volumes, in both the
industrial and retail markets have increased significantly from the
start of the new contract season in October 2013. We anticipate our
Whitworths sugar brand achieving a consumer sales value of more
than GBP100m over the next 12 months.
Elsewhere within the Group our branding and sales initiatives at
Renshaw, R&W Scott and Haydens are delivering in line with our
expectations and we anticipate that in our next financial year some
25% of Group sales will be represented by branded product. This
demonstrates how our business model is evolving.
Pieter Totté
Executive Chairman
3 December 2013
THE REAL GOOD FOOD COMPANY PLC
INDEPENDENT REVIEW REPORT TO THE RE AL GOOD FOOD COMPANY PLC FOR
THE
SIX MONTHS TO 30 SEPTEMBER 2013
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 2013, 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 2013 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 2013 (UNAUDITED)
Notes Six Months Ended 30 September Six Months Ended 30 September
2013 2012
(AS RESTATED)
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 130,144 - 130,144 137,806 - 137,806
Cost of sales (113,854) - (113,854) (122,048) - (122,048)
------------- ------------ ---------- ------------- ------------ ----------
Gross profit 16,290 - 16,290 15,758 - 15,758
Distribution
costs (6,091) - (6,091) (5,246) - (5,246)
Administration
expenses (9,270) (98) (9,368) (8,556) - (8,556)
Operating profit 929 (98) 831 1,956 - 1,956
Finance costs (737) - (737) (824) - (824)
Net pension finance
income (81) - (81) (26) - (26)
------------- ------------ ---------- ------------- ------------ ----------
Profit before
taxation 111 (98) 13 1,106 - 1,106
Taxation 157 21 178 (134) - (134)
------------- ------------ ---------- ------------- ------------ ----------
Profit from continuing
operations 268 (77) 191 972 - 972
============= ============ ========== ============= ============ ==========
Profit for the
period attributable
to the equity
holders of the
parent 268 (77) 191 972 - 972
------------- ------------ ---------- ------------- ------------ ----------
Other comprehensive
income
Actuarial losses
on defined benefit
plans (189) - (189) (262) - (262)
Income tax relating
to components
of other comprehensive
income 38 - 38 60 - 60
Total comprehensive
income for the
period 117 (77) 40 770 - 770
============= ============ ========== ============= ============ ==========
Basic profit
per share 5 0.4p - 0.3p 1.4p - 1.4p
Diluted profit
per share 5 0.4p - 0.3p 1.3p - 1.3p
THE REAL GOOD FOOD COMPANY PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER
2013
(UNAUDITED)
30 Sept 31 Mar 30 Sept
2013 2013 2012
GBP'000s GBP'000s GBP'000s
ASSETS
NON CURRENT ASSETS
Goodwill 75,796 75,796 75,796
Intangibles 1,325 1,412 467
Property, plant and
equipment 20,047 17,685 17,371
Deferred tax asset 1,368 1,385 874
--------- --------- ---------
98,536 96,278 94,508
--------- --------- ---------
CURRENT ASSETS
Inventory 19,125 15,037 22,661
Trade and other receivables 31,733 30,213 30,386
Cash and cash equivalents 3,301 7,134 3,892
--------- --------- ---------
54,159 52,384 56,939
--------- --------- ---------
Total Assets 152,695 148,662 151,447
--------- --------- ---------
LIABILITIES
CURRENT LIABILITIES
Borrowings 26,018 23,032 33,193
Trade and other payables 23,158 21,282 25,015
Current tax liabilities 6 750 391
Derived financial
instruments - - -
--------- --------- ---------
49,182 45,064 58,599
--------- --------- ---------
NON CURRENT LIABILITIES
Borrowings 9,058 9,054 2,774
Deferred tax 2,567 2,899 2,745
Retirement benefit
obligations 3,678 3,540 1,290
--------- --------- ---------
15,303 15,493 6,809
========= ========= =========
Net Assets 88,210 88,105 86,039
========= ========= =========
SHAREHOLDERS' EQUITY
Issued share capital 1,389 1,389 1,389
Share premium account 71,244 71,244 71,244
Share option reserve 605 540 500
Retained earnings 14,972 14,932 12,906
--------- --------- ---------
Total Equity 88,210 88,105 86,039
========= ========= =========
THE REAL GOOD FOOD COMPANY PLC
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDING 30
SEPTEMBER 2013 (UNAUDITED)
Issued Share Share Retained Total
Share Premium Option Earnings
Capital Account reserve
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Balance at 1 April
2012 1,300 68,874 526 12,136 82,836
Shares to be issued
(net of deferred
tax) - - (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
========= ========= ========= ========== =========
Balance at 1 April
2013 1,389 71,244 540 14,932 88,105
Shares to be issued
(net of deferred
tax) - - 65 - 65
Total comprehensive
income for the period - - - 40 40
Balances as at 30
September 2013 1,389 71,244 605 14,972 88,210
========= ========= ========= ========== =========
THE REAL GOOD FOOD COMPANY PLC
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDING 30 SEPTEMBER
2013 (UNAUDITED)
6 months 6 months
to to
30 Sept 30 Sept
2013 2012
GBP'000s GBP'000s
CASH FLOW FROM OPERATING ACTIVITIES
Profit for the period before
taxation 13 1,106
Adjusted for:
Finance costs 737 824
IAS 19 costs 81 26
Depreciation of property,
plant & equipment 1,156 1,004
Amortisation of intangibles 120 56
Operating Cash Flow 2,107 3,016
(Increase) in inventories (4,088) (5,281)
(Increase) in receivables (1,520) (5,943)
Pension contributions (132) (76)
Increase in payables 1,876 4,959
---------- ----------
Cash outflow from operations (1,757) (3,325)
Income taxes paid (778) (411)
Interest paid (737) (824)
---------- ----------
Net cash outflow from operating
activities (3,272) (4,560)
---------- ----------
CASH FLOW FROM INVESTING
ACTIVITIES
Purchase of intangible assets (33) (5)
Purchase of property, plant
& equipment (3,518) (1,313)
---------- ----------
Net cash used in investing
activities (3,551) (1,318)
---------- ----------
CASH FLOW FROM FINANCING
ACTIVITIES
Shares issued - 2459
Additional / (repayment)
of borrowings 2,990 5,006
Repayment of obligations
under finance leases - (201)
Net cash used in financing
activities 2,990 7,264
---------- ----------
NET INCREASE/(DECREASE)
IN CASH AND CASH EQUIVALENTS (3,833) 1,386
========== ==========
CASH AND CASH EQUIVALENTS
Cash and cash equivalents
at beginning of period 7,134 2,506
Net movement in cash and
cash equivalents (3,833) 1,386
---------- ----------
Cash and cash equivalents
at balance sheet date 3,301 3,892
========== ==========
Cash and cash equivalents
comprise:
Cash 3,301 3,892
3,301 3,892
========== ==========
THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2013
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.
IAS 19 (Amendment) - "Employee Benefits" became effective during
the interim period. This has resulted in the restatement of the
charge for retirement benefits in the prior year. The impact of the
revised standard was to decrease the pension scheme income in the
income statement by GBP67k and decrease the actuarial loss in other
comprehensive income. The tax impact of the above was to decrease
the tax charge in the income statement by GBP19K and increase the
tax credit in other comprehensive income. The above adjustments
have had no impact on total comprehensive income or the statement
of financial position.
New IFRS standards and interpretations not adopted
The following IFRS standards, amendments and interpretations are
not yet effective and have not been adopted early by the group:
IFRS 10, IFRS 12 and IAS 27 Investment Entities effective
January 2014
IFRIC 21 Levies - effective January 2014
IAS 36 Amendments Recoverable Amount Disclosures for
non-Financial Assets - effective January 2014
IAS 39 Amendments : Novation of Derivatives and Continuation of
Hedge
Accounting - effective January 2014
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. The adoptions may affect disclosures in the
group's financial statement
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.
During the six months to September 2013 significant costs of GBP98k
have been incurred relating to management restructuring. No
significant items are reported in the six months to 2012.
THE REAL GOOD FOOD COMPANY PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2013
4. Segment analysis
Business segments
The Group's operating segments are Napier, Garrett, Renshaw,
R&W Scott, Haydens and Real Good Food Europe (RGFE) 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
2013
Total
Before Total After
Renshaw R&W Significant Significant Significant
Napier Garrett Scott Haydens RGFE Items Items Items
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Total revenue 79,796 19,381 18,991 5,329 13,134 88 136,719 - 136,719
Revenue -
internal (5,148) (598) (172) (653) - (4) (6,575) - (6,575)
External
revenue 74,648 18,783 18,819 4,676 13,134 84 130,144 - 130,144
Operating
profit/(loss) 854 991 865 (52) (226) (166) 2,266 (98) 2,168
Finance costs
(net
of interest
received) (439) (110) (110) (27) (51) - (737) - (737)
Pension
finance
costs (81) - (81)
Head office
and
unallocated (1,337) - (1,337)
---------- --------- --------- --------- ---------- --------- ------------ ------------ ------------
Profit before
tax 415 881 755 (79) (277) (166) 111 (98) 13
Tax (96) (203) (172) 18 64 38 (351) 21 (330)
Tax
unallocated 508 - 508
Profit after
tax
as per income
statement 319 678 583 (61) (213) (128) 268 (77) 191
========== ========= ========= ========= ========== ========= ============ ============ ============
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
2013
4. Segment reporting (continued)
As at 30 SEPTEMBER Total
2013 Napier Garrett Renshaw R&W Scott Haydens RGFE Unallocated Group
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Segment assets 28,547 5,282 21,513 6,881 10,818 86 73,127
Unallocated assets
Goodwill 75,796
Property, plant
and equipment 1,575
Deferred tax
assets 1,368
Trade and other
receivables 829
---------
Total assets 152,695
---------
Segment liabilities (24,694) (4,591) (10,177) (2,077) (5,507) (40) (47,086)
Unallocated liabilities
Trade and other
payables (340)
Borrowings (11,042)
Current tax
liabilities (525)
Deferred tax
liabilities (1,814)
Retirement benefits
obligation (3,678)
---------
Total liabilities (64,485)
Net operating
assets 3,853 691 11,336 4,804 5,311 46 88,210
========= ========= ========= ========== ========= ========= =========
Non current asset
additions 782 - 446 107 661 - 3,550
Depreciation 184 - 441 136 376 - 1,156
Amortisation 45 - 45 - 30 - 120
Geographical segments
The group earns revenue from countries outside the United
Kingdom, but as this only represents 4.4% 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
2013
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 69,465,952 (2012
67,363,509).
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 Six months to 30
September 2013 September 2012
Weighted Per Weighted
Average share Average Per share
Earnings No. amount Earnings No. of amount
GBP'000s of shares pence GBP'000s shares pence
Profit attributable
to ordinary shareholders 191 69,465,952 0.3 972 67,363,509 1.4
Significant items 77 69,465,952 0.1 - - -
Adjusted profit
per share 268 69,465,952 0.4 972 67,363,509 1.4
Dilutive effect
of options - 5,562,274 - - 6,145,866 -
Diluted profit
per share 191 75,028,226 0.3 972 73,509,375 1.3
Diluted adjusted
profit per share 268 75,028,226 0.4 972 73,509,375 1.3
6. Dividends
No dividend is proposed for the six months ended 30 September
2013 (2012 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
2013
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 GBP132,000.
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
2013 2013 2012
% per annum % per annum % per annum
-------------------------------- --------------- --------------- ---------------
Rate of increase in pensions
in payment 3.10 3.10 2.10
Discount rate 4.80 4.70 4.75
Inflation assumption 3.20 3.20 2.20
Revaluation rate for
deferred pensions 1.90 1.90 1.20
The fair value of the assets in the scheme and the present value
of the liabilities in the scheme are
30 September 31 March 30 September
2013 2013 2012
GBP'000s GBP'000s GBP'000's
----------------------- --------------- ------------ ---------------
Total fair value
of assets 15,291 15,613 15,902
Present value of
scheme liabilities (18,969) (19,153) (17,192)
--------------- ------------ ---------------
(Deficit) in the
scheme (3,678) (3,540) (1,290)
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. 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 ELLFBXLFEFBQ
Real Good Food (LSE:RGD)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Real Good Food (LSE:RGD)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024
