TIDMRGD
RNS Number : 0783A
Real Good Food PLC
18 December 2014
Real Good Food plc (AIM: RGD)
Interim Results for the six months to 30 September 2014
Real Good Food Company plc ("the Group") is a diversified food
business, serving a number of market sectors including retail,
manufacturing, wholesale, foodservice and export. The Group is a
major distributor of sugar in the UK through its Napier Brown
subsidiary, and manufactures a wide range of baking ingredients,
jams and sweet bakery products. Its brands include Whitworths
Sugar, Renshaw and R&W Scott.
KEY POINTS
Six months Six months
to 30 September to 30 September
2014 2013
GBP'000s GBP'000s
Revenue 128,666 130,144
EBITDA (2,981) 2,205
Continuing (loss)/profit
before taxation
and significant
items (5,217) 111
(Loss)/Earnings
per share
Basic: adjusted (6.8)p 0.4p
Diluted: adjusted (6.8)p 0.4p
Working capital
(Fixed Assets/Stock/Trade
Debtors, Trade
Creditors & Tax) 47,244 49,066
Net borrowings
(Including Cash) 36,317 31,775
-- Headline EBITDA performance is dominated by the British Sugar
dispute, but this masks the fact that, in the first six months of
low "offseason" trading, the rest of the Group* has increased
EBITDA significantly to GBP0.9m (2013: GBP0.2m), a fourfold
increase, driven by improvements in Renshaw and at Haydens
Bakery
-- Excluding Napier Brown and Garrett Ingredients, the rest of
the Group's* revenue grew by approximately 9% to GBP40.2m
reflecting the growth and development plans in place
-- The dispute with British Sugar adversely impacted the results
of Napier Brown and Garrett Ingredients in second half of financial
year to March 2014 and in the six month period under review. In
each of these six month periods underlying EBITDA in sugar has been
a loss of GBP3m. However since the start of the new sugar contract
year in October, Napier Brown has returned to profitability.
-- Reduction in working capital at GBP47.2m (2013: GBP49.1m)
reflects drive to reduce inventory levels and to achieve a better
balance in sales and purchase terms in sugar
-- Increase in net debt to GBP36.3m (2013: GBP31.8m) reflects
the reduced profitability, offset by the reduction in working
capital. Group has facilities in place to manage this level and has
maintained cash levels in line with its requirements. The September
level reflects the normal seasonal pattern and will reduce in the
coming months due to normal seasonality and significantly reduced
sugar prices.
*rest of Group includes Renshaw, R&W Scott, Haydens Bakery,
RGFE and central costs
Pieter Totté, Executive Chairman, comments:
"After suffering the impact of our pricing dispute with British
Sugar, we are pleased by the start we have made to the new sugar
contract year in October, since when our Napier Brown business has
returned to profitability. At the same time, Renshaw and Haydens
Bakery have made excellent progress and are trading significantly
ahead of the prior year.
"Elsewhere, our new management teams at Garrett Ingredients and
R&W Scott are successfully driving these businesses and we
expect to see improved trading during the course of 2015. Real Good
Food Europe in Brussels has the infrastructure to build our
international activities and is delivering strong sales growth.
"Trading across the whole Group has been ahead of last year
during October and November, with Renshaw and Haydens Bakery
continuing to lead the way, and we look forward to a strong
performance during the key Christmas period. We remain confident
about the prospects for the Group and are working on a number of
new corporate initiatives, with a focus on delivering value to
shareholders."
18 December 2014
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
(Nomad and Joint Broker) 4090
Stephane Auton
Patrick Castle
Daniel Stewart and Company Tel: 020 7776
Plc 6550
(Joint Broker)
Martin Lampshire
Cubitt Consulting Tel: 020 7367
5100
Gareth David
DIVISIONAL REVIEWS
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.
After the difficulties of the last sugar contract year, which
are reflected in these numbers, the business has now returned to a
more normal trading pattern, albeit in a very difficult market. The
business has entered the new sugar contract year in October with
reduced industrial volumes, as it was decided not to chase
unprofitable sales contracts.
The business is, however, in a much stronger position in retail,
being the lead supplier to both Asda and Sainsbury's, where the
investment in brand and category management has paid dividends. An
overhead reduction plan has also been implemented.
Renshaw (Bakery Ingredients)
Liverpool-based Renshaw is a leading manufacturer and supplier
of high quality food ingredients, primarily to the baking sector,
both in the UK and for export. The business has a strong reputation
for quality, consistency and innovation.
Revenue showed double digit growth in the first half of the
current financial year, with 25% of sales being exported. Besides
Europe and America, new business was also won in Australia. UK
retail sales were strong across all accounts, with coloured
sugarpastes proving popular and a number of new modelling pastes
and coloured marzipans launched.
The critical Christmas sales period has so far been very strong,
with record levels of volume being produced in the Liverpool
factory during November. The factory has managed this volume uplift
successfully and the immediate outlook remains positive.
Real Good Food Europe (European Sales)
Real Good Food Europe sells, markets and distributes products
from RGF UK companies across Europe. It operates from a warehouse
and office in Brussels.
Real Good Food Europe in Brussels has moved to new premises,
including a small warehouse, in order to deliver an increased level
of customer service. The business has already reached an annualised
turnover run-rate of more than EUR2.5 million. The majority of the
sales are currently of Renshaw products, some of which (e.g.
Speculoos sugarpaste and coloured marzipans) are being tailored to
meet local market tastes.
R&W Scott (Bakery Ingredients and Jam)
R&W Scott is based at Carluke near Glasgow and produces
chocolate coatings and sauces, jams and dry powder blends for the
industrial, retail, wholesale and foodservice markets.
The business has achieved a breakthrough in its jams business,
with a major new wholesale customer which will generate a level of
scale from which it can build. Meanwhile it continues to develop
added value offerings within its branded ranges, as it seeks to
re-balance its product portfolio.
Garrett Ingredients (Sugar and Dairy)
Based at Thornbury, near Bristol, Garrett Ingredients 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.
Along with Napier Brown, Garrett also suffered in the last sugar
contract year from the pricing dispute and historically low sugar
prices. Since October, however, volumes have improved in sugar. The
Dairy market has also been volatile, leading to difficult trading
conditions, but the business is working on broadening its product
range into more added-value areas and is developing a number of
exclusive distributorships.
Haydens Bakery (Patisserie and Desserts)
Haydens Bakery at Devizes in Wiltshire 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.
This business has continued to improve its profitability and its
product range has been significantly simplified, with a decision to
withdraw from a number of unprofitable lines. At the same time the
customer base has been extended to include Asda, Aldi, Caffè Nero
and Morrisons, all focusing on core product capabilities. It is
clear that this new business model is working well and will
continue to show benefits.
CASH FLOW AND DEBT
Despite the difficult trading environment, the Group has
continued to focus on cash management, with working capital reduced
by GBP1.8m to GBP47.2m at 30 September 2014. This has been achieved
by reducing stock levels by GBP1.5m compared to September 2013 and
better customer/supplier trading terms along with a reduced capital
program following the strategic investment made last year in the
sugar hub.
Although Net Debt was up by GBP4.5m at GBP36.3m compared to
September 2013, with the recent substantial (approximately 25%)
reduction in sugar prices and our normal business seasonality this
will reduce significantly in the coming months. Of the GBP36.3m net
debt position GBP7.5m are long term loans. The group retains
sufficient headroom within its banking facilities.
IN SUMMARY
After suffering the impact of our pricing dispute with British
Sugar, we are pleased by the start we have made to the new sugar
contract year in October, when our Napier Brown business has
returned to profitability. At the same time, Renshaw and Haydens
Bakery have made excellent progress and are trading significantly
ahead of the prior year.
Elsewhere, our new management teams at Garrett Ingredients and
R&W Scott are successfully driving those businesses and we
expect to see improved trading during the course of 2015. Real Good
Food Europe in Brussels has the infrastructure to build our
international activities and is delivering strong sales growth.
Trading across the whole Group has been ahead of last year
during October and November, with Renshaw and Haydens Bakery
continuing to lead the way, and we look forward to a strong
performance during the key Christmas period. We remain confident
about the prospects for the Group and are working on a number of
new corporate initiatives, with a focus on delivering value to
shareholders.
Pieter Totté
Executive Chairman
18 December 2014
REAL GOOD FOOD PLC
INDEPENDENT REVIEW REPORT TO REAL GOOD FOOD PLC FOR THE
SIX MONTHS TO 30 SEPTEMBER 2014
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 2014, 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 2014 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
REAL GOOD FOOD PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX
MONTHS ENDING 30 SEPTEMBER 2014 (UNAUDITED)
Notes Six Months Ended 30 September Six Months Ended 30 September
2014 2013
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 128,666 - 128,666 130,144 - 130,144
Cost of sales (114,545) - (114,545) (113,854) - (113,854)
------------- ------------ ---------- ------------- ------------ ----------
Gross profit 14,121 - 14,121 16,290 - 16,290
Distribution
costs (8,066) - (8,066) (6,091) - (6,091)
Administration
expenses (10,394) - (10,394) (9,270) (98) (9,368)
Operating (loss)
profit (4,339) - (4,339) 929 (98) 831
Finance costs (723) - (723) (737) - (737)
Net pension finance
income (155) - (155) (81) - (81)
------------- ------------ ---------- ------------- ------------ ----------
(Loss)/Profit
before taxation (5,217) - (5,217) 111 (98) 13
Taxation 506 - 506 157 21 178
------------- ------------ ---------- ------------- ------------ ----------
(Loss)/Profit
from continuing
operations (4,711) - (4,711) 268 (77) 191
============= ============ ========== ============= ============ ==========
(Loss)/Profit
for the period
attributable to
the equity holders
of the parent (4,711) - (4,711) 268 (77) 191
------------- ------------ ---------- ------------- ------------ ----------
Other comprehensive
income
Actuarial losses
on defined benefit
plans (1,096) - (1,096) (189) - (189)
Income tax relating
to components
of other comprehensive
income 219 - 219 38 - 38
Total comprehensive
(loss)/income
for the period (5,588) - (5,588) 117 (77) 40
============= ============ ========== ============= ============ ==========
Basic (loss)/profit
per share 5 (6.8)p - (6.8)p 0.4p - 0.3p
Diluted profit
per share 5 (6.8)p - (6.8)p 0.4p - 0.3p
REAL GOOD FOOD PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER
2014
(UNAUDITED)
30 Sept 31 Mar 30 Sept
2014 2014 2013
GBP'000s GBP'000s GBP'000s
ASSETS
NON CURRENT ASSETS
Goodwill 75,796 75,796 75,796
Intangibles 931 1,102 1,325
Property, plant and
equipment 21,726 22,291 20,047
Deferred tax asset 2,064 1,319 1,368
--------- --------- ---------
100,517 100,508 98,536
--------- --------- ---------
CURRENT ASSETS
Inventory 17,629 19,108 19,125
Trade and other receivables 35,510 34,260 31,733
Current tax assets 412 641 -
Other financial assets 181 499 -
Cash and cash equivalents 4,433 8,568 3,301
--------- --------- ---------
58,165 63,076 54,159
--------- --------- ---------
Total Assets 158,682 163,584 152,695
--------- --------- ---------
LIABILITIES
CURRENT LIABILITIES
Borrowings 33,295 31,221 26,018
Trade and other payables 28,781 29,820 23,158
Current tax liabilities - - 6
Other financial liabilities 181 499 -
--------- --------- ---------
62,257 61,540 49,182
--------- --------- ---------
NON CURRENT LIABILITIES
Borrowings 7,455 8,480 9,058
Trade and other payables 183 191 -
Deferred tax 2,720 2,686 2,567
Retirement benefit
obligations 4,659 3,673 3,678
--------- --------- ---------
15,017 15,030 15,303
========= ========= =========
Net Assets 81,408 87,014 88,210
========= ========= =========
SHAREHOLDERS' EQUITY
Issued share capital 1,392 1,389 1,389
Share premium account 71,271 71,244 71,244
Share option reserve 456 504 605
Retained earnings 8,289 13,877 14,972
--------- --------- ---------
Total Equity 81,408 87,014 88,210
========= ========= =========
REAL GOOD FOOD PLC
STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDING 30
SEPTEMBER 2014 (UNAUDITED)
Issued Share Share Total
Share Premium Option Retained
Capital Account reserve Earnings
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
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
========= ========= ========= =========== =========
Balance at 1 April
2014 1,389 71,244 504 13,877 87,014
Shares issued in
the period 3 27 - - 30
Shares to be issued
(net of deferred
tax) - - (48) - (48)
Total comprehensive
loss for the period - - - (5,588) (5,588)
Balances as at 30
September 2014 1,392 71,271 456 8,289 81,408
========= ========= ========= =========== =========
REAL GOOD FOOD PLC
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDING 30 SEPTEMBER
2014 (UNAUDITED)
6 months 6 months
to to
30 Sept 30 Sept
2014 2013
GBP'000s GBP'000s
CASH FLOW FROM OPERATING ACTIVITIES
(Loss)/Profit for the period
before taxation (5,217) 13
Adjusted for:
Finance costs 723 737
Other finance income 155 81
Depreciation of property,
plant & equipment 1,187 1,156
Amortisation of intangibles 171 120
Operating Cash Flow (2,981) 2,107
Decrease /(Increase) in
inventories 1,479 (4,088)
(Increase) in receivables (1,250) (1,520)
Pension contributions (265) (132)
(Decrease)/Increase in payables (1,017) 1,876
---------- ----------
Cash outflow from operations (4,034) (1,757)
Income taxes received /(paid) 165 (778)
Interest paid (723) (737)
---------- ----------
Net cash outflow from operating
activities (4,592) (3,272)
---------- ----------
CASH FLOW FROM INVESTING
ACTIVITIES
Purchase of intangible assets - (33)
Purchase of property, plant
& equipment (622) (3,518)
---------- ----------
Net cash used in investing
activities (622) (3,551)
---------- ----------
CASH FLOW FROM FINANCING
ACTIVITIES
Shares issued 30 -
Additional loans - 1,120
Repayment of loans (919) (946)
Net movements on revolving
credit facilities 2,028 2,816
Repayment of obligations
under finance leases (60) -
Net cash used in financing
activities 1,079 2,990
---------- ----------
NET DECREASE IN CASH AND
CASH EQUIVALENTS (4,135) (3,833)
========== ==========
CASH AND CASH EQUIVALENTS
Cash and cash equivalents
at beginning of period 8,568 7,134
Net movement in cash and
cash equivalents (4,135) (3,833)
---------- ----------
Cash and cash equivalents
at balance sheet date 4,433 3,301
========== ==========
Cash and cash equivalents
comprise:
Cash 4,433 3,301
4,433 3,301
========== ==========
REAL GOOD FOOD PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2014
1. General Information
Real Good Food 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 International House, 1
St Katharine's Way, London, E1W 1XB. 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
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 19 Amendment: Defined Benefit Plans: Employee
Contributions
IFRS 10 and IAS 28 Amendments: Sale of Contribution of Assets
between an Investor and its Associate
or Joint Venture
IAS 27 Amendment: Equity Method in Separate Financial Statements
IAS 16 and IAS 41 Amendments: Agriculture Bearer Plants
IFRS14 Regulatory Deferral Accounts
IAS 16 and IAS 38 Amendments: Clarification of Acceptable
Methods of Depreciation and Amortisation
IFRS 11 Amendments: Accounting for Acquisitions of Interests in
Joint Operations
IFRS15 Revenue from Contracts with Customers
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. The adoptions may affect disclosures in the
group's 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.
During the six months to September 2014 significant costs of GBPNil
have been incurred relating to management restructuring. GBP98k
significant items are reported in the six months to 30 September
2013.
REAL GOOD FOOD PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2014
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
2014
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 83,108 11,706 22,143 5,117 13,481 864 136,419 - 136,419
Revenue -
internal (5,266) (1,033) (778) (676) - - (7,753) - (7,753)
External
revenue 77,842 10,673 21,365 4,441 13,481 864 128,666 - 128,666
Operating
(loss)/profit
before Head
Office (4,432) 273 2,001 (270) 77 (235) (2,586) - (2,586)
Head office
and
unallocated - - - - - - (1,753) - (1,753)
Finance costs
(net
of interest
received) (402) (51) (182) (28) (60) - (723) - (723)
Pension
finance
costs - - - - - - (155) - (155)
(Loss)/Profit
before
tax (4,834) 222 1,819 (298) 17 (235) (5,217) - (5,217)
Tax 483 (22) (181) 30 (2) 23 331 331
Tax
unallocated - - - - - - 175 - 175
(Loss)/Profit
after
tax as per
statement
of
comprehensive
income (4,351) 200 1,638 (268) 15 (212) (4,711) - (4,711)
============ ========= ========= ========= ========== ========= ============ ============ ============
Inter-segment sales are charged at prevailing market rates.
REAL GOOD FOOD PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2014
4. Segment reporting (continued)
As at 30 SEPTEMBER Total
2014 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 48,420 8,704 77,169 9,454 10,612 400 154,759
Unallocated assets
Property, plant
and equipment 614
Current tax
asset 412
Deferred tax
assets 2,064
Trade and other
receivables 833
---------
Total assets 158,682
---------
Segment liabilities (39,852) (3,856) (13,449) (4,716) (6,109) (34) (68,016)
Unallocated liabilities
Trade and other
payables (388)
Borrowings (6,150)
Deferred tax
liabilities (2,720)
Total liabilities (77,274)
Net operating
assets 8,568 4,848 63,720 4,738 4,503 366 81,408
========= ========= ========= ========== ========= ========= =========
Non current asset
additions 122 6 195 13 286 - 622
Depreciation 219 3 431 106 403 - 25 1,187
Amortisation 45 15 97 14 - - - 171
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.
REAL GOOD FOOD PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2014
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 69,568,996 (2013
69,465,952).
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 2014 September 2013
Weighted Per Weighted
Average share Average Per share
Earnings No. amount Earnings No. of amount
GBP'000s of shares pence GBP'000s shares pence
(Loss)/Profit
attributable
to ordinary shareholders (4,711) 69,568,996 (6.8) 191 69,465,952 0.3
Significant items - 69,568,996 - 77 69,465,952 0.1
Adjusted (loss)/profit
per share (4,711) 69,568,996 (6.8) 268 69,465,952 0.4
Dilutive effect
of options - 4,627,098 - - 5,562,274 -
Diluted (loss)/profit
per share* (4,711) 74,196,094 (6.8) 191 75,028,226 0.3
Diluted adjusted
(loss)/profit per
share * (4,711) 74,196,094 (6.8) 268 75,028,226 0.4
*As the group is loss making in the year under review the
diluted earnings per share is the same as basic earnings per
share
6. Dividends
No dividend is proposed for the six months ended 30 September
2014 (2013 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.
REAL GOOD FOOD PLC
NOTES TO THE INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2014
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 GBP265,000.
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
2014 2014 2013
% per annum % per annum % per annum
-------------------------------- --------------- --------------- ---------------
Rate of increase in pensions
in payment 3.00 3.20 3.10
Discount rate 4.15 4.65 4.80
Inflation assumption 3.10 3.30 2.20
Revaluation rate for
deferred pensions 2.10 2.20 1.90
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
2014 2014 2013
GBP'000s GBP'000s GBP'000's
------------------------------ --------------- ------------ ---------------
Total fair value of assets 15,425 15,360 15,291
Present value of scheme
liabilities (20,084) (19,033) (18,969)
--------------- ------------ ---------------
(Deficit) in the scheme (4,659) (3,673) (3,678)
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 RGF are seasonal, creating a
large proportion of their EBITDA in the October to December
period.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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