26 Mar 2012 07:00
Date: | 26 March 2012 |
On behalf of: | Finsbury Food Group plc ('Finsbury' or the 'Group') |
Embargoed for 0700hrs | |
Finsbury Food Group plc
Interim ResultsFinsbury Food Group plc (AIM:FIF), a leading manufacturer of cake, bread and morning goods, today announces its interim results for the six months ended 31 December 2011.Financial Highlights
§ Group revenue up £14m (16%) to £102 million (H1 2011: £87.8 million)
§ Profit before tax up £0.3m to £2.2 million (H1 2011: £1.9 million)
§ Sales in the Cake division up 19% to £76.4 million (H1 2011: £64.2 million)
§ Sales in the Bread & Free From division up 8% to £25.6 million (H1 2011: £23.6 million)
§ Net debt down 5% to £34.8 million (H1 2011: £36.8 million)
Operational Highlights
§ Navigated through significant raw material and cost inflation with minimal margin drop from 3.6% (H1: 2011) to 3.4%
§ Key licenses signed for Cake business
§ Significant developments in Free From including new Genius products
§ Continued development delivering growth in brands, such as Vogel's
Commenting on the results, John Duffy, Chief Executive of Finsbury Food Group plc, said:
"We are pleased to be reporting further growth across each of the Finsbury businesses. This is particularly noteworthy considering the pressure we are seeing from high commodity and input price inflation. With this in mind, we are focused on driving both efficiency and productivity to mitigate against the negative margin impact of these pressures, and believe that the measures we are taking will continue to bear fruit.
"Our priority is to further invest in the business to ensure that the growth momentum continues and look forward to both driving further shareholder value and reaching our next sales milestone."
For further information: | |
Finsbury Food Group plc | www.finsburyfoods.co.uk |
John Duffy (Chief Executive) | 029 20 357 500 |
Stephen Boyd (Finance Director) | |
Panmure Gordon | 020 7459 3600 |
Katherine Roe | |
Callum Stewart | |
Redleaf Polhill | finsbury@redleafpolhill.com |
Rebecca Sanders-Hewett | 020 7566 6720 |
Jenny Bahr |
Publication quality photographs are available via Redleaf Polhill on the numbers shown above
Notes to Editors:
§ Finsbury Food Group plc (AIM: FIF), is a leading manufacturer of premium and celebration cakes, low fat cake slices and artisan, organic and gluten free bread and morning goods
§ Finsbury Food Group is the second largest manufacturer of Ambient Packaged Cake (excluding In Store Bakery) in the UK, a market valued at £916m (Source: Kantar Worldpanel Total UK Coverage, 52 we 25th December 2011).
§ The Group is also the market leader in the supply of gluten free baked goods to the UK's multiple grocers
§ The Group's strategy is to generate returns for shareholders by building a crafted bakery group focused on premium, celebration and well being that delivers for customers and consumers. Finsbury continues to develop its licensed brand portfolio to complement its core retailer brand relationships and improve its understanding of and response to changing consumer needs
§ Whilst the Company sees exciting organic growth opportunities in all its businesses and its short-term focus is on integrating and growing its existing businesses, the aim is to take advantage of the appropriate bolt on acquisitions to drive longer term value as opportunities and circumstance allow
Business Review
Total Group revenues at £102 million passed the milestone of £100 million in six months for the first time. This represents organic growth of just over £14 million and an increase of 16% compared with the prior year, a strong performance in the markets we operate within.
The Group experienced growth across each of the Finsbury businesses. Both the UK 'Cake' and 'Bread & Free From' businesses saw strong growth of 10% and 8% respectively. The combination of these businesses accounted for just over half the total Group growth. Lightbody Europe (LBE), the Group's 50% owned subsidiary export business, provided the balance with growth of 167%.
Sales in the Bread & Free From division of £25.6 million represent an increase of 8% on the comparable period last year. This was again driven by strong growth in the fresh gluten free market and the speciality bread market from the Genius / Retailer Brands and the Vogel's brands respectively.
Sales in the larger Cake division (UK and LBE) were up 19% versus the corresponding period last year, with sales of £76.4 million. The UK market and export sales have both shown growth although the former has continued to require increased promotional support to remain competitive and deliver growth in the current marketplace. The LBE growth was a combination of cake and third party brand distribution contract wins.
As communicated previously, the second half and consequently full year growth rates will not be as high as the first half as the Group has now reached the anniversary of last year's new product launches, European contract gains and increased promotional activity levels.
The trading environment remains very tough, with the challenges of a financially squeezed shopper, and stubbornly high commodity and input price inflation. That said, Finsbury is continuing to invest in each of the businesses to further improve operating efficiencies and drive growth through innovation to mitigate against these headwinds. The high first half growth, delivered through both volume and price rises, has complemented the Group's efficiency initiatives to largely offset year on year commodity inflation, although the operating margin percentage was slightly lower than prior year as a consequence.
Development Highlights
The Group has continued to consolidate its position as market leader in Free From bakery with new products ready to launch in the Genius range. Listings have been secured for own label fresh and long life free from products.
The development of brands continue with Vogel's bread growing more than 10.3% and followers of its 'Lovetotoastcommunity' Facebook page now exceeds 8,500.
In Cake we have consolidated our position as the leading licensed celebration cake maker with the signing of key licenses such as Fireman Sam, whilst extending our agreements with strong evergreen licenses such as Peppa Pig and Star Wars.
Trading Results
Group revenue for the 26 weeks to 31 December 2011 was £102.0 million (26 weeks to 1 January 2011: £87.8 million), an increase of £14.2 million (16%) on the corresponding period last year.
Profit before tax and significant non-recurring and other items was £2.2 million (2011: £1.9 million). This was achieved after net finance expense of £1.2 million (2011: £1.3 million).
The tax charge for the period is based on the estimated effective tax rate on profits for the full year of 26%. Adjusted earnings per share were 2.5p (2011: 2.0p). The adjusted diluted earnings per share was 2.4p (2011: 2.0p).
Banking Facilities
The Group's total net debt as at 31 December 2011 was £34.8 million (1 January 2011: £36.8 million) including net borrowings from HSBC Bank Plc and secured loan notes excluding deferred consideration. The total included cash of £63,000 (2011: £1.3 million). The net debt increased slightly from the year end position due to seasonality.
The key features of the current facility, totalling £47.1 million, are as follows:
·; overdraft (£2.75 million)
·; confidential invoice discounting facility (£17.5 million flexible)
·; term loans repayable over six years (£14.2 million)
·; mortgage (£8.2 million)
·; rolling asset finance facility (£4.4 million)
The term loan is linked to LIBOR whilst all other debt is linked to base rate. The effective rate of interest on the debt at 31 December 2011, taking account of interest rate swaps in place and with the base rate at 0.5%, was 5.6% (2011: 5.4%).
Outlook
Group trading in the first eight weeks since the half year continues to be in line with our expectations. Sales in our Cake division were 5% ahead of the same period last year whilst the Bread & Free From division grew by 16%. Group growth in total was 8% as a result. January is typically a weaker sales month following the Christmas period.
In line with previous years trends, we expect our profitability to be higher in the second half, partly as a result of higher Easter seasonal sales.
As mentioned previously, we do not expect any respite in commodity or general cost inflation in the near term. We continue to plan our business appropriately in this context, working on internal efficiency and productivity initiatives to minimise the price rises required to offset inflation.
Whilst the consumer and inflationary environment remains difficult to predict, we continue to see new product growth opportunities within our businesses and the business' expectations for the full year are in line with our previous guidance.
Our task remains to trade through these tough times, stay within banking covenants, retain shareholder value and maintain recent growth trends to reach the next milestone of annual sales of over £200m.
Consolidated Statement of Comprehensive Income (unaudited)
26 weeks ended 31 December 2011 |
26 weeks ended 1 January 2011 |
52 weeks ended 2 July 2011 | |||||
Unaudited | Unaudited | Audited | |||||
£'000 | £'000 | £'000 | |||||
Notes | |||||||
Revenue | 102,014 | 87,822 | 189,575 | ||||
Cost of sales | (75,959) | (63,917) | (138,478) | ||||
Gross profit | 26,055 | 23,905 | 51,097 | ||||
Administrative expenses | (22,612) | (20,745) | (42,581) | ||||
Results from operating activities | 3,443 | 3,160 | 8,516 | ||||
Net financing expense | 4 | (1,220) | (1,298) | (2,677) | |||
Profit before taxation | 2,223 | 1,862 | 5,839 | ||||
Taxation | (579) | (521) | (1,465) | ||||
Profit after tax before significant non-recurring and other items |
1,644 |
1,341 |
4,374 | ||||
Significant non-recurring and other items: | |||||||
Administrative expenses | - | (32) | - | ||||
Financial expense | 4 | - | - | (42) | |||
Share option charge | 3 | (306) | (69) | (73) | |||
Defined benefit pension scheme -administration costs |
- |
- |
11 | ||||
Defined benefit pension scheme - financial income net of expenses |
4 |
- |
- |
222 | |||
Movement in fair value swaps | 4 | (35) | 570 | 564 | |||
Movement in fair value foreign exchange contracts |
141 |
(111) |
(316) | ||||
Fair value adjustments relating to acquisitions |
4 |
(83) |
(146) |
(252) | |||
Taxation relating to above items | 74 | (80) | 48 | ||||
Total significant non-recurring and other items |
(209) |
132 |
162 | ||||
Profit after taxation | 1,435 | 1,473 | 4,536 | ||||
Other comprehensive income | |||||||
Actuarial loss on defined benefit pension scheme net of deferred taxation |
- |
- |
1,646 | ||||
Foreign exchange translation differences | (152) | - | 207 | ||||
Other comprehensive income, net of income tax |
(152) |
- |
1,853 | ||||
Total comprehensive income | 1,283 | 1,473 | 6,389 | ||||
Profit attributable to: | |||||||
Equity holders of the parent | 1,129 | 1,190 | 4,001 | ||||
Non-controlling interest | 306 | 283 | 535 | ||||
Profit for the financial period | 1,435 | 1,473 | 4,536 | ||||
Total comprehensive income attributable to: | |||||||
Equity holders of the parent | 977 | 1,190 | 5,854 | ||||
Non-controlling interest | 306 | 283 | 535 | ||||
Profit for the financial period | 1,283 | 1,473 | 6,389 |
Consolidated Statement of Financial Position (unaudited)
Unaudited |
Unaudited |
Audited | ||||
31 December | 1 January | 2 July | ||||
2011 | 2011 | 2011 | ||||
Notes | £000 | £000 | £000 | |||
Non-current assets | ||||||
Goodwill | 61,892 | 62,057 | 61,892 | |||
Property, plant & equipment | 25,561 | 25,743 | 25,349 | |||
Other financial assets | 28 | 25 | 28 | |||
Deferred tax assets | 852 | 1,593 | 874 | |||
| 88,333 | 89,418 | 88,143 | |||
Current assets | ||||||
Inventories | 6,453 | 5,334 | 5,844 | |||
Trade and other receivables | 30,355 | 26,786 | 29,929 | |||
Cash and cash equivalents | 6 | 63 | 1,265 | 4,545 | ||
Other financial assets - fair value of foreign exchange contracts |
24 |
88 |
- | |||
36,895 | 33,473 | 40,318 | ||||
Total assets | 125,228 | 122,891 | 128,461 | |||
Current liabilities | ||||||
Other interest bearing loans and borrowings | 6 | (14,631) | (16,992) | (15,627) | ||
Trade and other payables | (35,232) | (31,353) | (35,163) | |||
Dividend | (499) | - | - | |||
Provisions | (448) | (436) | (532) | |||
Deferred purchase consideration | 7 | (2,677) | (1,693) | (4,117) | ||
Other financial liabilities - interest rate swaps | (2,069) | (2,027) | (2,151) | |||
Current tax liabilities | (314) | (910) | (1,287) | |||
(55,870) | (53,411) | (58,877) | ||||
Non-current liabilities | ||||||
Other interest-bearing loans and borrowings | 6 | (19,652) | (20,364) | (21,064) | ||
Provisions and other liabilities | (228) | (491) | (242) | |||
Deferred purchase consideration | 7 | (209) | (2,742) | (204) | ||
Deferred tax liabilities | (1,534) | (1,606) | (1,550) | |||
Pension fund liability | (1,172) | (3,629) | (1,172) | |||
(22,795) | (28,832) | (24,232) | ||||
| ||||||
Total liabilities | (78,665) | (82,243) | (83,109) | |||
| ||||||
Net assets | 46,563 | 40,648 | 45,352 | |||
Equity attributable to equity holders of the parent | ||||||
Share capital | 8 | 534 | 528 | 528 | ||
Share premium account | 27,033 | 26,918 | 26,918 | |||
Capital redemption reserve | 578 | 578 | 578 | |||
Retained earnings | 17,800 | 11,849 | 16,517 | |||
Total shareholders' equity | 45,945 | 39,873 | 44,541 | |||
Minority interest | 618 | 775 | 811 | |||
Total equity | 46,563 | 40,648 | 45,352 | |||
Consolidated Statement of Changes in Equity (unaudited)
for the 26 weeks ended 31 December 2011
Note | Share Capital | Share premium | Capital redemption reserve | Retained earnings | Non-controlling interest | Total equity | ||
£000 | £000 | £000 | £000 | £000 | £000 | |||
|
|
|
|
| ||||
Balance at 4 July 2010 | 527 | 26,918 | 578 | 10,590 | 492 | 39,105 | ||
Profit for the 26 weeks ended 1 Jan 2011 | - | - | - | 1,190 | 283 | 1,473 | ||
Total comprehensive income for the period | - | - | - | 1,190 | 283 | 1,473 | ||
|
|
|
|
|
| |||
Transactions with owners, recorded directly in equity: | ||||||||
Shares issued during the period | 1 | - | - | - | - | 1 | ||
Impact of share based payments | - | - | - | 69 | - | 69 | ||
Balance at 1 January 2011 | 528 | 26,918 | 578 | 11,849 | 775 | 40,648 | ||
Balance at 2 January 2011 | 528 | 26,918 | 578 | 11,849 | 775 | 40,648 | ||
Profit for the 26 weeks ended 2 July 2011 | - | - | - | 2,811 | 252 | 3,063 | ||
Other comprehensive income/(expense): | ||||||||
Actuarial gain on defined benefit pension plan | - | - | - | 2,224 | - | 2,224 | ||
Deferred tax movement on pension scheme actuarial gain |
- |
- |
- |
(578) |
- |
(578) | ||
Foreign exchange translation differences | - | - | - | 207 | - | 207 | ||
|
|
|
|
|
| |||
Other comprehensive expense | - | - | - | 1,853 | - | 1,853 | ||
Total comprehensive income for the period | - | - | - | 4,664 | 252 | 4,916 | ||
|
|
|
|
|
| |||
Transactions with owners, recorded directly in equity: | ||||||||
Shares issued during the period | - | - | - | - | - | - | ||
Impact of share based payments | - | - | - | 4 | - | 4 | ||
Dividend paid | - | - | - | - | (216) | (216) | ||
Balance at 2 July 2011 | 528 | 26,918 | 578 | 16,517 | 811 | 45,352 | ||
Balance at 3 July 2011 | 528 | 26,918 | 578 | 16,517 | 811 | 45,352 | ||
Profit for the 26 weeks ended 31 December 2011 |
- |
- |
- |
1,129 |
306 |
1,435 | ||
Total comprehensive income for the period | - | - | - | 1,129 | 306 | 1,435 | ||
|
|
|
|
|
| |||
Transactions with owners, recorded directly in equity: | ||||||||
Shares issued during the period | 8 | 6 | 115 | - | - | - | 121 | |
Impact of share based payments | 3 | - | - | - | 306 | - | 306 | |
Foreign exchange translation differences | - | - | - | (152) | - | (152) | ||
Dividend declared | 9 | - | - | - | - | (499) | (499) | |
Balance at 31 December 2011 | 534 | 27,033 | 578 | 17,800 | 618 | 46,563 | ||
|
|
|
|
|
| |||
Consolidated Cash Flow Statement (unaudited)
Unaudited 26 weeks ended | Unaudited 26 weeks ended | Audited 52 weeks ended | |||||
31 December 2011 | 1 January 2011 | 2 July 2011 | |||||
Note | £000 | £000 | £'000 | ||||
Cash flows from operating activities | |||||||
Profit for the period | 1,435 | 1,473 | 4,536 | ||||
Adjustments for: | |||||||
Taxation | 505 | 601 | 1,417 | ||||
Finance expenses | 4 | 1,338 | 874 | 2,185 | |||
Depreciation | 1,487 | 1,447 | 2,848 | ||||
Amortisation of intangibles | - | - | 165 | ||||
Loss on disposal of plant and equipment | - | - | 8 | ||||
Movement in fair value foreign exchange contracts | (141) | 111 | 316 | ||||
Share options charge | 3 | 306 | 69 | 73 | |||
Current service cost element of pension scheme | - | 104 | - | ||||
Contributions by employer to pension scheme | - | (104) | (11) | ||||
Operating profit before changes in working capital | 4,930 | 4,575 | 11,537 | ||||
Changes in working capital | |||||||
Increase in inventories | (692) | (803) | (1,232) | ||||
Increase in trade and other receivables | (845) | (2,799) | (5,648) | ||||
Increase in trade and other payables | 328 | 3,740 | 7,030 | ||||
Cash generated from operations | 3,721 | 4,713 | 11,687 | ||||
Interest paid | (1,190) | (1,338) | (2,505) | ||||
Corporation taxes paid | (1,469) | (671) | (1,043) | ||||
Net cash generated from operating activities | 1,062 | 2,704 | 8,139 | ||||
Cash flows from investing activities | |||||||
Purchase of property, plant & equipment | (1,699) | (1,209) | (2,224) | ||||
Purchase of subsidiary companies | (1,520) | (1,740) | (1,960) | ||||
Increase in investment | - | - | (3) | ||||
Net cash used in investing activities | (3,219) | (2,949) | (4,187) | ||||
Cash flows from financing activities | |||||||
Drawdown/(repayment) of invoice discounting | (1,442) | 1,050 | 1,490 | ||||
Repayment of current bank loans | (702) | (1,874) | (3,065) | ||||
Repayment of loan notes | - | - | (33) | ||||
(Repayment)/drawdown of asset finance facilities | (240) | (470) | (459) | ||||
Issue of ordinary share capital | 121 | 1 | 1 | ||||
Minority interest dividend paid | - | - | (216) | ||||
Net cash used by financing activities | (2,263) | (1,293) | (2,282) | ||||
Net (decrease)/increase in cash and cash equivalents | (4,420) | (1,538) | 1,670 | ||||
Opening cash and cash equivalents | 4,545 | 2,803 | 2,803 | ||||
Effect of exchange rate fluctuation | (62) | - | 72 | ||||
Cash and cash equivalents at end of the period | 63 | 1,265 | 4,545 |
NOTES TO THE FINANCIAL STATEMENTS
1) BASIS OF PREPARATION
The interim report, which is unaudited, does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006. The comparative figures for the financial year ended 2 July 2011 have been extracted from the statutory accounts for that year. Those accounts, which were prepared in accordance with International Financial Reporting Standards as adopted by the EU ("adopted IFRSs"), have been reported on by the company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
It should be noted that current liabilities continue to exceed current assets. Having reviewed the Group's plans the Board has reasonable expectations that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group has strong asset backing and strong debtor book. Accordingly, the Board continues to adopt the going concern basis in preparing the financial statements.
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2) SEGMENT INFORMATION
IFRS 8 'Operating Segments' requires that operating segments be identified on the basis of internal reporting and decision making. The Group's Chief Operating Decision Maker is considered to be the Board of Directors as they are primarily responsible for the allocation of resources to segments and the assessment of performance by segment.
The Board uses operating profit, reviewed on a regular basis, as the key measure of the segments' performance. Operating profit in this instance is defined as profit before the following:
Ø net financing expense Ø share option charges Ø non-recurring significant items Ø fair value adjustments relating to acquisitions Ø pension charges or credits in relation to the difference between the expected return on pension assets and interest cost on pension liabilities and Ø revaluation of interest rate swaps and forward foreign currency contracts.
The Group's operating segments remain unchanged from the financial year ended 2 July 2011 and consist of 'Cake', 'Bread & Free From' and 'Group Operations'.
Group Operation costs plus a 10% premium have been allocated across the segments on the basis of their operating profit. The premium has been charged to reflect the synergies achieved from obtaining resources centrally giving benefits across the operating segments. Operating profit levels have been chosen as the basis, as this reflects the underlying performance of the segment and is also the return the Group expects from those segments.
A purchasing premium of 2% is charged from Group Operations and is calculated on materials and packaging spend at segmental level. This charge is based on the rationale that Group Operations, through its Group buyers, optimises the Group's procurement spend through leveraging its purchasing power.
This has resulted in a profit of £0.9m (2011: £0.8m) being presented within Group Operations segment.
The Group's finance income and expenses cannot be meaningfully allocated to the individual operating segments.
NOTES TO THE FINANCIAL STATEMENTS continued
2) SEGMENT INFORMATION continued
Analysis of unallocated assets and liabilities:
There are no inter-segmental sales. Certain operating costs have been incurred centrally, these costs have been allocated to the reporting segments on an appropriate basis. Group Operations profit comprises the central costs premium and a purchasing premium charged to the manufacturing operations.
NOTES TO THE FINANCIAL STATEMENTS continued
2) SEGMENT INFORMATION continued
Analysis of unallocated assets and liabilities:
There are no inter-segmental sales. Certain operating costs have been incurred centrally, these costs have been allocated to the reporting segments on an appropriate basis. Group Operations profit comprises the central costs premium and a purchasing premium charged to the manufacturing operations.
NOTES TO THE FINANCIAL STATEMENTS continued
2) SEGMENT INFORMATION continued
Analysis of unallocated assets and liabilities:
There are no inter-segmental sales. Certain operating costs have been incurred centrally, these costs have been allocated to the reporting segments on an appropriate basis. Four customers with sales of £43m, £41m, £25m, £20m and £20m account for 79% of revenue, which is attributable to the 'Cake' and 'Bread & Free From' segments above. Group Operations profit comprises the central costs premium and a purchasing premium charged to the manufacturing operations.
NOTES TO THE FINANCIAL STATEMENTS continued
3) SHARE BASED PAYMENTS
The Company operates both approved and unapproved share option schemes. Following the adoption of IFRS2 'Share-based payments' charges have been made to the Income Statement to reflect the calculated fair value of employee share options. The cost is calculated at the date of grant and is charged equally over the vesting period. The corresponding adjustment is made to reserves.
During the 26 weeks to 31 December 2011 7,001,349 options were granted. The fair value of options granted during the period was £589,000. The comparative estimated fair values of options granted for the 26 weeks to 1 January 2011 and for the year ended 2 July 2011 were £316,000 and £193,000.
Significant non-recurring and other items include a charge of £306,000 in relation to the fair value of share options for the 26 weeks ended 1 January 2011. The comparative charges for the 26 weeks to 1 January 2011 and for the year ended 2 July 2011 were £69,000 and £73,000 respectively.
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4) FINANCE INCOME AND EXPENSES
The Group has entered into four interest rate swap arrangements to hedge its risks associated with interest rate fluctuations: £11.0m (reducing to £3.5m) over five years from 23 February 2007 at 5.8% £5.0m for five years from 1 May 2008 (fixed) at 5.5% £10.0m for four years from 1 June 2010 (fixed) at 4.9% £5.0m for five years from 1 July 2011 (fixed) at 3.6%
On 21 February 2012 the Group entered into two forward dated swaps: £3.0m for four years from 25 May 2013 at 1.65% £6.0m for three years from 2 June 2014 at 1.89%
These arrangements do not meet the conditions necessary for hedge accounting to be applied and, therefore, changes in their fair value are recognised immediately in the income statement resulting in a charge of £35,000 (2011: credit £570,000).
NOTES TO THE FINANCIAL STATEMENTS continued
5) EARNINGS PER ORDINARY SHARE
Basic earnings per share for the period is calculated on the basis of profit for the period after tax, divided by the weighted average number of shares in issue 53,341,056 (1 January 2011: 52,704,400 and 2 July 2011: 52,746,000).
An adjusted earnings per share 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. These adjusted earnings per share exclude reorganisation and other exceptional costs, IAS 39 "Financial Instruments: Recognition and Measurement" fair value adjustment relating to the Group's interest rate swaps and IFRS 3 "Business Combinations" discount charge relating to the deferred consideration payable for Livwell Ltd, Anthony Alan Foods Ltd and Yorkshire Farm Bakery and A&P Foods. The effect of taxation at the appropriate rate is shown as a separate adjustment. |
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NOTES TO THE FINANCIAL STATEMENTS continued
6) ANALYSIS OF NET DEBT
7) ANALYSIS OF DEFERRED CONSIDERATION
8) SHARE CAPITAL
There were 571,428 shares issued during the period (2011: 100,000 shares). On 8 July 2011 Stephen Boyd, Group Finance Director, subscribed for 476,190 new ordinary shares in the Company (0.89% of the enlarged share capital). Crawford Currie, Lightbody Cake subsidiary Finance Director, also subscribed for 95,238 new ordinary shares in the Company (0.18% of the enlarged share capital), each at 21 pence per share, as part of their remuneration arrangements.
9) DIVIDEND
Lightbody Stretz Limited approved a dividend on 28 December 2011 of which 50% is payable to the non-controlling interest in Lightbody Stretz Ltd.
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