Last checked at 11 Aug 2009 07:00
11 August 2009
GREGGS plc
INTERIM RESULTS FOR THE 26 WEEKS ENDED 27 JUNE 2009
Greggs is the leading bakery retailer in the UK, with some 1,400 retail outlets throughout the country.
* 2008 figures are for the 26 weeks to 28 June 2008, rather than the 24 weeks to 14 June 2008 originally reported, and exclude a £1.0m one-off property gain and £7.0m exceptional pension credit.
"Greggs serves over six million customers per week and, through our continued focus on quality and value for money, we have achieved a robust performance in a challenging market place. We anticipated the pressures that we would face as a result of tough trading conditions and continuing high input cost inflation, and took action to control our costs accordingly. The business has also begun to benefit from the initiatives we are taking to simplify and centralise our operations, in preparation for accelerated expansion.
"The high street trading environment remains difficult, not helped by the recent wet weather. However, costs continue to be well-managed and the Group's financial position remains strong. This gives the Board confidence that Greggs is well placed to cope with the continuing challenges in the market place."
- Derek Netherton, Chairman
| ENQUIRIES: | ||
| Greggs plc | Hudson Sandler | |
| Ken McMeikan, Chief Executive | Michael Sandler / Hugo Jenkins | |
| Richard Hutton, Finance Director | Tel: 020 7796 4133 | |
| Tel: | 020 7796 4133 on Tuesday 11 August only | |
| 0191 281 7721 thereafter | ||
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CHAIRMAN'S STATEMENT
Greggs serves over six million customers per week and, through our continued focus on quality and value for money, we have achieved a very robust performance in a challenging market place. We anticipated the pressures that we would face as a result of tough trading conditions and continuing high input cost inflation, and took action to control our costs accordingly. The business has also begun to benefit from the initiatives we are taking to simplify and centralise our operations, in preparation for accelerated expansion.
Results
We have adjusted our half year date to bring us into line with market practice and are reporting results for the 26 weeks to 27 June 2009. In order to provide more meaningful comparative figures for the first half last year, this interim report includes results for the 26 weeks to 28 June 2008 as well as those for the 24 week period to 14 June 2008 on which we originally reported. The 2008 comparatives cited in the text are for 26 weeks.
Group sales for the first half increased by 4.4 per cent to £312 million (2008: £299 million), including like-for-like sales growth of 1.5 per cent. Tougher comparatives in the final seven weeks of the half slowed the overall rate of like-for-like growth from the 2.0 per cent reported for the first 19 weeks in our Interim Management Statement of 13 May.
Operating profit increased by 8.9 per cent to £16.3 million (2008: £15.0 million, excluding property and exceptional gains). The Group's operating margin was 5.2 per cent (2008: 5.0 per cent, excluding property and exceptional gains).
Net finance income was reduced to £192,000 (2008: £402,000) as a result of lower interest rates, despite an improvement in our net cash position to £14.9 million at the end of the half year (2008: £3.6 million net debt).
Profit before taxation increased by 7.3 per cent to £16.5 million (2008: £15.4 million, excluding property and exceptional gains). There were no property or other exceptional gains in the current year, while in 2008 we recorded a net property profit of £1.0 million and a further £7.0 million exceptional credit relating to the closure to further accrual of our final salary pension scheme. Including these items, profit before taxation in the comparable period last year was £23.4 million.
Diluted earnings per share were 11.29 pence (2008: 10.40 pence, excluding property and exceptional gains). Including the non-recurring items, diluted earnings per share in 2008 were 15.81 pence. The prior year figures have been restated not only to reflect the change from a 24-week to a 26-week first half, but also the ten-for-one share split which took effect on 18 May 2009, following shareholder approval at the Annual General Meeting.
Dividend
The Board has declared an increased interim dividend of 5.2 pence per share (2008: 4.9 pence), a rise of 6.1 per cent, in line with our progressive dividend policy. The interim dividend will be paid on 2 October 2009 to those shareholders on the register at the close of business on 4 September 2009.
Prospects
We continue to believe that the great quality and exceptional value offered by Greggs will enable us to operate successfully in what remains a very difficult economic climate, and this assessment is supported by the Group's robust performance in the first half.
The high street trading environment remains difficult, not helped by the recent wet weather. Total sales in the first six weeks of the second half to 8 August 2009 increased by 2.5 per cent, while like-for-like sales were flat. Costs continue to be well-managed, we are making good progress with our plans to simplify and centralise the business, and the Group's financial position remains strong. This gives the Board confidence that Greggs is well placed to cope with the continuing challenges in the market place.
Derek Netherton
Chairman
11 August 2009
CHIEF EXECUTIVE'S REPORT
Greggs has achieved its leading market position by consistently offering both great quality and great value to more than one million customers each day. In the current climate the quality, value and freshness of our products continue to stand out as our key points of difference as the country's foremost provider of bakery food-on-the-go. We are making good progress with our plans to make the business simpler and more efficient, in readiness for accelerated expansion.
Trading performance
The positive results for the first half reflect our decision to budget for only marginally positive like-for-like sales growth in 2009 because of the challenging economic environment. Consumer spending is naturally constrained by uncertainty about job security as we see record increases in unemployment and many more workers experiencing pay freezes and cuts. There is ample evidence of reduced footfall affecting all high street retailers. Our successful response to these challenges has been to maintain our emphasis on the unbeatable quality of our products, and the great value that we continue to offer.
We anticipated that the pressure of rising world commodity prices that was such a feature of 2008 would persist into the current year, driving up the cost of many key ingredients. This inflationary pressure has continued as expected, albeit at a reducing rate and with some relief afforded by an improvement in energy costs.
We have begun to see some benefit from the initiatives we have taken to simplify and centralise the business, for example in the harmonisation of our product range. Our new bakery in Manchester was commissioned early in the year, delivering improved efficiencies and increased capacity for our business in the North West.
The elimination of losses from our Belgian shops has made a small contribution in the period, and will deliver further benefit in the second half of the year.
Our shops
We opened 14 new shops during the first half and closed 31, including the sale of our 10 shops in Belgium. As a result, we ended the half year with a total of 1,392 shops compared with 1,382 at the half year in 2008 and 1,409 at the end of 2008. This is in line with our plans, and we remain on track to add circa 10 net new shops over the year as a whole, with some 40 new shops planned to open during the second half and 10 - 15 closures. Our property team continue to take a very firm line to secure the best possible deals on new sites in the current climate, and we are seeing greater realism from landlords on rentals for new shops as the year progresses.
The rebranding of Bakers Oven shops to Greggs is proceeding to plan, with 40 per cent of the 164 Bakers Oven shops now converted and the programme continuing at a rate of two shops each week. We are pleased with the performance of these shops, which has been slightly better than we budgeted.
We have also been experimenting with new concept shops, the first of which is trading well in the South East, and we plan to open a further two by the end of the year. The look of these shops is intended to communicate the strength of our bakery heritage, while their layouts have been designed to encourage browsing and increase customer purchases. The results from these shops will be evaluated and successful elements rolled out progressively across the estate.
Our products
We are well on track to achieve the planned harmonisation of 80 per cent of all our products by the end of 2009, with the remaining 20 per cent of our range comprising specialist regional and local favourites.
In sandwiches, we have harmonised and relaunched all our baguettes, bloomers and traditional wedge pack sandwiches. We have also been able to meet customer demand for a wider range of sandwiches without mayonnaise, with up to a quarter of our range now "mayo free".
In savouries, we responded to our customers' wishes and added interest to our range during the first half through the launch of a series of new products including a chicken and bacon pasty and chicken fajita pasty. We also upgraded a number of our famous core products at no cost to our customers. This included the relaunch of favourites such as our cheese and onion pasty, with a new three cheese recipe, and an enhanced chicken bake. In total we have sold over 25 million units of the new and improved savoury products since the beginning of the year.
Across the whole Greggs product range, we have trebled the percentage of our sales derived from new product launches during the first half, compared with the first half of 2008.
We continue to take the lead in the bakery industry in meeting consumer demand for great tasting, great value, fresh food and providing the information that our customers need to make informed choices about what they eat. As we committed to doing in the Annual Report, I am pleased to confirm that we have now removed all hydrogenated oils and fats from the products we make ourselves, and are on track to achieve the promised removal of all artificial colourings from our products by the end of the year. The good progress we are making in harmonising our product range will also allow us to fulfil our commitment to provide nutritional information for all our sandwiches, savouries and drinks by the end of 2009.
Capital investment
Capital expenditure during the first half was £10.3 million (2008: £16.9 million). This was below the level we had originally budgeted as we deferred some expenditure, particularly on our bakeries pending completion of our review of the supply chain. We now anticipate that capital expenditure over the year as a whole will not exceed £30 million, some £4 million below our original estimate, but will increase in 2010 as we begin to accelerate shop openings.
People
We have over 19,000 employees who have continued to provide great service to our customers in a difficult period for every UK retailer, while adjusting to considerable changes in the way we run our business. Our resilient performance under these testing conditions is a testimony to their commitment, hard work and passion to make Greggs "the best in bakery" for our customers.
Looking ahead
We are making good progress in developing Greggs as a single national brand that offers an exceptional combination of quality and value. I am confident that we are well placed to achieve our targets for the business and to make Greggs accessible to even more customers through accelerated expansion of our shop portfolio across the whole of the UK from 2010.
Kennedy McMeikan
Chief Executive
11 August 2009
Greggs plc
Condensed consolidated income statement
For the 26 weeks ended 27 June 2009
| 26 weeks ended 27 June 2009 | 26 weeks ended 28 June 2008 | 24 weeks ended 14 June 2008 | 52 weeks ended 27 December 2008
| ||
| £'000 | £'000 | £'000 | £'000 | ||
| Revenue | 312,360 | 299,151 | 275,659 | 628,198 | |
| Cost of sales | (121,556) | (116,455) | (107,004) | (240,200) | |
| Gross profit | 190,804 | 182,696 | 168,655 | 387,998 | |
| Distribution and selling costs | (155,034) | (147,648) | (136,366) | (306,573) | |
| Administrative expenses | (19,435) | (20,044) | (18,513) | (40,845) | |
| Other income | - | 8,011 | 8,011 | 8,033 | |
| Operating profit | 16,335 | 23,015 | 21,787 | 48,613 | |
| Analysed as: Operating profit before property and exceptional gains | 16,335 | 15,004 | 13,776 | 44,295 | |
| Other income: | |||||
| Profit on disposal of properties | - | 1,042 | 1,042 | 1,064 | |
| Curtailment of defined benefit pension scheme | - | 6,969 | 6,969 | 6,969 | |
| Restructuring costs | - | - | - | (3,715) | |
| 16,335 | 23,015 | 21,787 | 48,613 | ||
| Finance income | 192 | 402 | 373 | 857 | |
| Profit before tax | 16,527 | 23,417 | 22,160 | 49,470 | |
| Income tax | (5,123) | (7,260) | (6,870) | (15,375) | |
| Profit for the period attributable to equity holders of the parent | 11,404 | 16,157 | 15,290 | 34,095 | |
| Basic earnings per share * | 11.32p | 15.87p | 15.01p | 33.67p | |
| Diluted earnings per share * | 11.29p | 15.81p | 14.95p | 33.54p | |
| Non-GAAP measure: | |||||
| Adjusted profit before tax ~ (£'000) | 16,527 | 15,406 | 14,149 | 45,152 | |
| Adjusted profit for the period attributable to equity holders of the parent (£'000) + | 11,404 | 10,630 | 9,763 | 31,119 | |
| Adjusted basic earnings per share+ | 11.32p | 10.44p | 9.58p | 30.73p | |
| Adjusted diluted earnings per share+ | 11.29p | 10.40p | 9.55p | 30.61p | |
* Prior periods adjusted to take account of the ten for one share split during the current period (see note 6).
~ For 2008, calculated as profit before tax less profit on disposal of properties, the exceptional gain on the curtailment of the defined benefit pension scheme and restructuring costs.
+ Adjusted to take account of profit on disposal of properties, the exceptional gain on curtailment of the defined benefit pension scheme and restructuring costs, net of tax (see note 6).
Greggs plc
Condensed consolidated statement of comprehensive income
For the 26 weeks ended 27 June 2009
| 26 weeks ended 27 June 2009 | 26 weeks ended 28 June 2008 | 24 weeks ended 14 June 2008 | 52 weeks ended 27 December 2008 | |
| £'000 | £'000 | £'000 | £'000 | |
| Profit for the period | 11,404 | 16,157 | 15,290 | 34,095 |
| Other comprehensive income | ||||
| Actuarial loss on defined benefit pension scheme | (5,796) | (6,435) | (6,435) | (12,614) |
| Income tax on defined benefit pension scheme actuarial loss | 1,623 | 1,802 | 1,802 | 3,532 |
| Other comprehensive income for the period, net of income tax | (4,173) | (4,633) | (4,633) | (9,082) |
| Total comprehensive income for the period | 7,231 | 11,524 | 10,657 | 25,013 |
Greggs plc
Condensed consolidated balance sheet
as at 27 June 2009
| 27 June 2009 | 28 June 2008 | 14 June 2008 | 27 December 2008 | ||
| £'000 | £'000 | £'000 | £'000 | ||
| ASSETS | |||||
| Non-current assets | |||||
| Intangible assets | 759 | - | - | 686 | |
| Property, plant and equipment | 206,988 | 199,875 | 197,946 | 210,455 | |
| 207,747 | 199,875 | 197,946 | 211,141 | ||
| Current assets | |||||
| Inventories | 11,818 | 11,052 | 11,137 | 12,152 | |
| Trade and other receivables | 26,017 | 25,726 | 22,886 | 22,698 | |
| Cash and cash equivalents | 14,885 | - | 8,121 | 4,433 | |
| 52,720 | 36,778 | 42,144 | 39,283 | ||
| Total assets | 260,467 | 236,653 | 240,090 | 250,424 | |
| LIABILITIES | |||||
| Current liabilities | |||||
| Trade and other payables | (73,226) | (70,946) | (77,299) | (60,386) | |
| Bank loans and overdrafts | - | (3,573) | (380) | (2,375) | |
| Current tax liabilities | (6,751) | (7,001) | (6,611) | (8,337) | |
| Provisions | (1,462) | - | - | (2,843) | |
| (81,439) | (81,520) | (84,290) | (73,941) | ||
| Non-current liabilities | |||||
| Defined benefit pension liability | (11,718) | (4) | (4) | (5,733) | |
| Other payables | (8,313) | (426) | (426) | (8,221) | |
| Deferred tax liability | (10,530) | (15,006) | (15,006) | (12,154) | |
| Long term provisions | (2,646) | - | - | (2,428) | |
| (33,207) | (15,436) | (15,436) | (28,536) | ||
| Total liabilities | (114,646) | (96,956) | (99,726) | (102,477) | |
| Net assets | 145,821 | 139,697 | 140,364 | 147,947 | |
| EQUITY | |||||
| Capital and reserves | |||||
| Issued capital | 2,080 | 2,087 | 2,096 | 2,080 | |
| Share premium account | 13,533 | 13,533 | 13,533 | 13,533 | |
| Capital redemption reserve | 359 | 352 | 343 | 359 | |
| Retained earnings | 129,849 | 123,725 | 124,392 | 131,975 | |
| Total equity attributable to equity holders of the parent | 145,821 | 139,697 | 140,364 | 147,947 |
Greggs plc
Condensed consolidated statement of changes in equity
For the 26 weeks ended 27 June 2009
24 weeks ended 14 June 2008
| Issued capital | Share premium | Capital redemption reserve | Retained earnings | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 30 December 2007 | 2,127 | 13,533 | 312 | 129,622 | 145,594 |
| Total recognised income and expense | - | - | - | 10,657 | 10,657 |
| Shares purchased and cancelled | (31) | - | 31 | (6,753) | (6,753) |
| Sale of own shares | - | - | - | 353 | 353 |
| Share based payments | - | - | - | 397 | 397 |
| Equity dividends | - | - | - | (9,562) | (9,562) |
| Tax items taken directly to reserves | - | - | - | (322) | (322) |
| At 14 June 2008 | 2,096 | 13,533 | 343 | 124,392 | 140,364 |
26 weeks ended 28 June 2008
| Issued capital | Share premium | Capital redemption reserve | Retained earnings | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 30 December 2007 | 2,127 | 13,533 | 312 | 129,622 | 145,594 |
| Total recognised income and expense | - | - | - | 11,524 | 11,524 |
| Shares purchased and cancelled | (40) | - | 40 | (8,320) | (8,320) |
| Sale of own shares | - | - | - | 353 | 353 |
| Share based payments | - | - | - | 430 | 430 |
| Equity dividends | - | - | - | (9,562) | (9,562) |
| Tax items taken directly to reserves | - | - | - | (322) | (322) |
| At 28 June 2008 | 2,087 | 13,533 | 352 | 123,725 | 139,697 |
52 weeks ended 27 December 2008
| Issued capital | Share premium | Capital redemption reserve | Retained earnings | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 30 December 2007 | 2,127 | 13,533 | 312 | 129,622 | 145,594 |
| Total recognised income and expense | - | - | - | 25,013 | 25,013 |
| Shares purchased and cancelled | (47) | - | 47 | (9,738) | (9,738) |
| Sale of own shares | - | - | - | 698 | 698 |
| Share-based payments | - | - | - | 1,047 | 1,047 |
| Equity dividends | - | - | - | (14,535) | (14,535) |
| Tax items taken directly to reserves | - | - | - | (132) | (132) |
| At 27 December 2008 | 2,080 | 13,533 | 359 | 131,975 | 147,947 |
26 weeks ended 27 June 2009
| Issued capital | Share premium | Capital redemption reserve | Retained earnings | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 28 December 2008 | 2,080 | 13,533 | 359 | 131,975 | 147,947 |
| Total recognised income and expense | - | - | - | 7,231 | 7,231 |
| Sale of own shares | - | - | - | 200 | 200 |
| Share based payments | - | - | - | 540 | 540 |
| Equity dividends | - | - | - | (10,097) | (10,097) |
| At 27 June 2009 | 2,080 | 13,533 | 359 | 129,849 | 145,821 |
Greggs plc
Condensed consolidated statement of cash flows
For the 26 weeks ended 27 June 2009
| 26 weeks ended 27 June 2009 | 26 weeks ended 28 June 2008 | 24 weeks ended 14 June 2008 | 52 weeks ended 27 December 2008 | ||
| £'000 | £'000 | £'000 | £'000 | ||
| Operating activities | |||||
| Cash generated from operating activities (see below) | 39,037 | 23,982 | 31,056 | 59,163 | |
| Income tax paid | (6,710) | (7,100) | (7,100) | (14,807) | |
| Net cash inflow from operating activities | 32,327 | 16,882 | 23,956 | 44,356 | |
| Cash flows from investing activities | |||||
| Acquisition of property, plant and equipment | (10,344) | (16,929) | (14,229) | (40,758) | |
| Acquisition of intangible assets | (73) | - | - | (686) | |
| Proceeds from sale of property, plant and equipment | 422 | 2,020 | 2,020 | 2,200 | |
| Interest received | 192 | 402 | 373 | 857 | |
| Net cash outflow from investing activities | (9,803) | (14,507) | (11,836) | (38,387) | |
| Cash flows from financing activities | |||||
| Sale of own shares | 200 | 353 | 353 | 698 | |
| Shares purchased and cancelled | - | (8,320) | (6,751) | (9,738) | |
| Dividends paid | (10,097) | (9,562) | (9,562) | (14,535) | |
| Government grants received | 200 | - | - | 8,083 | |
| Net cash outflow from financing activities | (9,697) | (17,529) | (15,960) | (15,492) | |
| Net increase / (decrease) in cash and cash equivalents | 12,827 | (15,154) | (3,840) | (9,523) | |
| Cash and cash equivalents at the start of the period | 2,058 | 11,581 | 11,581 | 11,581 | |
| Cash and cash equivalents at the end of the period | 14,885 | (3,573) | 7,741 | 2,058 | |
| Cash flow statement - cash generated from operations | |||||
| 26 weeks ended 27 June 2009 | 26 weeks ended 28 June 2008 | 24 weeks ended 14 June 2008 | 52 weeks ended 27 December 2008 | ||
| £'000 | £'000 | £'000 | £'000 | ||
| Profit for the period | 11,404 | 16,157 | 15,290 | 34,095 | |
| Depreciation | 13,238 | 12,389 | 11,618 | 26,010 | |
| Loss / (profit) on sale of property, plant and equipment | 151 | (972) | (972) | (771) | |
| Release of government grants | (108) | - | - | (84) | |
| Curtailment of defined benefit pension scheme | - | (6,969) | (6,969) | (6,969) | |
| Share based payment expenses | 540 | 430 | 397 | 1,047 | |
| Finance income | (192) | (402) | (373) | (857) | |
| Unrealised exchange gain relating to property plant and equipment | - | - | - | (353) | |
| Income tax expense | 5,123 | 7,260 | 6,870 | 15,375 | |
| Decrease / (increase) in inventories | 334 | (1,144) | (1,229) | (2,244) | |
| Increase in debtors | (3,319) | (5,792) | (2,952) | (2,764) | |
| Increase / (decrease) in creditors | 12,840 | 3,168 | 9,519 | (8,001) | |
| Movement in pension liability | 189 | (143) | (143) | (592) | |
| (Decrease) / increase in provisions | (1,163) | - | - | 5,271 | |
| Cash generated from operating activities | 39,037 | 23,982 | 31,056 | 59,163 | |
Notes
1. Basis of preparation and accounting policies
The condensed financial statements have been prepared for the 26 weeks ended 27 June 2009. Comparative figures are presented for the 26 weeks ended 28 June 2008 as well as for the 24 weeks ended 14 June 2008 as published last year. These condensed financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. They do not include all the information required for full annual financial statements, and should be read in conjunction with the Group financial statements for the 52 weeks ended 27 December 2008.
These condensed financial statements are unaudited and were approved by the Board of Directors on 11 August 2009.
The information for the 52 weeks ended 27 December 2008 does not constitute statutory financial statements as defined by section 240 of the Companies Act 1985. Those financial statements have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985.
The accounting policies applied by the Group in these condensed financial statements are the same as those applied by the Group in its consolidated financial statements for the 52 weeks ended 27 December 2008 other than those disclosed in note 2.
2. Changes in accounting policies
From 1 January 2009 the following standards, amendments and interpretations became effective and were adopted by the Group:
The adoption of the above has not had a significant impact on the Group's profit for the period or equity.
3. Operating segment
The Board has reviewed the requirements of IFRS 8 Operating Segments, including consideration of what results it reviews regularly to assess performance and make decisions about how resources are allocated. The Board has concluded that, as under IAS 14, the Group has one operating and reporting segment.
4. Defined benefit pension scheme
The valuation of the defined benefit pension scheme for the purposes of IAS19 as at 27 December 2008 has been updated as at 27 June 2009 and the movements have been reflected in this interim statement.
5. Taxation
The taxation charge for the 26 weeks ended 27 June 2009 and 28 June 2008 and the 24 weeks ended 14 June 2008 is calculated by applying the directors' best estimate of the annual effective tax rate to the profit for the period.
6. Earnings per share
| 26 weeks ended 27 June 2009 | 26 weeks ended 28 June 2008 | 24 weeks ended 14 June 2008 | 52 weeks ended 27 December 2008 | |
| £'000 | £'000 | £'000 | £'000 | |
| Profit for the period attributable to equity holders of the parent | 11,404 | 16,157 | 15,290 | 34,095 |
| Other income (net of tax): Profit on disposal of properties Curtailment of defined benefit pension scheme Restructuring costs | - - - | (719) (4,808) - | (719) (4,808) - | (734) (4,808) 2,566 |
| Adjusted profit for the period attributable to equity holders of the parent | 11,404 | 10,630 | 9,763 | 31,119 |
The adjusted earnings per share figures have been calculated excluding the effect of the exceptional items. These have been calculated by dividing adjusted profit for the period attributable to equity holders of the parent by the relevant weighted average number of shares.
6. Earnings per share (continued)
On 15 May 2009 the Company's shares were split whereby each existing share was dividend into ten new shares. In accordance with IAS 33 the number of ordinary shares outstanding used in the calculation of earnings per share before the share split has been adjusted as if the split had occurred at the beginning of the earliest period presented.
The number of ordinary shares in issue at 27 June 2009 was 103,990,470 (adjusted number of ordinary shares in issue at 28 June 2008: 104,381,120, 14 June 2008: 104,790,470 and 27 December 2008: 103,990,470). The weighted average number of ordinary shares outstanding during the period was 100,758,294 (adjusted weighted average number of shares for the 26 weeks ended 28 June 2008: 101,808,047, 24 weeks ended 14 June 2008: 101,858,644 and 52 weeks ended 27 December 2008: 101,253,025). The diluted weighted average number of ordinary shares outstanding during the period was 101,040,749 (adjusted diluted weighted average number of shares for the 26 weeks ended 28 June 2008: 102,221,954, 24 weeks ended 14 June 2008: 102,268,800 and 52 weeks ended 27 December 2008: 101,664,590)
7. Dividends
The following tables analyse dividends when paid and the year to which they relate:
| Dividend declared | 26 weeks ended 27 June 2009 | 24 weeks ended 14 June 2008 | 52 weeks ended 27 December 2008 |
| | Pence per share | Pence per share | Pence per share |
| | | | |
| 2007 final dividend * | - | 94.0p | 94.0p |
| 2008 interim dividend * | - | - | 49.0p |
| 2008 final dividend * | 100.0p | - | - |
| | 100.0p | 94.0p | 143.0p |
| | 26 weeks ended 27 June 2009 | 24 weeks ended 14 June 2008 | 52 weeks ended 27 December 2008 |
| | £’000 | £’000 | £’000 |
| Total dividend payable | | | |
| 2007 final dividend | - | 9,562 | 9,565 |
| 2008 interim dividend | - | - | 4,970 |
| 2008 final dividend | 10,097 | - | - |
| Total dividend paid in period | 10,097 | 9,562 | 14,535 |
| | | | |
| Dividend proposed at period end and not included as a liability in the accounts | | | |
| 2008 interim dividend (49.0p per share *) | - | 4,970 | - |
| 2008 final dividend (100.0 p per share *) | - | - | 10,073 |
| 2009 interim dividend (5.4p per share) | 5,441 | - | - |
| | 5,441 | 4,970 | 10,073 |
* pre share split
8. Related party transactions
There have been no related party transactions in the first 26 weeks of the current financial year which have materially affected the financial position or performance of the Group.
Related parties are consistent with those disclosed in the Group's Annual Report and Accounts for the 52 weeks ended 27 December 2008.
9. Half year report
The condensed financial statements were approved by the Board of Directors on 11 August 2009 and are available on the Company's website, www.greggs.co.uk. Copies are being posted to those shareholders who have requested one and further copies are available on application to the Company Secretary, Greggs plc, Fernwood House, Clayton Road, Jesmond, Newcastle upon Tyne, NE2 1TL.
10. Principal risks and uncertainties
The Directors consider that, except as detailed below, the principal risks and uncertainties which could have a material impact on the Group's performance in the remaining 27 weeks of the financial year remain the same as those stated on pages 32 and 33 of our Annual Report and Accounts for the 52 weeks ended 27 December 2008, which are available on our website www.greggs.co.uk. The major additional risk that has arisen since the Report was published is the possible onset of a flu pandemic in the UK, which could affect employees and customers alike. We have developed contingency plans to maintain our supply chain under such conditions. However, like all other retailers we may find our trade affected if illness results in significant numbers of our customers being unable to visit our shops.
11. Statement of Directors' responsibilities
The Directors named below confirm on behalf of the Board of Directors that to the best of their knowledge:
(a) DTR4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first 26 weeks of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining 27 weeks of the year; and
(b) DTR4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first 26 weeks of the financial year and that have materially affected the financial position or performance of the Group during the period; and any changes in the related party transactions described in the last annual report that could do so.
The Directors of Greggs plc are listed in the Annual Report and Accounts for the 52 weeks ended 27 December 2008. The following changes have occurred since the Annual Report and Accounts was published:
For and on behalf of the Board of Directors
Kennedy McMeikan Richard Hutton
Chief Executive Finance Director
11 August 2009