Earnings Per Share (EPS) EPS comparatives to the prior year can be distorted by significant non-recurring items and IFRS adjustments. The Board is focused on growing adjusted diluted EPS, which is calculated by eliminating the impact of the items highlighted on page 16 and incorporates the dilutive effect of share options. Adjusted diluted EPS is 7.7p for the 52 week period (2014: 6.3p).
Basic EPS
Adjusted** basic EPS Diluted*** basic EPS
Adjusted* diluted** EPS
2015 5.8p 8.0p 5.6p 7.7p
2014 6.7p 6.7p 6.3p 6.3p
* EPS for continuing operations only. ** Adjusted EPS measures are calculated by eliminating the impact of significant non-recurring items and IFRS adjustments. Further details can be found in Note 10.
*** Diluted EPS takes basic EPS and incorporates the dilution effect of share options.
Non-Financial Key Performance Indicators A range of non-financial key performance indicators are monitored at site level covering, amongst others, customer service, quality and health and safety. The Board receives an overview of these on a regular basis.
Acquisitions On 30 October 2014 the Group acquired the Fletchers Group of Bakeries (Fletchers) for £56 million, funded in part by an oversubscribed equity raise of £35 million. The remainder was funded through debt. The acquisition brings opportunities in new foodservice channels, retail customer diversification and complementary product ranges. Fletchers fits well within our UK bakery business and the Group is expecting significant operational and commercial synergies.
On 26 May 2015 the Group acquired 25% of the ordinary share capital of Dr Zak’s Limited. Dr Zak’s develops and supplies high protein food including bread, pasta and bagels.
On 16 June 2015 the Group acquired the business, production assets, stock and customer list of Johnstone’s Just Desserts Ltd (‘Johnstone’s’) from administrators FRP Advisory. Unaudited turnover for 2014 was £9m. This acquisition signals the escalation of Finsbury’s entry into the foodservice cake channel and in particular the high growth national coffee shop segment. This is in line with the Group’s channel diversification strategy, indicated at the acquisition of Fletchers.
Cash Flow There was a decrease in our working capital requirement of £2.2 million compared to the last financial year. Corporation tax payments made in the financial year totalled £1.2 million (2014: £1.7 million), the payments in the current year took account of the research and development tax relief due to the Group. Capital expenditure in the year amounted to £7.4 million (2014: £6.2 million).
Debt and Bank Facilities The Group’s total net debt including deferred consideration payable is £21.3 million (2014: £8.8 million) up £12.5 million from the prior year. Within this total, £9.3 million is due within one year, including cash at bank and invoice finance (2014: £5.1 million).
The Group’s debt facility was renegotiated during the year driven by the acquisition of Fletchers. The facility is now a bilateral facility with HSBC Bank Plc and Lloyds Bank Plc totalling £50.9m, the key features of the facility are as follows:
• Overdraft (£2.0m) • Term loan (£13. 4m) • Confidential invoice discounting facility (£22.0m) • Mortgage facility (£3.5m) • Rolling asset finance facility (£2.0m) • Revolving credit facility (£8.0m)
Note 20 gives details of the drawn amounts and maturity dates.
The Group is able to offer strong asset backing to secure its borrowings. The Group owns freehold sites at Memory Lane in Cardiff, Fletchers in Sheffield and Lightbody and Campbells in Scotland. In addition, the Group has a strong trade debtor book to support the invoice discounting facility, made up primarily of the UK’s major multiple retailers. This debtor book stood at £42.8 million (2014: £22.4 million) at the period end date.
(restated) 7.2p 6.5p 6.6p 5.9p
2013*
2012* 5.1p 5.2p 4.9p 5.0p
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