27 Finsbury Food Group Annual Report & Accounts 2018
Financial Review
Group revenue for the 52-week period to 30 June 2018, including revenue from the bakeries closed during the year, is £303.6 million, 3.4% lower than last year. Continuing Group revenue (i.e. excluding the revenue from the bakeries closed) is, at £290.2 million, up 2.4% or £6.8 million. Growth in continuing revenue is within markets that are seeing value growth with a slight volume decline.
We have stripped significant and non-recurring costs of £13,067,000, which primarily relate to the closure of the bakeries, out of operating profit, to give adjusted operating profit, which provides a clearer presentation of the underlying trading performance of the Group. Adjusted operating profit at £17.8 million is up 2.3% on last year. Adjusted operating profit margins are 5.9% (2017: 5.5%), a consequence of removing the losses of the bakeries closed. The Group’s performance is seen as resilient in the face of severe commodity and labour inflation. This resilience is underpinned by capital investment, a focus on operational efficiency and a removal of low-profit business to optimise product mix.
Dividend
Subject to shareholder approval at the Company’s AGM on 21 November 2018, the final dividend of 2.2 pence per share will be paid on 21 December 2018 to all shareholders on the register at 23 November 2018, and will be recognised in the year ending 29 June 2019.
The tables below show what the Directors consider to be the underlying performance of the Group. The adjustments eliminate the impact of significant and non-recurring items and other accounting items. 52 week period ended 30 June 2018
performance £000
Revenue Cost of sales
Gross profit Other costs excluding depreciation and amortisation
EBITDA Depreciation and amortisation
Results from operating activities
Finance income Finance costs
Profit before tax
Share of losses of equity accounted investees after tax Taxation
Profit for the year 52 week period ended 1 July 2017
performance £000
Revenue Cost of sales
Gross profit Other costs excluding depreciation and amortisation
EBITDA Depreciation and amortisation
Results from operating activities
Finance income Finance costs
Profit before tax
Share of losses of equity accounted investees after tax Taxation
Profit for the year Details of significant non-recurring items are detailed in Note 4. 314,296
(216,493) 97,803
(72,883)
24,920 (7,485)
17,435 -
(877) 16,558 (22)
(3,578) 12,958
Adjusted operating
non-recurring items £000
- -
- (4,000)
(4,000) -
(4,000)
- -
(4,000) -
680 (3,320) Significant
pension scheme £000
- -
- 200
200 -
200 -
(204) (4) -
1 (3)
Defined benefit
rate swaps/ foreign
- -
- (71)
(71) -
(71)
555 -
484 -
(62) 422
Fair value of interest
exchange contracts £000
Comprehensive Income £000
314,296
(216,493) 97,803
(76,754)
21,049 (7,485)
13,564 555
(1,081) 13,038
(22)
(2,959) 10,057
Consolidated Statement of
As per
303,600 (211,511)
92,089 (66,489)
25,600 (7,756)
17,844 24
(652)
17,216 -
(3,708) 13,508
Adjusted operating
non-recurring items £000
- -
- (13,067)
(13,067) -
(13,067)
- -
(13,067) -
2,452 (10,615) Significant
pension scheme £000
- -
- 411
411 -
411 -
(277) 134 -
(23) 111
Defined benefit
rate swaps/ foreign
- -
- 49
49 -
49
143 -
192 -
(32) 160
Fair value of interest
exchange contracts £000
Comprehensive Income £000
303,600 (211,511)
92,089 (79,096)
12,993 (7,756)
5,237 167
(929)
4,475 -
(1,311) 3,164
Consolidated Statement of
As per
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