71 Finsbury Food Group Annual Report & Accounts 2017
Notes to the Consolidated Financial Statements
27. Related Parties
Related Party Transactions and Directors’ Material Interests in Transactions A 50% owned subsidiary, Lightbody Stretz Ltd, paid Mr P Stretz, the Managing Director of Lightbody Stretz Ltd, £55,000 (2016: £58,000) in respect of rent for offices. No balances were outstanding at either year end.
The Group paid £31,000 (2016: £81,000) for the supply of finished products from and received £52,000 (2016: £83,000) for the sale of finished products to Party Fizz, a company 50% owned by Mr P Stretz. The amount payable and receivable at the year end was £nil (2016: £24,000) and £3,000 (2016: £18,000) respectively.
The Group sold finished product to Dr Zak’s for a value of £196,000 during the year (2016: £269,000), the amount receivable at the year end was £68,000 (2016: £78,000).
Transactions with the Memory Lane Pension Scheme are detailed in Note 13.
Mr E Beale is the Chief Executive of City Group Plc. Directors’ fees of £22,000 for Mr E Beale (2016: £45,000) have been paid to City Group. Directors’ fees for Mr E Beale are ceded to his primary employer. During the previous year City Group provided Company Secretarial and ancillary services to the Group up until 31 December 2015. Fees for these services amounted to £19,380 including VAT.
Mr P Baker is a Director of Crosta & Mollica Limited. The Group sold finished product to Crosta & Mollica for a value of £284,000 (2016: £nil), the amount receivable at the year end was £36,000 (2016: £nil).
Transactions with Key Management Personnel Directors of the Company and their immediate relatives control 3% (2016: 3%) of the voting shares of the Company.
The aggregate compensation of key management personnel (Main Board Executive Directors, Divisional MDs, and Executive Committee) is as follows:
2017 £000
Company contributions to money purchase pension schemes Executive salaries and benefits Executive bonuses
62
1,663 1,683 3,408
Share options held by Group Directors are set out in Note 6. Details of share options outstanding at 1 July 2017 for other key management personnel by exercise price is shown in the table below.
Exercise price
Nil Nil
54.75p 58.00p
Number of options at 1 July 2017
338,951 279,596 51,724 -
670,271
Number of options at 2 July 2016
-
279,596 51,724
206,896 538,216
28. Post Consolidated Statement of Financial Position Events
Since the period end date, a proposal has been put forward to close our Grain D’Or business. Grain D’Or is a provider of premium baked products for the UK pastry sector and based in London. The Company entered into a formal consultation period on 1 September 2017 with circa 250 employees concerning the proposal. The business has been historically loss making and despite the implementation of a range of initiatives to improve the business including strict cost control and new working practices the site remained loss making in the year to 1 July 2017. Formal consultation is expected to conclude mid October 2017.
A formal employee group consultation has concluded at our small Campbells Cake Company factory in Twechar. A rationalisation program had decreased the volumes considerably at the site and the overhead cost of running a small remote site was not sustainable in today’s competitive market. To retain the site to the required industry standards would take significant investment, which the Group could not justify given the asset limitations and small scale site. Following the formal consultation, a decision has been taken to cease production, with product manufacture being transferred within the Group and a small amount of rationalisation. The closure will affect 22 employees and site is expected to close by end October 2017.
29. Ultimate Parent Company Finsbury Food Group Plc is the ultimate Parent Company.
Earliest exercise date
30/09/2019 30/09/2018 03/07/2017 16/05/2017
Exercise expiry date
29/09/2026 04/12/2025 03/07/2024 16/05/2024
2016 £000
61
1,498 1,049 2,608
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