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Greggs PLC

Greggs PLC - Interim Results

RNS Number : 9096F
Greggs PLC
02 August 2016
 

 

 

 

2 August 2016

 

INTERIM RESULTS FOR THE 26 WEEKS ENDED 2 JULY 2016

 

Greggs is the leading bakery food-on-the-go retailer in the UK,

with over 1,700 retail outlets throughout the country

 

A GOOD FIRST HALF PERFORMANCE

 

Financial highlights

·     Total sales up 6.0% to £422m

·     Company-managed shop like-for-like sales up 3.8%

·     Operating profit excluding property gains and exceptional charge* up 6.7% to £27.2m (2015: £25.5m)

·     Property disposal gains of £2.2m (2015: £0.1m)

·     Diluted earnings per share excluding exceptional charge* 22.3p (2015: 19.5p)

·     Pre-tax profit including property profits and exceptional charges £25.4m

·     Continued strong cash generation: £44.7m net inflow from operating activities

·     Ordinary interim dividend per share of 9.5p (2015: 7.4p)

 

*before exceptional pre-tax charge of £4.0m (2015: £ nil) in relation to previously announced restructuring

 

Operational highlights

·     Good results from sales initiatives:

strengthening of 'Balanced Choice' range

further development of breakfast and hot drinks offer

successful launch of improved Greggs Rewards app

·     Shop refurbishment programme progressing well:

86 shop refurbishments completed year-to-date, planning 200 for the year

·     68 new shops opened, 36 closures; expect around 70 net new shops in the year

·     1,730 shops trading as at 2 July 2016

 

"In the first half of 2016 we delivered good like-for-like growth by reinforcing the freshness and value of our offer in line with changing trends in the food-on-the-go market.  We added to our "Balanced Choice" range with sales growing strongly as more and more of our customers recognise the quality, range and value we offer in these healthier food choices.

 

"We have made an encouraging start to the second half of the year and are alert to any change in consumer demand that may result from the current economic uncertainty.  Overall, we expect to deliver full-year growth in line with our previous expectations as well as further progress against our strategic plan." 

-     Roger Whiteside, Chief Executive

ENQUIRIES:

Greggs plc

Roger Whiteside, Chief Executive

Richard Hutton, Finance Director

Tel: 020 7796 4133 on 2 August only

       0191 281 7721 thereafter

 

Hudson Sandler

Wendy Baker / Alex Brennan

Tel: 020 7796 4133

 

An audio webcast of the analysts' presentation will be available to download later today at http://corporate.greggs.co.uk/results-centre

High resolution images are available for the media to view and download from https://corporate.greggs.co.uk/media-centre/image-and-video-library

 

CHIEF EXECUTIVE'S REPORT

 

 

The business has traded well, and in line with our plans, during the first half of the year.  Total sales for the 26 weeks to 2 July 2016 grew by 6.0 per cent to £422 million, with like-for-like sales in company-managed shops up by 3.8 per cent.  Operating profit before property gains and exceptional items grew by 6.7 per cent to £27.2 million (2015: £25.5 million).

 

Operational review

 

In the first half of 2016 we delivered good like-for-like growth by reinforcing the freshness and value of our offer in line with changing trends in the food-on-the-go market.  We added to our 'Balanced Choice' range with sales growing strongly as more and more of our customers recognise the quality, range and value we offer in these healthier food choices.  As an example our new Chargrill Chicken Salad is freshly prepared in our shops and contains just 200 calories.  Breakfast remains our fastest-growing part of the day and we have successfully broadened our coffee range and invested in improved service levels to meet growing demand.

 

We re-launched the Greggs Rewards app in the period, introducing a simplified registration process and improved payment compatibility.  Membership has grown quickly since launch of the improved app and this will help us to understand consumer needs better whilst rewarding loyal customers.

 

We continue to invest in the transformation of our shop estate and in the period we completed 86 shop refurbishments to our latest 'bakery food-on-the-go' format; we have continued to see the expected positive impact from this programme.  Over the year as a whole we plan to update around 200 shops.  In the first half of 2016 we also opened 68 new shops (including 31 franchise units) and closed 36 shops, giving a total of 1,730 shops (of which 136 are franchise units) trading at 2 July 2016.  We have a strong pipeline of openings, weighted towards the end of the second half, and now expect to open around 70 net new shops over the year as a whole.

 

Our plans to invest in the transformation and development of our supply chain are progressing well.  We expect that our new distribution facility in Enfield will be operational in October allowing us to complete the closure of our existing Twickenham bakery in the fourth quarter as planned.  In addition, planning permission has been secured for the extension of our Clydesmill bakery in Glasgow which will enable us to close our Edinburgh bakery during the second quarter of 2017, as previously announced.  We are now planning the next phase of investment in our remaining sites, which will increase logistics capacity and consolidate manufacturing, with benefits in product quality, consistency and efficiency.

 

In April this year we went live with the implementation of SAP to handle our core finance processes.  The migration has gone well and will provide the platform on which we will build a suite of new capabilities across logistics, procurement, product lifecycle management and centralised ranging, forecasting and replenishment.  We are on track to trial improved processes around shop stock replenishment in the second half of the year.

 

 

 

Financial performance

 

Food and packaging input costs continued to be deflationary in the first half, however we are now seeing the expected increased inflationary pressure in wage costs as the 'national living wage' increases take effect.  Indirect currency impacts are likely to affect input costs towards the end of 2016 but we have forward cover for most of the second half.

 

Freehold property disposals realised profits of £2.2 million in the period (2015: £0.1 million) and we incurred a net exceptional charge of £4.0 million (2015: £nil) as described below.  Pre-tax profit including property profits and exceptional charges was £25.4 million (2015: £25.6 million).  Excluding the exceptional charge diluted earnings per share were 22.3 pence (2015: 19.5 pence), with reported diluted earnings per share (including exceptional items) of 19.3 pence (2015: 19.5 pence).

 

Exceptional items

 

At the time of our preliminary results announcement in March of this year we outlined plans to invest substantially in our manufacturing and distribution operations to reshape them for future growth.  The initial phase of this plan involves the closure of three bakery manufacturing sites with associated one-off costs expected to be £7.6 million.  £4.8 million of this cost has been recognised in the first half of the year and this, combined with a £0.8 million exceptional credit related to the release of historical shop closure provisions, resulted in a net exceptional charge of £4.0 million in the period.  The overall cost and exceptional charges expected to arise from the plan remain in line with previous guidance.

 

Dividend

 

In setting the interim ordinary dividend the Board intends, going forward, to apply a formula so that the interim payment is the equivalent of approximately one third of the total ordinary dividend for the previous year.  On this basis the Board has declared an interim dividend of 9.5 pence per share (2015: 7.4 pence).  The overall ordinary dividend for the year will be declared in line with our progressive dividend policy, which targets a full year ordinary dividend that is two times covered by underlying earnings.  The interim dividend will be paid on 7 October 2016 to those shareholders on the register at the close of business on 9 September 2016.

 

Financial position

 

Capital expenditure during the first half was £31.2 million (2015: £31.3 million).  We continue to see a strong return on investment in our shop estate and are progressing well with the transformation of our systems platform.  The conversion of our new distribution facility in Enfield is under way and we continue to expect total capital expenditure in 2016 to be approximately £85 million (2015: £71.7 million).

 

The Group continues to generate strong cash flows and remains in a robust financial position.  Net cash inflow from operating activities in the period was £44.7 million (2015: £34.6 million) and we ended the period with a cash balance of £35.0 million (4 July 2015: £41.4 million).

 

 

 

Outlook

 

We have made an encouraging start to the second half of the year and are alert to any change in consumer demand that may result from the current economic uncertainty.  We remain confident in the quality and value of the Greggs brand and will continue with our long-term strategic investment programme to transform the business from traditional bakery to a growing food-on-the-go brand.

 

We continue to manage a significant change agenda that will benefit the capacity and cost structure of the business in the longer term.  Overall, we expect to deliver full-year growth in line with our previous expectations as well as further progress against our strategic plan.

 

 

                                                                                                                         Roger Whiteside

Chief Executive

                                                                                                                             2 August 2016

 

 

 

Greggs plc

Consolidated income statement

For the 26 weeks ended 2 July 2016

 

 

26 weeks ended 2 July 2016

26 weeks ended 4 July 2015 

52 weeks ended 

2 January 2016 

 

Excluding 
exceptional 

 items 

 

Exceptional 
 items 

 (see note 5)

 

Total 

 

Total 

As restated 

(see note 2)

 

Total 

 

 

 

 

 

 

 

 

£'000 

£'000 

£'000 

£'000 

£'000 

 

 

 

 

 

 

Revenue

422,129 

422,129 

398,403 

835,749 

Cost of sales

(155,349)

(2,933)

(158,282)

(148,346)

(305,116)

 

 

 

 

 

 

Gross profit

266,780 

(2,933)

263,847 

250,057 

530,633 

 

 

 

 

 

 

Distribution and selling costs

(212,808)

(695)

(213,503)

(201,793)

(412,426)

Administrative expenses

(24,586)

(400)

(24,986)

(22,677)

(45,094)

 

 

 

 

 

 

Operating profit

29,386 

(4,028)

25,358 

25,587 

73,113 

 

 

 

 

 

 

Finance income / (expense)

16 

16 

(6)

(85)

 

 

 

 

 

 

Profit before tax

29,402 

(4,028)

25,374 

25,581 

73,028 

 

 

 

 

 

 

Income tax

(6,497)

915 

(5,582)

(5,501)

(15,428)

 

 

 

 

 

 

Profit for the period attributable to equity holders of the parent

 

22,905 

 

(3,113)

 

19,792 

 

20,080 

 

57,600 

 

 

 

 

 

 

Basic earnings per share

 

22.8p

(3.1p)

19.7p

20.0p

57.3p

Diluted earnings per share

22.3p

(3.0p)

19.3p

19.5p

55.8p

 

 

 

 

 

 

 

 

Greggs plc

Consolidated statement of comprehensive income

For the 26 weeks ended 2 July 2016

 

 

 

26 weeks ended 

 2 July 2016 

 

26 weeks ended 

 4 July 2015 

 

52 weeks ended 

 2 January 2016 

 

£'000 

£'000 

£'000 

 

 

 

 

 

 

 

 

Profit for the period

19,792 

20,080 

57,600 

 

 

 

 

Other comprehensive income

 

 

 

Items that will not be recycled to profit or loss:

 

 

 

Re-measurements on defined benefit pension plans

(13,667)

3,417 

4,915 

 

 

 

 

Tax on items taken directly to equity

2,460 

(684)

(885)

 

 

 

 

Other comprehensive income for the period, net of income tax

 

(11,207)

 

2,733 

 

4,030 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

8,585 

 

22,813 

 

61,630 

 

 

Greggs plc

Consolidated balance sheet

as at 2 July 2016

 

 

2 July 2016 

4 July 2015 

2 January 2016 

As restated 

(see note 2) 

 

£'000 

£'000 

£'000 

ASSETS

 

 

 

Non-current assets

 

 

 

Intangible assets

13,139 

6,838 

10,248 

Property, plant and equipment

287,912 

270,271 

284,163 

Deferred tax asset

4,036 

1,621 

3,830 

 

 

 

 

 

305,087 

278,730 

298,241 

 

 

 

 

Current assets

 

 

 

Inventories

15,924 

16,033 

15,444 

Trade and other receivables

32,147 

26,443 

27,647 

Asset held for sale

6,500 

Cash and cash equivalents

35,034 

41,361 

42,915 

 

 

 

 

 

83,105 

90,337 

86,006 

 

 

 

 

Total assets

388,192 

369,067 

384,247 

 

 

 

 

LIABILITIES

 

 

 

Current liabilities

 

 

 

Trade and other payables

(99,734)

(85,714)

(92,780)

Current tax liabilities

(7,511)

(6,544)

(9,580)

Dividends payable

(20,161)

Provisions

(5,482)

(5,063)

(4,265)

 

 

 

 

 

(112,727)

(117,482)

(106,625)

Non-current liabilities

 

 

 

Other payables

(5,834)

(6,321)

(6,071)

Defined benefit pension liability

(17,652)

(5,254)

(3,910)

Long-term provisions

(4,762)

(1,483)

(2,972)

 

 

 

 

 

(28,248)

(13,058)

(12,953)

 

 

 

 

Total liabilities

(140,975)

(130,540)

(119,578)

 

 

 

 

Net assets

247,217 

238,527 

264,669 

 

 

 

 

EQUITY

 

 

 

Capital and reserves

 

 

 

Issued capital

2,023 

2,023 

2,023 

Share premium account

13,533 

13,533 

13,533 

Capital redemption reserve

416 

416 

416 

Retained earnings

231,245 

222,555 

248,697 

 

 

 

 

Total equity attributable to equity holders of the parent

 

247,217 

 

238,527 

 

264,669 

 

Greggs plc

Consolidated statement of changes in equity

For the 26 weeks ended 2 July 2016

 

 

26 weeks ended 4 July 2015

 

Issued capital 

Share 

premium 

Capital 

redemption 

reserve 

Retained 

earnings 

 

Total 

 

 

£'000 

£'000 

£'000 

£'000 

£'000 

 

 

 

 

 

 

Balance at 4 January 2015

2,023 

13,533 

416 

230,731 

246,703 

 

 

 

 

 

Profit for the period

20,080 

20,080 

Other comprehensive income

2,733 

2,733 

Total comprehensive income for the period

22,813 

22,813 

 

 

 

 

 

 

Transactions with owners, recorded

directly in equity

 

 

 

Sale of own shares

3,648 

3,648 

Purchase of own shares

(4,078)

(4,078)

Share-based payments

1,218 

1,218 

Dividends to equity holders

(36,251)

(36,251)

Tax items taken directly to reserves

4,474 

4,474 

Total transactions with owners

(30,989)

(30,989)

Balance at 4 July 2015

2,023 

13,533 

416 

222,555 

238,527 

 

52 weeks ended 2 January 2016

 

Issued capital 

Share 

premium 

Capital 

redemption 

reserve

Retained 

earnings 

As restated 

(see note 2)

Total 

As restated 

(see note 2)

 

£'000 

£'000 

£'000 

£'000 

£'000 

 

 

 

 

 

 

Balance at 4 January 2015

2,023 

13,533 

416 

230,731 

246,703 

 

 

 

 

 

Profit for the financial year

57,600 

57,600 

Other comprehensive income

4,030 

4,030 

Total comprehensive income for the year

61,630 

61,630 

 

 

 

 

 

 

Transactions with owners, recorded

directly in equity

 

 

 

Sale of own shares

3,876 

3,876 

Purchase of own shares

(11,125)

(11,125)

Share-based payments

2,057 

2,057 

Dividends to equity holders

(43,714)

(43,714)

Tax items taken directly to reserves

5,242 

5,242 

Total transactions with owners

(43,664)

(43,664)

Balance at 2 January 2016

13,533 

416 

248,697 

264,669 

 

26 weeks ended 2 July 2016

 

Issued capital 

Share 

premium 

Capital 

redemption 

reserve 

Retained 

earnings 

Total 

 

 

£'000 

£'000 

£'000 

£'000 

£'000 

 

 

 

 

 

 

Balance at 3 January 2016

2,023 

13,533 

416 

248,697 

264,669 

 

 

 

 

 

Profit for the period

19,792 

19,792 

Other comprehensive income

(11,207)

(11,207)

Total comprehensive income for the period

8,585 

8,585 

 

 

 

 

 

 

Transactions with owners, recorded

directly in equity

 

 

 

Sale of own shares

3,799 

3,799 

Purchase of own shares

(7,868)

(7,868)

Share-based payments

1,370 

1,370 

Dividends to equity holders

(21,326)

(21,326)

Tax items taken directly to reserves

(2,012)

(2,012)

Total transactions with owners

(26,037)

(26,037)

Balance at 2 July 2016

2,023 

13,533 

416 

231,245 

247,217 

 

Greggs plc

Consolidated statement of cash flows

For the 26 weeks ended 2 July 2016

 

26 weeks ended 

 2 July 2016 

26 weeks ended 

4 July 2015 

52 weeks ended 

2 January 2016 

 

£'000 

£'000 

£'000 

Operating activities

 

 

 

 

 

 

 

Cash generated from operating activities (see below)

52,148 

41,968 

119,637 

Income tax paid

(7,408)

(7,383)

(15,916)

 

 

 

 

Net cash inflow from operating activities

44,740 

34,585 

103,721 

 

 

 

 

Cash flows from investing activities

 

 

 

Acquisition of property, plant and equipment

(27,903)

(27,847)

(65,785)

Acquisition of intangible assets

(3,302)

(2,882)

(5,981)

Proceeds from sale of property, plant and equipment

3,888 

263 

8,086 

Interest received

91 

147 

222 

Redemption of other investments

10,000 

10,000

 

 

 

 

Net cash outflow from investing activities

(27,226)

(20,319)

 (53,458)

 

 

 

 

Cash flows from financing activities

 

 

 

Sale of own shares

3,799 

3,648 

3,876 

Purchase of own shares

(7,868)

(4,078)

(11,125)

Dividends paid

(21,326)

(16,090)

(43,714)

 

 

 

 

Net cash outflow from financing activities

(25,395)

(16,520)

(50,963)

 

 

 

 

Net decrease in cash and cash equivalents

(7,881)

(2,254)

(700)

 

 

 

 

Cash and cash equivalents at the start of the period

42,915 

43,615 

43,615 

 

 

 

 

Cash and cash equivalents at the end of the period

 

35,034 

 

41,361 

 

42,915 

 

 

 

 

 

 

Greggs plc

Consolidated statement of cash flows (continued)

For the 26 weeks ended 2 July 2016

 

Cash flow statement - cash generated from operations

 

 

 

26 weeks ended 

 2 July 2016 

26 weeks ended 

4 July 2015 

 

52 weeks ended 

2 January 2016 

 

 

£'000 

£'000 

£'000 

 

 

 

 

Profit for the period

19,792 

20,080 

57,600 

Amortisation

411 

208 

454 

Depreciation

20,504 

19,265 

39,687 

Impairment

62 

(112)

66 

(Profit) / loss on sale of property, plant and equipment

(300)

2,054 

2,952 

Release of government grants

(236)

(234)

(484)

Share-based payment expenses

1,370 

1,218 

3,662 

Finance (income) / expense

(16)

85 

Income tax expense

5,582 

5,501 

15,428 

Increase in inventories

(480)

(743)

(154)

Increase in debtors

(4,500)

(352)

(1,555)

Increase / (decrease) in creditors

6,952 

(4,858)

2,875 

Increase / (decrease) in provisions

3,007 

(65)

(979)

Cash generated from operating activities

52,148 

41,968 

119,637 

 

Notes

 

1.             Basis of preparation and accounting policies

 

The condensed accounts have been prepared for the 26 weeks ended 2 July 2016.  Comparative figures are presented for the 26 weeks ended 4 July 2015. These condensed accounts 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 accounts, and should be read in conjunction with the Group accounts for the 52 weeks ended 2 January 2016.

 

These condensed accounts are unaudited and were approved by the Board of Directors on 2 August 2016.

 

The comparative figures for the 52 weeks ended 2 January 2016 are not the Company's statutory accounts for that financial year.  Those accounts have been reported on by the Company's auditor 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 auditor 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.

 

The Group continues to have strong operational cash flows and the Directors are of the view that the Group has sufficient funds available to meet its foreseeable working capital requirements.  The Directors have concluded therefore that the going concern basis remains appropriate.

 

The accounting policies applied by the Group in these condensed accounts are the same as those applied by the Group in its consolidated accounts for the 52 weeks ended 2 January 2016 other than those disclosed in note 2. 

 

 

2.             Changes in accounting policies

 

Accounting policies

 

From 3 January 2016 the following standards, amendments and interpretations were adopted by the Group:

 

·      Clarification of Acceptable Methods of Depreciation and Amortisation - Amendments to IAS 16 and IAS 38

·      Equity Method in Separate Financial Statements - Amendments to IAS 27

·      Annual Improvements to IFRSs - 2012-2014 Cycle

·      Disclosure Initiative - Amendments to IAS 1


The adoption of the above has not had a significant impact on the Group's profit for the period or equity.

 

Restatement of comparatives

 

During 2015 a charge was recognised for the future employers' national insurance costs on share-settled option schemes where there is no requirement for the employee to reimburse these costs. The charge was included within the share-based payments charge within the income statement with the credit being taken directly to reserves in line with the rest of the charge.  It has been determined that the element of the charge relating to future employers' national insurance costs should have been accounted for as a provision rather than directly to reserves. The impact of this for the 52 weeks ended 2 January 2016 is that the closing retained earnings reserve has been reduced by £1,605,000, current liability provisions have increased by £590,000 and long-term provisions have increased by £1,015,000.  There is no impact on profit or cash flows or on the reported results for the 26 weeks ended 4 July 2015.

 

In addition, during the second half of 2015 a review of income statement categorisations was carried out which identified two re-categorisations. Firstly it was determined that it was more appropriate for all wage costs associated with bakery and distribution centre despatch activities to be included in distribution and selling costs, rather than some being included in cost of sales. The net impact of this for the 26 weeks ended 4 July 2015 has been a decrease in cost of sales and a corresponding increase in distribution and selling costs of £4,023,000.  Secondly, early settlement discounts should have been included in administrative costs rather than cost of sales.  The net impact for the 26 weeks ended 4 July 2015 has been an increase in cost of sales and a decrease in administrative costs of £39,000.  There is no impact on profit, balance sheet or cash flows arising from these changes in categorisation.  The figures for the 52 weeks ended 2 January 2016 were correctly stated in the financial statements for that period.

 

3.             Principal risks and uncertainties

 

The Directors consider that the principal risks and uncertainties which could have a material impact on the Group's performance in the remaining 26 weeks of the financial year remain substantially the same as those stated on pages 24 and 25 of our Annual Report and Accounts for the 52 weeks ended 2 January 2016, which is available on our website corporate.greggs.co.ukFollowing the referendum in June 2016 regarding the UK's future in Europe there is considerable economic and political uncertainly within the country. However, the Directors consider that the business's exposure to this risk is no different to that faced by other operators in the food-on-the-go sector.

 

 

4.             Operating segment
 

The Board has considered the requirements of IFRS 8: Operating Segments, and concluded that as there is still only one reportable segment whose revenue, profits, assets and liabilities are measured and reported on a consistent basis with the Group accounts, no additional numerical disclosures are necessary.

 

5.             Exceptional items

 

 

 

26 weeks ended 

 2 July 2016 

26 weeks ended 

4 July 2015

 

52 weeks ended 

2 January 2016 

 

 

 

£'000 

£'000 

£'000 

 

 

 

 

 

Cost of sales

 

 

 

 

   Supply chain restructuring

- redundancy costs

2,780 

 

- asset-related costs

694 

 

- other contractual obligations

16 

   Prior year costs

- dilapidations

(557)

 

 

________

________

________

 

 

2,933

Distribution and selling

 

 

 

 

   Supply chain restructuring

- redundancy costs

966 

   Prior year costs

- property provision

(271)

 

 

________

________

________

 

 

695 

Administrative expenses

 

 

 

 

     Restructuring of support functions

400 

 

 

________

________

________

Total exceptional items

 

4,028 

 

 

=======

=======

=======

 

Supply chain restructuring

 

This charge arises from the decision, announced in March 2016, to invest in and reshape the Company's supply chain in order to support future growth. The costs relate to the closure of three bakery sites and include redundancy and other employment-related costs, costs related to redundant assets, and other contractual obligations that arise as a result of the closure of the sites.

 

Restructuring of support functions

 

This charge relates to redundancy costs arising from the restructuring of bakery administration and payroll functions.

 

Prior year costs

 

These relate to costs treated as exceptional in prior years and arise from the settlement of various property transactions.

 

6.             Defined benefit pension scheme

 

The valuation of the defined benefit pension scheme for the purposes of IAS 19 (Revised) as at 2 January 2016 has been updated as at 2 July 2016 and the movements have been reflected in these condensed accounts.

 

 

 

7.             Taxation

 

The taxation charge for the 26 weeks ended 2 July 2016 and 4 July 2015 is calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period.

 

8.             Earnings per share

 

 

 

26 weeks ended 2 July 2016

26 weeks ended 4 July 2015 

52 weeks ended 2 January 2016

 

Excluding 
exceptional 

 items 

Exceptional 
 items 

 (see note 5)

 

 

Total 

 

 

Total 

 

 

 

Total 

 

 

 

 

 

 

 

 

£'000 

£'000 

£'000 

£'000 

£'000 

 

 

 

 

 

 

Profit for the period attributable to equity holders of the parent

 

22,905 

 

(3,113)

 

19,792 

 

20,080 

 

57,600 

 

 

 

 

 

 

Basic earnings per share

 

22.8p

(3.1p)

19.7p

20.0p

57.3p

Diluted earnings per share

22.3p

(3.0p)

19.3p

19.5p

55.8p

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares

 

 

26 weeks ended 

2 July 2016 

 

26 weeks ended 

4 July 2015 

 

52 weeks ended 

2 July 2016 

 

 

Number 

Number 

Number 

 

 

 

 

Issued ordinary shares at start of period

101,155,901 

101,155,901 

101,155,901 

Effect of own shares held

(753,909)

(622,625)

(551,314)

 

 

 

 

Weighted average number of ordinary shares during the period

100,401,992 

100,533,276 

100,604,587 

Effect of share options on issue

2,225,050 

2,681,435 

2,616,364 

 

 

 

 

Weighted average number of ordinary shares (diluted) during the period

102,627,042 

103,214,711 

103,220,951 

 

 

 

 

 

 

 

 

Issued ordinary shares at end of period

101,155,901 

101,155,901 

101,155,901 

 

 

 

 

 

 

 

9.             Dividends

 

The following tables analyse dividends when paid and the year to which they relate:

 

Dividend declared

26 weeks ended 

2 July 2016 

 

26 weeks ended 

4 July 2015 

52 weeks ended 

2 January 2016 

 

Pence per share 

Pence per share 

Pence per share 

 

 

 

 

 

2014 final dividend

16.0p

16.0p

2015 interim dividend

7.4p

2015 special dividend

20.0p

20.0p

2015 final dividend

21.2p

 

21.2p

36.0p

43.4p

 

 

 

26 weeks ended 

2 July 2016 

 

26 weeks ended 

4 July 2015 

52 weeks ended 

2 January 2016 

 

£'000 

£'000 

£'000 

Total dividend payable

 

 

 

2014 final dividend

16,090 

16,090 

2015 interim dividend

7,463 

2015 special dividend

20,161 

20,161 

2015 final dividend

21,326 

Total dividend paid in period

21,326 

36,251 

43,714 

 

 

 

 

Dividend proposed at period end and not included as a liability in the accounts

 

 

 

 

2015 interim dividend (7.4p per share)

7,462 

2015 final dividend (21.2 p per share)

21,264 

2016 interim dividend (9.5p per share)

9,553 

 

9,553 

7,462 

21,264 

 

 

10.          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 2 January 2016.

 

11.          Half year report

 

The condensed accounts were approved by the Board of Directors on 2 August 2016.  They will be available on the Company's website, corporate.greggs.co.uk

 


 

 

 

12.          Statement of Directors' responsibilities

 

The Directors named below confirm on behalf of the Board of Directors that to the best of their knowledge:

 

·      the condensed set of accounts has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

·      the interim management report includes a fair review of the information required by:

 

(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 accounts; and a description of the principal risks and uncertainties for the remaining 26 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 2 January 2016.  There have been no changes since the approval of the Annual Report and Accounts:

 

 

For and on behalf of the Board of Directors

 

 

 

Roger Whiteside                                 Richard Hutton

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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