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Fevertree Drinks PLC  -  FEVR   

Preliminary Results

Released 07:00 13-Mar-2018

RNS Number : 4849H
Fevertree Drinks PLC
13 March 2018
 

13th March 2018

Fevertree Drinks plc

 ("Fever-Tree", the "Group" or the "Company")

 

Preliminary Results

 

Fever-Tree, the world's leading supplier of premium carbonated mixers, today announces its Preliminary Results for the year ended for 31 December 2017.

 

Financial highlights:

 

·      Revenue up 66% to £170.2m (2016: £102.2m)

·      Gross profit margin of 53.5% (2016: 55.2%)

·      Adjusted EBITDA* of £58.7m (2016: £35.8m)

·      Robust balance sheet with net cash at year end of £50.9m (2016: £26.9m)

·      Diluted EPS of 39.15 pence (2016: 23.70 pence)

·      Final dividend of 7.64 pence per share recommended to shareholders, bringing total dividend to 10.65 pence per share (2016: 6.25 pence per share)

 

* Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share based payment charges and finance costs.

 

Operational highlights:

 

·      Continued strong growth across all regions, channels, flavours and formats with the UK once again delivering an exceptional performance

·      Ended 2017 as the number one mixer brand by value in the UK off-trade channel1

·      Further new distribution wins globally across both On and Off Trade channels; new listings, and increased stores and product ranging within existing customers;

·      Establishment of wholly owned North American operation and appointment of North American CEO

·      Continued focus on innovation with appointment of Innovation Director and successful launch of Limited Edition Clementine Tonic in UK over the Christmas period

·      Named the no.1 best-selling and no.1 trending tonic water in Drinks International's survey of world's top 250 bars for the fourth year running

 

1.     (IRI - Total UK Retail Mixer Market value share - 13 weeks to 31/12/17).

 

Tim Warrillow, Co-founder and CEO of Fever-Tree said:

"It has been a year of significant progress for Fever-Tree. We have continued to see strong growth across all our regions with the UK once again delivering an exceptional performance culminating in Fever-Tree ending the year as the leading mixer brand at UK retail.

 

Whilst this is a notable achievement, there remains a significant opportunity in front of us across all our regions as Fever-Tree continues to drive the evolution of the mixer category.

 

We have had an encouraging start to the year. Our first mover advantage, pioneering approach, brand strength, penetration and relationships means we are ideally positioned to be able to take advantage of the opportunities ahead."

 

 

For further information:

 

Fevertree Drinks plc

Tim Warrillow, Co-founder and CEO

Andy Branchflower, Finance Director

Oliver Winters, Communications & IR Director

+44 (0)20 7349 4922

FTI Consulting - Financial PR

Jonathon Brill

Georgina Goodhew

Fiona Walker

+44 (0)20 3727 1000

fever-tree@fticonsulting.com

Investec Bank plc - Nominated Adviser and Broker

Garry Levin

Alex Wright

David Anderson

+44 (0)20 7597 5970

 

 

Notes to Editors:

 

Fever-Tree is the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, with distribution to over 60 countries worldwide. Based in the UK, the brand was launched in 2005 to provide high quality mixers which could cater to the growing demand for premium spirits, in particular gin, but also increasingly for vodka, rum and whisky. The Company now sells a range of carbonated mixers to hotels, restaurants, bars and cafes ("On Trade") as well as selected retail outlets ("Off Trade").

 

 

 

CHAIRMANS STATEMENT 2017

Results

The Group delivered another set of strong results in 2017, with revenue of £170.2m, reflecting a 66% increase compared to 2016. All regions showed impressive rates of sales growth, emphasising the continued global appeal of the Fever-Tree brand. The UK, the Group's longest established market, once again delivered an exceptional performance, even when set against strong comparators from 2016, with revenues increasing by 96%. The Group's margins remained strong, with adjusted EBITDA increasing to £58.7m (2016: £35.8m).

Our strategic priorities remain clear, with a firm emphasis on driving the opportunities ahead across our key markets.  As part of this, it was pleasing to announce the establishment of our North American operation in December 2017, reflecting an increased focus on the US opportunity as we look ahead.

Dividend

The Board is pleased to recommend a final dividend of 7.64 pence per share, bringing the total dividend for 2017 to 10.65 pence per share (2016: 6.25 pence per share). If approved by the shareholders at the AGM on 17 May 2018, it will be paid on 25 May 2018 to shareholders on the register on 20 April 2018.

People

It remains a privilege to be Chairman of such a dynamic and pioneering company. I continue to be inspired by the growing team of highly talented individuals across the business, led by an executive management team who remain as passionate as ever in driving Fever-Tree to even greater success.

The Board continues to encourage the executive to hire new recruits to augment the team and it was pleasing to see the appointment of several senior hires during the year, bringing a combination of industry experience and expertise in key areas. Post the period end, it was my pleasure to announce the appointments of Kevin Havelock and Jeff Popkin as non-executive Directors. They both have highly impressive track records across the beverages sector and a breadth of relevant international experience that will bring valuable insight and additional perspective to the Group, and along with the rest of the Board, I look forward to working with them.

Outlook

We have had an encouraging start to 2018 and I look forward to working with my Board colleagues and the wider Fever-Tree team to continue to deliver growth.

 Bill Ronald

Chairman

 STRATEGIC REPORT

CHIEF EXECUTIVE'S REPORT

I am very encouraged by our performance during 2017, which culminated in Fever-Tree ending the year as the number one mixer brand by value in the UK Off-Trade channel (IRI - Total UK Retail Mixer Market value share - 13 weeks to 31/12/17). These figures firmly illustrate that Fever-Tree's commitment to putting the best quality ingredients and choice back into the mixer category has broad appeal and is attracting consumers of all ages to this category as never before in the UK and across the globe.

We delivered exceptional growth in 2017 with Group revenue of £170.2m, representing growth of 66% on 2016. The revenue growth was underpinned by strong margins, with a gross profit margin of 53.5% and adjusted EBITDA margin of 34.5%, which translated to earnings in the year of £45.5m, growth of 66% on 2016. We ended the year with a robust balance sheet and net cash of £50.9m, an increase of 89% on last year.


Regional Review

We consider our global sales across four regions, being the UK, USA, Rest of Europe ("Continental Europe"), and Rest of the World ("RoW").

Following another period of exceptional growth, the UK represented 52% of sales in 2017, with 48% of sales generated overseas.

UK

In our largest and longest established market, the Group achieved exceptional sales growth of 96% in 2017. The performance over the Christmas period was particularly notable with an impressive rate of sales growth across all channels, formats and flavours, even when measured against strong comparatives from the prior year.

Sales growth in the Off-Trade channel was again very strong, driven by further distribution gains as well as significant underlying rate of sales growth across our existing SKUs. This performance was also helped by Fever-Tree gaining increased access to valuable secondary space in stores, such as end of aisle and front of store positions, as our retail partners continue to recognise and reflect the increasing relevance and importance of the brand to the wider mixer category.

Our 150ml can format has continued to perform extremely well, representing 43% of sales in the Off-Trade channel in 2017 with distribution gains across all of our major retailers.  Fever-Tree drove 91% of the value growth in the entire UK mixer category within retail in 2017 and now holds a 39% value share (IRI). The mixer category is now the fastest growing category across the carbonated soft drinks sector, underlining the extent to which Fever-Tree is rapidly transforming the category in the UK. With more shelf space being given over to mixers and the trend for mixed drinks continuing to spread across the market and age groups, we see the opportunity to deliver further growth in the UK.

Sales in the On-Trade also grew strongly in 2017, representing 49% of UK revenue. This performance was driven by an impressive underlying rate of sales growth, even in our longest standing accounts, as well as an expanding distribution footprint as we continued to gain further accounts across the On-Trade mix. Reflecting the opportunity that remains ahead of us, we continued to grow our UK sales team and our focus remains on working closely not only with key wholesale and managed group partners but also in expanding our regional footprint.

 USA

In the USA, our second largest single market, we were encouraged by another good year of sales growth of 39% (36% on a constant currency basis). Sales were strong across both channels benefiting from incremental distribution gains seen in the second half of 2016 as well as new retail listings in 2017. 

We were very pleased to announce in December 2017 the establishment of a North American office and the appointment of Charles Gibb as North American CEO. It is a significant milestone and reflects the Group's ambition and commitment to the North American market. Charles Gibb brings substantial international experience, a broad range of strategic and commercial skills as well as a proven track record of growing brands to significant scale. He has already begun to build a team and is working closely with our current agents, Brands of Britain, during the transition period with formal handover to be completed during the second quarter of 2018 after which time Fever-Tree will directly manage the current distribution network and US marketing effort.

The North American premium mixer market is still at a relatively early stage but the trend towards spirits premiumisation and the increasing focus on simple long drink mixability is accelerating and represents a significant opportunity for Fever-Tree.

Continental Europe

Sales growth of 44% was achieved across Continental Europe in 2017 (37% on a constant currency basis). A number of our key Western European territories delivered a very strong performance, with Fever-Tree's premium leadership position reinforced by distribution gains and a strong underlying rate of sales growth across both the On and Off-Trade. We have now established initial listings across our tonic range within the major national retailers and further strengthened our position in the On-Trade, reflecting Fever-Tree's role in the acceleration and spread of the premium gin and tonic trend across Europe.

Our non-tonic flavours performed strongly, supported by the Moscow Mule becoming a leading mixed drink in Italy and also an emerging trend within Germany where sales of our ginger beer increased by over 100%. Our Smoky Ginger Ale and Spiced Orange Ginger Ale were recently introduced in 15 markets, supported by partnerships with leading dark spirits brands and we have been encouraged by the initial response.

ROW

Growth of 57% was achieved in the RoW region, within which the key territories currently are Australia and Canada, both of which saw continued strong growth in 2017. A further 33 territories are also included within this region, and whilst they provide potential for growth in the future they are not expected to be a significant driver of growth in the short term.


Operational review

The Group operates a largely outsourced business model which allows for scalability and flexibility alongside the ability to benefit from specific, focused expertise and experience in key areas of the supply chain. This model enables the Group to grow and maintain the highest standards of quality control without the requirement for significant capital investment and allows management to maintain its focus on realising the Group's strategic growth opportunities. 

Manufacturing and distribution is completely outsourced, with the Group responsible for arranging for the delivery of key ingredients, flavours, water, glass, cans and packaging to a manufacturer who then bottles or cans the final product from these component parts.

During the year the Group began bottling with a new European partner, based in Spain, initially focussing on bottling for territories in the Southern European region but with the capacity to expand beyond this with time if required. This development increases our bottling footprint to five partners across the UK and Europe, further improving the Group's bottling capacity and contingency and is in line with our stated strategy to bottle closer to our key regions and territories as appropriate over time.

We have continued to strengthen our operational team with several key senior hires during 2017. As well as the appointment of Charles Gibb as North American CEO, we have appointed a commercial strategy director, innovation director and director of communications & IR. These hires have added expertise and experience in key areas, providing further support to the executive management team.

Innovation

Innovation remains integral to the Group and our new product development pipeline remains well-stocked. 2017 saw our 150ml can format extended to include our Aromatic Tonic as well as Ginger Ale and premium Lemonade for Virgin Atlantic. Our Clementine Tonic was launched as a limited edition in the UK Off-Trade over the Christmas period and proved to be extremely popular with consumers, becoming our third most popular SKU by volume sold in December, a remarkable achievement given its relatively limited distribution.  We intend to make full use of limited edition releases going forward in key markets.

Our range of tonics continues to stimulate interest in the premium gin and tonic category, with our pioneering "pairing wheel" and gin and tonic menus proving to be hugely popular, allowing consumers the opportunity to find their perfect pairings of Fever-Tree tonics with the expanding range of premium gins available across all our regions. While our original Indian and light tonics remained the cornerstone of our range, our flavoured tonics continued to increase their footprint across both channels, with Mediterranean and Elderflower Tonics both once again growing very strongly and Aromatic Tonic gaining a much wider distribution.  

Our light tonic continued to perform extremely strongly, once again growing at over 100% in the UK and now accounts for 31% of our total sales in the UK Off-Trade. Reflecting its success as well as our desire to provide consumers with choice across the category, we will be extending our range of low calorie mixers across all of our major flavours during 2018. The extension of our light range has been in development for over two years and has been made by using the same unique botanicals and ingredients used in the regular range. The extended Refreshingly Light range will sit alongside our regular range, providing consumers with choice without compromising on taste or quality.

The quality of ingredients is central to our new product development and we continue to travel the globe to source the highest quality ingredients available. These trips give myself and the team the opportunity to meet and learn from the passionate producers who share our philosophy that there should be no compromise when trying to produce the best tasting products.

The launch of our Smoky Ginger Ale and Spiced Orange Ginger Ale has extended our dark mixing range, reintroducing quality and choice to the trade and consumers of dark spirits. We have taken the same expertise applied to our range of tonics to craft a range of mixers that perfectly complement the flavour characteristics of dark spirits. Alongside our own initiatives such as the dark spirits pairing wheel, we are also partnering with leading dark spirits brands who are promoting great tasting, simple long mixed drinks and recruiting a new generation of consumers.

We have been very pleased with the initial launch of the extended dark spirits range which has reinforced our belief that, in much the same way we approached the gin category over ten years ago, an exciting opportunity exists to work alongside these brands to reinvigorate the dark spirits category. It is notable that gin accounts for only 6% of the global premium spirits category while the dark spirits category accounts for 60%. Within the dark spirits category we are seeing clear evidence that the same trends of premiumisation and mixability that are driving the rise of premium gin and tonic consumption are also emerging.

Market developments

The Group ended the year as the number one mixer brand by value in the UK Off-Trade and Fever-Tree remains the pioneer and market leader of the premium mixer category, in both market share and reputation. For the fourth year running, Drinks International's survey of the world's top 250 bars has stated that the Fever-Tree brand is the no.1 best-selling and no.1 trending tonic water.  

The mixer category is seeing rapid transformation and we strongly believe that the established trend towards spirits premiumisation and the increasing focus on simple long drink mixability will continue. Globally, premium spirits growth has consistently outpaced non-premium over the last 10 years and this trend is accelerating, providing mutual support and opportunity for both premium spirits producers and Fever-Tree's range of products across regions, channels and customers.  

We believe that as the premium spirits market further develops both in the Group's core markets as well as new territories, demand for premium mixers will continue to grow and as such we remain ideally positioned to able to take advantage of these opportunities.


Outlook

We have had an encouraging start to 2018 and remain confident that we are increasingly well positioned to deliver further growth across the business.

 Tim Warrillow

Chief Executive

 

 

 

FINANCIAL REVIEW

REVENUE

Revenue grew by 66% from £102.2m to £170.2m, underpinned by growth across all regions, flavours and channels as outlined in the Chief Executive's report.

GROSS MARGIN AND OPERATING EXPENSES

In 2017, gross margin remained strong but decreased to 53.5% (2016: 55.2%).  Whilst both the US dollar and euro strengthened on average across the year, the impact of foreign currency movements on gross margin was marginal, reflecting the increasing local currency cost base and therefore degree of natural hedge in both regions.  The decrease in gross margin in the year was primarily driven by an expected increase in product costs following the decision to introduce a new, bespoke glass bottle in the second half of 2016.

Underlying operating expenses are defined as all operating expenditure exclusive of depreciation, amortisation and share based payment charges.  The proportion of this expenditure relative to revenue is seen as an effective indicator of changes in underlying operating activity year on year.  In 2017 underlying operating expenses as a proportion of revenue reduced to 19.1% (2016: 20.1%), reflecting the benefit of operational gearing on the Group's strong sales growth.  Despite this relative reduction in underlying operational spend, in absolute terms the Group significantly increased investment in staff, new premises, financial systems and marketing expenditure in the year.  The Group's focus remains on ensuring it is appropriately resourced to drive and support strong revenue growth and therefore it is not expected that the reduced level of underlying operating expenditure achieved in 2017 will be used as a benchmark to budget for future years.

The adjusted EBITDA margin for the group reduced slightly to 34.5% (2016: 35.1%), with adjusted EBITDA growing by 64% to £58.7m (2016: £35.8m).  Depreciation and Amortisation remained broadly consistent year on year whilst Share based payment charges increased to £1.1m (2016: £0.5m).  Operating profit increased by 64% to £56.4m (2016: £34.4m)

TAX

The effective tax rate in 2017 was 19.35% (2016: 19.84%).

EARNINGS PER SHARE AND DIVIDENDS

The basic earnings per share for the year are 39.48 pence (2016: 23.86 pence) and the diluted earnings per share for the year are 39.15 pence (2016: 23.70 pence).

In order to compare earnings per share year on year, earnings have been adjusted to exclude amortisation and the statutory tax rates have been applied (disregarding other tax adjusting items).  On this basis, normalised earnings per share for 2017 were 40.04 pence per share and for 2016 were 24.31 pence per share, an increase of 64.7%.

The Board is recommending a final dividend of 7.64 pence per share in respect of 2017 (2016: 4.71 pence per share), which brings the total dividend for 2017 to 10.65 pence per share (2016: 6.25 pence per share).  If approved by the shareholders at the AGM on 17 May 2018, it will be paid on 25 May 2018 to shareholders on the register on 20 April 2018.

CASH POSITION

The Group had net cash of £50.9m at year end, with £57.0m of cash at the bank offset by £6.1m of bank loans (2016: net cash of £26.9m). The Group has access to a £10m 3 year revolving credit facility provided by Lloyds Bank plc, of which £6.1m is drawn which expires in 2019.

WORKING CAPITAL

Working capital increased by £15.3m during 2017 to £39.1m, which is a 65% increase compared to revenue growth of 66%, reflecting a slight improvement in working capital profile at year end.  Operating cash flow remains strong at 74% of adjusted EBITDA, with significant cash balances to be collected in 2018 on the back of exceptional Christmas trading in the UK.

CAPITAL EXPENDITURE

Due to the Group's outsourced business model, capital expenditure requirements remain low. A key area of capital expenditure in 2017 continued to be investment in crates used to transport reusable bottles within Germany of £0.5m (2016: £0.6m), reflecting the on-going strong growth in that territory. Additional spend of £0.5m was also made to leasehold improvements in 2017 as part of the head office relocation.

PERFORMANCE INDICATORS

The Group monitors its performance through a number of key indicators. These are formulated at Board meetings and reviewed at both operational and Board level.

Revenue growth %

Group revenue growth was 66.4% in 2017 which was ahead of Board expectations (2016: 72.5%).

Gross margin %

The Group achieved a gross margin of 53.5% in 2017 which was ahead of Board expectations (2016: 55.2%).

Adjusted EBITDA margin %

The Group achieved an adjusted EBITDA margin of 34.5% which was ahead of Board expectations (2016: 35.1%).

 

Andrew Branchflower

 

Finance Director
 

 

Fevertree Drinks plc

Consolidated statement of comprehensive income

For the year ended 31 December 2017

 

2017

2016

 

£

£

Revenue

170,171,670

102,237,354

 

 

 

Cost of sales

(79,073,015)

(45,815,263)

 

 

 

 

 

 

Gross profit

91,098,655

56,422,091

 

 

 

Administrative expenses

(34,694,920)

(22,049,714)

 

 

 

Adjusted EBITDA*

58,665,004

35,838,989

Depreciation

(405,460)

(249,318)

Amortisation

(720,000)

(720,000)

Share based payment charges

(1,135,809)

(497,294)

 

 

 

Operating profit

56,403,735

34,372,377

 

 

 

Finance costs

 

 

Finance income

94,885

79,821

Finance expense

(71,937)

(150,318)

 

 

 

 

 

 

Profit before tax

56,426,683

34,301,880

 

 

 

Tax expense

(10,917,766)

(6,804,222)

 

 

 

Profit for the year and comprehensive income attributable to equity holders of the parent company

45,508,917

27,497,658

 

 

 

Earnings per share for profit attributable to the owners of the parent during the year

 

 

Basic (pence)

39.48

23.86

Diluted (pence)

39.15

23.70

 

 

 

* Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share based payment charges and finance costs.

 

Fevertree Drinks plc

Consolidated statement of financial position

At 31 December 2017

 

 

2017

2016

 

£

£

Non-current assets

 

 

Property, plant and equipment

1,995,616

1,163,103

Intangible assets

42,410,655

43,130,655

Deferred tax asset

1,370,973

-

Total non-current assets

45,777,244

44,293,758

 

 

 

Current assets

 

 

Inventories

13,235,736

10,523,754

Trade and other receivables

55,587,041

30,392,649

Derivative financial instruments

229,769

-

Cash and cash equivalents

56,959,534

32,963,225

Total current assets

126,012,080

73,879,628

 

 

 

Total assets

171,789,324

118,173,386

 

 

 

Current liabilities

 

 

Trade and other payables

(29,948,880)

(16,128,246)

Corporation tax liability

(5,695,077)

(3,761,308)

Derivative financial instruments

-

(981,071)

Total current liabilities

(35,643,957)

(20,870,625)

 

 

 

Non-current liabilities

 

 

Loans and borrowings

(6,061,356)

(6,081,932)

Deferred tax liability

-

(2,228,081)

Total non-current liabilities

(6,061,356)

(8,310,013)

 

 

 

Total liabilities

(41,705,313)

(29,180,638)

 

 

 

Net assets

130,084,011

88,992,748

 

 

 

Equity attributable to equity holders of the company

 

 

Share capital

288,415

288,102

Share premium

53,689,162

53,521,386

Capital redemption reserve

93,189

93,189

Retained earnings

76,013,245

35,090,071

 

 

 

Total equity

130,084,011

88,992,748

 

 

 

 

Fevertree Drinks plc

Consolidated statement of cash flows

For the year ended 31 December 2017

 

2017

2016

 

£

£

Operating activities

 

 

Profit before tax

56,426,683

34,301,880

Finance expense

71,937

150,318

Finance income

(94,885)

(79,821)

Depreciation of property, plant and equipment

405,460

249,318

Amortisation of intangible assets

720,000

720,000

Share based payments

1,135,809

497,294

 

58,665,004

35,838,989

 

 

 

(Increase) in trade and other receivables

(26,405,231)

(13,596,495)

(Increase) in inventories

(2,711,982)

(4,147,081)

Increase in trade and other payables

13,820,634

7,585,088

 

(15,296,579)

(10,158,488)

Cash generated from operations

43,368,425

25,680,501

 

 

 

Income taxes paid

(9,408,007)

(5,047,888)

 

 

 

Net cash flows from operating activities

33,960,418

20,632,613

 

 

 

Investing activities

 

 

Purchase of property, plant and equipment

(1,237,970)

(823,011)

Interest received

74,306

79,821

Net cash used in investing activities

(1,163,664)

(743,190)

 

 

 

Financing activities

 

 

Interest paid

(71,937)

(141,972)

Issue of shares

168,089

-

Dividends paid

(8,896,597)

(4,425,250)

Net cash used in financing activities

(8,800,455)

(4,567,222)

 

 

 

Net increase in cash and cash equivalents

23,996,309

15,322,201

 

 

 

Cash and cash equivalents at beginning of period

32,963,225

17,641,024

 

 

 

Cash and cash equivalents at end of period

56,959,534

32,963,225

 

 

 

NOTES TO THE CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS

 

1.   Basis of preparation

 

The financial information presented in this preliminary announcement has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and as adopted by the EU and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.  The principal accounting policies adopted in the preparation of the financial information in this preliminary announcement are unchanged from those used in the company's financial statements for the year ended 31 December 2016 and are consistent with those that the company has applied in its financial statements for the year ended 31 December 2017.

 

The financial information set out above does not constitute the company's statutory accounts for 2017 or 2016. Statutory accounts for the years ended 31 December 2017 and 31 December 2016 have been reported on by the Independent Auditors.  The Independent Auditors' Report on the Annual Report and Financial Statements for 2017 and 2016 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

Statutory accounts for the year ended 31 December 2016 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2017 will be delivered to the Registrar in due course.

 

2.   Revenue

 

An analysis of turnover by geographical market is given below:

 

 

 

2017

2016

 

£

£

 

 

 

United Kingdom

87,778,227

44,685,328

United States of America

29,539,525

21,273,333

Europe

44,740,954

31,114,109

Rest of the World

8,112,964

5,164,584

 

170,171,670

102,237,354

 

3.   Dividends

 

The final dividend of 7.64 pence per share, bringing the total dividend for 2017 to 10.65 pence per share, will be paid on 25 May 2018 to shareholders on the register on 20 April 2018 if approved by the shareholders at the AGM on 17 May 2018.

 

4.   Earnings per share

Basic earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial year of 115,256,374 (2016: 115,240,896). Diluted earnings per ordinary share are calculated with reference to 116,236,486 (2016: 116,034,569) ordinary shares. The effect of the exercise of options on the weighted average number of ordinary shares in issue is 980,112 (2016: 793,673).

 

2017

2016

 

£

£

Profit

 

 

Profit used in calculating basic and diluted EPS

45,508,917

27,497,658

 

 

 

Number of shares

 

 

Weighted average number of shares for the purpose of

basic earnings per share

115,256,374

115,240,896

Weighted average number of employee share options outstanding

980,112

793,673

Weighted average number of shares for the purpose of

diluted earnings per share

116,236,486

116,034,569

 

 

 

Basic earnings per share (pence)

39.48

23.86

 

 

 

Diluted earnings per share (pence)

39.15

23.70

 


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