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RNS
Greggs PLC  -  GRG   

Interim Results

Released 07:00 01-Aug-2017

RNS Number : 6569M
Greggs PLC
01 August 2017
 

 

 

 

1 August 2017

 

INTERIM RESULTS FOR THE 26 WEEKS ENDED 1 JULY 2017

 

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

with 1,800 retail outlets throughout the country

 

Good progress in the first half

 

 

First half financial highlights

·     Total sales up 7.3% to £453m

·     Company-managed shop like-for-like sales* up 3.4%

·     Operating profit excluding property gains** and exceptional charge*** up 1.8% to £27.6m

·     Exceptional costs of £8.3m relating to previously announced restructuring

·     Pre-tax profit including property profits and exceptional charges £19.4m

·     Continued strong cash generation: £34.0m net inflow from operating activities

·     Ordinary interim dividend per share up 8.4% to 10.3p

 

* like-for-like sales in Company-managed shops (excluding franchises) with a calendar year's trading history

** freehold property disposal gains of £0.3m in 2017 (2016: £2.2m)

*** exceptional pre-tax charge of £8.3m in 2017 (2016: £4.0m) in relation to previously announced restructuring

 

 

Operational highlights

·     Continued like-for-like sales growth from:

Coffee and breakfast

'Balanced Choice' range including new salads and drinks

Hot food choices

Traditional savoury favourites

·     Shop opening programme progressing well:

61 new shops opened, 19 closures; expect around 100 net new shops for the year as a whole

1,806 shops trading as at 1 July 2017

·     Roll out of new central forecasting and replenishment system successfully completed ahead of plan

·     Supply chain investment programme on track

 

 

 

"The business has traded in line with our plans during the first half of the year.  We have made good progress with our strategic plans and remain confident of future prospects although we remain alert to short-term pressures on consumers' disposable income.  Over the year as a whole we expect to deliver results 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 1 August only

       0191 281 7721 thereafter

 

 

Hudson Sandler

Wendy Baker / Hattie O'Reilly / Fern Duncan

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 traded in line with our plans during the first half of the year.  Total sales for the 26 weeks to 1 July 2017 grew by 7.3 per cent to £453 million, with like-for-like sales in company-managed shops up by 3.4 per cent.  As expected the business experienced pressure from cost inflation, but despite this operating profit before property gains and exceptional items grew by 1.8 per cent to £27.6 million (2016: £27.2 million).

 

Operational review

 

Our freshly prepared food offer at great prices continues to set us apart from the competition and prove popular with consumers.  In the first half of 2017 we developed further our product offering and delivered growth across multiple categories:

-     we extended our Balanced Choice range, launching new salads and drinks;

-     the popularity of our hot sandwiches continued to increase;

-     demand for coffee and breakfast remained strong; and

-     we continued to see good growth in traditional products, such as fresh-baked savouries.

 

Recognition of our progress in the food-on-the-go market saw Greggs win several awards including 'Food to Go Retailer of the Year' at both the 2017 British Sandwich Industry Awards and the Grocer Gold Awards.

 

We continue to see exciting potential for growth in our shop estate and opened 61 new shops in the first half of 2017 (including 24 franchised units) and closed 19 shops, giving a total of 1,806 shops (of which 181 are franchise units) trading at 1 July 2017.  We opened our first 'Drive-Thru' shop at Irlam, Greater Manchester, in June and have been encouraged by its popularity, indicating a demand for further Drive-Thru locations.  We also continued to expand the estate in the south-west of England and in Northern Ireland whilst adapting our formats to suit locations such as garage forecourts.  Our pipeline of new shop opportunities remains strong and we continue to expect around 100 net openings in the year as a whole.

 

We have made great progress in the transformation of our shop estate with most shops trading in a food-on-the-go format.  We updated 107 shops in the first half of 2017 as part of our shop refurbishment programme.    In line with our normal shop refurbishment cycle, over the next couple of years we are entering a period where a lower number of refurbishments will fall due.  In order to maintain a steadier number per year we now plan to refurbish 130 shops in 2017 and a similar number in the following two years, before returning to the more recent run rate of 200+ shops from 2020.

 

We have successfully deployed our new central forecasting and replenishment system to all of our shops ahead of plan.  This has been the most significant process change that the business has ever embarked upon and I am delighted with the way that our project team and retail colleagues have prepared for and managed the new ways of working.  Already we are seeing benefits in terms of product availability and the administrative tasks required of our shop colleagues have been simplified.  Inevitably there has been some increase in costs in the transition but there is a clear net benefit already and we will build on this as we learn to harness the benefits of this new technology.

 

We made further progress with the plans to invest in the transformation and development of our supply chain in the first half.  Our Edinburgh bakery was closed in May, with production and logistics activities transferring to our Glasgow site where we have invested to absorb the additional work.  This investment has included the first of our new consolidated manufacturing platforms, in this case for the production of Yum-Yums.  The commissioning has gone well and we are already delivering improved product quality, consistency and efficiency.  We are now placing orders for the next phase of investment, the first of which will be the consolidation of cake and muffin production at our Leeds site. Once again I must give credit to the teams working in our supply chain operations to implement these strategic changes whilst maintaining service levels to our shops and customers.

 

Financial performance

 

As expected, input cost inflation had a modest impact on margins in the first half of the year.  Despite this, operating profit excluding property gains and exceptional charges grew by 1.8 per cent to £27.6m (2016: £27.2m), giving an underlying margin of 6.1 per cent (2016: 6.4 per cent).  Operational costs were well controlled and we continued to deliver benefits from our programme of business efficiency, which has helped to mitigate some of the impact of cost inflation.

 

Non-exceptional freehold property disposals realised profits of £0.3 million in the period (2016: £2.2 million) and we incurred a net exceptional charge of £8.3 million (2016: £4.0 million) as described below.  Pre-tax profit including all property profits and exceptional charges was £19.4 million (2016: £25.4 million).  Excluding the exceptional items, but including the lower property gains in 2017, diluted earnings per share were 21.4 pence (2016: 22.3 pence), with reported diluted earnings per share (including exceptional items) of 14.9 pence (2016: 19.3 pence).

 

Exceptional items

 

At the start of this year we communicated proposals for the next phase of our £100 million investment programme to reshape our manufacturing and distribution operations for future growth.  We expect to recognise one-off costs in the range £9-10 million in 2017 as a result of the changes required to consolidate our manufacturing operations across the country.  £8.7 million of exceptional costs have been recognised in the first half of the year and this, combined with a £0.4 million exceptional credit related to the gain on disposal of related properties, resulted in a net exceptional charge of £8.3 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 applies 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 10.3 pence per share (2016: 9.5 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 6 October 2017 to those shareholders on the register at the close of business on 8 September 2017.

 

Financial position

 

Capital expenditure during the first half was £36.4 million (2016: £31.2 million) as we progressed the investment in our supply chain alongside new shop growth and estate refurbishment.  In the second half of the year the rate of shop refurbishment will reduce and we will continue to invest in new shop openings and the transformation of our manufacturing and logistics capacity.  As a result we now expect total capital expenditure in 2017 to be approximately £80 million (2016: £80.4 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 £34.0 million (2016: £44.7 million) and we ended the period with a cash balance of £19.9 million (2 July 2016: £35.0 million).

 

Outlook

 

We have made a good start to the second half of the year and are confident that the strategic investments we are making will enable the business to continue delivering further profitable growth.  In the short term we remain alert to pressures building on consumers' disposable income and the continuing economic uncertainty.  Over the year as a whole we expect to deliver results in line with our previous expectations as well as further progress against our strategic plan.

 

 

                                                                                                                         Roger Whiteside

Chief Executive

                                                                                                                             1 August 2017

 

 

 

Greggs plc

Consolidated income statement

For the 26 weeks ended 1 July 2017

 

 

26 weeks ended 1 July 2017

26 weeks ended 2 July 2016

52 weeks ended 31 December 2016

 

Excluding 
exceptional 

 items 

 

Exceptional 
 items 

 (see Note 5)

 

Total 

Excluding 
exceptional 

 items 

 

Exceptional 
 items 

 (see Note 5)

 

Total 

Excluding 
exceptional 

 items 

 

Exceptional 
 items 

 (see Note 5)

 

Total 

 

 

 

 

 

 

 

 

 

 

 

£'000 

£'000 

£'000 

£'000 

£'000 

£'000 

£'000 

£'000 

£'000 

 

 

 

 

 

 

 

 

 

 

Revenue

452,851 

452,851 

422,129 

422,129 

894,195 

894,195 

Cost of sales

(166,020)

(8,346)

(174,366)

(155,349)

(2,933)

(158,282)

(324,289)

(4,367)

(328,656)

 

 

 

 

 

 

 

 

 

 

Gross profit

286,831 

(8,346)

278,485 

266,780 

(2,933)

263,847 

569,906 

(4,367)

565,539 

 

 

 

 

 

 

 

 

 

 

Distribution and selling costs

(233,074)

(233,074)

(212,808)

(695)

(213,503)

(441,246)

(594)

(441,840)

Administrative expenses

(25,862)

(25,862)

(24,586)

(400)

(24,986)

(48,315)

(216)

(48,531)

 

 

 

 

 

 

 

 

 

 

Operating profit

27,895 

(8,346)

19,549 

29,386 

(4,028)

25,358 

80,345 

(5,177)

75,168 

 

 

 

 

 

 

 

 

 

 

Finance (expense) / income

(148)

(148)

16 

16 

(26)

(26)

 

 

 

 

 

 

 

 

 

 

Profit before tax

27,747 

(8,346)

19,401 

29,402 

(4,028)

25,374 

80,319 

(5,177)

75,142 

 

 

 

 

 

 

 

 

 

 

Income tax

(5,903)

1,669 

(4,234)

(6,497)

915 

(5,582)

(18,064)

915 

(17,149)

 

 

 

 

 

 

 

 

 

 

Profit for the period attributable to equity holders of the parent

 

21,844 

 

(6,677)

 

15,167 

 

22,905 

 

(3,113)

 

19,792 

 

62,255 

 

(4,262)

 

57,993 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

21.7p

(6.6p)

15.1p

22.8p

(3.1p)

19.7p

62.0p

(4.2p)

57.8p

Diluted earnings per share

21.4p

(6.5p)

14.9p

22.3p

(3.0p)

19.3p

60.8p

(4.1p)

56.7p

 

 

 

 

 

 

 

 

 

 

 

 

Greggs plc

Consolidated statement of comprehensive income

For the 26 weeks ended 1 July 2017

 

 

 

26 weeks ended 

1 July 2017 

26 weeks ended 

2 July 2016 

52 weeks ended 

31 December 2016 

 

£'000 

£'000 

£'000 

 

 

 

 

 

 

 

 

Profit for the period

15,167 

19,792 

57,993 

 

 

 

 

Other comprehensive income

 

 

 

Items that will not be recycled to profit or loss:

 

 

 

Re-measurements on defined benefit pension plans

2,252 

(13,667)

(18,791)

 

 

 

 

Tax on items taken directly to equity

(383)

2,460 

3,194 

 

 

 

 

Other comprehensive income for the period, net of income tax

1,869 

 

(11,207)

(15,597)

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

17,036 

 

8,585 

 

42,396 

 

 

 

Greggs plc

Consolidated balance sheet

as at 1 July 2017

 

 

1 July 2017 

2 July 2016 

31 December 2016 

 

 

£'000 

£'000 

£'000 

ASSETS

 

 

 

Non-current assets

 

 

 

Intangible assets

14,236 

13,139 

14,254 

Property, plant and equipment

314,984 

287,912 

307,363 

Deferred tax asset

2,225 

4,036 

1,750 

 

 

 

 

 

331,445 

305,087 

323,367 

 

 

 

 

Current assets

 

 

 

Inventories

16,075 

15,924 

15,934 

Trade and other receivables

32,228 

32,147 

30,713 

Cash and cash equivalents

19,922 

35,034 

45,960 

 

 

 

 

 

68,225 

83,105 

92,607 

 

 

 

 

Total assets

399,670 

388,192 

415,974 

 

 

 

 

LIABILITIES

 

 

 

Current liabilities

 

 

 

Trade and other payables

(93,738)

(99,734)

(104,924)

Current tax liability

(6,073)

(7,511)

(10,426)

Provisions

(5,525)

(5,482)

(6,088)

 

 

 

 

 

(105,336)

(112,727)

(121,438)

Non-current liabilities

 

 

 

Other payables

(5,363)

(5,834)

(5,599)

Defined benefit pension liability

(20,908)

(17,652)

(22,851)

Long-term provisions

(7,996)

(4,762)

(1,426)

 

 

 

 

 

(34,267)

(28,248)

(29,876)

 

 

 

 

Total liabilities

(139,603)

(140,975)

(151,314)

 

 

 

 

Net assets

260,067 

247,217 

264,660 

 

 

 

 

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

244,095 

231,245 

248,688 

 

 

 

 

Total equity attributable to equity holders of the Parent

 

260,067 

 

247,217 

 

264,660 

 

 

 

Greggs plc

Consolidated statement of changes in equity

For the 26 weeks ended 1 July 2017

 

 

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 

 

52 weeks ended 31 December 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 financial year

57,993 

57,993 

Other comprehensive income

(15,597)

(15,597)

Total comprehensive income for the year

42,396 

42,396 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

 

 

Sale of own shares

4,063 

4,063 

Purchase of own shares

(12,398)

(12,398)

Share-based payments

1,994 

1,994 

Dividends to equity holders

(30,936)

(30,936)

Tax items taken directly to reserves

(5,128)

(5,128)

Total transactions with owners

(42,405)

(42,405)

Balance at 31 December 2016

2,023 

13,533 

416 

248,688 

264,660 

 

26 weeks ended 1 July 2017

 

Issued capital 

Share 

premium 

Capital 

redemption 

reserve 

Retained 

earnings 

Total 

 

 

£'000 

£'000 

£'000 

£'000 

£'000 

 

 

 

 

 

 

Balance at 1 January 2017

2,023 

13,533 

416 

248,688 

264,660 

 

 

 

 

 

 

Profit for the period

15,167 

15,167 

Other comprehensive income

1,869 

1,869 

Total comprehensive income for the period

17,036 

17,036 

 

 

 

 

 

 

Transactions with owners, recorded directly in equity

 

 

 

Sale of own shares

4,791 

4,791 

Purchase of own shares

(6,356)

(6,356)

Share-based payments

961 

961 

Dividends to equity holders

(21,768)

(21,768)

Tax items taken directly to reserves

743 

743 

Total transactions with owners

(21,629)

(21,629)

Balance at 1 July 2017

2,023 

13,533 

416 

244,095 

260,067 

 

 

Greggs plc

Consolidated statement of cash flows

For the 26 weeks ended 1 July 2017

 

26 weeks ended 

1 July 2017 

26 weeks ended 

2 July 2016 

52 weeks ended 

31 December 2016 

 

£'000 

£'000 

£'000 

Operating activities

 

 

 

 

 

 

 

Cash generated from operating activities (see page 11)

42,689 

52,148 

133,773 

Income tax paid

(8,700)

(7,408)

(16,157)

 

 

 

Net cash inflow from operating activities

33,989 

44,740 

117,616 

 

 

 

Cash flows from investing activities

 

 

 

Acquisition of property, plant and equipment

(37,636)

(27,903)

(74,016)

Acquisition of intangible assets

(1,612)

(3,302)

(6,106)

Proceeds from sale of property, plant and equipment

2,393 

3,888 

4,698 

Interest received

161 

91 

124 

 

 

 

Net cash outflow from investing activities

(36,694)

(27,226)

(75,300)

 

 

 

Cash flows from financing activities

 

 

 

Sale of own shares

4,791 

3,799 

4,063 

Purchase of own shares

(6,356)

(7,868)

(12,398)

Dividends paid

(21,768)

(21,326)

(30,936)

 

 

 

Net cash outflow from financing activities

(23,333)

(25,395)

(39,271)

 

 

 

Net (decrease) / increase in cash and cash equivalents

(26,038)

(7,881)

3,045 

 

 

 

 

Cash and cash equivalents at the start of the period

45,960 

42,915 

42,915 

 

 

 

Cash and cash equivalents at the end of the period

19,922 

35,034 

45,960 

 

 

 

 

 

 

 

Greggs plc

Consolidated statement of cash flows (continued)

For the 26 weeks ended 1 July 2017

 

Cash flow statement - cash generated from operations

 

 

 

26 weeks ended 

 1 July 2017 

26 weeks ended 

2 July 2016 

 

52 weeks ended 

31 December 2016 

 

 

£'000 

£'000 

£'000 

 

 

 

 

Profit for the period

15,167 

19,792 

57,993 

Amortisation

1,630 

411 

2,100 

Depreciation

24,131 

20,504 

43,453 

Impairment

62 

488 

Loss / (profit) on sale of property, plant and equipment

1,982 

(300)

2,476 

Release of government grants

(236)

(236)

(472)

Share-based payment expenses

961 

1,370 

1,994 

Finance expense / (income)

148 

(16)

26 

Income tax expense

4,234 

5,582 

17,149 

Increase in inventories

(141)

(480)

(490)

Increase in debtors

(1,515)

(4,500)

(3,066)

(Decrease) / increase in payables

(9,671)

6,952 

11,845 

Increase in provisions

6,007 

3,007 

277 

Cash from operating activities

42,689 

52,148 

133,773 

 

Notes

 

1.             Basis of preparation and accounting policies

 

The condensed accounts have been prepared for the 26 weeks ended 1 July 2017.  Comparative figures are presented for the 26 weeks ended 2 July 2016. 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 31 December 2016.

 

These condensed accounts are unaudited and were approved by the Board of Directors on 1 August 2017.

 

The comparative figures for the 52 weeks ended 31 December 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 cashflows 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 31 December 2016.

 

 

2.             Changes in accounting policies

 

Accounting policies

 

There are no accounting standards, amendments or interpretations that have been adopted by the Group since 1 January 2017.

 

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 page 40 of our Annual Report and Accounts for the 52 weeks ended 31 December 2016, which is available on our website corporate.greggs.co.uk

 

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 

 1 July 2017 

26 weeks ended 

 2 July 2016 

52 weeks ended 

31 December 2016 

 

 

 

£'000 

£'000 

£'000 

 

 

 

 

 

Cost of sales

 

 

 

 

   Supply chain restructuring

- redundancy costs

7,407 

2,780 

3,028 

 

- gain on property disposal

(409)

 

- asset-related costs

722 

694 

1,852 

 

- other contractual obligations

626 

16 

44 

   Prior year items

- dilapidations

(557)

(557)

 

 

________

________

________

 

 

8,346 

2,933 

4,367 

Distribution and selling

 

 

 

 

   Supply chain restructuring

- redundancy costs

966 

1,108 

 

- transfer of operations

356 

   Prior year items

- property related

(271)

(870)

 

 

________

________

________

 

 

695 

594 

Administrative expenses

 

 

 

 

   Restructuring of support functions

400 

391 

   Prior year items

- redundancy costs

(175)

 

 

________

________

________

 

 

400 

216 

 

 

________

________

________

Total exceptional items

 

8,346 

4,028 

5,177 

 

 

=======

=======

=======

 

Supply chain restructuring

 

This charge arises from the decisions, announced in March 2016 and 2017, to invest in and reshape the Company's supply chain in order to support future growth. In 2017 the costs relate to the sale of one bakery site, including the gain on disposal, redundancy costs relating to the consolidation of production processes, accelerated depreciation and other contractual obligations that arise as a result of this consolidation. In 2016 the costs related to the closure of three bakery sites and included redundancy and other employment-related costs, asset write offs, impairment and transfer, and other contractual obligations that arose as a result of the closure of the sites.

 

Restructuring of support functions

 

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

 

Prior year items

 

These related to the movement on costs treated as exceptional in prior years and arose from the settlement of various property and redundancy transactions.

 

6.             Defined benefit pension scheme

 

The valuation of the defined benefit pension scheme for the purposes of IAS 19 (Revised) as at 31 December 2016 has been updated as at 1 July 2017 and the movements have been reflected in these condensed accounts.

 

 

 

7.             Taxation

 

The taxation charge for the 26 weeks ended 1 July 2017 and 2 July 2016 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 1 July 2017

26 weeks ended 2 July 2016

 

52 weeks ended 31 December 2016

 

Excluding 
exceptional 

 items 

Exceptional 
 items 

 (see note 5)

 

 

Total 

Excluding 
exceptional 

 items 

Exceptional 
 items 

 (see note 5)

 

 

Total 

Excluding 
exceptional 

 items 

Exceptional 
 items 

 (see note 5)

 

 

Total 

 

 

 

 

 

 

 

 

 

 

 

£'000 

£'000 

£'000 

£'000 

£'000 

£'000 

£'000 

£'000 

£'000 

 

 

 

 

 

 

 

 

 

 

Profit for the period attributable to equity holders of the parent

 

21,844 

 

(6,677)

 

15,167 

 

22,905 

 

(3,113)

 

19,792 

 

62,255 

 

(4,262)

 

57,993 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

21.7p

(6.6p)

15.1p

22.8p

(3.1p)

19.7p

62.0p

(4.2p)

57.8p

Diluted earnings per share

21.4p

(6.5p)

14.9p

22.3p

(3.0p)

19.3p

60.8p

(4.1p)

56.7p

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares

 

 

26 weeks ended 

1 July 2017 

 

26 weeks ended 

2 July 2016 

 

52 weeks ended 

31 December 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

(652,218)

(753,909)

(710,295)

 

 

 

 

Weighted average number of ordinary shares during the period

100,503,683 

100,401,992 

100,445,606 

Effect of share options on issue

1,686,815 

2,225,050 

1,921,344 

 

 

 

 

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

102,190,498 

102,627,042 

102,366,950 

 

 

 

 

 

 

 

 

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 

1 July 2017 

 

26 weeks ended 

2 July 2016 

52 weeks ended 

31 December 2016 

 

Pence per share 

Pence per share 

Pence per share 

 

 

 

 

 

2015 final dividend

21.2p

21.2p

2016 interim dividend

9.5p

2016 final dividend

21.5p

 

21.5p

21.2p

30.7p

 

 

 

26 weeks ended 

1 July 2017 

 

26 weeks ended 

2 July 2016 

52 weeks ended 

31 December 2016 

 

£'000 

£'000 

£'000 

Total dividend payable

 

 

 

2015 final dividend

21,326 

21,326 

2016 interim dividend

9,610 

2016 final dividend

21,768 

Total dividend paid in period

21,768 

21,326 

30,936 

 

 

 

 

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

 

 

 

 

2016 interim dividend (9.5p per share)

9,610 

2016 final dividend (21.5 p per share)

21,768 

2017 interim dividend (10.3p per share)

10,396 

 

10,396 

9,610 

21,768 

 

 

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 31 December 2016 except that Raymond Reynolds retired as a Director on 19 May 2017.

 

 

11.          Half year report

 

The condensed accounts were approved by the Board of Directors on 1 August 2017.  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 31 December 2016.  There have been no changes since the approval of the Annual Report and Accounts except that Raymond Reynolds retired as a Director on 19 May 2017.

 

 

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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