Financial and operating highlights

  • Good sales growth, increasing total revenue by 4.6% to £975.2m (2007/08: £931.9m)
  • Profit from operations* up 8.9% at £52.7m (2007/08: £48.4m), after £4.2m of incremental investment in the business
  • Profit before tax* (PBT) at £47.5m (2007/08: £50.1m) reflecting a reduced pension credit
  • Profit for the period1 of £2.5m (2007/08: £34.5m), after restructuring costs of £35.4m (2007/08: £4.7m) and tax allowance changes
  • Underlying EPS2 of 6.45 pence per share (2007/08: 5.62p)
  • Proposed dividend maintained at 4.50 pence per share (2007/08: 4.50p)
  • Robust balance sheet with new Revolving Credit Facility (RCF) in place through to 2012; net debt3 £206.7m (2007/08: £200.2m)

 

2008/09
£m

2007/08
£m

Revenue

975.2

931.9

Profit from operations*

52.7

48.4

Profit before taxation*

47.5

50.1

Underlying PBT4

39.0

34.4

Profit for the period1

2.5

34.5

 

 

 

Operating margin*

5.4%

5.2%

Return on invested capital* (ROIC5)

11.7%

11.0%

Underlying earnings per share (EPS2)

6.45p

5.62p

Adjusted earnings per share (EPS6)

7.76p

7.88p

Dividend per share (proposed)

4.50p

4.50p

Operating highlights

  • Business successfully adapted to current retail environment; growth in discount sector and value products complementing our strength in the premium market
  • Strong performance in Chilled and Bakery, reflecting our superior product offering; Frozen division growth impacted by Euro strength
  • Significant commodity cost increases successfully recovered
Footnote definitions throughout this report:
*
Items which relate to significant restructuring events are presented as a separate column within their relevant Consolidated income statement category. Presentation of these items in a separate column helps to provide a better indication of the Group’s underlying business performance. Restructuring items includes costs or income associated with the restructuring of businesses and gains or losses on the disposal or closure of businesses
1
Profit for the period includes restructuring costs of £35.4m (2007/08: £4.7m) – including £22.9m for Fenland mothballing – and an exceptional tax charge of £12.5m following the withdrawal of Industrial Buildings Allowances
2
Underlying earnings per share (EPS) is before restructuring items, movement on deferred tax due to change in legislation, one-off release of prior year tax liability, and the net pension financing. This is reconciled to earnings per share in the financial statements
3
Net debt is defined as total borrowings (including both short and long term bank loans, bonds, loan notes and finance leases) less cash and cash equivalents and short term investments. Net debt will also include the proportion of the fair value of the currency swaps, hedging the balance sheet value of the Group’s US Dollar denominated loan notes
4
Underlying profit before taxation reflects Group profit before tax before restructuring items and net pension financing. This is reconciled to PBT in the financial statements
5
ROIC is profit from operations before restructuring items for continuing operations divided by a 13 month average invested capital (net equity adjusted to exclude retirement benefit obligations net of deferred tax, and net debt, together with accumulated goodwill previously written off)
6
Adjusted earnings per share (EPS) is basic EPS before restructuring items, movement on deferred tax due to change in legislation and one-off release of prior year tax liability. This is reconciled to earnings per share in the financial statements

Top