TIDMBAG
RNS Number : 6648A
Barr(A.G.) PLC
28 March 2017
28 March 2017
A.G. BARR p.l.c.
FINAL RESULTS for the 52 weeks ended 28 January 2017
A.G. BARR p.l.c. ("A.G. BARR"), which produces and markets some
of the UK's leading brands, including IRN-BRU, Rubicon, Strathmore
and Funkin, announces its final results for the 52 weeks ended 28
January 2017.
Financial headlines
-- Statutory profit before tax increased by 4.4% to GBP43.1m
(2016: GBP41.3m) on revenue of GBP257.1m (2016: GBP258.6m).
-- Profit before tax and exceptional items* increased by 2.7% to
GBP42.4m (2016: GBP41.3m) with underlying revenue* increasing by
1.5% to GBP257.1m (2016: GBP253.2m).
-- Robust financial position:
o Gross margin* increased by 10 bps to 46.9%
o Operating margin before exceptional items* increased by 50bps
to 16.8%
o Basic earnings per share increased by 3.9% to 30.78p (2016:
29.63p)
o Net cash position at year end of GBP9.7m (2016: Net debt
GBP11.3m)
-- Proposed final dividend of 10.87p per share (2016: 9.97p) to
give a proposed total dividend for the year of 14.40p per share, an
increase of 8.0% over the prior year.
Strategic highlights
-- Strong core brand performance driven by innovation - IRN-BRU
sales up 3.2%, Rubicon up 4.9%, on an underlying basis*
-- Maintained overall market share in UK soft drinks
-- Funkin revenue growth of 27% reflecting growth across all product segments
-- Commitment that 90% of our Company owned brands will contain
less than 5g of total sugars per 100ml by the autumn of 2017
-- Successful implementation of a Company-wide business
reorganisation that has both enhanced our organisational capability
and reduced our overhead base by around GBP3m
-- Continued investment in our assets and infrastructure -
introduction of new glass filling capability at Cumbernauld and
commencement of PET investment at our Milton Keynes site
-- Announcement of a share repurchase programme of up to GBP30m
Roger White, Chief Executive, commented:
"We have made considerable progress across the business over the
last 12 months and delivered a solid financial performance in
volatile and uncertain market conditions.
As consumer tastes and preferences continue to change, our
recent announcement that 90% of Company owned brands will contain
less than 5g of total sugars per 100ml by the autumn of 2017 is a
positive demonstration of how the business is responding to
consumers' needs with both pace and commitment.
The UK consumer environment remains uncertain, however we are
confident that our great brands, effective business model, clear
strategy and strong team ensure we are well placed to realise the
full potential of our business and to deliver consistent long-term
shareholder value."
For more information, please contact:
A.G. BARR 01236 852400 Instinctif Partners 020 7457 2020
Roger White, Chief Justine Warren
Executive
Stuart Lorimer, Finance Matthew Smallwood
Director
Next trading update - July 2017
*Definitions
Items marked with an asterisk are non-GAAP measures. Definitions
and relevant reconciliations are provided in the Glossary at the
end of this announcement.
The term "underlying" has been used to improve comparability
between the 52 week reporting period ended 28 January 2017 and the
53 weeks ended 30 January 2016. In the 53 week reporting period
ended 30 January 2016 the Group received non-recurring income
associated to the termination of the Orangina franchise and
incurred one-off transaction fees associated to corporate
development activities including Funkin Limited.
The underlying figures for the 53 week reporting period ended 30
January 2016 have been adjusted for the revenue and profit
associated to week 53 and the non-recurring Orangina franchise and
one-off corporate development transaction fees.
The underlying figures for the period ended 28 January 2017 are
the reported figures before exceptional items as disclosed in the
consolidated income statement.
The key reconciliations are listed below.
Reconciliation of underlying measures
52 weeks to 28 January 2017
Operating Profit before
Revenue Gross profit profit tax
GBPm GBPm GBPm GBPm
2016/17 as reported
52 week period ended 28 January 2017 257.1 120.7 43.8 43.1
Exceptional items - - (0.7) (0.7)
Underlying 257.1 120.7 43.1 42.4
53 weeks to 30 January 2016
Operating Profit before
Revenue Gross profit profit tax
GBPm GBPm GBPm GBPm
2015/16 as reported
53 week period ended 30 January 2016 258.6 121.1 42.1 41.3
Week 53 (4.2) (2.2) (2.2) (2.2)
Orangina franchise (1.2) (0.3) (0.3) (0.3)
Corporate development - - 0.8 0.8
Underlying 253.2 118.6 40.4 39.6
CHAIRMAN'S INTRODUCTION
Over the past 12 months we have seen some extremely significant
events unfold across the UK and beyond. The announcement of a soft
drinks sugar tax in the Chancellor's budget in March 2016, and the
devaluation of sterling following the UK's referendum vote to leave
the European Union in June, added additional external headwinds in
a soft drinks market already impacted by price deflation.
Despite these macro external influences, the business has
retained a clear focus on the execution of its strategy and in
particular on internal improvement actions.
Financially, the business has delivered another solid
performance with profit before tax and exceptional items* of
GBP42.4m, an increase of 2.7% on the prior year (GBP41.3m), and
exits the year with a strong balance sheet.
We maintained our market share across the period and continued
to invest in our brands, with the key brands, IRN-BRU and Rubicon,
delivering good growth. Innovation has been a key strategic focus
across the year and the launches of IRN-BRU XTRA and Rubicon Spring
in particular, both no added sugar products, have proven
successful.
As consumer tastes and preferences continue to change, and the
demand for great tasting, reduced sugar products increases, the
recent announcement that 90% of our Company owned brands will
contain less than 5g of total sugars per 100ml by the autumn of
2017 is an extremely positive demonstration of how the business is
responding with both pace and commitment.
Our key partnerships with Rockstar and Dr Pepper Snapple Group
continued to progress, complementing our own portfolio both in the
UK and increasingly on an international basis, where we have
delivered further growth, extending our international footprint and
our franchise territory agreements.
The Funkin business, acquired in 2015, continues to exceed our
acquisition expectations, and we remain highly encouraged by the
continued growth momentum of the Funkin brand and business.
Our drive for improvement across the business has not abated. We
have continued to invest in our asset base, including the
installation of a new glass filling line at Cumbernauld, and are in
the process of adding new PET capability in our Milton Keynes
facility. In addition, we have successfully completed a
Company-wide business reorganisation that has both enhanced our
organisational capability and reduced our overhead base.
We exit the year with a strong balance sheet, and are well
placed to exploit growth opportunities as and when they arise.
Dividend
The Board is pleased to be in a position to maintain its
commitment to a progressive dividend policy and recommend a final
dividend of 10.87p per share to give a total dividend for the full
year of 14.40p per share, a full year increase of 8% on the prior
year. The final dividend is payable on 9 June 2017 to shareholders
on the Register of Members at the close of business on 12 May 2017.
The ex-dividend date is 11 May 2017.
Share repurchase programme
Given the strength of the balance sheet and the cash generative
nature of the business, the Board has decided to return up to GBP30
million to shareholders via an on-market share repurchase
programme. This programme is anticipated to commence in the spring
of 2017 and complete within 24 months. The AGM in May 2017 will be
requested to approve the renewal of the authority granted in June
2016 for the Board to repurchase up to 10% of the Company's own
shares. We do not believe that the repurchase programme will have
any material impact on our ability to secure acquisition
opportunities should these be identified.
People
The continued success of the business is testament to the
commitment and skills of the whole team and I would like to take
this opportunity to extend a thank you to each and every team
member for their efforts across this year of change and
reorganisation.
The Board continues to operate effectively, with a complementary
mix of skills and experience providing solid and effective
governance controls. We will continue to review how to enhance both
the governance model and the advisory aspect of the Board.
Prospects
The business has achieved a great deal in the past year,
building a strong platform for the future while sustaining current
financial performance.
With great brands, an effective business model, a clear strategy
and a strong team in place to deliver it, the business remains well
placed to develop further and realise its long-term potential.
John Nicolson
CHAIRMAN
CHIEF EXECUTIVE'S REVIEW
During the past 12 months our thirst for improvement has
continued, despite the numerous external challenges that we have
had to overcome. We have delivered significant business improvement
across our brands, assets, infrastructure, organisation and our
teams, to support the successful long-term development of the
Company.
The unexpected and unwelcome announcement of a new punitive tax
regime associated with the manufacture of soft drinks with added
sugar had the potential to be a major business distraction.
However, I am pleased to report that we have continued to place
consumers at the heart of our business, not regulators, and have
responded positively to changing consumer tastes and preferences
across our portfolio. We will of course continue to work with the
various government bodies involved in the new regime to ensure that
this new regulatory environment is deployed appropriately and with
as much common sense as possible.
In this reporting period:
-- We maintained overall market share in UK soft drinks with
total Group revenue of GBP257.1m, an underlying* increase of 1.5%
on the previous year
-- Profit before tax increased 4.4% on the prior year to GBP43.1m
-- Statutory profit before tax and exceptional items* increased
2.7% on the prior year to GBP42.4m
-- Operating margin before exceptional items* improved 50bps to
16.8% following our continued tight cost control
-- Our defined benefit pension scheme was closed to future
accrual further reducing our corporate risk profile
-- Benefits from our Fit for the Future enabling programme began
to filter through as planned, including significantly better
customer service, tighter inventory management and the
implementation of a Company-wide reorganisation
-- Strong cash flow resulted in a net cash position of GBP9.7m
Soft drinks market performance
The UK soft drinks market has performed robustly across the last
12 months, with growth of 1.2% in value and 1.6% in volume. This
total market position masks a higher degree of volatility than in
prior years, both in terms of monthly market movements and
individual sub category performance.
As we previously forecast, deflation has eased across the latter
part of the year. However, the more structural element of this
deflation, related to the continued growth of the lower value water
category, has continued to impact the total market. Stills
experienced volume growth of just over 3% and value growth of 1%,
with water growth continuing to be the driving force. In contrast,
the carbonates sector experienced modest inflation, growing value
by just over 1% versus a flat volume position.
The past year has seen a number of material changes to the macro
environment in which we operate - the soft drinks sugar tax, the
UK's decision to leave the EU, the devaluation of sterling and
increased geopolitical volatility. However, perhaps most important
to our business are the continuing development of UK consumer
preferences in soft drinks, the further consolidation and
development of our customer environment and finally, the advances
across the digital communication landscape we operate in. We have
continued to respond positively and with pace to these changes,
focusing on the opportunities that arise.
Our long-standing reformulation and product development
programme has seen our portfolio develop significantly across the
past year. In March 2017 we announced our intention to meet
consumers' changing tastes and preferences with a number of further
significant portfolio developments. The successful development and
launch of Rubicon Spring and IRN-BRU XTRA have contributed to our
forward development plans, giving us the insight and confidence to
announce our intention that over 90% of Company owned brands will
contain less than 5g of total sugars per 100ml by the autumn of
2017. This is a significant and positive move which supports our
consumer focused strategy, at the same time as reducing our overall
exposure to regulatory changes.
During the course of the last financial year our key brands have
benefited from continued investment and innovation. IRN-BRU and
Rubicon in particular exit the full year with strong momentum based
on positive brand fundamentals.
Strategy
In times of elevated uncertainty, clarity of purpose and
consistency of approach yield the best outcome, in our experience.
We have remained consistent to our approach and principles across
the past year, focusing on:
-- strongly differentiated brands
-- effective and flexible operations
-- innovation based on consumer understanding
-- growth driven partnerships and
-- leveraging the strength and commitment of our teams
In each of these areas we have invested effort and resources to
drive improvement and thus increase competitiveness. Our innovation
has been instrumental in building our portfolio into the lower and
no sugar consumer space and our technical developments in this area
are critical to our future success. Our investment in our assets
and infrastructure has continued with the introduction of new glass
filling capability at Cumbernauld and the announcement of our
intention to extend PET capability to our Milton Keynes site. This
gives us a flexible platform to improve our service, control our
costs and ensure we are capable of adapting our operations to meet
the portfolio needs of the future.
Our core partnerships, with Rockstar and the Dr Pepper Snapple
Group, have continued to develop across the period, with notable
extensions to the territories covered under our Rockstar agreement.
In September 2016 we signed a further exclusive extension with
Rockstar for a further seven territories, including the Russian
Federation. The Snapple brand has enjoyed growth of over 20% across
2016/17, with significant product innovation, packaging
advancements and further distribution growth in the UK and
internationally. The expansion of these selective partnerships
remains an important part of our long-term growth strategy.
We have enjoyed an excellent performance from our Funkin
cocktail business building on the strong progress made last year,
our first year of ownership. The Funkin team has continued to
deliver excellent opportunities to customers to access cocktail
market growth with simplicity, authenticity and excitement. We
anticipate continued growth for the Funkin business in the
traditional on-trade environment and also from our planned launch
into retail, with a new ready to mix cocktail product format which
has exciting brand development and growth potential for the
future.
It has been a very busy, and at times unsettling, year for many
of our colleagues as we have implemented significant levels of
change, culminating in a Company-wide reorganisation programme in
the final quarter. Following our prior year investment in assets
and systems, the reorganisation has allowed us to streamline and
improve our organisational structure, reducing employee numbers by
around 10% whilst improving operating effectiveness and
flexibility. I would like to thank all our teams across the
business who have responded positively to the challenges we face
and have now helped to create a stronger business, more capable of
delivering against our long-term potential.
Summary
We have made considerable progress across the business over the
last 12 months and delivered a solid financial performance in
volatile and uncertain market conditions. The growth drivers of our
core brands, innovation, partnerships, Funkin and International
remain at the heart of our future plans. We are operating from a
well-invested and sustainable asset base, with our new
organisational structures established to support growth. We will
continue to seek opportunities to grow shareholder value by
utilising our full suite of options - our organic growth potential,
our strong balance sheet, our core competencies and our strong
culture - and I believe we are well placed to continue to deliver
consistent long-term shareholder value.
Roger White
CHIEF EXECUTIVE
FINANCIAL REVIEW
The following is based on results for the 52 weeks ended 28
January 2017. Comparatives, unless otherwise stated, are for the 53
weeks ended 30 January 2016.
Overview
Revenue down (0.6)% to
GBP257.1m
Revenue (underlying basis)* up 1.5% to GBP257.1m
Gross margin* up 10 bps to 46.9%
Operating margin before exceptional items* up 50 bps to 16.8%
Profit before tax before exceptional items* up 2.7% to GBP42.4m
Profit before tax before exceptional items up 7.1% to GBP42.4m
(underlying basis)*
Free cash flow* up GBP15.0m to
GBP43.2m
Net cash up GBP21.0m to
GBP9.7m
Basic earnings per share (EPS) up 3.9% to 30.78p
Proposed final dividend of 10.87p per share (2016: 9.97p) to
give a proposed total dividend for the year of 14.40p per share,
an increase of 8% over the prior year
Reconciliation of underlying measures
52 weeks to 28 January 2017
Profit
Operating before
Revenue Gross profit profit tax
GBPm GBPm GBPm GBPm
2016/17 as reported
52 week period ended 28 January
2017 257.1 120.7 43.8 43.1
Exceptional items - - (0.7) (0.7)
Underlying 257.1 120.7 43.1 42.4
53 weeks to 30 January 2016
Profit
Operating before
Revenue Gross profit profit tax
GBPm GBPm GBPm GBPm
2015/16 as reported
53 week period ended 30 January
2016 258.6 121.1 42.1 41.3
Week 53 (4.2) (2.2) (2.2) (2.2)
Orangina franchise (1.2) (0.3) (0.3) (0.3)
Corporate development - - 0.8 0.8
Underlying 253.2 118.6 40.4 39.6
This is a positive set of results in a challenging environment
and reflects the combined benefits of strong brands, successful
innovation and much improved customer service. It is particularly
pleasing to recognise that we have put behind us the supply chain
and system implementation challenges that constrained performance
in 2015/16. The strong second half, which recorded both top and
bottom line growth, followed a period of soft drinks market
volatility in the first half and provides confidence that we enter
2017/18 with positive momentum.
Reported revenue declined (0.6)%, the result of a 53 week prior
year comparator. Our underlying revenue* from the business improved
1.5%, driven by growth from innovation across two of our key brands
(IRN-BRU and Rubicon) and an operating margin improvement benefit
from the impact of the organisational review that we announced in
September 2016.
The year was not without its challenges. The commercial
environment, while always competitive, was particularly testing
this year with customer range rationalisations and deflationary
pricing pressures impacting the business, most evidently across
Rockstar and our regional brands. These customer challenges were
compounded by the reappearance of inflationary headwinds from the
commodity and currency markets during the second half of 2016/17.
While the increased levels of volatility and uncertainty were
unhelpful, we took decisive management action which benefited us in
the second half, and we expect will continue to underpin our
performance going forward.
On an underlying basis* our business delivered revenue growth
(+1.5%), gross and operating margin* expansion (+10bps and +80bps
respectively), increased profit before tax and exceptional items
(+7.1%) and improved overall free cash flow (+GBP15.0m). We
continue to drive for improved efficiency in all aspects of the
business, whether it is through zero-based budgeting, promotional
evaluation or our programme of supply chain excellence. We believe
this committed approach to growth, productivity and cash generation
will drive further sustainable value creation for shareholders.
We have accomplished much in the year:
-- The investment in our Business Process Redesign programme is
now entering its second year of operation and tangible progress in
efficiency and flexibility is being made across the network. This
is already delivering improved customer service and will provide a
solid platform for future profitability.
-- A Company-wide reorganisation was announced in September
2016. Our employee base reduces by around 100 at a one-off cost of
GBP3.3m and will generate ongoing savings in the region of c. GBP3m
per annum. The majority of the employee changes have taken place
and an element of the savings has been delivered in 2016/17.
-- Our Defined Benefit ("DB") pension scheme was closed to
future accrual during the year. We continue to offer our employees
market-leading pension arrangements, however the DB closure to
future accrual has provided us with significant pension
de-risking.
-- Our banking arrangements were successfully renegotiated in
February 2017 to provide longer term more cost effective revolving
credit facilities: GBP40m over 3 years and GBP20m over 5 years.
-- We undertook a competitive tender process for our external
audit mandate. As a result we will be recommending to shareholders
at the AGM in May 2017 that we appoint Deloitte LLP as our Group
external auditors for the year 2017/18.
Segment performance
We have successfully maintained market share in a challenging
market environment.
Our core carbonates business has performed well, with both our
IRN-BRU and Rubicon brands growing through a combination of
innovation and distribution gains. Our portfolio carbonates,
including Barr Flavours, Tizer and KA have been impacted by
retailer range reduction activity. The Rockstar brand delivered
lower revenues as we maintained our focus on margin and value in
the face of competitor deep discounting and distribution reductions
in several of the supermarkets. The second year of our Snapple
partnership has seen considerable success both in the UK and
internationally, with our new branding and reduced sugar offerings
being well received by consumers.
Our stills and water business performed well, led by our new
lower sugar Rubicon Light & Fruity range. Our continued focus
on value over volume improved margins, however there were continued
market-wide challenges in fruit juices and fruit drinks, with water
remaining a very price competitive subcategory.
The international business has delivered double digit revenue
growth* through brand development in our established core markets,
new distributor arrangements in existing markets and the opening up
of new markets.
Our Funkin business has performed very strongly, with sales
growth of 27% (reported within our 'Other' segment). The key
on-trade business has grown in each of its product segments
(syrups, mixers and purees) and the Funkin team is on track to
launch the first Funkin branded consumer retail product in spring
2017. On the basis of the audited results, and the achievement of
agreed financial performance targets, there will be an associated
cash "earn-out" payment in 2017/18 which has been fully provided
for at the year end.
Margins
Modest price deflation impacted carbonates gross margins*,
slightly down (30bps), however a combination of tight cost control
and favourable mix limited the impact. Stills and water delivered
gross margin improvement as growth was driven from the higher
margin core brands and innovation.
Operating expenses benefited from a net GBP0.7m exceptional
credit and a continued focus on cost control, supply chain
efficiencies and some early benefits from the organisational review
which has been successfully implemented slightly ahead of plan.
Financial performance benefited from the stabilisation of our
infrastructure and systems, the continued growth in both our
international business and Funkin partially offset by negative
movements on foreign exchange and the return to a 52 week year
(2015/16 - 53 weeks). Operating margin before exceptional items*
increased from 16.3% to 16.8%.
Interest
Net finance charges, totalling GBP0.7m, largely comprise the
notional interest on the pension deficit. Debt interest charges
continued to reduce, reflecting our improved debt profile as we
successfully paid down our debt and transitioned to a net cash
position.
The constituent elements of the interest charge comprised:
2016/17 2015/16
GBPm GBPm
------- -------
Finance income - 0.1
------- -------
Finance costs (0.2) (0.2)
--------------------------------- ------- -------
Interest related to Group
borrowings (0.2) (0.1)
------- -------
Finance costs related to pension (0.5) (0.7)
--------------------------------- ------- -------
Net finance costs (0.7) (0.8)
------- -------
Taxation
The tax charge of GBP7.5m is GBP0.5m higher than the prior year
and represents an effective tax rate of 17.4%. This is an increase
of 0.3% from the prior year and primarily reflects the impact of
the reduction in the deferred tax rate from 18% to 17% this year
compared to the reduction from 20% to 18% included in the charge
last year.
Balance sheet and cash flow
The Group's balance sheet continues to strengthen, with net
asset growth* of GBP1.7m to GBP181.8m over the 52 weeks ended 28
January 2017 despite a GBP14.5m increase in the pension deficit
under IAS19.
The key balance sheet highlights can be summarised as:
-- Non-current assets increased slightly to GBP195.4m (up
GBP2.6m) after several years of sustained investment in assets and
infrastructure. We are now in the favourable position of having a
modern, well-invested asset base capable of accommodating
growth.
-- Inventories have increased by GBP1.7m, driven by the
deliberate decision to secure favourable mango pricing following a
good 2016 harvest by purchasing much of our 2017/18 requirements in
advance. Finished goods inventories are down in volume, value and
days.
-- Trade payables have, as expected, increased substantially due
to the timing of the year end and the phasing of monthly payment
runs. Trade payables, at GBP15.8m, were up GBP7.4m on the prior
year.
-- Trade and other receivables were broadly flat at GBP51.4m
(2015/16: GBP52.7m). We continue to benefit from good customer
relationships and strong credit controls and, as a result, have
modest aged debt and experienced no bad debts during the financial
year.
-- ROCE* improved from 18.8% in 2015/16 to 20.2% in 2016/17
largely driven by working capital phasing.
The movement from a net debt position as at January 2016
(GBP11.3m) to a net cash position as at January 2017 (GBP9.7m)
reflects the strong cash generative nature of our business, working
capital phasing and lower capital expenditure requirements as we
come out of a period of sustained capital investment.
In the year ahead we will continue to invest in the fabric of
the business and to support our growth agenda. Capital expenditure*
in 2017/18 is anticipated to be at a slightly higher level than in
2016/17 primarily driven by the phasing of our new GBP10m PET
bottling line at Milton Keynes. This expansionary capital will
deliver logistics cost savings and provide production flexibility
to support our innovation pipeline.
A strong balance sheet and accessibility to cost effective and
flexible debt facilities provide optionality and ensure we have the
ability and the agility to take advantage of any opportunities that
may be identified. Our recently renegotiated banking facilities
ensure that we have sufficient headroom at our disposal to meet
expected future requirements.
The business remains highly cash generative. Operating cash flow
before movements in working capital has increased GBP2.1m to
GBP53.3m.
We believe that EBITDA* and Free Cash Flow* permit a more
meaningful analysis of the underlying performance of the Group.
EBITDA* increased to GBP51.7m (up 2.4%), representing an EBITDA
margin* of 20.1% and a strong cash generating performance, with
EBITDA to free cash flow conversion* of 83.6%.
Free cash flow statement 2016/17 2015/16
GBPm GBPm
------- -------
Operating profit before exceptional items 43.1 42.1
------- -------
Depreciation and amortisation 8.6 8.4
------- -------
EBITDA 51.7 50.5
------- -------
(Increase) / decrease in inventories (1.7) 1.8
------- -------
Decrease in receivables 1.3 0.6
------- -------
Increase / (decrease) in payables 10.2 (15.8)
------- -------
Movement in pension liability (2.2) (0.7)
------- -------
Share-based payment costs 0.9 0.5
------- -------
Exceptional cash items (4.2) (1.0)
------- -------
Loss on sale of property, plant and equipment - 0.2
------- -------
Net operating cash flow 56.0 36.1
------- -------
Net interest (0.2) (0.2)
------- -------
Taxation (7.2) (6.8)
------- -------
Cash flow from operations 48.6 29.1
------- -------
Maintenance capex (5.5) (1.8)
------- -------
Capex proceeds 0.1 0.9
------- -------
Free cash flow 43.2 28.2
------- -------
Expansionary capex* (6.9) (12.9)
------- -------
Dividends (15.6) (14.3)
------- -------
Acquisition of subsidiary (net of cash acquired) - (15.7)
------- -------
Acquisition of intangible assets - (4.8)
------- -------
Net sale / (purchases) of shares by employee
benefit trusts 0.3 (2.0)
------- -------
Loans (repaid)/received (incl arrangement fees) (17.5) 2.4
------- -------
Cash flow from financing (39.7) (47.3)
------- -------
Net increase / (decrease) in cash 3.5 (19.1)
------- -------
Opening cash and cash equivalents 6.2 25.3
------- -------
Closing cash and cash equivalents 9.7 6.2
------- -------
Borrowings - (17.5)
------- -------
Closing net cash / (debt) 9.7 (11.3)
------- -------
The Group utilises its cash appropriately and with care. More
than GBP12m was invested in long-term assets and almost GBP16m was
distributed in dividends to our shareholders.
Shares with a net value of GBP0.3m were disposed of on behalf of
various employee benefit trusts to satisfy the ongoing requirements
of the Group's employee share schemes.
Given the current net cash position, the relatively benign
outlook for short-term interest rates and the expectation of
continued strong free cash generation, no interest rate hedging
activity has taken place during the year.
Exceptional items
We have undergone significant reorganisation during 2016/17, the
scale and nature of which made it appropriate that the related
costs be recognised as exceptional items for reporting purposes. We
believe that this permits a more meaningful analysis of the
underlying performance of the Group.
A net credit of GBP0.7m pre-tax (GBP0.6m post tax) for
exceptional items included:
Net gain arising on closure of DB pension scheme GBP(5.5)m
to future accrual
Reorganisation and capability refresh programme GBP 3.3m
Redundancy costs relating to direct sales reorganisation GBP 0.6m
Costs in relation to a strategic review of e-commerce GBP 0.5m
capabilities
Professional fees relating to corporate development GBP 0.4m
Net exceptional credit GBP(0.7)m
UK referendum and exit from the European Union
The level of uncertainty and volatility in the external
environment is unprecedented. Given the largely UK focus of our
commercial activities, our current assessment is that the specific
issue of the UK's future exit from the European Union will not have
a significant impact on our business other than through its effects
on foreign exchange. The current value of sterling has created an
inflationary pressure on our commodity cost base, primarily Euro or
US dollar denominated. We have a well developed risk management
framework in place at both functional and corporate levels of the
business and we will continue to closely monitor political and
commercial developments and react accordingly to these.
Post balance sheet events
Certain events and decisions have taken place between the
financial year end and the approval of these accounts that merit
highlighting.
Debt finance
During the financial year we entered into discussions on our
longer term debt cover. These discussions concluded in February
2017, with the Board approving three revolving credit facilities
over periods of 3 to 5 years with Royal Bank of Scotland plc, Bank
of Scotland plc and HSBC Bank plc. These facilities provide GBP60m
of sterling debt facilities to 2020, reducing to GBP20m for the
period to 2022. Our long-term financial modelling indicates
significant financial headroom with these facilities in place.
Share repurchase programme
The Board has approved a share repurchase programme of up to
GBP30m, as part of the Group's approach to capital allocation and
under the authority to repurchase up to 10% of its own shares
granted at the AGM in June 2016. This programme is anticipated to
commence in the spring of 2017 and complete within 24 months. The
AGM in May 2017 will be requested to approve the renewal of the
authority for the Board to repurchase up to 10% of the Company's
own shares. We do not believe that the repurchase programme will
have any material impact on our ability to secure acquisition
opportunities should these be identified.
Asset sale
The disposal of our Walthamstow site (sale proceeds GBP3.8m;
gain on sale GBP2.5m) was concluded in February 2017. We have
entered into a short term lease of the premises as we finalise our
long-term plans for direct customer deliveries in the area.
Pensions
The Group continues to operate two pension plans, being the A.G.
BARR p.l.c. (2005) Defined Contribution Pension Scheme and the A.G.
BARR p.l.c. (2008) Pension and Life Assurance Scheme. The latter is
a defined benefit scheme based on final salary, which also includes
a defined contribution section for pension provision to senior
managers.
The defined benefit scheme ("the scheme") has been closed to new
entrants since 5 April 2002 (and to new executive entrants since 14
August 2003). During the year, after employee consultation, and
with the support of the Pension Trustee, the scheme was closed to
future accrual. Despite these actions, the scheme deficit continued
to grow during the year as gilt yields and interest discount rates
remained low. The deficit (on an IAS19 valuation basis) increased
from GBP12.9m at the end of 2015/16 to GBP27.4m at the balance
sheet date. The increase in the deficit in the current financial
year is primarily as a result of a lower net discount rate being
used to value the scheme's liabilities in the year. The Company
continues to work proactively with the Pension Trustee to de-risk
the pension liabilities and secure the commitments to employee
benefits as part of the Group's ongoing strategic risk management.
The Group is comfortable that the overall pension deficit is
supportable.
Share price and market capitalisation
At 28 January 2017, the closing share price for A.G. BARR p.l.c.
was GBP5.02, a reduction of 4.9% on the closing January 2016
position. The Group is a member of the FTSE 250, with a market
capitalisation* of GBP586m at the year end.
Stuart Lorimer
FINANCE DIRECTOR
Consolidated Income Statement for the year ended 28 January
2017
2017 2016
Adjusted Exceptional Total Total
items
GBPm GBPm GBPm GBPm
Revenue 257.1 - 257.1 258.6
Cost of sales (136.4) - (136.4) (137.5)
-------------------------- --------- ------------ -------- --------
Gross profit 120.7 - 120.7 121.1
Other income 0.7 - 0.7 -
Operating expenses (78.3) 0.7 (77.6) (79.0)
-------------------------- --------- ------------ -------- --------
Operating profit 43.1 0.7 43.8 42.1
Finance income - - - 0.1
Finance costs (0.7) - (0.7) (0.9)
-------------------------- --------- ------------ -------- --------
Profit before tax 42.4 0.7 43.1 41.3
Tax on profit (7.4) (0.1) (7.5) (7.0)
-------------------------- --------- ------------ -------- --------
Profit attributable to
equity holders 35.0 0.6 35.6 34.3
-------------------------- --------- ------------ -------- --------
Earnings per share (p)
Basic earnings per share 30.78 29.63
Diluted earnings per
share 30.57 29.51
-------------------------- --------- ------------ -------- --------
Consolidated Statement of Comprehensive Income for the year
ended 28 January 2017
2017 2016
GBPm GBPm
Profit after tax 35.6 34.3
Other comprehensive income
Items that will not be reclassified to profit
or loss
Remeasurements on defined benefit pension plans (21.9) 5.4
Deferred tax movements on items above 2.7 (2.5)
Current tax movements on items above 1.0 1.3
Items that will be or have been reclassified to
profit or loss
Effective portion of changes in fair value of
cash flow hedges (1.4) 1.7
Deferred tax movements on items above 0.2 (0.3)
Other comprehensive income for the year, net of
tax (19.4) 5.6
Total comprehensive income attributable to equity
holders of the parent 16.2 39.9
--------------------------------------------------- ------- ------
Consolidated Statement of Changes in Equity for the year ended
28 January 2017
Share Share Share Cash Retained Total
capital premium options flow earnings
account reserve hedge
reserve
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------ --------- --------- --------- --------- ---------- -------
At 30 January 2016 4.9 0.9 1.4 1.0 171.9 180.1
Profit for the year - - - - 35.6 35.6
Other comprehensive income - - - (1.2) (18.2) (19.4)
------------------------------ --------- --------- --------- --------- ---------- -------
Total comprehensive income
for the year - - - (1.2) 17.4 16.2
Company shares purchased
for use by employee benefit
trusts - - - - (1.0) (1.0)
Proceeds on disposal
of shares by employee
benefit trusts - - - - 1.3 1.3
Recognition of share-based
payment costs - - 0.9 - - 0.9
Transfer of reserve on
share award - - (0.4) - 0.4 -
Deferred tax on items
taken direct to reserves - - (0.1) - - (0.1)
Dividends paid - - - - (15.6) (15.6)
------------------------------ --------- --------- --------- --------- ----------
At 28 January 2017 4.9 0.9 1.8 (0.2) 174.4 181.8
------------------------------ --------- --------- --------- --------- ---------- -------
At 25 January 2015 4.9 0.9 2.3 (0.4) 148.8 156.5
Profit for the year - - - - 34.3 34.3
Other comprehensive income - - - 1.4 4.2 5.6
------------------------------ --------- --------- --------- --------- ---------- -------
Total comprehensive income
for the year - - - 1.4 38.5 39.9
Company shares purchased
for use by employee benefit
trusts - - - - (5.1) (5.1)
Proceeds on disposal
of shares by employee
benefit trusts - - - - 3.1 3.1
Recognition of share-based
payment costs - - 0.5 - - 0.5
Transfer of reserve on
share award - - (0.9) - 0.9 -
Deferred tax on items
taken direct to reserves - - (0.5) - - (0.5)
Dividends paid - - - - (14.3) (14.3)
------------------------------ --------- --------- --------- --------- ----------
At 30 January 2016 4.9 0.9 1.4 1.0 171.9 180.1
------------------------------ --------- --------- --------- --------- ---------- -------
Consolidated Statement of Financial Position as at 28 January
2017
2017 2016
GBPm GBPm
------------------------------------ ------ ------
Non-current assets
Intangible assets 106.0 107.5
Property, plant and equipment 89.4 85.3
195.4 192.8
------------------------------------ ------ ------
Current assets
Inventories 17.3 15.6
Trade and other receivables 51.4 52.7
Derivative financial instruments 0.1 1.1
Assets classified as held for sale 1.3 -
Cash and cash equivalents 10.1 6.8
80.2 76.2
------------------------------------ ------ ------
Total assets 275.6 269.0
------------------------------------ ------ ------
Current liabilities
Loans and other borrowings 0.5 0.7
Trade and other payables 52.3 37.4
Derivative financial instruments 0.3 -
Provisions 0.9 0.1
Current tax liabilities 2.7 3.6
56.7 41.8
------------------------------------ ------ ------
Non-current liabilities
Loans and other borrowings 0.1 17.5
Trade and other payables - 4.5
Deferred tax liabilities 9.6 12.2
Retirement benefit obligations 27.4 12.9
37.1 47.1
------------------------------------ ------ ------
Capital and reserves attributable
to equity holders
Share capital 4.9 4.9
Share premium account 0.9 0.9
Share options reserve 1.8 1.4
Cash flow hedge reserve (0.2) 1.0
Retained earnings 174.4 171.9
181.8 180.1
------------------------------------ ------ ------
Total equity and liabilities 275.6 269.0
------------------------------------ ------ ------
Consolidated Cash Flow Statement for the year ended 28 January
2017
2017 2016
GBPm GBPm
------- -------
Operating activities
Profit before tax 43.1 41.3
Adjustments for:
Interest receivable - (0.1)
Interest payable 0.7 0.9
Depreciation of property, plant and equipment 7.1 7.3
Amortisation of intangible assets 1.5 1.1
Share-based payment costs 0.9 0.5
Loss on sale of property, plant and equipment - 0.2
Operating cash flows before movements in working
capital 53.3 51.2
(Increase) / decrease in inventories (1.7) 1.8
Decrease in receivables 1.3 0.6
Increase / (decrease) in payables 11.0 (16.8)
Difference between employer pension contributions
and amounts recognised in the income statement (7.9) (0.7)
------------------------------------------------------ ------- -------
Cash generated by operations 56.0 36.1
Tax on profit paid (7.2) (6.8)
------------------------------------------------------ ------- -------
Net cash from operating activities 48.8 29.3
------------------------------------------------------ ------- -------
Investing activities
Acquisition of subsidiary (net of cash acquired) - (15.7)
Acquisition of intangible assets - (4.8)
Purchase of property, plant and equipment (12.4) (14.7)
Proceeds on sale of property, plant and equipment 0.1 0.9
Interest received - 0.1
------------------------------------------------------ ------- -------
Net cash used in investing activities (12.3) (34.2)
------------------------------------------------------ ------- -------
Financing activities
New loans received 25.5 34.0
Loans repaid (43.0) (31.5)
Bank arrangement fees paid - (0.1)
Purchase of Company shares by employee benefit
trusts (1.0) (5.1)
Proceeds from disposal of Company shares by
employee benefit trusts 1.3 3.1
Dividends paid (15.6) (14.3)
Interest paid (0.2) (0.3)
------------------------------------------------------ ------- -------
Net cash used in financing activities (33.0) (14.2)
------------------------------------------------------ ------- -------
Net increase/(decrease) in cash and cash equivalents 3.5 (19.1)
------------------------------------------------------ ------- -------
Cash and cash equivalents at beginning of year 6.2 25.3
------------------------------------------------------ ------- -------
Cash and cash equivalents at end of year 9.7 6.2
------------------------------------------------------ ------- -------
1. General information
A.G. BARR p.l.c. ('the Company') and its subsidiaries (together
'the Group') manufacture, distribute and sell soft drinks. The
Group has manufacturing sites in the UK and sells mainly to
customers in the UK with some international sales.
The Company is a public limited company, which is listed on the
London Stock Exchange and incorporated and domiciled in Scotland.
The address of its registered office is Westfield House, 4 Mollins
Road, Cumbernauld, G68 9HD.
The financial year represents the 52 weeks ended 28 January 2017
(prior financial year 53 weeks ended 30 January 2016).
Basis of preparation
The consolidated and parent Company financial statements of A.G.
BARR p.l.c. have been prepared in accordance with International
Financial Reporting Standards ('IFRS') as adopted by the European
Union. They have been prepared under the historical cost accounting
rules except for the derivative financial instruments and the
assets of the Group pension scheme which are stated at fair value
and the liabilities of the Group pension scheme which are valued
using the projected unit credit method.
2. Segment reporting
The Group's management committee has been identified as the
chief operating decision maker. The management committee reviews
the Group's internal reporting in order to assess performance and
allocate resources. The management committee has determined the
operating segments based on these reports.
The management committee considers the business from a product
perspective. This has led to the operating segments identified in
the table below: there has been no change to the segments during
the year (after aggregation). The performance of the operating
segments is assessed by reference to their gross profit before
exceptional items.
The operating segments disclosed have been aggregated by the
nature of the products and the production processes that they share
in addition to similar long-term average gross margins for the
operating segments.
Year ended 28 January 2017
Carbonates Still Other Total
drinks
and water
GBPm GBPm GBPm GBPm
--------------------------------- ----------- ----------- ------ ------
Total revenue 188.3 56.0 12.8 257.1
Gross profit before exceptional
items 97.3 17.0 6.4 120.7
--------------------------------- ----------- ----------- ------ ------
Year ended 30 January 2016
Carbonates Still Other Total
drinks
and water
GBPm GBPm GBPm GBPm
---------------------------- ----------- ----------- ------ ------
Total revenue 189.7 57.1 11.8 258.6
Gross profit 98.6 16.9 5.6 121.1
---------------------------- ----------- ----------- ------ ------
There are no intersegment sales. All revenue is from external
customers.
Other segments represent income from the sale of Funkin cocktail
solutions, the sale of ice-cream and other soft drink related
items.
The gross profit from the segment reporting is stated before
exceptional costs. There are no exceptional costs included within
gross profit for either year presented.
The gross profit from the segment reporting is reconciled to the
total profit before income tax, as shown in the consolidated income
statement.
All of the assets and liabilities of the Group are managed by
the management committee on a central basis rather than at a
segment level. As a result no reconciliation of segment assets and
liabilities to the statement of financial position has been
disclosed for either of the periods presented.
All of the segments included within Carbonates and Still drinks
and water meet the aggregation criteria set out in IFRS 8 Operating
Segments.
Geographical information
The Group operates predominately in the UK with some worldwide
sales. All of the operations of the Group are based in the UK.
2017 2016
Revenue GBPm GBPm
------------------- ------ ------
UK 246.6 249.4
Rest of the world 10.5 9.2
257.1 258.6
------------------- ------ ------
The Rest of the world revenue includes sales to Ireland and
wholesale export houses.
All of the assets of the Group are located in the UK.
Major customers
No single customer accounted for 10% or more of the Group's
revenue in either of the years presented.
3. Exceptional items
2017 2016
GBPm GBPm
------------------------------------------------ ------ -----
Abortive acquisition costs 0.4 -
Investigation of online sales capabilities 0.5 -
Redundancy costs - reorganisation of direct
sales routes 0.6 -
Redundancy costs for business reorganisation 2.7 -
Other costs relating to business reorganisation 0.6 -
Curtailment gain on closure of pension scheme
to future accrual (7.0) -
Other costs relating to pension scheme closure
to future accrual 1.5 -
Total exceptional net credit (0.7) -
------------------------------------------------ ------ -----
2017 2016
GBPm GBPm
------------------------------------------------ ------ -----
Items included in selling and distribution
costs
Redundancy costs - reorganisation of direct
sales routes 0.6 -
Costs relating to closure of pension scheme
to future accrual 0.2 -
Redundancy costs for business reorganisation 1.2 -
Other costs relating to business reorganisation 0.3 -
Total included in selling and distribution
costs 2.3 -
Items included in administration costs
Abortive acquisition costs 0.4 -
Investigation of online sales capabilities 0.5 -
Curtailment gain (7.0) -
Other costs relating to pension scheme closure
to future accrual 1.3 -
Redundancy costs for business reorganisation 1.5 -
Other costs relating to business reorganisation 0.3 -
Total included in administration costs (3.0) -
Total exceptional net credit (0.7) -
------------------------------------------------ ------ -----
During the period, GBP0.4m of acquisition fees were incurred in
relation to an unsuccessful acquisition. These costs included
advisory and legal fees.
GBP0.5m of advisory costs have been incurred as part of a
strategic review of the market threats posed by new and emerging
digital trading models.
GBP0.6m of redundancy costs have been incurred, arising from a
reorganisation of direct sales routes that was completed in the six
months ended 30 July 2016. A further GBP2.7m of redundancy costs
were incurred in the six months ended 28 January 2017, following
the announcement of a Company restructuring in September 2016.
Following the announcement of the business restructuring and
reorganisation, a further GBP0.6m of costs were incurred, being
mainly recruitment costs, accrual for unpaid holiday entitlement,
business development consultancy fees, legal fees and termination
costs for employee vehicles and mobile phone contracts.
The Group's defined benefit pension scheme closed to future
accrual in May 2016. This resulted in a GBP7.0m curtailment gain.
Offsetting the curtailment gain is a further GBP1.5m of costs
incurred in relation to the closure of the defined benefit pension
scheme. This includes the cost of GBP1.3m past service cost for one
year's additional service negotiated with the active members of the
scheme and GBP0.2m of further costs relating to the closure of the
scheme to future accrual.
4. Earnings per share
Basic earnings per share have been calculated by dividing the
earnings attributable to equity holders of the parent by the
weighted average number of shares in issue during the year,
excluding shares held by the employee share scheme trusts.
2017 2016
-------------------------------------------- ---------------------- ------------
Profit attributable to equity holders of
the Company (GBPm) 35.6 34.3
Weighted average number of ordinary shares
in issue 115,664,757 115,714,487
-------------------------------------------- ---------------------- ------------
Basic earnings per share (pence) 30.78 29.63
-------------------------------------------- ---------------------- ------------
For diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
potentially dilutive ordinary shares. These represent share options
granted to employees where the exercise price is less than the
average market price of the Company's ordinary shares during the
year. The number of shares calculated as above is compared with the
number of shares that would have been issued assuming the exercise
of the share options.
2017 2016
--------------------------------------------- -------------------- ------------
Profit attributable to equity holders of
the Company (GBPm) 35.6 34.3
Weighted average number of ordinary shares
in issue 115,664,757 115,714,487
Adjustment for dilutive effect of share
options 781,074 505,871
--------------------------------------------- -------------------- ------------
Diluted weighted average number of ordinary
shares in issue 116,445,831 116,220,358
Diluted earnings per share (pence) 30.57 29.51
--------------------------------------------- -------------------- ------------
The underlying EPS figure is calculated by using Profit
attributable to equity holders before exceptional items:
2017 2016
---------------------------------------------- -------------------- ------------
Profit attributable to equity holders of
the Company before exceptional items (GBPm) 35.0 34.3
Weighted average number of ordinary shares
in issue 115,664,757 115,714,487
---------------------------------------------- -------------------- ------------
Underlying earnings per share (pence) 30.26 29.63
---------------------------------------------- -------------------- ------------
This measure has been included in the financial statements as it
provides a closer guide to the underlying financial performance as
the calculation excludes the effect of exceptional items.
5. Dividends
2017 2016 2017 2016
per share per GBPm GBPm
share
Final dividend 9.97 p 9.01 p 11.5 10.4
Interim dividend 3.53 p 3.36 p 4.1 3.9
13.50 p 12.37 p 15.6 14.3
------------------ ---------- ------- ----- -----
The directors have proposed a final dividend in respect of the
year ended 28 January 2017 of 10.87p per share, amounting to a
dividend of GBP12.7m. It will be paid on 9 June 2017 to all
shareholders who are on the Register of Members on 12 May 2017.
Dividends payable in respect of the financial year were as
follows:
2017 2016
per share per
share
Final dividend proposed in respect
of financial year 10.87 p 9.97 p
Interim dividend paid 3.53 p 3.36 p
14.40 p 13.33 p
------------------------------------ ---------- -------
6. Cash and cash equivalents
2017 2016
GBPm GBPm
--------------------------- ----- -----
Cash and cash equivalents 10.1 6.8
--------------------------- ----- -----
Cash and cash equivalents include the following for the purposes
of the cash flow statements:
2017 2016
GBPm GBPm
--------------------------- ------ ------
Cash and cash equivalents 10.1 6.8
Bank overdrafts (0.4) (0.6)
--------------------------- ------ ------
9.7 6.2
--------------------------- ------ ------
Annual General Meeting
The Annual General Meeting will be held at 11:00am on 31 May
2017 at the offices of Deloitte LLP, 110 Queen Street, Glasgow, G1
3BX.
Statutory Accounts
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 28 January 2017 or
30 January 2016 but is derived from the 2017 accounts. Statutory
accounts for 2016 have been delivered to the registrar of
companies, and those for 2017 will be delivered in due course. The
auditors have reported on those accounts; their reports were (i)
unqualified and (ii) did not contain statements under section
498(2) or (3) of the Companies Act 2006.
GLOSSARY
Non-GAAP measures are provided because they are tracked by
management to assess the Group's operating performance and to
inform financial, strategic and operating decisions.
The term "underlying" has been used to improve comparability
between the 52 week reporting period ended 28 January 2017 and the
53 weeks ended 30 January 2016. In the 53 week reporting period
ended 30 January 2016 the Group received non-recurring income
associated to the termination of the Orangina franchise and
incurred one-off transaction fees associated to corporate
development activities including Funkin Limited.
The underlying figures for the 53 week reporting period ended 30
January 2016 have been adjusted for the revenue and profit
associated to week 53 and the non-recurring Orangina franchise and
one-off corporate development transaction fees.
The underlying figures for the period ended 28 January 2017 are
the reported figures before exceptional items as disclosed in the
consolidated income statement.
Full year dividend per share is a non-GAAP measure calculated as
the sum of all interim dividends declared during the reporting
period plus any proposed dividend payable in respect of that
reporting period.
Revenue (underlying basis) adjusts the reported revenue for the
53 weeks ended 30 January 2016 by the revenue in the final week and
non-recurring revenue related to the terminated Orangina franchise,
to provide a comparable 52 week period.
Revenue growth is a non-GAAP measure calculated as the
difference in revenue between two reporting periods divided by the
revenue of the earlier reporting period.
Gross margin is a non-GAAP measure calculated by dividing gross
profit by revenue.
Carbonates gross margin is a non-GAAP measure calculated by
dividing the gross profit for carbonates by the revenue for
carbonates using the values disclosed in the segment reporting
note.
Operating margin is a non-GAAP measure calculated by dividing
operating profit by revenue.
Operating margin before exceptional items is a non-GAAP measure
calculated by dividing operating profit before exceptional items by
revenue.
Operating profit before exceptional items is a non-GAAP measure
calculated as operating profit less any exceptional items. This
figure appears on the income statement.
Profit before tax and exceptional items is a non-GAAP measure
calculated as profit before tax less any exceptional items. This
figure appears on the income statement.
EBITDA is a non-GAAP measure defined as operating profit before
exceptional items, depreciation and amortisation. It is reconciled
in the free cash flow statement.
EBITDA margin is a non-GAAP measure and calculated as EBITDA
divided by revenue.
EBITDA to free cash flow conversion is a non-GAAP measure and
calculated as free cash flow divided by EBITDA.
Free cash flow is a non-GAAP measure and is defined as the net
cash flow as per the cash flow statement excluding the movements in
borrowings, expansionary capex, the net cash flow on the purchase
and sale of shares by employee benefit trusts, dividend payments
and non-cash exceptional items.
Expansionary capex is a non-GAAP measure and is defined as the
purchase of property, plant and equipment that is not the normal
replacement of property, plant and equipment that has come to the
end of its useful life. Maintenance capex is a non-GAAP measure and
is defined as the purchase of property, plant and equipment that is
the normal replacement of property, plant and equipment that has
come to the end of its useful life. Expansionary capex and
maintenance capex add together to the value of purchase of
property, plant and equipment that appears in the consolidated cash
flow statement.
Net asset growth is a non-GAAP measure and defined as the
increase in net assets from one reporting period to another. Net
assets is a non-GAAP measure and defined as total assets less
current liabilities less non-current liabilities.
ROCE is a non-GAAP measure and defined as operating profit
before exceptional items as a percentage of invested capital.
Invested capital is a non-GAAP measure defined as period end
non-current plus current assets less current liabilities excluding
all balances relating to any provisions, financial instruments,
interest-bearing liabilities and cash or cash equivalents.
Capital expenditure is a non-GAAP measure and defined as the
cash purchases of property, plant and equipment as disclosed in the
consolidated cash flow statement.
Market capitalisation is a non-GAAP measure and defined as the
closing share price at the end of a reporting period multiplied by
the number of issued and fully paid shares of the Company.
Reconciliation of underlying measures
52 weeks to 28 January 2017
Profit
Operating before
Revenue Gross profit profit tax
GBPm GBPm GBPm GBPm
2016/17 as reported
52 week period ended 28 January
2017 257.1 120.7 43.8 43.1
Exceptional items - - (0.7) (0.7)
Underlying 257.1 120.7 43.1 42.4
53 weeks to 30 January 2016
Profit
Operating before
Revenue Gross profit profit tax
GBPm GBPm GBPm GBPm
2015/16 as reported
53 week period ended 30 January
2016 258.6 121.1 42.1 41.3
Week 53 (4.2) (2.2) (2.2) (2.2)
Orangina franchise (1.2) (0.3) (0.3) (0.3)
Corporate development - - 0.8 0.8
Underlying 253.2 118.6 40.4 39.6
Reconciliations of non-GAAP measures
Free cash flow
2016/17 2015/16
GBPm GBPm
Net increase/(decrease) in cash and cash equivalents 3.5 (19.1)
Expansionary capex* 6.9 12.9
Dividends 15.6 14.3
Acquisition of subsidiary (net of cash acquired) - 15.7
Acquisition of intangible assets - 4.8
Purchase of Company shares by employee benefit
trusts 1.0 5.1
Proceeds from disposal of Company shares by employee
benefit trusts (1.3) (3.1)
New loans received (25.5) (34.0)
Loans repaid 43.0 31.5
Bank arrangement fees paid - 0.1
Free cash flow 43.2 28.2
ROCE
2016/17 2015/16
Profit before tax 43.1 41.3
Exceptional items (0.7) -
Profit before tax and exceptional items 42.4 41.3
Intangible assets 106.0 107.5
Property, plant and equipment 89.4 85.3
Inventories 17.3 15.6
Trade and other receivables 51.4 52.7
Current tax (2.7) (3.6)
Assets held for sale 1.3 -
Trade and other payables (52.3) (37.4)
Capital employed 210.4 220.1
ROCE 20.2% 18.8%
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GMGZFVNNGNZM
(END) Dow Jones Newswires
March 28, 2017 02:00 ET (06:00 GMT)
Barr (a.g.) (LSE:BAG)
Historical Stock Chart
From Apr 2024 to May 2024
Barr (a.g.) (LSE:BAG)
Historical Stock Chart
From May 2023 to May 2024