TIDMBAR

RNS Number : 5584R

Brand Architekts Group PLC

09 March 2021

Brand Architekts Group plc

("Brand Architekts" or the "Group")

Interim results

Brand Architekts Group plc, a market leader in the development and supply of beauty and personal care brands, announces its interim results for the 6-month period ended 31 December 2020

Business highlights:

-- New management team fully onboarded with Project 50, a transformational strategy to grow the Company into a GBP50m revenue business within the next five years.

-- The pandemic impacted footfall and consumer behaviour, resulting in a decline in beauty sales within the UK high-street, International markets and led to retailer caution with regards to 2020 Xmas gift sets volumes. This was partially offset by growth in the UK grocers and an overall improvement of 125% in e-tail and direct-to-consumer sales.

-- Detailed review of operations undertaken resulting in an improved net cash position; increase in net profitability and an overhaul of the brand portfolio.

-- Project 50 plan has been clearly defined and moved into execution phase. The plan has required new thinking, investment and focus across four key pillars: operational efficiency, optimising the portfolio, channel development and being a responsible business.

-- Successfully implemented the following aspects of the Project 50 strategy, all of which will start to deliver return on investment (ROI) from next financial year:

o Expected 5-year appointment of Global leading e-Commerce providers, as our new direct-to-consumer (DTC) partner, who will work in creating and launching a new marketplace in July 21

o Capitalising on Super Facialist +50% H1 sales growth, created a transformational and integrated above the line (ATL) campaign to run from May 21- March 22.

o Developed a communication program to effectively market five brand relaunches and NPD program from May onwards.

o 98% of all products will be 100% recyclable; all NPD will utilise a minimum 30% post-consumer recycled plastic (PCR); all UK sourced card and outer packaging will be Forest Stewardship Council (FSC) approved.

Financial Highlights:

-- Revenues for the period of GBP9.0m, a decline of 10% on the prior year (GBP10.0m on an adjusted basis).

   --      Underlying Gross Profit Margin improved to 39% (H1 2020: 38%). 
   --      Profit before tax increased to GBP0.4m (H1 2020: GBP0.3m). 

-- Net cash position as at the period end was GBP19.0m, a GBP1.0m improvement since the year end.

-- Repayment of outstanding term loans (GBP2.1m) and commercial invoice discounting facility (GBP1.1m) leaving the Group debt free.

Continuing Operations (excluding discontinued operations)

 
 GBPm unless otherwise stated                    H1 2021    H1 2020    H1 2020 (Restated) 
                                                                               (2) 
----------------------------------------------  ---------  ---------  ------------------- 
 
  Reported results from continuing operations 
   (1) 
                                                ---------  ---------  ------------------- 
  Revenue                                        GBP9.0m    GBP10.6m        GBP10.0m 
                                                ---------  ---------  ------------------- 
  Underlying operating profit (1)                GBP0.8m    GBP1.2m         GBP1.1m 
                                                ---------  ---------  ------------------- 
  Adjusted basic earnings per share (1)            3.0p       3.9p            3.6p 
                                                ---------  ---------  ------------------- 
 
 Statutory results for the whole group 
  including discontinued operations 
                                                ---------  ---------  ------------------- 
  Revenue                                        GBP9.0m    GBP18.0m 
                                                ---------  ---------  ------------------- 
  Operating profit before exceptional            GBP0.6m    GBP0.1m 
   items 
                                                ---------  ---------  ------------------- 
  Profit on disposal of manufacturing             GBPNil    GBP8.8m 
   business 
                                                ---------  ---------  ------------------- 
  Basic earnings per share                         2.3p      37.7p 
                                                ---------  ---------  ------------------- 
  Total dividend per share                         Nil        0.9p 
                                                ---------  ---------  ------------------- 
  Net cash                                       GBP19.0m   GBP15.1m 
                                                ---------  ---------  ------------------- 
 

(1) Underlying operating profit is calculated before LTIP, amortisation of acquisition related intangibles, exceptional items and net borrowing costs. Adjusted earnings per share is calculated using operating profit before exceptional items and amortisation of acquisition related intangibles.

(2) H1 2020 was a 28-week period vs 26 weeks in H1 2021. H1 2020 has therefore been restated to 26 weeks for comparative purposes.

Quentin Higham, Chief Executive, commented:

"Since joining in May, we have taken time to get under the skin of the business and have started to build the foundations to deliver sustainable and profitable growth over the coming years.

Despite the ongoing challenges caused by the pandemic, we have made good progress against our strategic priorities, as we work towards our Project 50 goal. As we move into the second half, we will maintain our focus on our four key pillars, in particular the investments we are making into our direct-to-consumer (DTC) channel and Super Facialist marketing campaign.

Whilst the current operating environment remains uncertain, we are confident we are building the right platform to achieve our long-term goals.

I would like to thank our teams, whose dedication and hard work since the onset of the pandemic has been impressive."

 
For further information please contact : 
 
Brand Architekts Group PLC                                 via Alma 
 Quentin Higham 
 Tom Carter 
N+1 Singer                   (Nominated adviser and 
 Shaun Dobson / Jen Boorer    broker)                  0207496 3000 
Alma PR 
 Josh Royston / Sam Modlin                            0203 405 0205 
 

CEO Review

Over the last nine months we have been able to fully immerse ourselves into all aspects of the business, which has enabled myself, Tom Carter and Jo Hutton (Commercial Director) to get a thorough understanding of the business' strengths and opportunities.

I am pleased to be reporting our results for the first half of the year, but first and foremost, I would like to take this opportunity to thank our team for their hard work. The pandemic has bought about numerous challenges and changes to both how we work and the environment in which we operate, and yet across the Group we have seen our people continuing to tackle each day with enthusiasm, diligence and a positive outlook.

In September we were optimistic of seeing some green shoots following the easing of restrictions over the summer months. The tightening of restrictions since then has meant we have continued to be impacted by the fluctuating demands of customers and end-consumers, particularly with many domestic and international high street outlets, either closed or experiencing significantly decreased footfall. In addition, several brands & categories have been adversely affected by consumers staying at home, such as male grooming and hairstyling. Brexit placed further stress on our manufacturing lead times, given freight container shortages and paperwork delays at the UK ports for Asian manufactured stock and imported componentry, which in turn led to some stock pressures in December.

Notwithstanding this, we have successfully pushed ahead with key tenets of our strategy over the half year period. Key achievements include:

-- Expected 5-year appointment of Global leading e-Commerce providers, as our new direct-to-consumer (DTC) partner, who will work in creating and launching a new market place in July 21

-- Capitalising on Super Facialist +50% sales growth, created a transformational and integrated above the line (ATL) campaign to run from May 21- March 22.

-- Developed a communication program to effectively market five brand relaunches and NPD program from May onwards.

-- 98% of all products will be 100% recyclable; all NPD will utilise a minimum 30% post consumer recycled plastic (PCR); all UK sourced card and outer packaging will be Forest Stewardship Counci (FSC) certified.

   --      1m improvement in Net Cash position to GBP19.0m. 

Performance review

Net sales for HY21 were GBP9.0m, a decline of 10% on the prior year (GBP10.0m on a like for like basis). Our business on the high street (Boots & Superdrug) has been adversely affected by Covid and its impact on consumer footfall, but we have seen good growth in the multiple grocers, DTC and e-tailers. Overall, Super Facialist continues to show strong growth of 50+% and reflects consumer demand and strong distribution gains. However, the two principal reasons for the decline year on year was a GBP0.6m shortfall on Christmas Gift (-25% YoY), which was a direct result of retailers placing smaller volumes back in March 2020 at the height of the first lockdown and a further GBP0.4m net shortfall, which can be attributed to the impact of Covid on certain categories and channels.

Gross profit margin was 39% (H1 2020: 38%) an improvement on last year, reflecting an increase in facial skincare sales (margin accretive) and a change in channel mix from the high street to e-commerce.

Profit before tax increased to GBP0.4m (H1 2020: GBP0.3m).

Net cash position as at the period end was GBP19.0m. The strong cash balance positions the Group well for future growth as we look to further invest our operating cash flows across all aspects of the business.

Strategic Review

Despite all the changes happening in the wider world, the new management team were able to get under the skin of the business. As previously announced, we launched "Project 50" internally, and despite the lockdown extension and continued challenging retail conditions, believe this is eminently achievable. To reach this goal, we set out four strategic priorities centred around operational efficiency; optimising our portfolio; channel development and being a responsible business.

Within our plan, FY21 is a year of consolidation and reinvigoration for Brand Architekts, as we finalise the platform, the products, and the routes to market that will drive this business forward - I am pleased that we have made good progress against these objectives.

Operational efficiency

To become a consumer centric brands-only business, there was a need for data investment that alongside our inherent consumer insights, would allow us to understand our customers and markets better, thereby enabling us to create products that consumers demand.

Significant progress has been made, with the implementation and integration of customer & consumer shopping data dashboards, which enables the business to undertake in-depth analysis of our performance versus the market. These tools will provide much greater insight and prove invaluable as we increase scale and control over how we maximise our portfolio and grow our business.

The business is also in the process of implementing a demand planning system, approvals management portal and business intelligence application. These systems will be key enablers in underpinning good customer service levels and strengthening internal controls, while providing financial insights and robust oversight of working capital.

Further enhancements are being scoped to strengthen both our new product development (NPD) and purchasing processes, unlocking efficiencies through automation and integrating with our key suppliers during the next 12 months.

We believe that the culture of a business is one of the key ingredients to success and over the last six months we have encouraged a nimble and agile mindset; promoted a bias for action and willingness to change, whilst embedding a culture of empowerment; and a challenger mindset. This is a step change in the way in which we think and act.

Whilst we have made good inroads so far there is still some way to go in driving the operational platform to complement the Group's Project 50 ambition.

Optimising our portfolio

Our true passion is evolving and working with brands and there is no doubt that one of Brand Architekts' key strengths is its brand portfolio. As part of Project 50, we set out to rationalise the brand & product line up, with the intention of relaunching all non-performing brands within 2021, whilst supporting all omnichannel brands with relevant marketing programs.

Substantial work has been undertaken by our teams to create redesigns and relaunch strategies for several our brands, including: Kind Natured; Happy Naturals; SenSpa; Argan; Root Perfect, and I am particularly pleased with the work-to-date. These relaunches are set to take place over the course of the next six months, with the timing dictated by customer purchasing cycles. We were also able to launch an ingredient led bodycare range "The Solution", as a Superdrug exclusive in September 2020.

In the second half of the year, we will be launching our largest ever marketing campaign for Super Facialist. The brand has delivered double digit growth and has been able to capture the spirit of consumers wanting facial treatments at home. The integrated media campaign will see a mix of video, social and digital that will deliver a strong level of coverage and frequency. The proposed 11-month campaign has been very well received by both our customers and consumers (through inhouse research) and we are confident that this investment will be drive sales for the brand over the next 18 months.

In addition, we have an integrated communications program of events to support our brand relaunches; new product initiatives and key selling periods.

The relaunches and additional investments described above will be funded through the Group's operational cash flow.

Channel development

Whilst there will naturally be some shift back once the high street is reopened, the trends seen during the times when restrictions were relaxed earlier this year, suggest that a significant proportion of retail will remain online. Having a robust direct-to-consumer (DTC) channel is therefore vitally important to cater to all shopping habits. Although sales from this channel have grown by over 400% YTD, it is important to remember that this growth is against a very low initial base of GBP52k last year. The strategic objective of creating and building a Brand Architekts marketplace addresses the definitive need for an e-commerce site that sells our full product portfolio. This will allow us to cross-sell between brands and utilise the benefits of shared e-commerce assets. The marketplace will enable each brand to be fully showcased, whilst also giving the business the opportunity to launch and trial new BA brands and products. Over time the marketplace will allow us to establish an asset that will be a new beauty challenger community of consumers and advocates.

Having decided that a more sophisticated approach was necessary and having explored several options and three months of due diligence, we are delighted that we have reached an agreement in principle with one of the world's leading e-Commerce and fulfilment providers as our new DTC partner, who will work with us in developing a bespoke marketplace for all Brand Architekts' portfolio. Their proven ecommerce platform reduces execution risk; its extensive logistical operatio n makes it very cost efficient and it has the capabilities for fast and easy International expansion. Over the next 6 months we will be working closely with their content production and performance marketing teams to design and launch our new platform in Q1 of the next financial year. This investment will enable us to become a truly omni-channel business and in line with our Project 50 aspirations, enable us to organically grow our DTC sales to GBP10m+ over 5years.

Being a responsible business

We are fully committed to acting responsibly across the Group. This will not only make our business a better partner for our retail customers, but also means that purchasing our products will be a choice that our end-consumers feel good to make. In September we launched our Sustainability Blueprint and we are making good progress in embedding the principles across the business and our supplier partners.

Looking ahead, 98% of our lines will be 100% recyclable and all UK sourced secondary packaging and outers will be made of Forest Stewardship Council (FSC) certified board and will be 100% recyclable. 90% of NPD lines will contain a minimum of 30% Post Consumer Recycled (PCR) and 99% of our gift sets secondary packaging will be made of recyclable materials (plastic free)

Defined Benefit Pension Plan

The Scheme is now closed to new members and to further accruals of benefits. The Company is finalising the latest triennial funding valuation as of 5 April 2020 and future funding deficit repayments (currently GBP0.3m per annum). We continue to work closely with the Trustee and believe that our objectives over the long-term are aligned to ensure a robust Company that is able to support and provide a strong covenant to the plan. A further update will be provided at the year end.

Dividends

Given the Group's strategic focus on investing for growth to reach its Project 50 goal and build a business of scale, the Board will not be proposing an interim dividend. The Board recognises the importance of dividends to the Group shareholders and will keep future dividend payments under review and further updates will be made as appropriate.

Outlook

The macroeconomic environment looks set to remain uncertain for the remainder of the financial year driven by the Government's fast-changing responses to Covid-19 and a likely impact on consumer demand, given pressures on disposable income.

We will continue to evaluate all M&A opportunities against Project 50's demanding growth potential and value criteria. We are confident that progress will be made in this regard, but timing is difficult to predict.

This year is one of consolidation, transition and putting in place strategic building blocks for a transformational 2021/22. The Group's focus in H2 is to land the 5 brand relaunches; deliver Super Facialist's advertising campaign and thereby continue to raise awareness and grow sales; continue to progress omni-channel distribution gains and lay the foundations for the creation and implementation of our be-spoke DTC marketplace. The significant investments we will be making from our operating cash flow in H2 will drive growth from the financial year ended June 2022 onwards.

Group Statement of Comprehensive Income

 
                                                Period ended   28 weeks ended   52 weeks ended 
                                                 31 Dec 2020      11 Jan 2020     27 June 2020 
                                                 (unaudited)      (unaudited)        (audited) 
 Continuing operations                  Notes        GBP'000          GBP'000          GBP'000 
 
 Revenue                                    2          9,049           10,568           16,250 
 Cost of sales                                       (5,517)          (6,597)         (13,069) 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Gross profit                                          3,532            3,971            3,181 
 Commercial and administrative 
  costs                                              (2,974)          (3,120)          (5,859) 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Operating profit before exceptional 
  items                                                  558              851          (2,678) 
 Exceptional items                                         -            (472)          (1,444) 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Operating profit                                        558              379          (4,122) 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Finance income                                            2               46               77 
 Finance costs                              3          (125)            (123)            (301) 
 Profit before taxation on 
  continuing operations                                  435              302          (4,346) 
 Taxation                                               (17)             (57)               55 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Profit after taxation on 
  continuing operations                                  418              245          (4,291) 
 Profit on discontinued operations 
  after taxation                            8              -            6,278            6,529 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Profit after taxation                                   418            6,523            2,238 
 
   Other comprehensive (loss) / income for the 
   period: 
 Re-measurement of defined 
  benefit liability                                    (113)          (1,040)          (4,086) 
 Items that will be reclassified 
  subsequently to profit or 
  loss: 
 Exchange differences on translating 
  foreign operations                                       -             (48)             (49) 
 Other comprehensive loss 
  for the period                                       (113)          (1,088)          (4,135) 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Total comprehensive income 
  / (loss) for the period                                305            5,435          (1,897) 
=====================================  ======  =============  ===============  =============== 
 
 Profit attributable to: 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Equity shareholders                                     392            6,456            2,217 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Non-controlling interests                                26               67               21 
 
 Continuing Operations - Profit 
  attributable to: 
---------------------------------------------  -------------  ---------------  --------------- 
 Equity shareholders                                     392              178            1,489 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Non-controlling interests                                26               67              101 
 
 Total comprehensive income 
  / (loss) attributable to: 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Equity shareholders                                     279            5,368          (1,918) 
-------------------------------------  ------  -------------  ---------------  --------------- 
 Non-controlling interests                                26               67               21 
 
 Earnings per share 
 - basic                                    4           2.3p            37.7p            12.9p 
  - diluted                                 4           2.3p            37.5p            12.9p 
 
 Dividend 
 Paid in period (GBP'000)                                  -              745              745 
  Paid in period (pence per 
   share)                                                 0p            4.35p            4.35p 
 Proposed (GBP'000)                                        -              154              Nil 
  Proposed (pence per share)                5             0p             0.9p              Nil 
 

Group Statement of Financial Position

 
                                              As at         As at          As at 
                                        31 Dec 2020   11 Jan 2020   27 June 2020 
                                        (unaudited)   (unaudited)      (audited) 
                                Notes       GBP'000       GBP'000        GBP'000 
 
 ASSETS 
 Non-current assets 
 Property, plant and 
  equipment                                     130           195            142 
 Intangible assets                           11,637        12,757         11,714 
 Deferred tax assets                          2,526         1,926          2,515 
 Total non-current 
  assets                                     14,293        14,878         14,371 
-----------------------------  ------  ------------  ------------  ------------- 
 Current assets 
 Inventories                                  2,251         6,210          3,724 
 Trade and other receivables                  4,962         8,277          3,969 
 Cash and cash equivalents                   19,026        20,000         21,240 
 Current tax receivable                         413           555            836 
-----------------------------  ------  ------------  ------------  ------------- 
 Total current assets                        26,652        35,042         29,769 
-----------------------------  ------  ------------  ------------  ------------- 
 Total assets                                40,945        49,920         44,140 
-----------------------------  ------  ------------  ------------  ------------- 
 
 LIABILITIES 
 Current liabilities 
 Trade and other payables                     3,059         5,893          4,503 
 Interest-bearing 
  loans and borrowings                            -         1,075          1,029 
 Current tax payable                             25           259              - 
-----------------------------  ------  ------------  ------------  ------------- 
 Total current liabilities                    3,084         7,227          5,532 
-----------------------------  ------  ------------  ------------  ------------- 
 Non-current liabilities 
 Interest-bearing 
  loans and borrowings                            -         1,548          1,066 
 Post-retirement benefit 
  obligations                       7        13,195         9,505         13,237 
 Lease liabilities                               57             -             81 
 Deferred tax liabilities                     1,154         1,047          1,154 
 Total non-current 
  liabilities                                14,406        12,100         15,538 
-----------------------------  ------  ------------  ------------  ------------- 
 Total liabilities                           17,490        19,327         21,070 
-----------------------------  ------  ------------  ------------  ------------- 
 Net assets                                  23,455        30,593         23,070 
-----------------------------  ------  ------------  ------------  ------------- 
 
 EQUITY 
 Share capital                                  862           857            862 
 Share premium                               11,987        11,987         11,987 
 Revaluation of investment 
  reserve                                         -             -              - 
 Exchange reserve                                 -             -              - 
 Re-measurement of 
  defined benefit pension 
  fund liability                           (10,701)       (7,542)       (10,588) 
 Retained earnings                           21,183        25,112         20,711 
-----------------------------  ------  ------------  ------------  ------------- 
 Total equity                                23,331        30,414         22,972 
-----------------------------  ------  ------------  ------------  ------------- 
 Non-controlling interest                       124           179             98 
-----------------------------  ------  ------------  ------------  ------------- 
 Total equity                                23,455        30,593         23,070 
-----------------------------  ------  ------------  ------------  ------------- 
 
 
 

Group Statement of Changes in Equity

 
                     Share     Share     Revaluation   Exchange      Pension       Retained   Non-controlling    Total 
                    Capital    Premium       of         Reserve   re-measurement   Earnings       interest       Equity 
                                         investment                  reserve 
                                           reserve 
 Group              GBP'000   GBP'000      GBP'000     GBP'000       GBP'000       GBP'000        GBP'000       GBP'000 
-----------------  --------  ---------  ------------  ---------  ---------------  ---------  ----------------  --------- 
 Balance as 
  at June 2020         862      11,987         -           -          (10,588)       20,711          98           23,070 
-----------------  --------  ---------  ------------  ---------  ---------------  ---------  ----------------  --------- 
 Dividends             -         -            -           -             -             -              -             - 
 Non-controlling 
  interest             -         -            -           -             -             -             26             26 
 Share-based 
  payments             -         -            -           -             -             80             -             80 
 Transactions 
  with owners 
  and reserve 
  transfers             -         -            -           -             -             80            26            106 
-----------------  --------  ---------  ------------  ---------  ---------------  ---------  ----------------  --------- 
 Profit for 
  the period           -         -            -           -             -            392             -            392 
 Other 
 comprehensive 
 income: 
 Re-measurement 
  of defined 
  benefit 
  liability            -         -            -           -           (113)           -              -           (113) 
 Exchange 
 difference 
 on translating 
 foreign 
 operations            -         -            -           -             -             -              -             - 
 Total 
  comprehensive 
  income for 
  the year             -         -            -           -           (113)          392             -            279 
-----------------  --------  ---------  ------------  ---------  ---------------  ---------  ----------------  --------- 
 Balance as 
  at 31 December 
  2020                 862      11,987         0           0          (10,701)       21,183          124          23,455 
-----------------  --------  ---------  ------------  ---------  ---------------  ---------  ----------------  --------- 
 
 
                     Share     Share    Revaluation   Exchange      Pension       Retained   Non-controlling    Total 
                    Capital   Premium       of         Reserve   re-measurement   Earnings       interest       Equity 
                                        investment                  reserve 
                                          reserve 
 Group              GBP'000   GBP'000     GBP'000     GBP'000       GBP'000       GBP'000        GBP'000       GBP'000 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 Balance as at 
  June 2019           857     11,987       1,241       (147)        (6,502)        18,160           145        25,741 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 Dividends             -         -           -           -             -           (745)          (33)          (778) 
 Non-controlling 
  interest             -         -           -           -             -             -             67            67 
 Realisation 
  of exchange 
  differences 
  on sale of 
  subsidiary           -         -           -          195            -             -              -            195 
 Realised profit 
  on asset sold        -         -        (1,241)        -             -           1,241            -             - 
 Transactions 
  with owners 
  and reserve 
  transfers            -         -        (1,241)       195            -            496            34           (516) 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 Profit for the 
  period               -         -           -           -             -           6,456            -           6,456 
 Other 
 comprehensive 
 income: 
 Re-measurement 
  of defined 
  benefit 
  liability            -         -           -           -          (1,040)          -               -         (1,040) 
 Exchange 
  difference 
  on translating 
  foreign 
  operations           -         -           -          (48)           -             -               -          (48) 
 
 Total 
  comprehensive 
  income for the 
  year                 -         -           -          (48)        (1,040)        6,456             -          5,368 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 Balance as at 
  11 January 2020      857    11,987         -           -          (7,542)        25,112           179        30,593 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 
 
 
 
 
                     Share     Share    Revaluation   Exchange      Pension       Retained   Non-controlling    Total 
                    Capital   Premium       of         Reserve   re-measurement   Earnings       interest       Equity 
                                        investment                  reserve 
                                          reserve 
 Group              GBP'000   GBP'000     GBP'000     GBP'000       GBP'000       GBP'000        GBP'000       GBP'000 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 Balance as at 
  June 2019           857     11,987       1,241       (147)        (6,502)        18,160           145        25,741 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 Dividends             -         -           -           -             -           (745)          (68)          (813) 
 Issue of New 
  Shares               5         -           -           -             -             -              -             5 
 Non-controlling 
  interest             -         -           -           -             -             -             21            21 
 Share-based 
  payments 
  (credit)             -         -           -           -             -           (162)            -           (162) 
 Realisation of 
  exchange 
  differences 
  on sale of 
  subsidiary           -         -           -          196            -             -              -            196 
 Transactions 
  with owners and 
  reserve 
  transfers            5         -           -          196            -           (907)          (47)          (753) 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 Profit for the 
  period               -         -           -           -             -           2,217            -           2,217 
 Other 
 comprehensive 
 income: 
 Re-measurement 
  of defined 
  benefit 
  liability            -         -           -           -          (4,086)          -               -         (4,086) 
 Exchange 
  difference 
  on translating 
  foreign 
  operations           -         -           -          (49)           -             -               -          (49) 
 Realised profit 
  on asset sold        -         -        (1,241)        -             -           1,241            -             - 
 Total 
  comprehensive 
  income for the 
  year                 -         -        (1,241)       (49)        (4,086)        3,458             -         (1,918) 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 Balance as at 
  June 2020            862    11,987         -           -          (10,588)       20,711           98         23,070 
-----------------  --------  --------  ------------  ---------  ---------------  ---------  ----------------  -------- 
 

Group Cash Flow Statement

 
                                                Period ended      28 weeks       52 weeks 
                                                                     ended          ended 
                                                 31 Dec 2020   11 Jan 2020   27 June 2020 
                                        Notes    (unaudited)   (unaudited)      (audited) 
                                                     GBP'000       GBP'000        GBP'000 
 Cash flow from operating activities 
 Profit before taxation                                  435         6,580          2,183 
 Depreciation                                             28            12             93 
 Amortisation                                            138           142          1,204 
 Profit on disposal of manufacturing 
  business                                  8              -       (8,762)        (8,922) 
 Increase in assets held for 
  resale                                                   -       (3,008)        (3,225) 
 Finance income                                          (2)          (46)           (77) 
 Finance cost                                            125           181            324 
 Decrease/ (Increase) in inventories                   1,473         (999)          1,487 
 (Increase) in trade and other 
  receivables                                          (993)       (3,512)          (494) 
 (Decrease)/ Increase in trade 
  and other payables                                   (300)         1,086            923 
 Share-based payment expense                              80          (48)          (124) 
 Contributions to defined benefit 
  plan                                                 (159)         (159)          (318) 
 Cash generated from/(used 
  in) operations                                         825       (8,533)        (6,946) 
-------------------------------------  ------  -------------  ------------  ------------- 
 Finance expense paid                                  (123)          (83)          (128) 
 Taxation paid                                           407         (595)          (773) 
-------------------------------------  ------  -------------  ------------  ------------- 
 Net cash flow from/ (used 
  in) operating activities                             1,109       (9,211)        (7,847) 
-------------------------------------  ------  -------------  ------------  ------------- 
 Cash flow from investing activities 
 Purchase of property, plant 
  and equipment                                         (13)          (27)           (28) 
 Purchase of intangibles                                (61)          (81)          (101) 
 Proceeds from disposal of 
  manufacturing business                    8              -        32,274         35,255 
 Cost associated with disposal 
  of subsidiaries                                          -             -        (1,315) 
 Net cash flow (used in)/generated 
  by investing activities                               (74)        32,166         33,811 
-------------------------------------  ------  -------------  ------------  ------------- 
 Cash flow from financing activities 
 Finance income received                                   2            46             77 
 Movements in invoice discounting 
  facility                                           (1,132)       (1,997)        (3,187) 
 Repayment of loans                                  (2,095)         (607)        (1,135) 
 Lease payments                                         (24)             -           (52) 
 Issue of new shares                                       -             -              5 
 Dividends paid                                            -         (778)          (813) 
-------------------------------------  ------  -------------  ------------  ------------- 
 Net cash flow (used in) financing 
  activities                                         (3,249)       (3,336)        (5,105) 
-------------------------------------  ------  -------------  ------------  ------------- 
 Net (decrease)/ increase in 
  cash and cash equivalents                          (2,214)        19,619         20,859 
 Cash and cash equivalents 
  at beginning of period                              21,240           381            381 
-------------------------------------  ------  -------------  ------------  ------------- 
 Cash and cash equivalents 
  at end of period                                    19,026        20,000         21,240 
-------------------------------------  ------  -------------  ------------  ------------- 
 

Notes to the Accounts

Note 1 Basis of preparation

The Group has prepared its interim results for the six-month period ended 31 December 2020 in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) as adopted by the European Union and also in accordance with the recognition and measurement principles of IFRS issued by the International Accounting Standards Board. The Group has previously prepared its results for a 52-week period. The comparative interim and results presented are, therefore, made up to 11 Jan 2020 and 27 June 2020 respectively.

The Directors have considered trading and cash flow forecasts prepared for the Group, and based on these, and the confirmed banking facilities, are satisfied that the Group will continue to be able to meet its liabilities as they fall due for at least one year from the date of approval of the Interim Report. On this basis, they consider it appropriate to adopt the going concern basis in the preparation of these accounts.

As permitted, this interim report has been prepared in accordance with the AIM rules and not in accordance with IAS34 'Interim Financial Reporting'.

These interim financial statements do not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006 and are unaudited. The unaudited interim financial statements were approved by the Board of Directors on 8(th) March 2021.

The consolidated financial statements are prepared under the historical cost convention. The accounting policies used in the interim financial statements are consistent with IFRS and those which will be adopted in the preparation of the Group's Annual Report and Financial Statements for the year ended June 2021.

The statutory accounts for the year ended June 2020, which were prepared under IFRS, have been filed with the Registrar of Companies. These statutory accounts carried an unqualified Auditors Report and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006.

In August 2019, the Group sold its 100% interest in Curzon Supplies Ltd for consideration of GBP35m (completing the disposal of the Manufacturing segment) which is the only operation presented as discontinued operations in the comparative figures. Curzon Supplies Ltd was incorporated in March 2019. The impact of the disposal on the comparative figures is disclosed in Note 9.

The Group has not changed any of its accounting policies in the 6 months to 31 December 2020.

Note 2 Segmental analysis (unaudited)

The Group is a market leader in the development and supply of beauty and personal care brands.

The reportable segments of the Group are aggregated as follows:

-- Brands - since the disposal of the manufacturing business in August 2019 this has become the Group's sole focus and is referred to elsewhere in these results as 'continuing operations'. The portfolio of brands consists primarily of brands acquired by the Group as part of the acquisition of The Brand Architekts in 2016 plus the acquisitions of Real Shaving Company (2015) and Fish (2018).

-- Manufacturing - the development, formulation, and production of quality products for many of the world's leading personal care and beauty brands. The manufacturing business was sold in August 2019 and its results in the period have been treated as discontinued operations. The impact of the disposal is disclosed in Note 9. The profit on disposal of the manufacturing business is included as an exceptional item in the segmental information.

-- Eliminations and Central Costs - other Group-wide activities and expenses, including defined benefit pension costs (closed defined benefit scheme), certain LTIP expenses, amortisation of acquisition-related intangibles, interest, taxation and eliminations of intersegment items, are presented within 'Eliminations and central costs'.

This is the basis on which the Group presents its operating results to the Board of Directors, which is considered to be the chief operating decision maker (CODM) for the purposes of IFRS 8. Following the sale of the manufacturing business in 2019, the reportable segments of the Group will be kept under review by management and further updates made as appropriate.

   a)   Principal measures of profit and loss - Income Statement segmental information: 
 
                 Period ended 31 December 2020                          28 weeks ended 11 January 2020 
                             Brands    Eliminations    Total    Brands    Manufacturing   Eliminations    Total 
                                        and Central                                        and Central 
                                           Costs                                              Costs 
                             GBP'000     GBP'000      GBP'000   GBP'000      GBP'000        GBP'000      GBP'000 
--------------------------  --------  -------------  --------  --------  --------------  -------------  -------- 
        UK revenue            7,791         -          7,791     8,744        4,841            -         13,585 
       International 
          revenue             1,258         -          1,258     1,819        2,639            -          4,458 
--------------------------  --------  -------------  --------  --------  --------------  -------------  -------- 
    Revenue - External        9,049         -          9,049    10,563        7,480            -         18,043 
    Revenue - Internal          -           -            -         5           990           (995)          - 
--------------------------  --------  -------------  --------  --------  --------------  -------------  -------- 
       Total revenue          9,049         -          9,049    10,568        8,470          (995)       18,043 
       Discontinued 
         Operations             -           -            -         -         (8,470)          990        (7,480) 
       Total revenue          9,049         -          9,049    10,568          -             (5)        10,563 
        Underlying 
  operating profit/(loss)      1,405       (629)         776     1,637        (969)          (483)         185 
--------------------------  --------  -------------  --------  --------  --------------  -------------  -------- 
        Charge for 
        share based 
          payments            (14)         (66)        (80)        -            -            (161)        (161) 
       Amortisation 
   of acquisition-related 
        intangibles              -         (138)        (138)      -            -            (142)        (142) 
        Charge for                                                 -            -              -            - 
      stock provisions           -           -            - 
 Net exceptional 
  items                         -           -            -       (132)        7,305          (340)        6,833 
       Net borrowing 
      income / (costs)         (5)        (118)        (123)     (25)         (58)            (52)        (135) 
--------------------------  --------  -------------  --------  --------  --------------  -------------  -------- 
     Segment (profit) 
      / loss included 
      in Discontinued 
         Operations              -           -            -         -        (6,278)           -         (6,278) 
--------------------------  --------  -------------  --------  --------  --------------  -------------  -------- 
       Profit/(loss) 
      before taxation         1,386        (951)        435       1,480          -           (1,178)        302 
--------------------------  --------  -------------  --------  --------  --------------  -------------  -------- 
        Tax charge            (25)          8          (17)        -            -             (57)        (57) 
--------------------------  --------  -------------  --------  --------  --------------  -------------  -------- 
       Profit/(loss) 
       for the period 
      from Continuing 
         Operations            1,361       (943)         418     1,480          -           (1,235)        245 
--------------------------  --------  -------------  --------  --------  --------------  -------------  -------- 
 
 

The segmental Income Statement disclosures are measured in accordance with the Group's accounting policies as set out in note 1.

Inter segment revenue earned by Manufacturing from sales to Brands was determined in 2020 on normal commercial trading terms as if Brands were any other third-party customer.

All defined benefit pension costs and certain LTIP expenses are recognised for internal reporting to the CODM as part of Group-wide activities and are included within 'Eliminations and central costs' above. Other costs, such as Group insurance and auditors' remuneration which are incurred on a Group-wide basis are recharged by the head office to segments on a reasonable and consistent basis for all periods presented and are included within segment results above.

Included in Net exceptional items in the comparative figures in Manufacturing is the profit on disposal of the manufacturing business of GBP8,762k offset by bonuses paid out on deal completion of GBP1,116k and stock provision adjustments of GBP341k. Exceptional items from continuing operations represents GBP0.3m in relation to the departure in September of the former Chief Executive Officer and GBP0.2m exceptional consultancy fees.

b) Other Income Statement segmental information

The following additional items are included in the measures of profit and loss reported to the CODM and are included within (a) above:

 
 Period ended 31 December     Brands   Manufacturing   Eliminations     Total 
  2020                                                  and Central 
                                                              Costs 
                             GBP'000         GBP'000        GBP'000   GBP'000 
--------------------------  --------  --------------  -------------  -------- 
 Depreciation                     28               -              -        28 
 Amortisation                      -               -            138       138 
 
 
 28 weeks ended 11 January     Brands   Manufacturing   Eliminations     Total 
  2020                                                   and Central 
                                                               Costs 
                              GBP'000         GBP'000        GBP'000   GBP'000 
---------------------------  --------  --------------  -------------  -------- 
 Depreciation                      12               -              -        12 
 Amortisation                       -               -            142       142 
 
 

c) Principal measures of assets and liabilities

The Groups assets and liabilities are managed centrally by the CODM and consequently there is no reconciliation between the Group's assets per the statement of financial position and the segment assets.

d) Additional entity-wide disclosures

The distribution of the Group's external revenue by destination is shown below:

 
 Geographical segments             Period ended   28 weeks ended   52 weeks ended 
                                    31 Dec 2020      11 Jan 2020     27 June 2020 
                                    (unaudited)      (unaudited)        (audited) 
                                        GBP'000          GBP'000          GBP'000 
                                  -------------  ---------------  --------------- 
 UK                                       7,791           13,585           18,637 
 Other European Union countries             373            2,430            2,683 
 Rest of the World                          885            2,028            2,410 
                                  -------------  ---------------  --------------- 
                                          9,049           18,043           23,730 
                                  -------------  ---------------  --------------- 
 
 
 Geographical segments - Continuing    Period ended   28 weeks ended   52 weeks ended 
  Operations 
                                        31 Dec 2020      11 Jan 2020     27 June 2020 
                                        (unaudited)      (unaudited)        (audited) 
                                            GBP'000          GBP'000          GBP'000 
                                      -------------  ---------------  --------------- 
 UK                                           7,791            8,744           13,796 
 Other European Union countries                 373              288              541 
 Rest of the World                              885            1,531            1,913 
                                      -------------  ---------------  --------------- 
                                              9,049           10,563           16,250 
                                      -------------  ---------------  --------------- 
 

In the period ended 31 December 2020, the Group had two customers that exceeded 10% of revenues from Continuing Operations, being 24% and 11.8% respectively. In the 28 weeks ended 11 January 2020, the Group had two customers that exceeded 10% of revenues from Continuing Operations, being 21.2% and 11.5% respectively.

Note 3 Finance costs

 
                                  Period ended   28 weeks ended   52 weeks ended 
                                   31 Dec 2020      11 Jan 2020     27 June 2020 
                                   (unaudited)      (unaudited)        (audited) 
                                       GBP'000          GBP'000          GBP'000 
                                 -------------  ---------------  --------------- 
 
 Total 
 Bank loans and overdrafts                  27               83              128 
 Notional pension scheme costs              98               98              196 
                                 -------------  ---------------  --------------- 
                                           125              181              324 
                                 -------------  ---------------  --------------- 
 
 
                                  Period ended   28 weeks ended   52 weeks ended 
                                   31 Dec 2020      11 Jan 2020     27 June 2020 
                                   (unaudited)      (unaudited)        (audited) 
                                       GBP'000          GBP'000          GBP'000 
                                 -------------  ---------------  --------------- 
 
 Continuing Operations 
 Bank loans and overdrafts                  27               25              105 
 Notional pension scheme costs              98               98              196 
                                 -------------  ---------------  --------------- 
                                           125              123              301 
                                 -------------  ---------------  --------------- 
 

Note 4 Earnings per share

 
                                    Period ended   28 weeks ended   52 weeks ended 
                                     31 Dec 2020      11 Jan 2020     27 June 2020 
                                     (unaudited)      (unaudited)        (audited) 
                                   -------------  ---------------  --------------- 
 
 Basic and diluted 
 Profit attributable to equity 
  shareholders (GBP'000)                     392            6,456            2,217 
 Profit/(loss) attributable to 
  equity shareholders Continuing 
  Operations ('000)                          392              178          (4,312) 
 Basic weighted average number 
  of 
 ordinary shares in issue during 
  the period                          17,277,146       17,135,542       17,143,646 
 Diluted number of shares             17,366,146       17,230,703       17,143,646 
 Basic earnings per share                   2.3p            37.7p            12.9p 
---------------------------------  -------------  ---------------  --------------- 
 Diluted earnings per share                 2.3p            37.5p            12.9p 
 Basic earnings/(loss) per share 
  continuing operations                     2.3p             1.0p          (25.2)p 
---------------------------------  -------------  ---------------  --------------- 
 Diluted earnings/(loss) per 
  share continuing operations               2.3p             1.0p          (25.2)p 
---------------------------------  -------------  ---------------  --------------- 
 

Basic earnings/(loss) per share has been calculated by dividing the profit/(loss) for each financial period by the weighted average number of ordinary shares in issue in the period.

 
 0BAdjusted earnings per share   Period ended   28 weeks ended   52 weeks ended 
                                  31 Dec 2020      11 Jan 2020     27 June 2020 
                                  (unaudited)      (unaudited)        (audited) 
                                -------------  ---------------  --------------- 
 
 
 Profit attributable to equity 
  shareholders (GBP'000)                         392        6,456        2,217 
 Add back: Net exceptional items 
  (GBP'000)                                        -      (6,833)      (6,016) 
 Add back: Amortisation of Acquisition 
  Related Intangibles (GBP'000)                  138          142          275 
 Notional tax charge on above 
  items (GBP'000)                               (26)        (393)        (605) 
---------------------------------------  -----------  -----------  ----------- 
 Adjusted profit/(loss) before 
  exceptional items (GBP'000)                    504        (628)      (4,129) 
---------------------------------------  -----------  -----------  ----------- 
 Basic weighted average number 
  of 
 ordinary shares in issue during 
  the period                              17,277,246   17,135,542   17,143,646 
 Diluted number of shares                 17,366,146   17,230,703   17,143,646 
---------------------------------------  -----------  -----------  ----------- 
 Adjusted basic earnings/(loss) 
  per share                                     2.9p       (3.7)p      (24.1)p 
---------------------------------------  -----------  -----------  ----------- 
 Adjusted diluted earnings/(loss) 
  per share                                     2.9p       (3.7)p      (24.1)p 
---------------------------------------  -----------  -----------  ----------- 
 
 
 1BAdjusted earnings per share   Period ended      28 weeks       52 weeks 
  - Continuing Operations                             ended          ended 
                                  31 Dec 2020   11 Jan 2020   27 June 2020 
                                  (unaudited)   (unaudited)      (audited) 
                                -------------  ------------  ------------- 
 
 
 Profit attributable to equity 
  shareholders (GBP'000)                         392          178      (4,312) 
 Add back: Net exceptional items 
  (GBP'000)                                        -          472        1,444 
 Add back: Amortisation of Acquisition 
  Related Intangibles (GBP'000)                  138          142          275 
 Notional tax charge on above 
  items (GBP'000)                               (26)        (117)        (327) 
---------------------------------------  -----------  -----------  ----------- 
 Adjusted profit/(loss) before 
  exceptional items (GBP'000)                    504          675      (2,920) 
---------------------------------------  -----------  -----------  ----------- 
 Basic weighted average number 
  of 
 ordinary shares in issue during 
  the period                              17,277,246   17,135,542   17,143,646 
 Diluted number of shares                 17,366,146   17,230,703   17,143,646 
---------------------------------------  -----------  -----------  ----------- 
 Adjusted basic earnings/(loss) 
  per share                                     2.9p         3.9p      (17.0)p 
---------------------------------------  -----------  -----------  ----------- 
 Adjusted diluted earnings/(loss) 
  per share                                     2.9p         3.9p      (17.0)p 
---------------------------------------  -----------  -----------  ----------- 
 

Adjusted earnings per share has been calculated by dividing the adjusted profit (after allowing for the notional tax charge on exceptional items) by the weighted average number of shares in issue in the period.

Note 5 Dividends

The Directors have not declared an interim dividend payment for the period (2020: Interim: 0.9p; Final: GBPNil).

Note 6 Notes to Cash Flow Statement

(a) Reconciliation of cash and cash equivalents to movement in net debt:

 
                                       Period ended   28 weeks ended   52 weeks ended 
                                        31 Dec 2020      11 Jan 2020     27 June 2020 
                                        (unaudited)      (unaudited)        (audited) 
                                            GBP'000          GBP'000          GBP'000 
                                      -------------  ---------------  --------------- 
 
 Increase / (decrease) in cash 
  and cash equivalents in the 
  period                                    (2,214)           19,619           20,859 
 Net cash outflow from decrease 
  in borrowings                               3,227            2,604            4,322 
------------------------------------  -------------  ---------------  --------------- 
 Change in net debt resulting 
  from cash flows                             1,013           22,223           25,181 
 Net cash / (debt) at the beginning 
  of the period                              18,013          (7,168)          (7,168) 
------------------------------------  -------------  ---------------  --------------- 
 Net cash at the end of the period           19,026           15,055           18,013 
------------------------------------  -------------  ---------------  --------------- 
 

(b) Analysis of net cash/(debt):

 
                                        Closing   Cash flow        Closing 
                                    11 Jan 2020                31 Dec 2020 
                                        GBP'000     GBP'000        GBP'000 
                                  -------------  ----------  ------------- 
 
 Cash at bank and in hand                21,240     (2,216)         19,026 
 CID facility                           (1,132)       1,132              0 
 Borrowings due within one year         (1,029)       1,029              0 
 Borrowings due after one year          (1,066)       1,066              0 
--------------------------------  -------------  ----------  ------------- 
                                         18,013       1,013         19,026 
--------------------------------  -------------  ----------  ------------- 
 

Note 7 IAS 19 'Employee Benefits'

Expected future cash flows to and from the Group's defined benefit pension scheme:

The Scheme is closed to new members and to further accruals of benefits. It is subject to the scheme funding requirements outlined in UK legislation. The last scheme funding valuation of the Scheme was as at 5 April 2017 and revealed a funding deficit of GBP2.6m. The liabilities of the Scheme are based on the current value of expected benefit payments to members of the Scheme over the next 60 to 80 years. The average duration of the liabilities is approximately 20 years.

In accordance with the schedule of contributions dated 4 September 2018, the Company is expected to pay contributions to the Scheme to make good shortfalls in funding identified in the 5 April 2017 funding valuation and has agreed to pay GBP0.3m per annum. The magnitude of such payments is being reviewed following the scheme funding valuation as at April 2020.

In addition, the Company has agreed to meet the cost of administrative expenses and Pension Protection Fund insurance premiums for the Scheme.

Payments made by the Company to the Scheme and in respect of Scheme liabilities were:

 
                                  Period ended     28 weeks ended   52 weeks ended 
                                   31 Dec 2020    11 January 2020     27 June 2020 
                                       GBP'000            GBP'000          GBP'000 
                                 -------------  -----------------  --------------- 
 Company pension contributions               -                  -                - 
 Deficit recovery payments                 159                159              318 
 Scheme administrative 
  expenses                                  69                138              121 
 Pension Protection Fund 
  premium                                  101                120              121 
-------------------------------  -------------  -----------------  --------------- 
 Total                                     329                417              560 
-------------------------------  -------------  -----------------  --------------- 
 

The amounts expensed in the Group Statement of Comprehensive Income were:

 
                               Period ended     28 weeks ended   52 weeks ended 
                                31 Dec 2020    11 January 2020     27 June 2020 
                                    GBP'000            GBP'000          GBP'000 
                              -------------  -----------------  --------------- 
 In Operating profit: 
 Scheme administrative 
  expenses                               69                 92              121 
 Pension Protection Fund 
  premium                               101                 65              121 
 Past service measurement 
  gain on pension scheme 
  - included in profit on 
  disposal of manufacturing 
  business                                -                  -          (1,103) 
                              -------------  -----------------  --------------- 
                                        170                157            (861) 
 In Finance costs: 
 Unwinding of notional 
  discount factor                        98                 98              196 
----------------------------  -------------  -----------------  --------------- 
 Total                                  268                255            (665) 
----------------------------  -------------  -----------------  --------------- 
 

IAS 19 requires a separate valuation of the Scheme on a different basis to the funding valuation referred to above.

The key assumptions used were:

 
                            At 31 December   At 11 January   At 27 June 2020 
                                      2020            2020 
                           ---------------  --------------  ---------------- 
 Discount Rate                       1.40%           2.00%             1.50% 
 Rate of inflation (RPI)             2.85%           2.90%             2.75% 
 Rate of inflation (CPI)             1.95%           2.00%             1.85% 
 

The amounts recognised in the Group statement of financial position were:

 
                                At 31 December   At 11 January   At 27 June 2020 
                                          2020            2020 
                                       GBP'000         GBP'000           GBP'000 
                               ---------------  --------------  ---------------- 
 Present value of funded 
  obligations                         (38,714)        (34,367)          (37,324) 
 Fair value of scheme assets            25,519          24,862            24,087 
-----------------------------  ---------------  --------------  ---------------- 
 (Deficit)                            (13,195)         (9,505)          (13,237) 
-----------------------------  ---------------  --------------  ---------------- 
 

Note 8 Discontinued operations

In August 2019, the Group sold its 100% interest in Curzon Supplies Ltd for consideration of GBP35m (completing the disposal of the Manufacturing segment) which is the only operation presented as discontinued operations. Curzon Supplies Ltd was incorporated in March 2019.

 
 
  Result of discontinued operations:         Period ended          28 weeks    52 weeks 
                                                                      ended       ended 
                                              31 December        11 January     27 June 
                                                     2020              2020        2020 
                                                  GBP'000           GBP'000     GBP'000 
 Revenue                                                -             7,480       7,480 
 Expenses other than finance costs                      -           (8,449)     (8,389) 
 (Finance costs) / investment income                    -              (58)        (22) 
 Exceptional costs                                      -           (1,457)     (1,462) 
 Profit on disposal of manufacturing 
  business                                              -             8,762       8,922 
 Tax credit / (expense)                                 -                 -           - 
 Profit for the year                                    -             6,278       6,529 
                                           --------------  ----------------  ---------- 
 
  Included in Exceptional costs in discontinued operations were bonuses 
   paid out on deal completion of GBP1.1m and stock provision adjustments 
   of GBP0.3m. 
  Earnings per share from discontinued       Period ended    28 weeks ended    52 weeks 
   operations:                                31 December        11 January       ended 
                                                     2020              2020     27 June 
                                                                                   2020 
                                                                             ---------- 
 Basic earnings per share                               -             36.6p       38.1p 
 Diluted earnings per share                             -             36.4p       38.1p 
                                                                               52 weeks 
  Earnings per share from discontinued       Period ended    28 weeks ended       ended 
   operations excluding profit on             31 December        11 January     27 June 
   disposal of manufacturing business:               2020              2020        2020 
---------------------------------------   ---------------  ----------------  ---------- 
 Basic earnings per share                               -           (14.5)p       38.1p 
 Diluted earnings per share                             -           (14.4)p       38.1p 
 
  Cash flow in respect of discontinued       Period ended    28 weeks ended    52 weeks 
   operations:                                                                    ended 
                                              31 December        11 January     27 June 
                                                     2020              2020        2020 
                                                  GBP'000           GBP'000     GBP'000 
 Operating cash flows                                   -             3,220     (5,761) 
 Investing cash flows                                   -                 -      35,255 
 Financing cash flows                                   -           (3,592)     (3,592) 
 Total cash flows                                       -             (372)      25,902 
                                           --------------  ----------------  ---------- 
 

Note 9 Announcement of results

The Interim Report will be sent to shareholders and is available to members of the public at the Company's Registered Office at 8 Waldegrave Road, Teddington, TW11 8GT and on the Company's website.

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(END) Dow Jones Newswires

March 09, 2021 02:00 ET (07:00 GMT)