Half Yearly Report
STRICTLY EMBARGOED
UNTIL 7AM FRIDAY 22 NOVEMBER 2013
FULLER, SMITH & TURNER P.L.C.
Financial results for the 26 weeks ended 28 September 2013
Financial Performance
· Adjusted earnings per share1 up 9% to 24.79p (2012: 22.78p)
· Adjusted profit before tax2 up 8% to £18.1 million (2012: £16.8 million)
· Revenue up 6% to £146.3 million (2012: £137.9 million)
· EBITDA3 up 4% to £28.1 million (2012: £26.9 million)
· Interim dividend up 8% to 5.80p (2012: 5.35p)
· Net debt to EBITDA4 2.5 times (2012: 2.7 times)
Corporate Progress
· Industry leading like for like sales growth of 7.9% in Managed Pubs and Hotels led by strong food growth
· Managed Pubs and Hotels profits5 up 16% with good operating margins
· Tenanted Inns profits5 level with like for like profits up 1%
· Total Beer and Cider volumes down 1%
· Good progress on Fuller's Beer Company long term strategic initiatives:
- Cornish Orchards premium cider business acquired in June; successfully integrated and trading strongly
- Successful launch of Frontier, our new wave craft lager
- Creative "Made of London" advertising campaign well received
Commenting on the results, Simon Emeny, Chief Executive of Fuller's, said:
"I am pleased to report a strong first half for the Group with adjusted profit before tax growing 8% to £18.1 million and our adjusted earnings per share increasing 9% to 24.79p.
"Our results have been driven by another excellent performance from Managed Pubs and Hotels, with industry leading like for like sales growth of 7.9% and profits up 16%, clearly demonstrating the ongoing appeal of our freshly prepared food offer.
"The second half has started well and the underlying momentum which characterised our trading in the first half has continued over the last seven weeks, with Managed Pubs and Hotels like for like sales up 7.8% over the 33 weeks. Our London and South East based portfolio of well invested quality pubs, a strong balance sheet and consistent long term strategy leave us well placed for the future as we continue to invest in our people, our pubs and our brands. We remain confident of another year of progress for the Group."
1 Calculated using adjusted profit after tax and the same weighted average number of shares as for the basic earnings per share and using a 40p ordinary share. Basic earnings per share were 28.71p (2012 restated: 27.45p). 2012 earnings per share are restated in line with the change in accounting policy as a result of IAS19 (amendment). See note 1 of the financial statements for details.
2 Adjusted profit is the profit before tax excluding exceptional items. Statutory profit before tax was £16.8 million (2012 restated: £17.3 million). 2012 profits are restated in line with the change in accounting policy. See note 1 for details.
3 Pre-exceptional earnings before interest, tax, depreciation, loss on disposal of plant and equipment and amortisation.
4 Net debt to EBITDA is adjusted as appropriate for the pubs acquired or disposed of in the period.
5 Operating profit before exceptional items.
Ends
For further information please contact:
Fuller, Smith & Turner P.L.C.
On the day: College Hill
Paul Downes 07900 244888
Justine Warren 07785 555692
Press: Simon Emeny 0208 996 2000
Analysts: James Douglas 0208 996 2000
Email: pr@fullers.co.uk
Copies of this statement, the Half Year Report and results presentation will be available on the Company's website, www.fullers.co.uk. The presentation will be available from 12.00 pm on 22 November 2013.
FULLER, SMITH & TURNER P.L.C.
FINANCIAL RESULTS FOR THE 26 WEEKS ENDED 28 SEPTEMBER 2013
CHAIRMAN'S STATEMENT
I am delighted to report on a strong first half for the Group. Underlying momentum in our Managed Pubs and Hotels business was assisted by the glorious summer weather, encouraging customers to enjoy our pub gardens and outside spaces, which have been an important focus of investment over recent years.
Group revenues increased 6% to £146.3 million (2012: £137.9 million) resulting in adjusted profit before tax (excluding exceptional items) growing 8% to £18.1 million (2012: £16.8 million6). Our adjusted earnings per share rose 9% to 24.79p (2012: 22.78p6).
Managed Pubs and Hotels delivered an excellent performance, with profits7 increasing 16% and like for like sales up 7.9% led by strong growth in our freshly prepared food sales.
Our Tenants also benefitted from the great weather over the summer and revenue in this division rose by 2%. Operating profit7 was level with last year and like for like profits increased 1% following increased investment in repairs and refurbishments.
After undertaking some one-off long term repairs in the period, operating profit7 for the Fuller's Beer Company declined 7% on the prior period and EBITDA reduced 5%. Not helped by the warm weather, which tends to suppress ale sales, total beer and cider volumes declined marginally, by 1%.
We were pleased to complete the purchase of Cornish Orchards Limited on 4 June 2013. This growing Cornish company is a good strategic fit and its employees share the same passion and values as Fuller's.
DIVIDEND
The Board is pleased to announce an increase of 8% in the interim dividend to 5.80p (2012: 5.35p) per 40p 'A' and 'C' ordinary share and 0.580p (2012: 0.535p) per 4p 'B' ordinary share. This will be paid on 2 January 2014 to shareholders on the share register as at 6 December 2013.
Michael Turner
Chairman
22 November 2013
6 2012 adjusted profit and adjusted earnings per share are restated to exclude pension scheme finance costs/income from adjusted profit. See note 1 for details.
7 Operating profit before exceptional items
CHIEF EXECUTIVE'S REVIEW
In my first period as Chief Executive we have focussed on our core strategy for growth, which I believe will continue to drive momentum within our business over the coming years. Food is increasingly important to our business and the 11.8% like for like food sales growth during the period demonstrates the appeal of our freshly prepared pub food, with its focus on seasonal produce and local provenance.
Our strategy remains to target acquisition and development opportunities in high footfall transport hubs, affluent market towns and iconic London pubs; to create a distinctive customer experience in our pubs and hotels; and to innovate and invest in order to broaden our portfolio of high quality craft beer, ale and cider brands.
We continue to identify, acquire and develop pubs which will further enhance our quality pub portfolio. During the first half of the year we acquired The White Hart, Southwark which is situated in a superb location near the south bank of the Thames. We have also developed two completely new pubs with excellent potential: Cams Mill, Fareham opened on 18 November and London's Pride at Heathrow Terminal 2, will open with the launch of the brand new terminal in June 2014.
Good progress has also been made on the Fuller's Beer Company strategic initiatives outlined when we reported on our full year results. Following the successful trial of Frontier, our new wave craft lager, this is now being introduced into a further 60 locations. The creative Made of London advertising campaign has been well received and a second phase, which continues to build on London Pride's unique history and London provenance commenced in late September.
I am delighted that Cornish Orchards has been successfully integrated and is trading well in the five months since our acquisition. As expected, demand has outstripped supply throughout the summer and in order to address this we have recently added new tanks to increase cider capacity by 60% in time for this year's apple harvest.
FULLER'S INNS
The Fuller's Inns business comprises two divisions with a total of 385 pubs at 28 September 2013. Managed Pubs and Hotels are operated by Fuller's employees and include 174 pubs and hotels. The Tenanted Inns division has 211 pubs, where the individual pubs are run by self-employed entrepreneurs, who work in partnership with us, selling our beer and operating under the Fuller's brand.
Targeted Acquisitions and Developments
During the period, we took the opportunity to invest in a number of pubs within our existing estate and carried out some innovative and exciting schemes, including The Hereford Arms, Gloucester Road which has been stylishly redesigned to appeal to a wider market. Similarly The Vintry, a popular food-led pub in the heart of the City of London has benefitted from an elegant refurbishment including the addition of a striking cocktail bar to complement its high quality food and drink offer. The Tap on the Line, Kew is the only pub situated on an open air London underground station platform and has recently been transformed with a Kew Gardens inspired design and we now serve breakfast and coffee to commuters from 8am.
A continued focus of the period has been on enhancing outdoor areas and gardens for our customers. The White Horse, Richmond has undergone a transformation of the large terrace and garden, providing a leafy and refreshing haven for al fresco drinks and dining, featuring an "edible" garden with flourishing fruits and herbs.
We continue to seek out opportunities to add carefully selected new pubs to our portfolio. During the period we purchased The White Hart, Southwark for our Tenanted division for £2.6 million and since the period end we have also acquired The Distillers, Hammersmith for our Managed estate for £3.4 million on 18 November.
This has been another active period for investment in our estate with the completion of 12 significant investments and commencing the construction of two new pubs, incurring a total capital spend of £5.1 million during the first half of the year and a repairs spend that was £0.6 million higher than the previous period.
We have an exciting pipeline of developments for the second half of the year. This month we completed our £1.7 million investment in London's Pride, the only airside pub in the new Heathrow Terminal 2. This 5,500 square foot pub in a prime high footfall location, will open in June 2014. We have also concluded the £3.4 million development of Cams Mill, a striking freehold site overlooking the estuary in Fareham, Hampshire. Considerable thought and investment have been applied to make this pub sustainable and energy efficient, with smart ventilation, heat recovery and LED lighting.
Looking further ahead, in the new year we will embark upon the final stages of a fantastic riverside pub, One Over the Ait which is currently under construction within a new development by Kew Bridge. We have plans to add four function rooms at The Parcel Yard, King's Cross which already boasts both the highest takings and sales of cask ale throughout the entire Fuller's estate.
The White Buck, Burley will benefit from a transformational £1.8 million investment over the coming months with the development of eight new bedrooms and the refurbishment of the existing eight rooms, all to our luxurious boutique design. Situated in the heart of the New Forest, this investment will enable us to host additional functions, such as weddings and conferences. We are also doubling the number of rooms at The Pilot, Greenwich from five to 10 bedrooms, in response to the high demand for accommodation and functions stemming from the pub's close proximity to the O2 arena.
As a result of the developments we are carrying out in the current financial year, we are creating an estimated additional 160 jobs. The abolition of the beer duty escalator has played a key role in giving us the confidence to invest in such expansionary projects. We would urge the Treasury to continue their recent efforts to bring UK beer duty closer to the levels applied in other European countries.
Managed Pubs and Hotels
Like for like sales in our Managed Pubs and Hotels increased by 7.9% during the first six months as we continue to deliver industry-leading like for like sales growth8. The considerable investment made in all aspects of our offer in recent years, assisted by the glorious sunshine over the summer, resulted in total revenues increasing by 10%, from £86.1 million to £94.4 million. Operating profits before exceptional items rose by 16% to £12.6 million (2012: £10.9 million) and EBITDA grew by 11% to £17.4 million (2012:
£15.7 million).
8 The Peach Tracker for the six months to September 2013 was 2.0%
Operating margins in the first half expanded from 12.7% to 13.3% as improvements on food margin and payroll exceeded additional costs from refurbishments, performance related bonuses and incentive schemes.
Food, drinks and accommodation all performed well with excellent like for like sales growth of 11.8%, 6.9% and 7.8% respectively. Our focus on fresh food over recent years is being realised and the average food spend per cover increased 5% to £10.84, accompanied by a total increase of 7% in the number of main course covers during the period.
Distinctive Pub and Hotel Experience
Ensuring that every customer visit exceeds expectations, driving both return visits and advocacy, is key to the long term success of our business. There are many factors which contribute to delivering that ultimate customer experience.
We have been investing behind the scenes, continually improving the design and layout of our kitchens, as well as fitting them with state of the art ovens and equipment. We believe our chefs need the best possible tools and environment in which to prepare dishes of the highest quality. We strive to ensure our pubs serve consistently perfect pints with regular quality control visits and our own Master Cellarman standard, which is more rigorous than any similar scheme and as a result our cellars remain widely regarded as the best in the industry.
We have also made a number of significant investments in our IT systems, the most recent of which is a recipe management system to increase the consistency of food quality, improve efficiency and aid our chefs with menu design. This is being rolled out to all Managed pubs in the second half of the year.
Our people are the single biggest factor in delivering the distinctive Fuller's customer experience. We are passionate about our employees and are committed to their training and development. We have recently introduced a number of new initiatives which include our internal Service Coaches who promote our values, share new ideas and provide feedback to the business, as well as the Engaging Service Passport and our five golden rules of engaging service, which encourage staff to take ownership of their customers' satisfaction.
We continually focus on the development of our retail offer and each pub chooses from our premium range of craft ales, interesting lagers, ciders, exclusive wines and high quality soft drinks. Our food ethos is to create delicious dishes made with seasonal produce which are freshly prepared on site and to order by trained chefs in our own kitchens. We have an in-house team of Executive Chefs who support our pubs in creating their menus, all of which are bespoke to the individual pub. We focus on pub classics, with the addition of local favourites and our unique "Only at Fuller's" dishes such as Golden Pride sourdough.
Connecting with Customers
Critical to securing repeat customer visits is the ability to monitor, proactively respond to and learn from customer feedback. This year we have introduced a Net Promoter Scores programme which provides invaluable customer feedback and insight on customer advocacy. With the explosion of online peer reviewing, we are implementing a powerful new digital tool which will assist our pubs in following up these reviews across all the different media sources and provides valuable analysis on trends.
The new pub websites have increased our online and social media presence. Our own beer finder tool, an industry first, informs the customer in real time where they can find their favourite Fuller's beer, as well as what an individual pub is stocking (including rotating and guest ales).
Accommodation
Accommodation like for like sales increased 7.8% during the period following strong growth in occupancy, despite having benefitted last year from the London 2012 Olympic Games. Accommodation continues to be a focus for the business and we currently have 610 bedrooms across 12 hotels and 16 pubs with rooms. Two of the exciting developments taking place this autumn will add a further 13 bedrooms between them.
Tenanted Inns
Revenue in our Tenanted Inns increased 2% to £16.0 million (2012: £15.7 million) in a trading period characterised by great weather but fewer one-off events. Like for like profits were 1% higher than last year after increased investment in repairs during the period. Operating profit before exceptional items remains level at £6.2 million (2012: £6.2 million) and average EBITDA per pub was also level.
During the period we acquired one pub, The White Hart, Southwark and disposed of one non-core pub. In addition, four pubs were transferred from our Managed division and two pubs were transferred from Tenanted to Managed. This reflects the continuous review of our portfolio to ensure we maximise the trading potential of each individual pub. This does result in disposals from time to time and we have taken the decision to sell 10 Tenanted pubs which no longer meet our criteria. Since the half year end, we have entered into agreement to sell two of these pubs for a total exceptional profit of £1.4 million.
We were delighted to be recognised as The Good Pub Guide's Brewery of the Year 2014 which cited the quality of our Tenanted pubs as a key strength. This is well deserved recognition of the excellent reputation of our Tenanted pubs.
We strongly believe in a partnership approach with our Tenants, with the aim of growing their businesses, which ultimately benefits both parties. We continue to invest in our high quality pub estate, in training and in the service we offer, to attract and retain the best people to run our pubs. This is demonstrated by the average length of tenure of our current Tenants being 6.3 years and our refurbishment of 19 pubs in the period. We are keen to demonstrate best practice in our agreements and our latest Code of Practice has already been accredited.
Following the launch of our Tenanted service agreement last year this initiative is much praised by our Tenants and has now been taken up by 70% of our estate. Encompassing a bespoke package of property compliance services, we believe this is the most comprehensive package of its type across the industry, as well as receiving the highest take up. The new extranet website for Tenants launched in April this year has been designed to be a very user friendly one-stop shop for financial and compliance information, ordering, news and offers. Initiatives of this kind lessen the administrative burden on our Tenants, enabling them to invest their time on delivering the very best customer experience.
THE FULLER'S BEER COMPANY
The Fuller's Beer Company operates from a single brewery in Chiswick, London, where we brew all of our own beers. Since June we now also make craft cider in Cornwall. In addition to our own range, we also distribute beer, cider, wine, spirits and soft drinks manufactured by other producers.
During the first six months, total beer and cider volumes declined by 1%. Own beer and cider volumes reduced 2%, whilst foreign beer volumes increased 3% which was primarily the result of the particularly hot weather in July and August, which favours lager over ale.
Revenue increased 1% to £58.3 million (2012: £57.7 million), operating profit reduced to £4.0 million (2012: £4.3 million) and EBITDA was 5% lower at £5.5 million (2012: £5.8 million) reflecting increased expenditure, including £0.2 million on an extensive renovation of the Brewery yard.
Premium Brand Portfolio
Fuller's is, and always has been, a craft producer and our strategy is to leverage this competitive advantage to grow our existing brands, develop new ones and expand into other craft segments.
Our creative Made of London marketing campaign, which was launched earlier this year commenced a second phase of advertising in late September, running throughout the Autumn. The latest series builds further on our stories of London Pride's unique heritage and London provenance, reaching 7.7 million adults in the London area.
Launched in May, the initial trials of our new wave craft lager Frontier have been successful and it has featured at some great London events over the summer such as, Zoo Lates, Urban Sessions and Street Feast. In the trial locations we have achieved our target of being the second highest selling premium lager. Frontier is currently in 50 Fuller's pubs and 49 free trade accounts, as we gradually introduce additional locations carefully selected to match the premium positioning of this high quality beer. We also plan to launch a 330 ml bottled version in the new year.
On 4 June 2013 we purchased Cornish Orchards Limited for £3.8 million. This growing business produces award-winning, exceptional quality cider made with freshly pressed apples alongside a premium soft drinks range. This summer, as expected, demand has outstripped supply for these exceptional award-winning ciders. We have already invested in six new tanks to increase capacity by 60% in time to take the juice from this year's harvest, made from local apples pressed on site. Available in selected Fuller's pubs, the cider and soft drinks ranges perfectly complement our own craft ales and premium agency brands.
In order to better compete in an evolving drinks market and to align resources to the areas of greatest potential, we have restructured our sales force. We have also created a dedicated sales team under the name of Westside Drinks to target those stylish bars and restaurants which seek exclusive and interesting products for their bar. The premium positioning of Fuller's drinks portfolio, including Frontier, Cornish Orchards and our agency beers (such as Chimay and Veltins) is well placed to satisfy this demand.
Export continues to be an area of growth and our emphasis during the period has been on increasing distribution and rate of sale in our key markets. As a result Sweden is now our number one export market and Russia has also performed particularly well. 62% of our sales volume comes from our six largest markets and one in five barrels brewed are exported. We continue to see growing interest in British craft beers around the world, especially in Northern Europe and this is enabling us to capitalise on Fuller's impressive reputation and wide variety of ale styles. The opening of London's Pride at Heathrow's Terminal 2 will allow us to showcase our premium beers and ciders to a wider international customer base.
FINAL SALARY PENSION SCHEME
We closed our final salary pension scheme to new members in August 2005 and the Company has now entered a period of consultation with the Trustees and Members of that scheme with a view to closing it to future accrual with effect from 1 January 2015. As we are still in consultation on the scheme closure we cannot yet quantify the financial impact of this action.
FINANCIAL PERFORMANCE
The Group's net debt has decreased by £4.2 million over the first 26 weeks to £131.4 million, due to strong cash generation, offset partly by the investment of £7.9 million in purchasing Cornish Orchards Limited, acquiring one pub, the freehold of an existing property and developing two new pubs.
EBITDA increased by 4% to £28.1 million (2012: £26.9 million) and the ratio of net debt to EBITDA fell again to 2.5 times from the year end position of 2.6 times (2012: 2.7 times). We had £38 million undrawn committed banking facilities at the end of the period and continue to have flexibility to invest in future opportunities.
Net exceptional charges before tax of £1.3 million comprised reorganisation costs of £1.3 million, property impairment charges of £0.5 million, £0.3 million of acquisition costs expensed and £0.3 million of finance costs on net pension scheme liabilities, all offset by a profit on the disposal of non-core properties of £0.5 million and the release of onerous lease provisions of £0.6 million. The reorganisation costs comprise redundancy costs relating to employee restructuring, centred around the brewery sales force and supply chain team, together with legal and consulting costs for the closure of the final salary pension scheme to future accrual. This restructuring is anticipated to save £0.5m per annum.
Statutory profit before tax after exceptional items, was £16.8 million (2012: £17.3 million9). Tax on exceptional items was a credit of £3.5 million, principally the exceptional non-cash deferred tax credit of £3.4 million relating to the further reduction in the UK corporation tax rate from 23% to 21% and then to 20% which will come into effect from 1 April 2014 and 1 April 2015 respectively. The net impact of these exceptional items resulted in basic earnings per A and C ordinary share increasing 5% to 28.71p (2012: 27.45p9).
Net finance costs before exceptional items decreased 3% to £2.9 million (2012: £3.0 million10) in line with our lower borrowings. The deficit on the defined benefit pension scheme reduced from £13.0 million at the year end to £11.8 million. Asset values rose whilst liabilities only increased marginally, as the fall in gilt yields was offset by a fall in expected RPI and CPI.
Tax has been provided for at an effective rate of 23.2% (2012: 24.4%) on adjusted profits. The overall effective tax rate for the period is 4.2% (2012: 11.6%) with both years benefitting from an exceptional deferred tax credit, relating to the next stages in the stepped reduction in the UK corporation tax rate.
During the period, 120,000 'A' ordinary shares were purchased by the Company for treasury at a total cost of £1.1 million. In addition, 64,000 'A' ordinary shares, 18,000 'B' ordinary shares and 5,000 'C' ordinary shares were purchased for £0.7 million by the Trustees of the Company's Share Incentive Plan and Long Term Incentive Plan to cover future issuance.
9 2012 profit before tax and basic earnings per share are restated in line with the change in accounting policy as a result of IAS19 (amendment). See note 1 for details.
10 2012 finance costs before exceptional items are restated to exclude pension scheme finance costs/income. See note 1 for details.
CURRENT TRADING AND PROSPECTS
Good underlying momentum in the first half has continued over the last seven weeks, with growth in Managed Pubs and Hotels like for like sales of 7.8% over the 33 weeks to 16 November 2013, as we continue to invest in all aspects of our customer proposition to ensure the very best customer experience. Over the same period our Tenanted Inns like for like profits were up 2% and total beer and cider volumes have grown 1%.
Whilst current trading remains strong, we are mindful that there has been a benefit from exceptionally good weather over recent months. Nevertheless, our London and South East based portfolio of well invested quality pubs, a strong balance sheet and consistent long term strategy leave us well placed for the future and we remain confident of achieving our full year targets.
The next Interim Management Statement will be issued on 30 January 2014.
Simon Emeny
Chief Executive
22 November 2013
FULLER, SMITH & TURNER P.L.C.
FINANCIAL HIGHLIGHTS
FOR THE 26 WEEKS ENDED 28 SEPTEMBER 2013
|
|
Unaudited |
Unaudited |
|
Audited |
|
|
26 weeks ended |
26 weeks ended |
|
52 weeks ended |
|
|
28 September |
29 September |
Change |
30 March |
|
|
2013 |
2012 |
2013/2012 |
2013 |
|
|
£m |
£m |
|
£m |
|
|
|
|
|
|
|
Revenue |
146.3 |
137.9 |
6% |
271.5 |
|
Adjusted profit 1* |
18.1 |
16.8 |
8% |
31.1 |
|
Adjusted earnings per share 2* |
24.79p |
22.78p |
9% |
42.18p |
|
EBITDA 3 |
28.1 |
26.9 |
4% |
51.2 |
|
Dividend per share 4 |
5.80p |
5.35p |
8% |
13.70p |
|
Net debt 5 |
131.4 |
137.3 |
|
135.6 |
|
Pro forma net debt / EBITDA 6 |
2.5 times |
2.7 times |
|
2.6 times |
|
|
|
|
|
|
1 Adjusted profit is the profit before tax excluding exceptional items. Statutory profit before tax was £16.8 million (2012 restated: £17.3 million).
2 Calculated using adjusted profit after tax and the same weighted average number of shares as for the basic earnings per share and using a 40p ordinary share. Basic earnings per share were 28.71p (2012 restated: 27.45p).
3 Pre-exceptional earnings before interest, tax, depreciation, loss on disposal of plant and equipment and amortisation.
4 Calculated on a 40p ordinary share.
5 Net debt comprises cash and short term deposits, bank overdraft, bank loans, debenture stock and preference shares.
6 Pro forma net debt / EBITDA is adjusted as appropriate for the pubs acquired or disposed of in the period.
* Results for 26 weeks ended 29 September 2012 and 52 weeks ended 30 March 2013 have been restated to exclude pension finance costs/income from adjusted profits.
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP INCOME STATEMENT
FOR THE 26 WEEKS ENDED 28 SEPTEMBER 2013
|
|
|
Before exceptional |
Exceptional |
|
|
Unaudited - 26 weeks ended |
|
items |
items |
Total |
|
28 September 2013 |
Note |
£m |
£m |
£m |
|
|
|
|
|
|
|
Revenue |
2 |
146.3 |
- |
146.3 |
|
Operating costs |
3 |
(125.3) |
(1.5) |
(126.8) |
|
|
|
__________ |
__________ |
__________ |
|
Operating profit |
|
21.0 |
(1.5) |
19.5 |
|
|
|
|
|
|
|
Profit on disposal of properties |
3 |
- |
0.5 |
0.5 |
|
Finance costs |
3,4 |
(2.9) |
(0.3) |
(3.2) |
|
|
|
__________ |
__________ |
__________ |
|
Profit before tax |
|
18.1 |
(1.3) |
16.8 |
|
|
|
|
|
|
|
Taxation |
3,5 |
(4.2) |
3.5 |
(0.7) |
|
|
|
__________ |
__________ |
__________ |
|
Profit for the period attributable to equity shareholders of the Parent Company |
|
13.9 |
2.2 |
16.1 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
Restated* |
||
|
|
|
Before exceptional |
Exceptional |
|
|
Unaudited - 26 weeks ended |
|
items |
items |
Total |
|
29 September 2012 |
Note |
£m |
£m |
£m |
|
|
|
|
|
|
|
Revenue |
2 |
137.9 |
- |
137.9 |
|
Operating costs |
3 |
(118.1) |
0.3 |
(117.8) |
|
|
|
__________ |
__________ |
__________ |
|
Operating profit |
|
19.8 |
0.3 |
20.1 |
|
|
|
|
|
|
|
Profit on disposal of properties |
3 |
- |
0.6 |
0.6 |
|
Finance revenue* |
3,4 |
- |
0.1 |
0.1 |
|
Finance costs* |
3,4 |
(3.0) |
(0.5) |
(3.5) |
|
|
|
__________ |
__________ |
__________ |
|
Profit before tax* |
|
16.8 |
0.5 |
17.3 |
|
|
|
|
|
|
|
Taxation* |
3,5 |
(4.1) |
2.1 |
(2.0) |
|
|
|
__________ |
__________ |
__________ |
|
Profit for the period attributable to equity shareholders of the Parent Company* |
|
12.7 |
2.6 |
15.3 |
|
|
|
__________ |
__________ |
__________ |
*Restatement for changes to IAS 19, see note 1
|
FULLER, SMITH & TURNER P.L.C. |
|
|
|
|
|
CONDENSED GROUP INCOME STATEMENT (continued) |
|
|||
|
|
|
Restated* |
||
|
|
|
Before exceptional |
Exceptional |
|
|
Audited - 52 weeks ended |
|
items |
items |
Total |
|
30 March 2013 |
Note |
£m |
£m |
£m |
|
|
|
|
|
|
|
Revenue |
2 |
271.5 |
- |
271.5 |
|
Operating costs |
3 |
(234.5) |
(1.5) |
(236.0) |
|
|
|
__________ |
__________ |
__________ |
|
Operating profit |
|
37.0 |
(1.5) |
35.5 |
|
|
|
|
|
|
|
Profit on disposal of properties |
3 |
- |
5.0 |
5.0 |
|
Finance costs* |
3,4 |
(5.9) |
(0.9) |
(6.8) |
|
|
|
__________ |
__________ |
__________ |
Profit before tax* |
|
31.1 |
2.6 |
33.7 |
|
|
|
|
|
|
|
Taxation* |
3,5 |
(7.6) |
2.0 |
(5.6) |
|
|
|
__________ |
__________ |
__________ |
|
Profit for the year attributable to equity shareholders of the Parent Company* |
|
23.5 |
4.6 |
28.1 |
|
|
|
__________ |
__________ |
__________ |
|
|
||||
|
EARNINGS PER SHARE |
|
|
Restated* |
Restated* |
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
26 weeks |
26 weeks |
52 weeks ended |
|
|
|
28 September |
29 September |
30 March |
|
|
|
2013 |
2012 |
2013 |
|
|
|
Pence |
Pence |
Pence |
|
Per 40p 'A' and 'C' ordinary share* |
|
|
|
|
|
Basic |
6 |
28.71 |
27.45 |
50.43 |
|
Diluted |
6 |
28.43 |
27.12 |
49.95 |
|
Adjusted |
6 |
24.79 |
22.78 |
42.18 |
|
Diluted adjusted |
6 |
24.55 |
22.51 |
41.78 |
|
|
|
|
|
|
|
Per 4p 'B' ordinary share* |
|
|
|
|
|
Basic |
6 |
2.87 |
2.75 |
5.04 |
|
Diluted |
6 |
2.84 |
2.71 |
5.00 |
|
Adjusted |
6 |
2.48 |
2.28 |
4.22 |
|
Diluted adjusted |
6 |
2.45 |
2.25 |
4.18 |
|
|
|
|
|
|
The results and earnings per share measures above are all in respect of continuing operations of the Group.
*Restatement for changes to IAS 19, see note 1.
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE 26 WEEKS ENDED 28 SEPTEMBER 2013
|
|
|
|
Restated* |
Restated* |
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
26 weeks |
26 weeks ended |
52 weeks ended |
|
|
|
28 September |
29 September |
30 March |
|
|
|
2013 |
2012 |
2013 |
|
|
Note |
£m |
£m |
£m |
|
|
|
|
|
|
|
Profit for the period |
|
16.1 |
15.3 |
28.1 |
|
|
|
__________ |
__________ |
__________ |
|
Items that may be reclassified to profit or loss: |
|
|
|
|
|
Net gains/(losses) on valuation of financial assets and liabilities |
|
2.0 |
(0.9) |
(0.9) |
|
Tax related to items that may be reclassified to profit or loss |
5 |
(0.5) |
0.2 |
0.2 |
|
Items that will not be reclassified to profit or loss: |
|
|
|
|
|
Net actuarial gains on pension scheme* |
10 |
1.3 |
9.4 |
6.5 |
|
Tax related to items that will not be reclassified to profit or loss* |
5 |
(0.8) |
(2.4) |
(1.7) |
|
|
|
__________ |
__________ |
__________ |
|
Other comprehensive income for the period, net of tax* |
|
2.0 |
6.3 |
4.1 |
|
|
|
__________ |
__________ |
__________ |
|
Total comprehensive income for the period, net of tax, attributable to equity shareholders of the Parent Company |
|
18.1 |
21.6 |
32.2 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
*Restatement for changes to IAS 19, see note 1.
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP BALANCE SHEET
28 SEPTEMBER 2013
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
At |
At |
At |
|
|
|
2013 |
2012 |
2013 |
|
|
Note |
£m |
£m |
£m |
|
Non-current assets |
|
|
|
|
|
Intangible assets |
|
32.4 |
30.4 |
30.1 |
|
Property, plant and equipment |
8 |
421.0 |
407.1 |
414.8 |
|
Investment properties |
|
5.7 |
4.8 |
4.2 |
|
Derivative financial assets |
|
0.8 |
- |
- |
|
Other non-current assets |
|
0.4 |
0.3 |
0.4 |
|
Deferred tax assets |
|
5.3 |
5.4 |
6.1 |
|
|
|
__________ |
__________ |
__________ |
|
Total non-current assets |
|
465.6 |
448.0 |
455.6 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories |
|
9.7 |
8.8 |
10.1 |
|
Trade and other receivables |
|
19.1 |
17.9 |
18.3 |
|
Cash and short term deposits |
9 |
7.9 |
2.4 |
4.3 |
|
|
|
__________ |
__________ |
__________ |
|
Total current assets |
|
36.7 |
29.1 |
32.7 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
Assets classified as held for sale |
|
0.3 |
- |
0.6 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
46.1 |
40.1 |
40.9 |
|
Current tax payable |
|
4.3 |
4.4 |
3.8 |
|
Provisions |
|
0.4 |
0.5 |
1.0 |
|
|
|
__________ |
__________ |
__________ |
|
Total current liabilities |
|
50.8 |
45.0 |
45.7 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Borrowings |
9 |
139.3 |
139.7 |
139.9 |
|
Derivative financial liabilities |
|
1.2 |
2.3 |
2.4 |
|
Retirement benefit obligations |
10 |
11.8 |
9.9 |
13.0 |
|
Deferred tax liabilities |
|
22.6 |
26.9 |
26.7 |
|
Provisions |
|
2.7 |
2.5 |
1.8 |
|
Other non-current liabilities |
|
0.4 |
- |
- |
|
|
|
__________ |
__________ |
__________ |
|
Total non-current liabilities |
|
178.0 |
181.3 |
183.8 |
|
|
|
__________ |
__________ |
__________ |
|
Net assets |
|
273.8 |
250.8 |
259.4 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
Share capital |
|
22.8 |
22.8 |
22.8 |
|
Share premium account |
|
4.8 |
4.8 |
4.8 |
|
Capital redemption reserve |
|
3.1 |
3.1 |
3.1 |
|
Own shares |
|
(7.4) |
(9.2) |
(8.7) |
|
Hedging reserve |
|
(0.3) |
(1.8) |
(1.8) |
|
Retained earnings |
|
250.8 |
231.1 |
239.2 |
|
|
|
__________ |
__________ |
__________ |
|
Total shareholders' equity |
|
273.8 |
250.8 |
259.4 |
|
|
|
__________ |
__________ |
__________ |
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE 26 WEEKS ENDED 28 SEPTEMBER 2013
|
|
|
Share |
Capital |
|
|
Restated* |
Restated* |
|
|
|
Share |
premium |
redemption |
Own |
Hedging |
Retained |
Total |
|
|
|
capital |
account |
reserve |
shares |
reserve |
earnings |
equity |
|
|
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
Unaudited - 26 weeks ended 28 September 2013
|
|
|
|
|
|
|
|
|
|
At 30 March 2013 |
22.8 |
4.8 |
3.1 |
(8.7) |
(1.8) |
239.2 |
259.4 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
Profit for the period |
- |
- |
- |
- |
- |
16.1 |
16.1 |
|
|
Other comprehensive income |
- |
- |
- |
- |
1.5 |
0.5 |
2.0 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
Total comprehensive income for the period |
- |
- |
- |
- |
1.5 |
16.6 |
18.1 |
|
|
Shares purchased to be held in ESOT or as treasury |
- |
- |
- |
(1.9) |
- |
- |
(1.9) |
|
|
Shares released from ESOT and treasury |
- |
- |
- |
3.2 |
- |
(2.1) |
1.1 |
|
|
Dividends (note 7) |
- |
- |
- |
- |
- |
(4.7) |
(4.7) |
|
|
Share-based payment charges |
- |
- |
- |
- |
- |
1.1 |
1.1 |
|
|
Tax credited directly to equity (note 5) |
- |
- |
- |
- |
- |
0.7 |
0.7 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
At 28 September 2013 |
22.8 |
4.8 |
3.1 |
(7.4) |
(0.3) |
250.8 |
273.8 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
Unaudited - 26 weeks
|
|
|
|
|
|
|
|
|
At 31 March 2012 |
22.8 |
4.8 |
3.1 |
(8.3) |
(1.1) |
214.0 |
235.3 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Profit for the period* |
- |
- |
- |
- |
- |
15.3 |
15.3 |
|
Other comprehensive (loss)/income for the period* |
- |
- |
- |
- |
(0.7) |
7.0 |
6.3 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Total comprehensive (loss)/income for the period |
- |
- |
- |
- |
(0.7) |
22.3 |
21.6 |
|
Shares purchased to be held in ESOT or as treasury |
- |
- |
- |
(3.8) |
- |
- |
(3.8) |
|
Shares released from ESOT and treasury |
- |
- |
- |
2.9 |
- |
(2.5) |
0.4 |
|
Dividends (note 7) |
- |
- |
- |
- |
- |
(4.2) |
(4.2) |
|
Share-based payment charges |
- |
- |
- |
- |
- |
1.0 |
1.0 |
|
Tax credited directly to equity (note 5) |
- |
- |
- |
- |
- |
0.5 |
0.5 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
At 29 September 2012 |
22.8 |
4.8 |
3.1 |
(9.2) |
(1.8) |
231.1 |
250.8 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
|
Share |
Capital |
|
|
Restated* |
Restated* |
|
|
Share |
premium |
redemption |
Own |
Hedging |
Retained |
Total |
|
|
capital |
account |
reserve |
shares |
reserve |
earnings |
equity |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
Audited - 52 weeks
|
|
|
|
|
|
|
|
|
At 31 March 2012 |
22.8 |
4.8 |
3.1 |
(8.3) |
(1.1) |
214.0 |
235.3 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Profit for the period* |
- |
- |
- |
- |
- |
28.1 |
28.1 |
|
Other comprehensive (loss)/income for the period* |
- |
- |
- |
- |
(0.7) |
4.8 |
4.1 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
Total comprehensive (loss)/income for the period |
- |
- |
- |
- |
(0.7) |
32.9 |
32.2 |
|
Shares purchased to be held in ESOT or as treasury |
- |
- |
- |
(4.0) |
- |
- |
(4.0) |
|
Shares released from ESOT and treasury |
- |
- |
- |
3.6 |
- |
(3.1) |
0.5 |
|
Dividends (note 7) |
- |
- |
- |
- |
- |
(7.2) |
(7.2) |
|
Share-based payment charges |
- |
- |
- |
- |
- |
1.9 |
1.9 |
|
Tax credited directly to equity (note 5) |
- |
- |
- |
- |
- |
0.7 |
0.7 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
At 30 March 2013 |
22.8 |
4.8 |
3.1 |
(8.7) |
(1.8) |
239.2 |
259.4 |
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
*Restatement for changes to IAS 19, see note 1.
FULLER, SMITH & TURNER P.L.C.
CONDENSED GROUP CASH FLOW STATEMENT
FOR THE 26 WEEKS ENDED 28 SEPTEMBER 2013
|
|
|
|
Restated* |
Restated* |
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
26 weeks |
26 weeks |
52 weeks |
|
|
|
28 September |
29 September |
30 March |
|
|
|
2013 |
2012 |
2013 |
|
|
Note |
£m |
£m |
£m |
|
|
|
|
|
|
|
Group profit before tax* |
|
16.8 |
17.3 |
33.7 |
|
Net finance costs before exceptional items* |
|
2.9 |
3.0 |
5.9 |
|
Exceptional items* |
3 |
1.3 |
(0.5) |
(2.6) |
|
Depreciation and amortisation |
|
7.1 |
7.1 |
14.2 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
28.1 |
26.9 |
51.2 |
|
Difference between pension charge and |
|
(0.2) |
(0.3) |
(0.5) |
|
Share-based payment charges |
|
1.1 |
1.0 |
1.9 |
|
Change in trade and other receivables |
|
(0.6) |
0.3 |
(0.2) |
|
Change in inventories |
|
0.8 |
1.7 |
0.4 |
|
Change in trade and other payables |
|
1.7 |
(4.4) |
(4.0) |
|
Cash impact of operating exceptional items |
3 |
(0.4) |
(1.2) |
(1.5) |
|
|
|
__________ |
__________ |
__________ |
|
Cash generated from operations |
|
30.5 |
24.0 |
47.3 |
|
Tax paid |
|
(4.0) |
(3.8) |
(8.1) |
|
|
|
__________ |
__________ |
__________ |
|
Cash generated from operating activities |
|
26.5 |
20.2 |
39.2 |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
|
Purchase of property, plant and equipment |
|
(9.8) |
(10.3) |
(18.2) |
|
Business combinations |
|
(4.7) |
(3.9) |
(11.4) |
|
Overdraft acquired on acquisition |
|
(0.1) |
- |
- |
|
Sale of property, plant and equipment |
|
1.3 |
5.5 |
9.5 |
|
|
|
__________ |
__________ |
__________ |
|
Net cash outflow from investing activities |
(13.3) |
(8.7) |
(20.1) |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
Purchase of own shares |
|
(1.9) |
(3.8) |
(4.0) |
|
Receipts on release of own shares to option schemes |
|
1.1 |
0.4 |
0.6 |
|
Interest paid |
|
(2.6) |
(2.6) |
(5.3) |
|
Preference dividends paid |
7 |
(0.1) |
(0.1) |
(0.1) |
|
Equity dividends paid |
7 |
(4.7) |
(4.2) |
(7.2) |
|
Repayment of bank loans |
|
(1.1) |
(2.5) |
(2.5) |
|
Repayment of other loans |
|
(0.3) |
- |
- |
|
Cost of refinancing |
|
- |
(0.2) |
(0.2) |
|
|
|
__________ |
__________ |
__________ |
|
Net cash outflow from financing activities |
|
(9.6) |
(13.0) |
(18.7) |
|
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
Net movement in cash and cash equivalents |
9 |
3.6 |
(1.5) |
0.4 |
|
Cash and cash equivalents at the start of the period |
|
4.3 |
3.9 |
3.9 |
|
|
|
__________ |
__________ |
__________ |
|
Cash and cash equivalents at the end of the period |
9 |
7.9 |
2.4 |
4.3 |
|
|
|
__________ |
__________ |
__________ |
*Restatement for changes to IAS 19, see note 1.
FULLER, SMITH & TURNER P.L.C.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
1. HALF YEAR REPORT
Basis of preparation
These half year financial statements for the 26 weeks ended 28 September 2013, which are abridged and unaudited, have been reviewed by the auditors and prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the European Union.
The half year financial statements were approved by the Directors on 22 November 2013.
This half year statement does not constitute full accounts as defined by Section 434 of the Companies Act 2006. The figures for the 52 weeks ended 30 March 2013 are derived from the published statutory accounts. Full accounts for the 52 weeks ended 30 March 2013, including an unqualified auditors' report which did not make any statement under Section 498 of the Companies Act 2006, have been delivered to the Registrar of Companies.
On the basis of the strong cash flows generated by the business and the significant headroom available on the bank facilities the Directors are confident that the Group has adequate resources to continue in operational existence for the foreseeable future and, accordingly, consider that it is appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.
Significant accounting policies
Apart from those set out below the accounting policies adopted are consistent with those applied in the 52 weeks ended 30 March 2013, which are published as part of the accounts for that year and which are available from the Group's website, www.fullers.co.uk.
IAS 19: Employee Benefits (Amended)
The recognition of finance costs/revenue relating to the defined benefit pension scheme has changed due to the adoption of IAS 19 Employee Benefits (Amended) for the financial year ended 29 March 2014. The standard requires the Group to replace interest costs on defined benefit obligations and expected return on plan assets with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability/asset.
The standard requires the new method to be applied retrospectively to previous periods and so the Income Statements for the 26 weeks ended 29 September 2012 and 52 weeks ended 30 March 2013 have been restated to reflect this change. For the 26 weeks ended 29 September 2012 this has resulted in a net reduction in profit before tax of £0.8 million, from finance income of £0.3 million to a charge of £0.5 million and for the 52 weeks ended 30 March 2013, a net reduction in profit of £1.5 million, from finance income of £0.6 million to a charge of £0.9 million. The corresponding adjustments have been made to taxation resulting in total tax reducing from £2.2 million to £2.0 million for 26 weeks ended 29 September 2012 and from £5.9 million to £5.6 million for 52 weeks ended 30 March 2013. In both periods there has been a corresponding increase to actuarial gains recognised on the defined benefit pension scheme and tax thereon, recognised through the Group Statement of Comprehensive Income. There is no net impact to either the Retirement Benefit Obligations recognised in the Balance Sheet or to Shareholders' Equity.
As a consequence of the above change in accounting policy the Directors have reviewed the treatment of finance costs on net pension liabilities and have elected to present finance costs on net pension liabilities as an exceptional item as it does not relate to the underlying trading of the Group and therefore should not be considered in adjusted profit.
IAS 1: Presentation of financial statements - Presentation of items of other comprehensive income
A change to the accounting standard requires the Statement of Comprehensive Income to be split between "items that may be reclassified to profit or loss" and "items that will not be reclassified to profit or loss". This presentational change has been applied to the current and prior periods.
2. SEGMENTAL ANALYSIS
|
Unaudited - 26 weeks |
Managed Pubs and Hotels |
Tenanted |
The Fuller's |
Unallocated1 |
Total |
|
|
£m |
£m |
£m |
£m |
£m |
|
Revenue: |
|
|
|
|
|
|
Segment revenue |
94.4 |
16.0 |
58.3 |
- |
168.7 |
|
Inter-segment sales |
- |
- |
(22.4) |
- |
(22.4) |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Revenue from third parties |
94.4 |
16.0 |
35.9 |
- |
146.3 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
|
Segment result |
12.6 |
6.2 |
4.0 |
(1.8) |
21.0 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Operating exceptional items |
|
|
|
|
(1.5) |
|
|
|
|
|
|
__________ |
|
Operating profit |
|
|
|
|
19.5 |
|
Profit on disposal of properties |
|
|
|
|
0.5 |
|
Net finance costs |
|
|
|
|
(3.2) |
|
|
|
|
|
|
__________ |
|
Profit before tax |
|
|
|
|
16.8 |
|
|
|
|
|
|
__________ |
|
|
|
|
|
|
|
|
Other segment information: |
|
|
|
|
|
|
Capital expenditure: |
|
|
|
|
|
|
Property plant and equipment |
7.3 |
0.9 |
1.6 |
- |
9.8 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Business combinations |
- |
2.6 |
2.1 |
- |
4.7 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Depreciation and amortisation |
4.8 |
0.8 |
1.5 |
- |
7.1 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Impairment of property |
- |
0.5 |
- |
- |
0.5 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Unaudited - 26 weeks |
Managed Pubs and Hotels |
Tenanted |
The Fuller's |
Unallocated1 |
Restated* Total |
|
|
£m |
£m |
£m |
£m |
£m |
|
Revenue: |
|
|
|
|
|
|
Segment revenue |
86.1 |
15.7 |
57.7 |
- |
159.5 |
|
Inter-segment sales |
- |
- |
(21.6) |
- |
(21.6) |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Revenue from third parties |
86.1 |
15.7 |
36.1 |
- |
137.9 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
|
Segment result |
10.9 |
6.2 |
4.3 |
(1.6) |
19.8 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Operating exceptional items |
|
|
|
|
0.3 |
|
|
|
|
|
|
__________ |
|
Operating profit |
|
|
|
|
20.1 |
|
Profit on disposal of properties |
|
|
|
|
0.6 |
|
Net finance costs* |
|
|
|
|
(3.4) |
|
|
|
|
|
|
__________ |
|
Profit before tax* |
|
|
|
|
17.3 |
|
|
|
|
|
|
__________ |
|
|
|
|
|
|
|
|
Other segment information: |
|
|
|
|
|
|
Capital expenditure: |
|
|
|
|
|
|
Property plant and equipment |
8.0 |
0.8 |
1.5 |
- |
10.3 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Business combinations |
- |
3.9 |
- |
- |
3.9 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Depreciation and amortisation |
4.8 |
0.8 |
1.5 |
- |
7.1 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Impairment of property |
- |
0.2 |
- |
- |
0.2 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Reversal of impairment losses on property |
(0.7) |
- |
- |
- |
(0.7) |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
*Restatement for changes to IAS 19, see note 1.
1 Unallocated expenses represent primarily the salary and costs of central management.
|
Audited - 52 weeks ended |
Managed Pubs and Hotels |
Tenanted |
The Fuller's |
Unallocated1 |
Restated* Total |
|
|
£m |
£m |
£m |
£m |
£m |
|
Revenue: |
|
|
|
|
|
|
Segment revenue |
170.1 |
30.8 |
113.6 |
- |
314.5 |
|
Inter-segment sales |
- |
- |
(43.0) |
- |
(43.0) |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Revenue from third parties |
170.1 |
30.8 |
70.6 |
- |
271.5 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
|
Segment result |
19.4 |
12.2 |
8.7 |
(3.3) |
37.0 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Operating exceptional items |
|
|
|
|
(1.5) |
|
|
|
|
|
|
__________ |
|
Operating profit |
|
|
|
|
35.5 |
|
Profit on disposal of properties |
|
|
|
|
5.0 |
|
Net finance costs* |
|
|
|
|
(6.8) |
|
|
|
|
|
|
__________ |
|
Profit before tax* |
|
|
|
|
33.7 |
|
|
|
|
|
|
__________ |
|
Other segment information: |
|
|
|
|
|
|
Capital expenditure: |
|
|
|
|
|
|
Property plant and equipment |
14.1 |
2.2 |
1.9 |
- |
18.2 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Business combinations |
7.5 |
3.9 |
- |
- |
11.4 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Depreciation and amortisation |
9.6 |
1.6 |
3.0 |
- |
14.2 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Impairment of property |
0.7 |
1.1 |
- |
- |
1.8 |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
|
Reversal of impairment losses on property |
(0.8) |
- |
- |
- |
(0.8) |
|
|
__________ |
__________ |
__________ |
__________ |
__________ |
*Restatement for changes to IAS 19, see note 1.
1 Unallocated expenses represent primarily the salary and costs of central management.
3. EXCEPTIONAL ITEMS
|
|
|
Restated* |
Restated* |
|
|
Unaudited |
Unaudited |
Audited |
|
|
26 weeks ended |
26 weeks ended |
52 weeks ended |
|
|
28 September |
29 September |
30 March |
|
|
2013 |
2012 |
2013 |
|
|
£m |
£m |
£m |
Amounts included in operating profit: |
|
|
|
Impairment of property |
(0.5) |
(0.2) |
(1.8) |
Reversal of impairment on property |
- |
0.7 |
0.8 |
Acquisition costs |
(0.3) |
(0.2) |
(0.5) |
Reversal of onerous lease provision |
0.6 |
- |
- |
Reorganisation costs |
(1.3) |
- |
- |
|
|
__________ |
__________ |
__________ |
Total exceptional items included in
|
(1.5) |
0.3 |
(1.5) |
|
|
__________ |
__________ |
__________ |
|
Profit on disposal of properties |
0.5 |
0.6 |
5.0 |
Exceptional finance (costs)/revenue: |
|
|
|
Finance charge on net pension liabilities* (note 10) |
(0.3) |
(0.5) |
(0.9) |
Movement in fair value of financial instruments |
- |
0.1 |
- |
|
|
__________ |
__________ |
__________ |
Total exceptional finance costs |
(0.3) |
(0.4) |
(0.9) |
|
|
__________ |
__________ |
__________ |
|
Total exceptional items before tax |
(1.3) |
0.5 |
2.6 |
|
|
__________ |
__________ |
__________ |
|
Exceptional tax: |
|
|
|
|
Change in corporation tax rate (note 5) |
3.4 |
1.2 |
1.2 |
|
Profit on disposal of properties |
(0.2) |
0.9 |
(0.1) |
|
Other items* |
0.3 |
- |
0.9 |
|
|
__________ |
__________ |
__________ |
|
Total exceptional tax* |
3.5 |
2.1 |
2.0 |
|
|
__________ |
__________ |
__________ |
|
Total exceptional items* |
2.2 |
2.6 |
4.6 |
|
|
__________ |
__________ |
__________ |
*Restatement for changes to IAS 19. As per note 1 the finance income/charge on net pension liabilities is now treated as exceptional. This has also been restated from income of £0.3 million for the 26 weeks ended 29 September 2012 and £0.6 million for the 52 weeks ended 30 March 2013 to a charge of £0.5 million and £0.9 million respectively. In line with the change in status to exceptional, the associated tax adjustment has resulted in a change in exceptional tax credit from £2.0 million to £2.1 million for the 26 weeks ended 29 September 2012 and from £1.8 million to £2.0 million for the 52 weeks ended 30 March 2013.
The property impairment charge of £0.5 million during the 26 weeks ended 28 September 2013 (29 September 2012: £0.2 million, 30 March 2013: £1.8 million) represents a write down of licensed properties to their recoverable value. The reversal of impairment credit of £0.7 million during the 26 weeks ended 29 September 2012 and £0.8 million during the 52 weeks ended 30 March 2013 relate to the write back of previously impaired licensed properties to their recoverable value.
Acquisition costs of £0.3 million during the 26 weeks ended 28 September 2013 (29 September 2012: £0.2 million, 30 March 2013: £0.5 million) relate to transaction costs on pub and business acquisitions.
The onerous lease credit of £0.6 million during the 26 weeks ended 28 September 2013 was recognised due to the change in circumstances of a previously onerous lease.
The reorganisation costs of £1.3 million during the 26 weeks ended 28 September 2013 were incurred principally within the Fuller's Beer Company and relate to staff and the proposed closure of the defined benefit pension scheme to future accrual.
The profit on disposal of properties of £0.5 million during the 26 weeks ended 28 September 2013 (29 September 2012: £0.6 million, 30 March 2013: £5.0 million) relates to the disposal of three licensed and unlicensed properties (29 September 2012: two, 30 March 2013: five).
The movement in fair value of financial instruments of £0.1 million credit for the 26 weeks ended 29 September 2012 relates to interest rate swaps and caps which, although considered effective in managing the interest rate risk of the Group's borrowings, do not meet the definition of an effective hedge for hedge accounting purposes.
The cash impact of operating exceptional items before tax for the 26 weeks ended 28 September 2013 was £0.4 million cash outflow (29 September 2012: £1.2 million cash outflow, 30 March 2013: £1.5 million cash outflow).
4. FINANCE REVENUE AND COSTS
|
|
|
Restated* |
Restated* |
|
|
Unaudited |
Unaudited |
Audited |
|
|
26 weeks ended |
26 weeks ended |
52 weeks ended |
|
|
28 September |
29 September |
30 March |
|
|
2013 |
2012 |
2013 |
|
|
£m |
£m |
£m |
|
Interest receivable from: |
|
|
|
|
Movement in fair value of financial instruments (note 3) |
- |
0.1 |
- |
|
|
__________ |
__________ |
__________ |
|
Finance revenue* |
- |
0.1 |
- |
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
Interest expense arising on: |
|
|
|
|
Financial liabilities at amortised cost - loans and debentures |
2.7 |
2.8 |
5.5 |
|
Financial liabilities at amortised cost - preference shares |
0.1 |
0.1 |
0.1 |
|
|
__________ |
__________ |
__________ |
|
Total interest expense for financial liabilities |
2.8 |
2.9 |
5.6 |
|
Unwinding of discounts on provisions |
0.1 |
0.1 |
0.3 |
|
|
__________ |
__________ |
__________ |
|
Finance costs before exceptional items |
2.9 |
3.0 |
5.9 |
|
Finance charge on net pension liabilities* (note 3) |
0.3 |
0.5 |
0.9 |
|
|
__________ |
__________ |
__________ |
|
Finance costs* |
3.2 |
3.5 |
6.8 |
|
|
__________ |
__________ |
__________ |
*Restatement for changes to IAS 19. Finance income/charge on net pension liabilities has been restated from income of £0.3 million for the 26 weeks ended 29 September 2012 and £0.6 million for the 52 weeks ended 30 March 2013 to a charge of £0.5 million and £0.9 million respectively.
5. TAXATION
|
|
|
Restated* |
Restated* |
|
|
Unaudited |
Unaudited |
Audited |
|
|
26 weeks ended |
26 weeks ended |
52 weeks ended |
|
|
28 September |
29 September |
30 March |
|
|
2013 |
2012 |
2013 |
|
|
£m |
£m |
£m |
|
Tax on profit on ordinary activities |
|
|
|
|
Current income tax: |
|
|
|
|
Corporation tax |
4.8 |
4.6 |
8.6 |
|
Amounts over provided in previous years |
- |
- |
(0.2) |
|
|
__________ |
__________ |
__________ |
|
Total current income tax |
4.8 |
4.6 |
8.4 |
|
|
|
|
|
|
Deferred tax: |
|
|
|
|
Origination and reversal of temporary differences* |
(0.7) |
(1.4) |
(1.6) |
|
Change in corporation tax rate |
(3.4) |
(1.2) |
(1.2) |
|
|
__________ |
__________ |
__________ |
|
Total deferred tax* |
(4.1) |
(2.6) |
(2.8) |
|
|
__________ |
__________ |
__________ |
|
Total tax charged in the Income Statement* |
0.7 |
2.0 |
5.6 |
|
|
__________ |
__________ |
__________ |
*Restatement for changes to IAS 19. The deferred tax relating to the finance charge/income has been restated with the effect of reducing the total tax charged in the income statement from £2.2 million to £2.0 million for the 26 weeks ended 29 September 2012 and from £5.9 million to £5.6 million for the 52 weeks ended 30 March 2013.
|
Tax relating to items charged/credited to Statement of Comprehensive Income |
|
|
|
|
Deferred tax: |
|
|
|
|
Change in corporation tax rate |
0.6 |
0.3 |
0.3 |
|
Net gains/(losses) on valuation of financial assets and liabilities |
0.4 |
(0.2) |
(0.2) |
|
Net actuarial gains on pension scheme* |
0.3 |
2.1 |
1.4 |
|
|
__________ |
__________ |
__________ |
|
Tax charge included in the Statement of Comprehensive Income* |
1.3 |
2.2 |
1.5 |
|
|
__________ |
__________ |
__________ |
|
*Restatement for changes to IAS 19. The deferred tax relating to net actuarial gains on pension scheme has been restated from £1.9 million to £2.1 million for the 26 weeks ended 29 September 2012 and from £1.1 million to £1.4 million for the 52 weeks ended 30 March 2013.
|
|||
|
Tax relating to items charged/credited directly to equity |
|
|
|
|
Deferred tax: |
|
|
|
|
Reduction in deferred tax liability due to indexation |
(0.3) |
(0.2) |
(0.5) |
|
Share-based payments |
(0.1) |
- |
0.1 |
|
Current tax: |
|
|
|
|
Share-based payments |
(0.3) |
(0.3) |
(0.3) |
|
|
__________ |
__________ |
__________ |
|
Tax credit included in the Statement of Changes in Equity |
(0.7) |
(0.5) |
(0.7) |
|
|
__________ |
__________ |
__________ |
The taxation charge is calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period.
During the period the Finance Act 2013 has received Royal Assent. The main impact is that the rate of UK corporation tax will reduce from 23% to 21% from 1 April 2014 and from 21% to 20% from 1 April 2015. To the extent that this rate change will affect the amount of future cash tax payments to be made by the Group, this has reduced the size of both the Group's Balance Sheet deferred tax liability and deferred tax asset. The impact in the 26 weeks to 28 September 2013 is an exceptional credit to the Income Statement of £3.4 million, and a charge to the Statement of Comprehensive Income of £0.6 million.
6. EARNINGS PER SHARE
|
|
|
Restated* |
Restated* |
|
|
Unaudited |
Unaudited |
Audited |
|
|
26 weeks ended |
26 weeks ended |
52 weeks ended |
|
|
28 September |
29 September |
30 March |
|
|
2013 |
2012 |
2013 |
|
|
£m |
£m |
£m |
|
Profit attributable to equity shareholders* |
16.1 |
15.3 |
28.1 |
|
Exceptional items net of tax* |
(2.2) |
(2.6) |
(4.6) |
|
|
__________ |
__________ |
__________ |
|
Adjusted earnings attributable to equity shareholders* |
13.9 |
12.7 |
23.5 |
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
|
Number |
Number |
Number |
|
Weighted average share capital |
56,072,000 |
55,743,000 |
55,717,000 |
|
Dilutive outstanding options and share awards |
556,000 |
681,000 |
534,000 |
|
|
__________ |
__________ |
__________ |
|
Diluted weighted average share capital |
56,628,000 |
56,424,000 |
56,251,000 |
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
40p 'A' and 'C' ordinary share* |
Pence |
Pence |
Pence |
|
Basic earnings per share |
28.71 |
27.45 |
50.43 |
|
Diluted earnings per share |
28.43 |
27.12 |
49.95 |
|
Adjusted earnings per share |
24.79 |
22.78 |
42.18 |
|
Diluted adjusted earnings per share |
24.55 |
22.51 |
41.78 |
|
|
|
|
|
|
4p 'B' ordinary share* |
|
|
|
|
Basic earnings per share |
2.87 |
2.75 |
5.04 |
|
Diluted earnings per share |
2.84 |
2.71 |
5.00 |
|
Adjusted earnings per share |
2.48 |
2.28 |
4.22 |
|
Diluted adjusted earnings per share |
2.45 |
2.25 |
4.18 |
*Restatement for changes to IAS 19. The profit attributable to shareholders has been restated from £15.9 million to £15.3 million and £29.3 million to £28.1 million for the 26 weeks ended 29 September 2012 and for the 52 weeks ended 30 March 2013 respectively. The exceptional items net of tax have been restated from £3.0 million to £2.6 million and £5.3 million to £4.6 million respectively. The adjusted earnings attributable to equity shareholders have been restated from £12.9 million to £12.7 million and from £24.0 million to £23.5 million respectively. This has changed the earnings per share figures for all categories, previously stated figures have been set out in the table below.
|
|
Before restatement |
Before restatement |
|
|
|
Unaudited |
Audited |
|
|
|
26 weeks ended |
52 weeks ended |
|
|
|
29 September |
30 March |
|
|
|
2012 |
2013 |
|
|
40p 'A' and 'C' ordinary share |
Pence |
Pence |
|
|
Basic earnings per share |
28.52 |
52.59 |
|
|
Diluted earnings per share |
28.18 |
52.09 |
|
|
Adjusted earnings per share |
23.14 |
43.07 |
|
|
Diluted adjusted earnings per share |
22.86 |
42.67 |
|
|
|
|
|
|
|
4p 'B' ordinary share |
|
|
|
|
Basic earnings per share |
2.85 |
5.26 |
|
|
Diluted earnings per share |
2.82 |
5.21 |
|
|
Adjusted earnings per share |
2.31 |
4.31 |
|
|
Diluted adjusted earnings per share |
2.29 |
4.27 |
|
For the purposes of calculating the number of shares to be used above, 'B' shares have been treated as one tenth of an 'A' or 'C' share. The earnings per share calculation is based on earnings from continuing operations and on the weighted average ordinary share capital which excludes shares held by trusts relating to employee share options and shares held in treasury of 911,821 (29 September 2012: 1,241,697 and 30 March 2013: 1,267,808).
Diluted earnings per share are calculated using the same earnings figure as for basic earnings per share, divided by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
Adjusted earnings per share are calculated on profit before tax excluding exceptional items and on the same weighted average ordinary share capital as for the basic and diluted earnings per share.
7. DIVIDENDS
|
|
Unaudited |
Unaudited |
Audited |
|
|
26 weeks ended |
26 weeks ended |
52 weeks ended |
|
|
28 September |
29 September |
30 March |
|
|
2013 |
2012 |
2013 |
|
|
£m |
£m |
£m |
|
Declared and paid during the period |
|
|
|
|
Final dividend paid in the period |
4.7 |
4.2 |
4.2 |
|
Interim dividend paid in the period |
- |
- |
3.0 |
|
|
__________ |
__________ |
__________ |
|
Equity dividends paid on ordinary shares |
4.7 |
4.2 |
7.2 |
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
Dividends on cumulative preference |
0.1 |
0.1 |
0.1 |
|
|
__________ |
__________ |
__________ |
|
Dividends per 40p 'A' and 'C' ordinary share declared in respect of the period |
Pence |
Pence |
Pence |
|
Interim |
5.80 |
5.35 |
5.35 |
|
Final |
- |
- |
8.35 |
|
|
__________ |
__________ |
__________ |
|
|
5.80 |
5.35 |
13.70 |
|
|
__________ |
__________ |
__________ |
The pence figures are for the 40p 'A' and 'C' ordinary shares. The 4p 'B' ordinary shares carry dividend rights of one tenth of those applicable to the 40p 'A' ordinary shares. Own shares held in the employee share trusts do not qualify for dividends as the trustees have waived their rights. Dividends are also not paid on own shares held as treasury shares.
The directors have declared an interim dividend of 5.80p (2012: 5.35p) for the 40p 'A' and 'C' ordinary shares, and 0.580p (2012: 0.535p) for the 4p 'B' ordinary shares, with a total estimated cost to the Company of £3.2 million (2012: £3.0 million).
8. PROPERTY, PLANT AND EQUIPMENT
|
|
Unaudited |
Unaudited |
Audited |
|
|
26 weeks |
26 weeks |
52 weeks |
|
|
28 September |
29 September |
30 March |
|
|
2013 |
2012 |
2013 |
|
|
£m |
£m |
£m |
Net book value at start of period |
414.8 |
400.5 |
400.5 |
|
Additions |
10.4 |
9.4 |
17.6 |
|
Business combinations |
3.7 |
3.9 |
11.4 |
|
Disposals |
(0.2) |
(0.2) |
(0.4) |
|
Transfer to/from assets held for sale / |
(0.3) |
(0.2) |
0.4 |
|
Impairment loss net of reversals |
(0.5) |
0.5 |
(1.0) |
|
Depreciation provided during the period |
(6.9) |
(6.8) |
(13.7) |
|
|
__________ |
__________ |
__________ |
Net book value at end of period |
421.0 |
407.1 |
414.8 |
|
|
__________ |
__________ |
__________ |
During the 26 weeks ended 28 September 2013, the Group recognised a charge of £0.5 million to write down the value of licenced properties to their recoverable value (29 September 2012: £0.2 million, 30 March 2013: £1.8 million). A reversal of £0.7 million during the 26 weeks ended 29 September 2012 and £0.8 million in the 52 weeks ended 30 March 2013 was recognised in respect of the write back of previously impaired licenced properties to their recoverable value.
9. ANALYSIS OF NET DEBT
|
Unaudited - 26 weeks |
At |
|
|
At |
|
ended 28 September 2013 |
2013 |
Cash flows |
Non cash1 |
2013 |
|
|
£m |
£m |
£m |
£m |
|
Cash and cash equivalents: |
|
|
|
|
|
Cash and short term deposits |
4.3 |
3.6 |
- |
7.9 |
|
|
__________ |
__________ |
__________ |
__________ |
|
|
4.3 |
3.6 |
- |
7.9 |
|
|
__________ |
__________ |
__________ |
__________ |
Debt: |
|
|
|
|
|
Bank loans |
(112.5) |
1.1 |
(0.2) |
(111.6) |
|
Other loans |
- |
0.3 |
(0.5) |
(0.2) |
|
Debenture stock |
(25.8) |
- |
(0.1) |
(25.9) |
|
Preference shares |
(1.6) |
- |
- |
(1.6) |
|
|
__________ |
__________ |
__________ |
__________ |
Total borrowings |
(139.9) |
1.4 |
(0.8) |
(139.3) |
|
|
__________ |
__________ |
__________ |
__________ |
|
Net debt |
(135.6) |
5.0 |
(0.8) |
(131.4) |
|
|
__________ |
__________ |
__________ |
__________ |
1Non cash movements relate to the amortisation of arrangement fees and the acquisition of Cornish Orchards Limited during the 26 weeks ended 28 September 2013.
|
Unaudited - 26 weeks |
At |
|
|
At |
|
ended 29 September 2012 |
2012 |
Cash flows |
Non cash1 |
2012 |
|
|
£m |
£m |
£m |
£m |
|
Cash and cash equivalents: |
|
|
|
|
|
Cash and short term deposits |
3.9 |
(1.5) |
- |
2.4 |
|
|
__________ |
__________ |
__________ |
__________ |
|
|
3.9 |
(1.5) |
- |
2.4 |
|
|
__________ |
__________ |
__________ |
__________ |
Debt: |
|
|
|
|
|
Bank loans |
(114.7) |
2.7 |
(0.3) |
(112.3) |
|
Debenture stock |
(25.8) |
- |
- |
(25.8) |
|
Preference shares |
(1.6) |
- |
- |
(1.6) |
|
|
__________ |
__________ |
__________ |
__________ |
|
Total borrowings |
(142.1) |
2.7 |
(0.3) |
(139.7) |
|
|
__________ |
__________ |
__________ |
__________ |
|
Net debt |
(138.2) |
1.2 |
(0.3) |
(137.3) |
|
|
__________ |
__________ |
__________ |
__________ |
|
Audited - 52 weeks |
At |
|
|
At |
|
ended 30 March 2013 |
2012 |
Cash flows |
Non cash1 |
2013 |
|
|
£m |
£m |
£m |
£m |
|
Cash and cash equivalents: |
|
|
|
|
|
Cash and short term deposits |
3.9 |
0.4 |
- |
4.3 |
|
|
__________ |
__________ |
__________ |
__________ |
|
|
3.9 |
0.4 |
- |
4.3 |
|
|
__________ |
__________ |
__________ |
__________ |
Debt due: |
|
|
|
|
|
Bank loans |
(114.7) |
2.7 |
(0.5) |
(112.5) |
|
Debenture stock |
(25.8) |
- |
- |
(25.8) |
|
Preference shares |
(1.6) |
- |
- |
(1.6) |
|
|
__________ |
__________ |
__________ |
__________ |
|
Total borrowings |
(142.1) |
2.7 |
(0.5) |
(139.9) |
|
|
__________ |
__________ |
__________ |
__________ |
|
Net debt |
(138.2) |
3.1 |
(0.5) |
(135.6) |
|
|
__________ |
__________ |
__________ |
__________ |
1Non cash movements relate to the amortisation of arrangement fees.
10. RETIREMENT BENEFIT OBLIGATIONS
|
|
Unaudited |
Unaudited |
Audited |
|
|
At |
At |
At |
|
|
2013 |
2012 |
2013 |
|
The amount included in the Balance Sheet |
£m |
£m |
£m |
respect of its defined benefit retirement plan |
|
|
|
|
Fair value of plan assets |
91.1 |
80.8 |
88.9 |
|
Present value of scheme liabilities |
(102.9) |
(90.7) |
(101.9) |
|
|
__________ |
__________ |
__________ |
Deficit in the scheme |
(11.8) |
(9.9) |
(13.0) |
|
|
__________ |
__________ |
__________ |
|
|
|
|
|
|
Key financial assumptions used in the valuation |
|
|
|
|
Rate of increase in salaries |
3.70% |
3.30% |
3.80% |
|
Rate of increase in pensions in payment |
3.20% |
2.80% |
3.30% |
|
Discount rate |
4.50% |
4.80% |
4.60% |
Inflation assumption - RPI |
3.20% |
2.80% |
3.30% |
Inflation assumption - CPI |
2.50% |
2.30% |
2.60% |
Mortality assumptions
The mortality assumptions used in the valuation of the Plan as at 28 September 2013 are as set out in the financial statements for the 52 weeks ended 30 March 2013.
|
|
Unaudited |
Unaudited |
Audited |
|
|
At 28 September |
At 29 September |
At 30 March |
|
|
2013 |
2012 |
2013 |
|
|
£m |
£m |
£m |
|
Value of assets in the scheme |
|
|
|
|
Bonds - Corporate |
17.5 |
17.5 |
18.1 |
|
Equities |
43.0 |
35.1 |
40.7 |
|
Property |
0.7 |
0.6 |
0.6 |
|
Absolute return fund |
27.9 |
25.9 |
27.7 |
|
Cash |
0.8 |
0.6 |
0.6 |
|
Annuities |
1.2 |
1.1 |
1.2 |
|
|
__________ |
__________ |
__________ |
|
Total market value of assets |
91.1 |
80.8 |
88.9 |
|
|
__________ |
__________ |
__________ |
|
|
|||
|
|
|
Restated* |
Restated* |
|
|
Unaudited |
Unaudited |
Audited |
|
|
26 weeks ended |
26 weeks ended |
52 weeks ended |
|
|
28 September |
29 September |
30 March |
|
|
2013 |
2012 |
2013 |
|
|
£m |
£m |
£m |
Movement in deficit during period |
|
|
|
|
Deficit in scheme at beginning of the period |
(13.0) |
(19.1) |
(19.1) |
|
Movement in period: |
|
|
|
|
Current service cost |
(0.8) |
(0.8) |
(1.6) |
|
Contributions |
1.0 |
1.1 |
2.1 |
|
Finance charge on net pension liabilities* |
(0.3) |
(0.5) |
(0.9) |
|
Net actuarial gains* |
1.3 |
9.4 |
6.5 |
|
|
__________ |
__________ |
__________ |
Deficit in scheme at end of the period |
(11.8) |
(9.9) |
(13.0) |
|
|
__________ |
__________ |
__________ |
*Restatement for changes to IAS 19. Finance income/charge on net pension liabilities has been restated from an income of £0.3 million for the 26 weeks ended 29 September 2012 and £0.6 million for the 52 weeks ended 30 March 2013 to a charge of £0.5 million and £0.9 million respectively. In addition the net actuarial gain at 29 September 2012 and 30 March 2013 has been restated from £8.6 million to £9.4 million and £5.0 million to £6.5 million respectively.
The defined benefit pension scheme was closed to new members in August 2005 and the Company has now entered a period of consultation with the trustees and members of that scheme with a view to closing it to future accrual with effect from 1 January 2015.
11. ACQUISITION OF CORNISH ORCHARDS LIMITED
On 4 June 2013 the Group purchased 100% of the share capital and obtained control of Cornish Orchards Limited for a total of £3.8 million. The company acquired produces alcoholic and non-alcoholic beverages. The Group paid £2.1 million as consideration in cash, which is fair value, and recognised liabilities for £0.9 million for a contingent consideration payable in cash at a future date, subject to the achievement of specified performance criteria, and £0.7 million of assumed liabilities. Acquisition related costs amounted to £0.1 million and are included in exceptional items. Provisional goodwill of £2.5 million has been recognised. The maximum payment of the contingent consideration is £1.2 million.
12. POST BALANCE SHEET EVENT
Subsequent to the balance sheet date on 1 October 2013 the Company has disposed of one pub and on 1 November 2013 has exchanged on the disposal of a further pub for an aggregate of £2.0 million proceeds resulting in a profit on disposal of £1.4 million. On 18 November 2013 the Company acquired one pub for £3.4 million.
13. PRINCIPAL RISKS AND UNCERTAINTIES
There has been no change since 30 March 2013 to the risks and uncertainties which may affect the Company's performance in the next six months, details of which are set out in the financial statements for the 52 weeks ended 30 March 2013, and are available on the Fuller's website, www.fullers.co.uk. In summary three different types of risk and uncertainty have been identified by the Directors:
- Regulatory risks encompass the risks to the business of increased regulation of the sale of alcohol, health and safety in the workplace and pensions.
- Economic and market conditions include the risk to the business due to the strength or otherwise of the economy, cost pressures, in particular from utilities, the risk of assigned leases reverting to the Group and changes in consumer trends.
- Operational risks such as damage to the Group's property, brands or reputation and reliance on information systems to operate efficiently on a daily basis.
Principal among these risks and uncertainties is the ongoing strength of the UK economy as consumer spending in the UK remains under pressure, with the leisure industry particularly vulnerable. Other key risks include the impact of new Government regulation, particularly with regard to future policy on alcohol duties and Off-trade retail pricing, which may impact demand for our products, and our ongoing exposure to incidents which may damage the reputation of the Company or its brands, or our ability to supply our customers.
14. SHAREHOLDERS' INFORMATION
Shareholders holding 40p 'C' ordinary shares are reminded that they have 30 days from 22 November 2013 should they wish to convert those 'C' shares to 'A' shares. The next available opportunity after that will be June 2014. For further details please contact the Company's registrars, Computershare on 0870 899 4096.
15. HALF YEAR REPORT
Copies of the half year report are being sent to shareholders and will be available from the Company's registered office: Griffin Brewery, Chiswick, London W4 2QB and the Company's website www.fullers.co.uk.
16. STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm, to the best of their knowledge, that this condensed set of financial statements has been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
- an indication of important events that have occurred during the first six months and their impact on the financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
- disclosure of material related party transactions in the first six months and any material changes to related party transactions.
By order of the Board
Michael Turner Chairman
James Douglas Finance Director
22 November 2013
Independent Review Report to the Members of Fuller, Smith & Turner P.L.C.
Introduction
We have reviewed the condensed set of financial statements in the half year financial report of Fuller, Smith & Turner P.L.C. for the twenty six weeks ended 28 September 2013 which comprises the Condensed Group Income Statement, Condensed Group Statement of Comprehensive Income, Condensed Group Balance Sheet, Condensed Group Statement of Changes in Equity, Condensed Group Cash Flow Statement and the related explanatory notes. We have read the other information contained in the half year financial report, which comprises the Chairman's Statement and Chief Executive's Review, and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company's members, as a body, in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our review work, for this report, or for the conclusion we have formed.
Directors' responsibilities
The half year financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half year financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1, the Annual Financial Statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this half year financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express a conclusion on the condensed set of financial statements in the half year financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half year financial report for the twenty six weeks ended 28 September 2013 is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Grant Thornton UK LLP
Auditor
London
22 November 2013
This information is provided by RNS
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