Interim Results
Hilton Food Group PLC
25 September 2007
Hilton Food Group plc
Interim Results for the 28 weeks to 15 July 2007
Continued progress in line with expectations
Hilton Food Group plc, the leading specialist meat packing business supplying
major international food retailers, is pleased to announce its interim results
for the 28 weeks to 15 July 2007.
28 weeks to 28 weeks to 52 weeks to
15 July 2007 16 July 2006 31 Dec 2006
Turnover £305.9m £277.2m £526.7m
Operating profit before significant item* £9.6m £9.7m £15.7m
Operating profit after significant item* £7.9m £9.7m £15.7m
Profit before tax £7.4m £9.6m £15.5m
Cash generated from operations before significant £16.3m £16.5m £26.5m
item*
Cash generated from operations after significant £14.6m £16.5m £26.5m
item*
Basic earnings per share before significant item* 9.4p 9.2p 14.3p
Basic earnings per share after significant item* 7.0p 9.2p 14.3p
Interim Dividend to be paid in 2.2p
December 2007
* the significant item in 2007 relates to costs to the Group associated with the
flotation of Hilton Food Group plc on the London Stock Exchange
• Successful listing on main market of the London Stock Exchange in May 2007
• Overall volume growth of 17%; turnover growth of 10%
• Continued strong cash generation of £16.3m during the period
• Major new factory at Huntingdon commissioned on time and on budget
• Extension to facility in Zaandam, Holland completed on time and on budget
Commenting, Robert Watson, Chief Executive said:
'I am pleased to report that the first 28 weeks of 2007 have seen further
progress, in line with the Board's expectations, with good volume growth, the
completion of two key capacity expansion projects and continued strong cash
generation.'
Enquiries
Hilton Food Group - Robert Watson, Nigel Majewski Tel: 01480 387214
Citigate Dewe Rogerson - Tom Baldock, Fiona Mulcahy, Nicola Smith Tel: 020 7638 7591
INTERIM STATEMENT
This is our first Interim Report to shareholders, following the flotation of the
company on the London Stock Exchange on 17 May 2007. We are pleased to report
that the first 28 weeks of 2007 have seen continued progress, in line with the
Board's expectations.
We were fully aware that the transition from being a private business to one
listed on the main market would be a very challenging process. We would like to
thank our professional advisers and particularly our managers and employees who,
by continuing to professionally operate the business through this process,
achieved a seamless transition.
Financial Review
The Group is presenting its interim results for the 28 weeks to 15 July 2007,
with comparative information for the 28 weeks to 16 July 2006 and the year to 31
December 2006. The interim results of the Group are prepared in accordance with
International Financial Reporting Standards ('IFRS') as adopted by the EU.
Underlying trading performance has been satisfactory, with volumes growing
overall by 17%. Further details of volume growth by segment are detailed in the
Review of Operations, below.
Total Group turnover rose by 10% to £305.9 million, as compared to £277.2
million in the corresponding period last year. The increase is below the level
of volume gains, as lower raw material prices have fed directly into lower
selling prices. Due to Hilton's reduced risk and non-integrated business model,
where commercial arrangements are made on a margin or packing rate basis, Hilton
suffers less from movements in raw material costs than under conventional food
manufacturing models.
In line with our expectations, gross profit margins fell back, from 14.7% to
14.1%, reflecting principally the impact of negotiations with customers to
reflect the higher volume levels going through the business, together with the
start up costs of the new facilities.
Operating profit for the first half, at £9.6 million (£7.9m after flotation
costs of £1.7m), was marginally below the operating profit of £9.7m made for
the corresponding period in 2006. Operating profit benefited by £0.4m from the
release of provisions for overseas taxation exposures, which were put in place
prior to the flotation and have now been settled.
Net finance costs rose from £0.1m to £0.5m. The increase comprises interest on
the new bank borrowings in the first half of £47.5m, which were put in place
prior to the flotation, but are now reducing; partly offset by the release of
provisions for interest on overseas taxation exposures, which were put in place
before the flotation and have since been settled.
Profit before taxation was £7.4m (2006: £9.6m). The tax charge for the period
was £2.2m. Excluding £1.7m of flotation costs, for which taxation relief has not
been assumed, and the release of £0.8m of provisions for overseas taxation
liabilities and interest, for which there is no associated tax charge, the
effective underlying rate of tax was 26%.
Basic earnings per share before flotation costs in the first half were 9.4p
(2006 9.2p).
The board has declared its first interim dividend of 2.2 pence per share,
amounting to approximately £1.5 m, which will be payable on 7 December 2007, to
shareholders on the register at close of business on 1 November 2007.
Cash flow continued to be strong, with the Group generating £16.3m cash (£14.6m
after flotation costs of £1.7m) during the period. This has enabled us to
steadily reduce the level of net debt outstanding at a slightly faster rate than
we had expected. Accordingly Group borrowings, net of cash balances of £18.4m,
stood at £37.6m at 15 July, 2007.
Review of Operations
Investment in Capacity Expansion
Modern, well-invested facilities are a key competitive advantage for Hilton,
which operates a high volume business where it is imperative to keep unit costs
low. Over the three years to December 2006 capital expenditure on our facilities
has totalled £57m, £44m of which has been spent on major capacity expansion
projects.
We are pleased to report that two of these projects, at Huntingdon in the UK and
Zaandam in Holland, were completed during the first half of the year on time, on
budget and with minimal disruption to production at either site.
In the UK a new purpose built factory at Huntingdon was completed that will
enable Hilton to service its customer's expected growth over the medium term.
The factory is producing packed minced meat, burger, kebab and other value added
products. The new facility will increase total volume capacity at Huntingdon by
approximately 50%.
In Holland, the completion and commissioning in early 2007 of a factory
extension in Zaandam to service its customers expected growth over the medium
term, will increase capacity by approximately 50%.
Western Europe
Continued progress was made across our Western European operations in the UK,
Ireland, Holland and Sweden with our customers continuing to achieve organic
growth. Volume growth was 10%, with turnover growth of 6%, reflecting lower raw
material prices. This was achieved despite the exceptionally adverse summer
weather in the UK, which affected sales of barbecue and other seasonal lines.
Other Regions
In Central Europe, we saw a first time contribution from our facility in
Southern Poland (near to the Czech border), producing on average approximately
200 tonnes per week. Ahold's divestment of its Polish stores is being largely
offset by continuing volume growth in the Czech Republic, where it has retained
its stores.
We continue to work closely with our customers in each country to deliver high
service levels, consistent quality and product innovation.
Employees
The continued progress made by the Group in the first 28 weeks of 2007, and
throughout the lengthy flotation process, is attributable to the strength of the
dedicated workforces we have in place in each country and, on behalf of the
Board, we would like to thank them for their continuing commitment, enthusiasm
and expertise.
Outlook
Continuing growth across our business has been achieved in line with the Board's
expectations, despite the extremely wet summer weather in Western Europe
affecting buying patterns at our customers' retail outlets. Current trading is
in line with expectations for the Group and the Board believes the outlook
remains as such for the remainder of the year.
Looking forward, the Group is aligned with successful customers in growing
markets, with empowered and highly professional management teams and sufficient
packing capacity in place to service our customers expected medium term growth
plans.
With Hilton's strong cash flow and a proven track record of setting up new
facilities for customers in new geographical locations, underpinned by extensive
procurement, packing and packaging expertise, it is well placed to develop new
business opportunities, as and when they arise.
Gordon Summerfield CBE, Chairman
Robert Watson OBE, Chief Executive
Condensed consolidated interim income statement
Unaudited Unaudited Audited
28 wks 28 wks Year
ended ended ended
15 July 16 July 31 December
2007 2006 2006
Continuing operations Note £'000 £'000 £'000
Revenue 5 305,852 277,158 526,663
Cost of sales (262,604) (236,350) (452,047)
Gross profit 43,248 40,808 74,616
Distribution costs (3,359) (3,077) (5,990)
Administrative expenses (30,291) (28,044) (52,927)
Restructuring and flotation costs 6 (1,687) - -
Operating profit 5 7,911 9,687 15,699
Finance income 220 172 824
Finance costs (749) (298) (1,038)
Finance costs - net (529) (126) (214)
Profit before income tax 7,382 9,561 15,485
Income tax expense 10 (2,157) (2,780) (4,824)
Profit for the half year 5,225 6,781 10,661
Attributable to:
Equity holders of the company 4,874 6,395 9,986
Minority interest 351 386 675
5,225 6,781 10,661
Earnings per share for profit attributable to the equity
holders of the company
- Basic and Diluted (pence) 12 7.0 9.2 14.3
Dividend per share in respect of the financial period (pence)
- Dividend per share paid during the period 35.5 6.0 6.0
- Dividend per share proposed in respect of the period 2.2 - -
The notes form an integral part of this condensed interim financial information
Condensed consolidated interim balance sheet as at 15 July 2007
Unaudited Audited
15 July 16 July 31 December
2007 2006 2006
Note £'000 £'000 £'000
Assets
Non-current assets
Tangible and Intangible Assets 7 47,851 39,591 47,523
Deferred income tax assets 1,274 1,099 1,219
49,125 40,690 48,742
Current assets
Inventories 9,776 9,298 9,525
Trade and other receivables 46,780 42,664 41,037
Cash and cash equivalents 18,373 23,613 22,327
74,929 75,575 72,889
Total assets 124,054 116,265 121,631
Capital and reserves attributable to equity holders of the
group
Share capital 8 6,966 200 200
Other reserves (77) 25 (102)
Retained earnings 9,625 25,860 29,451
16,514 26,085 29,549
Reverse acquisition reserve (31,700) - -
Merger reserve 919 - -
(14,267) 26,085 29,549
Minority interest in equity 454 982 1,288
Total equity (13,813) 27,067 30,837
Liabilities
Non-current liabilities
Borrowings 9 48,517 9,567 10,196
Deferred income tax liabilities 1,244 860 1,300
Other non-current liabilities 1,248 2,034 1,850
51,009 12,461 13,346
Current liabilities
Borrowings 9 7,459 2,812 6,065
Trade and other payables 77,131 71,247 69,740
Current income tax liabilities 2,268 2,678 1,643
86,858 76,737 77,448
Total liabilities 137,867 89,198 90,794
Total equity and liabilities 124,054 116,265 121,631
The notes form an integral part of this condensed interim financial information
Condensed consolidated interim statement of changes in equity
Attributable to equity holders of the company
Note Share Other Retained Sub Reverse Merger Total Minority Total
capital reserves earnings total Acquisition reserve interest equity
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2006 200 (31) 23,665 23,834 - - 23,834 1,179 25,013
Currency translation
differences - 56 - 56 - - 56 (33) 23
Profit for the half year - - 6,395 6,395 - - 6,395 386 6,781
Total recognised income
and expense for the
28 wks ended 16 July 2006 56 6,395 6,451 - - 6,451 353 6,804
Dividend paid 11 - - (4,200) (4,200) - - (4,200) (550) (4,750)
Balance at 16 July 2006 200 25 25,860 26,085 - - 26,085 982 27,067
Balance at 1 January 2007 200 (102) 29,451 29,549 - - 29,549 1,288 30,837
Currency translation differences - 25 - 25 - - 25 3 28
Profit for the half year - - 4,874 4,874 - - 4,874 351 5,225
Total recognised income and
expense for the 28 wks
ended 15 July 2007 - 25 4,874 4,899 - - 4,899 354 5,253
Dividend paid 11 - - (24,700) (24,700) - - (24,700) (1,039) (25,739)
Reverse acquisition
of Hilton 6,700 - - 6,700 (31,700) - (25,000) - (25,000)
Foods Limited
Acquisition of minority 66 - - 66 - 919 985 (149) 836
shareholding
Balance at 15 July 2007 6,966 (77) 9,625 16,514 (31,700) 919 (14,267) 454 (13,813)
The notes form an integral part of this condensed interim financial information
Condensed consolidated interim cash flow statement
Unaudited Unaudited Audited
28 wks ended 28 wks ended year ended
15 July 16 July 31 December
2007 2006 2006
£'000 £'000 £'000
Cash flows from operating activities
Cash generated from operations 14,608 16,471 26,481
Interest paid (1,116) (298) (490)
Income tax paid (1,643) (1,616) (4,380)
Net cash generated from operating activities 11,849 14,557 21,611
Cash flows from investing activities
Purchase of property, plant and equipment (6,854) (7,580) (20,028)
Proceeds from sale of property, plant and equipment 1,948 1,307 2,228
Government grant received 32 - -
Purchases of intangible assets (130) - (834)
Interest received 220 172 764
Net cash used in investing activities (4,784) (6,101) (17,870)
Cash flows from financing activities
Finance lease payments - principal (38) (21) (172)
Proceeds from borrowings 47,500 617 4,810
Repayments of borrowings (5,592) (1,508) (3,682)
Dividends paid to company shareholders (24,700) (4,200) (4,200)
Dividends paid to minority interests (1,039) (550) (545)
Reverse acquisition of Hilton Foods Limited (25,000) - -
Net cash used in financing activities (8,869) (5,662) (3,789)
Net (decrease)/increase in cash, cash equivalents and
bank overdrafts
(1,804) 2,794 (48)
Cash, cash equivalents and bank overdrafts at start of 20,133 20,402 20,402
period
Exchange gains/(losses) on cash, cash equivalents and
bank overdrafts
44 2 (221)
Cash, cash equivalents and bank overdrafts at end of 18,373 23,198 20,133
period
Bank overdrafts - 415 2,194
Cash and cash equivalents at end of period 18,373 23,613 22,327
The notes form an integral part of this condensed interim financial information
Notes to the interim financial information
1. General Information
Hilton Food Group plc ('the company') and its subsidiaries (together 'the
group') is a specialist meat packing business supplying major international food
retailers in five European countries.
The Company was incorporated on 16 March 2007 as Law 2461 Limited and changed
its name to Hilton Food Group plc (see note 4) and re-registered as a public
limited company on 17 April 2007. The company is a limited liability company
incorporated in and registered in the UK. The address of the registered office
is 2-8 The Interchange, Latham Road, Huntingdon Cambridgeshire PE29 6YE.
The company has its primary listing on the London Stock Exchange and was
admitted to the Official List and to trading on 17 May 2007.
This condensed consolidated interim financial information was approved for issue
on 24 September 2007.
These interim financial results do not comprise statutory accounts within the
meaning of Section 240 of the Companies Act 1985. Statutory accounts for the
year ended 31 December 2006 for Hilton Foods Limited (the previous parent
company to the group) were approved by the Board of directors on 23 April 2007
and delivered to Companies Registry, Belfast. The report of the auditors on
those accounts was unqualified, did not contain an emphasis of matter paragraph
and did not contain any statement under Section 237 of the Companies Act 1985.
2. Basis of preparation
This condensed consolidated interim financial information for the 28 weeks ended
15 July 2007 has been prepared in accordance with the Listing Rules of the
Financial Services Authority and with IAS 34, 'Interim financial reporting' as
adopted by the European Union. The interim condensed consolidated financial
report should be read in conjunction with the annual financial statements of
Hilton Foods Limited (see note 4) for the year ended 31 December 2006 which have
been prepared in accordance with IFRSs as adopted by the European Union.
3. Accounting Policies
The accounting policies adopted are consistent with those of the annual
financial statements of Hilton Foods Limited (the previous parent company to the
group) for the year ended 31 December 2006, as described in those annual
financial statements.
The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year ending 31 December 2007.
• IFRIC 7, 'Applying the restatement approach under IAS 29', effective for
annual periods beginning on or after 1 March 2006. This interpretation is
not relevant for the group.
• IFRIC 8, 'Scope of IFRS 2', effective for annual periods beginning on or
after 01 May 2006. This interpretation has not had any impact on the
recognition of share-based payments in the group.
• IFRIC 9, 'Reassessment of embedded derivatives', effective for annual
periods beginning on or after 01 June 2006. This interpretation has not had
a significant impact on the reassessment of embedded derivatives as the
group already assessed if embedded derivative should be separated using
principles consistent with IFRIC 9.
• IFRIC 10, 'Interims and impairment', effective for annual periods on or
after 01 November 2006. This interpretation has not had any impact on the
timing or recognition of impairment losses as the group already accounted
for such amounts using principles consistent with IFRIC 10.
• IFRS 7, 'Financial Instruments: Disclosures', effective for annual periods
beginning on or after 01 January 2007. IAS 1, 'Amendments to capital
disclosures', effective for annual periods beginning on or after 01 January
2007. As this interim report contains only condensed financial statements,
and as there are no material financial instrument related transactions in
the period, full IFRS 7 disclosures are not required at this stage. The
full IFRS 7 disclosures, including the sensitivity analysis to market risk
and capital disclosures required by the amendment of IAS 1, will be given in
the annual financial statements.
The following new standards, amendments to standards and interpretations have
been issued but are not effective for the financial year ending 31 December 2007
and have not been adopted:
• IFRIC 11, 'IFRS 2 - Group and treasury share transactions', effective for
annual periods beginning on or after 01 March 2007. Management do not
expect this interpretation to be relevant for the group.
• IFRIC 12, 'Service concession arrangements', effective for annual periods
beginning on or after 01 January 2008. Management do not expect this
interpretation to be relevant for the group.
• IFRS 8, 'Operating segments', effective for annual periods beginning on or
after 01 January 2009, subject to EU endorsement. Management do not
currently foresee any changes to the group's business segments.
4. Reverse acquisition
On 30 March 2007 the company became the holding company of Hilton Foods Limited.
Under IFRS 3, Business Combinations, this group reconstruction has been
accounted for as a reverse acquisition. Although this consolidated financial
information has been issued in the name of the legal parent, the company, it
represents in substance a continuation of the financial information of the legal
subsidiary Hilton Foods Limited. The following accounting treatment has been
applied in respect of the reverse acquisition.
a) the assets and liabilities of the legal subsidiary, Hilton Foods Limited,
are recognised and measured in the consolidated financial information at the
pre-combination carrying amounts, without restatement to fair value;
b) the retained earnings and other equity balances of Hilton Foods Limited
immediately before the business combination, and the results of the period from
1 January 2007 to the date of the business combination are those of Hilton Foods
Limited as the company did not trade prior to the transaction. However, the
equity structure appearing in the consolidation financial information reflects
the equity structure of the legal parent, Hilton Food Group plc, including the
equity instruments issued to effect the business combination and
c) comparative numbers presented in the consolidated financial information are
those reported in the consolidated financial information of the legal
subsidiary, Hilton Foods Limited, for the 28 weeks to 16 July 2006 and the year
ended 31 December 2006
The company had no significant assets or liabilities immediately prior to the
time of the reverse acquisition. As part of the reverse acquisition, 69,000,000
new 10p shares were issued to the members of Hilton Foods Limited together with
a cash payment of £25m. In the books of the legal parent, Hilton Food Group plc,
a merger reserve of £70.1m has arisen as a premium on the shares issued. On
consolidation this merger reserve has formed part of the reverse acquisition
reserve amounting to £31.7m.
5. Segmental information
Total segment revenue Operating profit / Segment result
£'000 £'000
Unaudited Western Europe 293,335 7,445
28 weeks ended Other 12,517 466
15 July 2007 Total 305,852 7,911
Unaudited Western Europe 277,158 9,687
28 weeks ended Other - -
16 July 2006 Total 277,158 9,687
Audited Western Europe 517,915 15,411
year ended Other 8,748 288
31 December 2006 Total 526,663 15,699
There are no significant seasonal fluctuations.
6. Restructuring and flotation costs
During the 28 weeks ended 15 July 2007 costs of £1.7m were incurred in relation
to the restructuring of the group and admission of the company to the Official
List.
7. Capital Expenditure
Tangible and intangible assets
Unaudited Unaudited Audited
28 wks 28 wks yr
ended ended ended
15 July 2007 16 July 2006 31 December 2006
£'000 £'000 £'000
Opening net book amount 47,523 37,829 37,829
Exchange adjustments 95 341 (16)
Additions 7,819 7,580 21,118
Disposals (1,948) (1,307) (2,259)
Depreciation and amortisation (5,638) (4,852) (9,149)
Closing net book amount 47,851 39,591 47,523
Additions principally comprise completion of new facilities in the UK and the
Netherlands and goodwill (see note 13).
8. Share capital
Number of Shares Ordinary Ordinary Ordinary Total
(thousands) Shares Shares Shares
'A' 'B'
£'000 £'000 £'000 £'000
Opening balance 1 January 2006
and at 16 July 2006 200 100 100 - 200
Opening balance 1 January 2007 200 100 100 - 200
Equity shares issued 69,657 - - 6,966 6,966
Reverse acquisition of shares
in Hilton Foods (200) (100) (100) - (200)
Limited
At 15 July 2007 69,657 - - 6,966 6,966
The company issued 69,000,000 shares to the members of Hilton Foods Limited as
part of the reverse acquisition. The company issued 656,667 shares in
consideration for the acquisition of a 2.5% stake in Hilton Food Group (Europe)
Limited (see note 13).
9. Borrowings
Unaudited Unaudited Audited
28 wks ended 28 wks ended year ended
15 July 2007 16 July 2006 31 December 2006
£'000 £'000 £'000
Current 7,459 2,812 6,065
Non-current 48,517 9,567 10,196
Total borrowings 55,976 12,379 16,261
Movements in borrowings is analysed as follows:
Unaudited Unaudited Audited
28 wks ended 28 wks ended year ended
15 July 2007 16 July 2006 31 December 2006
£'000 £'000 £'000
Opening amount 16,261 13,711 13,711
New borrowings - reorganisation 47,500 - -
New borrowings - working capital - 617 4,810
Repayment of borrowings (7,785) (1,949) (2,260)
Closing amount 55,976 12,379 16,261
The group borrowed £47.5m to fund group reorganisation and is repayable in
quarterly instalments of £1.65m including capital and interest. Interest is
charged at LIBOR plus 0.75% to 1.25%.
10. Income tax expense
Income tax expense is recognised based on management's best estimate of the
weighted average annual income tax rate expected for the full financial year.
The estimated average annual tax rate used for 2007 is 29.2% (2006: 29.1%).
Unaudited Unaudited Audited
28 wks ended 28 wks ended year ended
15 July 2007 16 July 2006 31 December 2006
£'000 £'000 £'000
UK Taxation 738 1,367 2,081
Overseas Taxation 1,419 1,413 2,743
Total Income tax expense 2,157 2,780 4,824
11. Dividends
Unaudited Unaudited Audited
28 wks ended 28 wks ended year ended
15 July 2007 16 July 2006 31 December 2006
£'000 £'000 £'000
Dividends paid on ordinary shares 35.5p per
ordinary share (2006: 6.0p) 24,700 4,200 4,200
The dividend of £24.7m was paid during the period to shareholders as part of the
restructuring prior to Listing. In addition, the directors propose an interim
dividend of 2.2 pence per share payable on 7 December 2007 to shareholders who
are on the register at 1 November 2007. This interim dividend, amounting to
£1.5m has not been recognised as a liability in this interim financial report.
12. Earnings per share
Basic and diluted earnings per share are calculated by dividing the profit
attributable to equity holders of the company by the weighted average number of
ordinary shares in issue during the year.
Unaudited Unaudited Audited
28 wks ended 28 wks ended year ended
15 July 2007 16 July 2006 31 December 2006
Profit attributable to equity holders of the company (£'000) 4,874 6,395 9,986
Weighted average number of ordinary shares in issue 69,657 69,657 69,657
(thousands)
Basic and diluted earnings per share (pence) 7.0 9.2 14.3
Basic and diluted earnings per share before restructuring and
flotation costs (pence) 9.4 9.2 14.3
Basic EPS has been adjusted for restructuring and flotation costs as these are
significant one-off costs that are not expected to recur. The adjusted EPS of
9.4p reflects the underlying performance of the company.
13. Business combination
On 24 April 2007, the group acquired 2.5% of the share capital of Hilton Food
Group (Europe) Limited in consideration for 656,667 ordinary shares in the
company at a value of £985,000 bringing its total shareholding to 100%.
Details of net assets acquired and goodwill are as follows:
£'000
Purchase consideration - fair value of equity shares issued 985
Existing minority interest 149
Goodwill 836
14. Related party transactions
Ultimate controlling parties of the Group for part of the half-year were also
shareholders of Heffer Investments Limited, Hilton Meats (International) Limited
and Foyle Food Group Limited.
The companies noted below are all deemed to be related parties by way of common
directors in addition to shareholder status as noted above.
The following purchases were made from related parties during the half-year:
Unaudited Unaudited Audited
28 wks 28 wks Year
ended ended ended
15 July 2007 16 July 2006 31 December 2006
£'000 £'000 £'000
Hilton Meats (International) Limited 37,501 29,468 72,048
Romford Wholesale Meats Limited 23,963 22,625 43,383
RWM Dorset Limited 6,634 6,614 11,295
Foyle Food Group Limited 9,253 10,222 17,909
Amounts owing to related parties at the half-year end were as follows:
Unaudited Unaudited Audited
15 July 2007 16 July 2006 31 December 2006
£'000 £'000 £'000
Hilton Meats (International) Limited 4,688 4,033 4,636
Romford Wholesale Meats Limited 2,995 2,183 2,509
RWM Dorset Limited 829 685 787
Foyle Food Group Limited 1,592 1,057 2,265
The ultimate shareholders of all the above companies have an interest in the
share capital of the company.
15. Events since the balance sheet date
Since the balance sheet date, the group has entered into a £4m finance lease
with a 25 year term which is in respect of land and buildings in the UK.
Independent review report to Hilton Food Group plc
Report on review of interim financial information
Introduction
We have been instructed by the company to review the financial information for
the 28 weeks ended 15 July 2007 which comprises the condensed consolidated
interim income statement for the 28 weeks ended 15 July 2007, the condensed
consolidated interim balance sheet as at 15 July 2007 and the related condensed
consolidated interim statements of changes in equity and cash flow for the 28
weeks then ended and the related notes. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.
This interim report has been prepared in accordance with the International
Accounting Standard 34, 'Interim financial reporting'.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the disclosed accounting policies have
been applied. A review excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is substantially less
in scope than an audit and therefore provides a lower level of assurance than an
audit. Accordingly we do not express an audit opinion on the financial
information. This report, including the conclusion, has been prepared for and
only for the company for the purpose of the Listing Rules of the Financial
Services Authority and for no other purpose. We do not, in producing this
report, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the 28 weeks ended
15 July 2007.
PricewaterhouseCoopers LLP
Chartered Accountants
Belfast
24 September 2007
The maintenance and integrity of the Hilton Food Group plc web site is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the interim report
since it was initially presented on the web site.
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The company news service from the London Stock Exchange
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