Latest Results
Interim Results
For the 26 weeks ended 29 February 2020
“A resilient H1 performance in challenging markets”
Carr's (CARR.L), the Agriculture and Engineering Group, announces its Interim Results for the 26 weeks ended 29 February 2020 and provides an update on COVID-19.
Financial highlights
Adjusted1 H1 2020 | Adjusted1 H1 2019 |
+/- | |
| Revenue (£m) | 200.0 | 206.2 | -3.0% |
| Adjusted1 operating profit (£m) | 10.3 | 11.9 | -13.4% |
| Adjusted1 profit before tax (£m) | 9.6 | 11.4 | -16.0% |
| Adjusted1 EPS (p) | 8.0 | 9.4 | -14.9% |
| Statutory H1 2020 | Statutory H1 2019 | +/- | |
| Revenue (£m) | 200.0 | 206.2 | -3.0% |
| Operating profit (£m) | 11.2 | 10.8 | +3.8% |
| Profit before tax (£m) | 10.5 | 10.3 | +1.7% |
| Basic EPS (p) | 9.3 | 8.3 | +12.0% |
Commercial highlights
COVID-19
- Health, safety and well-being of our employees remains of paramount importance
- No material overall impact to date, but significant uncertainty remains
- Measures implemented, and contingencies planned, to minimise the potential impact on the Group
- Strong balance sheet with net debt (excluding leases) of £25.4m as at H1 2020 representing 1.2x adjusted EBITDA and undrawn facilities at H1 2020 of £22.4m
- Cash flow being closely monitored with cash forecasting thoroughly stress tested
- Payment of interim dividend deferred until full effects of COVID-19 become clear
Agriculture
- Resilient performance in Agriculture despite challenging market conditions and unseasonable weather
- In the UK, lower feed and fuel volumes partly offset by strong performance in machinery and retail sales
- Strong performance at our low moisture feed block plant in Tennessee and enhanced presence in Canada as we continue to expand our geographic footprint in North America
- Launch of new product ranges including FesCool® in the USA and Pick Block in Europe
1 Adjusted results are after adding back amortisation of acquired intangible assets and non-recurring items
2 Further details of net debt can be found in note 12
Engineering
- Lower profits due to phasing of contracts in Global Robotics and Global Technical Services
- UK Service and Manufacturing performed well, benefitting from strong order books across key markets
- Global Robotics impacted by certain orders for Japan and China being delayed until FY21, but robust medium term prospects supported by a strong and diverse global pipeline
- Strong order book in Global Technical Services, including the award of a $6.2m MSIP® contract to be delivered into Switzerland during the period
- NW Total, acquired in June 2019, now fully integrated and performing above expectations
Outlook
As reported in our trading update on 12 March 2020, challenges across both divisions, unrelated to COVID-19, led to a reduction in the Board’s expectations for the current financial year. Based on recent activity, and whilst remaining acutely aware of possible interruptions due to COVID-19, the Board still anticipates a full-year outcome broadly in line with those revised expectations.
Tim Davies, Chief Executive Officer, commented:
“In challenging market conditions, with significant headwinds experienced in both divisions, we have delivered a resilient performance in the period.
“While there remains significant uncertainty over the impact of COVID-19, we are moving decisively on all fronts to address these challenges, ensuring we conserve cash and maintain a robust financial position. We will continue to monitor developments closely and respond accordingly. At this time the health, safety and well-being of our employees, customers and the wider communities in which we operate remain our absolute first priority, and we have implemented measures to protect and support them through these unprecedented times.
“We are confident that our approach and robust business model will ensure the Group is well placed to endure this period of uncertainty and continue to deliver growth in the medium term.”
INTERIM MANAGEMENT REPORT
COVID-19
The impact of the COVID-19 pandemic on the Group remains under close and constant review by the Board. To date, we have not seen any material adverse direct impact, but there remains significant global uncertainty. The Group has implemented a range of measures and planned contingencies across both divisions which are designed to minimise the impact of the pandemic.
The health, safety and well-being of our employees and customers is of paramount importance. We are following government guidelines and have implemented rigorous social distancing controls, hygiene measures and shift-working practices across all locations, and our people are working effectively from home where possible.
In Agriculture, measures have been taken to ensure that all of our UK and overseas manufacturing facilities can remain operational, and that our network of UK retail outlets can be used to supply our core ranges of feeds, supplements, animal health products, fuels, machinery, retail products and services to our farming customers, who are critical to the UK’s food supply chain. We are carefully monitoring our stock levels, together with our supply and distribution channels, to ensure that we remain operational.
In Engineering, the majority of our facilities remain operational as we continue to supply products and services in connection with projects of national importance, particularly across the nuclear decommissioning and nuclear defence sectors. Our range of current and future contracts across the division is being closely monitored and we continue to communicate openly with our supply chain partners in order to minimise any potential negative impact.
The Group remains in a strong financial position. Net debt, excluding leases, was £25.4m at the period end (excluding finance leases, H1 2019: £20.5m; FY2019: £20.9m), representing 1.2 times adjusted EBITDA. We also had undrawn facilities at the period end of £22.4m, with our main banking facilities maturing between 2021 and 2023.
As part of its response to the COVID-19 crisis, the Group has ensured it has a rigorous short term weekly and longer-term monthly cash forecasting process in place. These have been stress tested on a number of different, but realistic, scenarios including the temporary closure of several businesses and, predominantly in Agriculture, modelling the impact of delays in debt collections. In each of these scenarios, the Group has sufficient funding in place within its current facilities. Measures have also been taken to restrict capital expenditure, including the deferral of all non-time critical expenditures to the next financial year, and the Board has taken the decision to defer the payment of an interim dividend until the full effects of the pandemic have become clearer. The Group is keeping under review the opportunity to appropriately utilise government assistance schemes where these provide additional flexibility.
We are moving decisively on all fronts to address the challenges presented by COVID-19 and consider the Group to be well placed to endure this period of material uncertainty.
HALF YEAR PERFORMANCE
In challenging market conditions, Carr’s has delivered a resilient performance in the period.
During the 26 weeks ended 29 February 2020 Group revenues were £200.0m, slightly down on the prior year (H1 2019: £206.2m).
Adjusted Group operating profit of £10.3m (H1 2019: £11.9m) was 13.4% behind the prior year, and reported operating profit was 3.8% ahead of the prior year at £11.2m (H1 2019: £10.8m). Adjusted profits are stated before amortisation of acquired intangibles and non-recurring items. The Board considers that this measure better reflects the Group’s underlying performance. The reduction in operating profits is mainly attributable to challenging market conditions and the impact of weather in Agriculture, and contract phasing in Engineering.
Adjusted profit before tax decreased by 16.0% to £9.6m (H1 2019: £11.4m). Reported profit before tax after amortisation and non-recurring items was £10.5m (H1 2019: £10.3m).
Amortisation and non-recurring items were a credit of £0.9m (H1 2019: charge of £1.1m) and related mainly to adjustments to contingent consideration partly offset by amortisation of intangible assets.
On an adjusted basis, earnings per share decreased by 14.9% to 8.0p (H1 2019: 9.4p). Basic earnings per share increased by 12.0% from 8.3p to 9.3p.
AGRICULTURE
Trading during the first half of 2020 was slower than the prior year. Challenging market conditions, which continue to impact farm incomes, and continued unseasonal weather affected both the UK and the USA.
During the period, revenue was down 5.5% to £175.0m (H1 2019: £185.2m). Adjusted operating profit was down 15.5% to £9.0m (H1 2019: £10.7m) and reported operating profit was down 5.8% to £10.0m (H1 2019: £10.6m).
Supplements
Total global feed block sales volumes were broadly in line with the same period last year.
In the UK, feed block and supplement sales were lower than anticipated owing to market pressures and continued unseasonal weather. In the period, we improved procurement and manufacturing processes in order to maximise efficiencies, including realising buying synergies on key raw materials and introducing least cost formulation software at UK manufacturing sites, which helped to partially mitigate the effect of the difficult trading conditions on profitability.
In the USA, our low moisture feed block plant in Shelbyville, Tennessee delivered a good performance. Volumes from the plant grew during the period as we continue to expand our geographic footprint across the eastern and south eastern states. Earlier this year we also launched FesCool® following a period of extensive trials in conjunction with Kansas State University. FesCool® is a new low moisture feed block proven to improve the performance of grazing cattle by reducing the impact of fescue toxicity. Our initial launch of the product has been successful.
We increased our presence in Canada to address the local beef market, appointing key distribution partners, expanding our sales presence and completing product registrations. This market will be serviced out of our existing facility in Belle Fourche, South Dakota ensuring that maximum efficiencies are achieved.
Challenges in the agriculture market have particularly affected Animax, our manufacturer of trace element supplements for livestock, where market pressures coupled with milder weather have led to a temporary reduction in customer demand. During the period we appointed a new commercial sales director in the business and continued to make good progress in automating manufacturing processes.
Feed block sales in our German joint venture business, Crystalyx Products GmbH, were impacted by similar weather conditions experienced in the UK, with volumes down 2% compared to the prior year. During the period we started commercial production at our
new Pick Block plant in Oldenburg, Germany and sales volumes are beginning to grow. Pick Block is an innovative range of products designed to enhance poultry welfare standards.
UK Agriculture
The sustained mild winter and ongoing market pressures have resulted in total compound feed volumes declining by 10% against the previous year. This reduction is in line with the decline seen nationally, which has placed margins under pressure. Volumes in our fuel distribution business were less impacted and were down 6% on last year.
Our retail business performed resiliently during the period with like-for-like sales up 2%. Overall sales increased by 1% against the same period last year following further store rationalisation, largely resulting from the acquisition of Pearson Farm Supplies in 2017. Machinery revenues were marginally ahead of management’s expectations and increased by 20% against the prior year. Last year’s performance was attributable to reduced farmer confidence in the period leading up to the original Brexit date.
ENGINEERING
The Engineering division had a slow start to the financial year due to contract phasing. Adjusted operating profit was down 39.6% at £1.2m (H1 2019: £2.0m); reported operating profit was £1.1m (H1 2019: £1.9m).
As announced in our March trading update, while the Group originally expected the strength of its pipeline to offset this slow start during the second half of the year, delays to certain significant orders into our next financial year means that this is no longer the case.
UK Service and Manufacturing
Our UK Manufacturing business performed well during the period, benefitting from strong order books across each of our chosen markets.
Our most recent acquisition, NW Total, acquired in June 2019, has been fully integrated into the broader Engineering division and is performing well. The business has a strong order book and is well placed to benefit from significant opportunities in nuclear decommissioning and nuclear defence, in particular the UK’s £31 billion Dreadnought submarine programme.
NW Total complements the range of products and services offered across the rest of our Engineering division and is now collaborating with our other engineering businesses on projects in the UK and USA, realising synergies identified in the Board’s acquisition strategy. As previously reported, our new divisional management team has overseen a focus on closer collaboration, including in new business development, where we have aligned our products and services with our customers and markets, and through enhancements in procurement.
Global Robotics
Our Global Robotics business has experienced delays to contract awards, primarily on projects in Japan and China. While this is expected to result in lower levels of activity than anticipated during the second half of the financial year, the medium-term prospects for the Global Robotics business remain robust, supported by a strong and diverse global pipeline.
As part of our investment in new business development, we have recently opened a new showroom in Mooresville, Charlotte to demonstrate our range of robotics equipment, including Wälischmiller products, to customers based in the USA.
Global Technical Services
As previously reported, our Global Technical Services business experienced lower levels of activity during the period, owing to the phasing of several significant multi-year patented MSIP® technology projects. These contracts will mainly benefit H2 2020 and FY2021 and are progressing as planned. In the medium term, the business has a strong order book and opportunity pipeline, including a $6.2m MSIP® contract secured during the period to be delivered into Switzerland in 2021.
Work on our project to develop passive cooling technology, following funding awarded by the US Department of Energy, is progressing well. This technology has the potential to be retrofitted to existing nuclear power plants to reduce the risk of a catastrophic incident.
BALANCE SHEET AND CASHFLOW
Net cash generated from operating activities in the first half was £4.9m (H1 2019: £3.8m). Net debt, excluding leases, rose to £25.4m from £20.9m, excluding finance leases, at the 2019 financial year end. This is primarily related to seasonal working capital increases, the payment of contingent consideration in relation to the acquisition of NuVision, and the payment of dividends. The Group’s defined benefit pension scheme remains in surplus, although that surplus had decreased from £7.8m at 31 August 2019 to £6.6m at 29 February 2020. This was primarily due to market conditions.
During the period, the Group implemented IFRS 16, which has resulted in right-of-use assets of £15.9m and related lease liabilities of £15.2m at 29 February 2020. IFRS 16 has had a minimal impact on profit before tax.
SHAREHOLDERS' EQUITY
Shareholders’ equity at 29 February 2020 was £114.5m (31 August 2019: £114.3m), with the increase primarily due to profit retained by the Group for the period offset by the reduction in the Group’s pension surplus, foreign exchange translation losses and dividends paid.
DIVIDEND
Given the uncertainty associated with the COVID-19 pandemic, and in order to provide the Group with maximum flexibility during these unprecedented times, the Board considers it prudent to defer the payment of an interim dividend until such time as the full effects of the pandemic have become clearer. The position will be revisited at the time of the Group’s trading update expected in July 2020.
PRINCIPAL RISKS AND UNCERTAINTIES
The Group has a process in place to identify and assess the impact of risks on its business, which is reviewed and updated quarterly. The principal risks and uncertainties for the remainder of the financial year are not expected to change materially from those included on pages 31 to 32 of the Annual Report and Accounts 2019 (available on the Company’s website at https://investors.carrsgroup.com) with the exception of the potential impact of COVID-19, further details relating to which are set out above.
OUTLOOK
As reported in our trading update on 12 March 2020, challenges across both divisions, unrelated to COVID-19, led to a reduction in the Board’s expectations for the current financial year. Based on recent activity, and whilst remaining acutely aware of possible interruptions due to COVID-19, the Board still anticipates a full-year outcome broadly in line with those revised expectations.
We continue to monitor the effects of COVID-19 very closely, taking steps where necessary to protect operations and planning contingencies to limit any negative impact on the Group’s performance. The Board is extremely grateful to all colleagues for their commitment, dedication and ingenuity in ensuring that operations continue.
The Board remains confident that the Group is well placed for growth in the longer term.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the 26 weeks ended 29 February 2020
| 26 weeks ended 29 February 2020 (unaudited) | 26 weeks ended 2 March 2019 (unaudited) | 52 weeks ended 31 August 2019 (audited) | ||
| Notes | £’000 | £’000 | £’000 | |
| Continuing operations | ||||
| Revenue | 6,7 | 199,957 | 206,210 | 403,905 |
| Cost of sales | (172,924) | (176,702) | (349,798) | |
| Gross profit | 27,033 | 29,508 | 54,107 | |
| Net operating expenses | (17,685) | (20,885) | (39,289) | |
| Adjusted¹ share of post-tax results of associate and joint ventures | 1,892 | 2,207 | 2,683 | |
| Non-recurring items | 8 | - | - | (306) |
| Share of post-tax results of associate and joint ventures | 1,892 | 2,207 | 2,377 | |
| Adjusted¹ operating profit | 6 | 10,322 | 11,922 | 18,930 |
| Amortisation of acquired intangible assets and non-recurring items | 8 | 918 | (1,092) | (1,735) |
| Operating profit | 6 | 11,240 | 10,830 | 17,195 |
| Finance income | 178 | 226 | 463 | |
| Finance costs | (905) | (722) | (1,349) | |
| Adjusted¹ profit before taxation | 6 | 9,595 | 11,426 | 18,044 |
| Amortisation of acquired intangible assets and non-recurring items | 8 | 918 | (1,092) | (1,735) |
| Profit before taxation | 6 | 10,513 | 10,334 | 16,309 |
| Taxation | (1,382) | (1,884) | (2,685) | |
| Profit for the period | 9,131 | 8,450 | 13,624 | |
| Profit attributable to: | ||||
| Equity shareholders | 8,565 | 7,656 | 12,049 | |
| Non-controlling interests | 566 | 794 | 1,575 | |
| 9,131 | 8,450 | 13,624 | ||
| Earnings per share (pence) | ||||
| Basic | 9 | 9.3 | 8.3 | 13.1 |
| Diluted | 9 | 9.1 | 8.1 | 12.8 |
| Adjusted¹ | 9 | 8.0 | 9.4 | 14.6 |
| Diluted adjusted¹ | 9 | 7.9 | 9.1 | 14.2 |
[1] Adjusted results are after adding back amortisation of acquired intangible assets and non-recurring items
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 26 weeks ended 29 February 2020
| 26 weeks) ended) 29 February 2020 (unaudited) | 26 weeks ended 2 March 2019 (unaudited) | 52 weeks Ended 31 August 2019 (audited) | ||
| Notes | £’000) | £’000) | £’000 | |
| Profit for the period | 9,131 | 8,450 | 13,624 | |
| Other comprehensive (expense)/income | ||||
| Items that may be reclassified subsequently to profit or loss: | ||||
| Foreign exchange translation (losses)/gains arising on translation of overseas subsidiaries | (2,778) | (1,487) | 1,857 | |
| Net investment hedges | 210 | 177 | 37 | |
| Taxation charge on net investment hedges | (40) | (33) | (7) | |
| Items that will not be reclassified subsequently to profit or loss: | ||||
| Actuarial losses on retirement benefit asset: | ||||
| - Group | 14 | (1,187) | (2,640) | (1,845) |
| - Share of associate | - | - | (88) | |
| Taxation credit on actuarial losses on retirement benefit asset: | ||||
| - Group | 202 | 449 | 314 | |
| - Share of associate | - | - | 15 | |
| Other comprehensive (expense)/income for the period, net of tax | (3,593) | (3,534) | 283 | |
| Total comprehensive income for the period | 5,538 | 4,916 | 13,907 | |
| Total comprehensive income attributable to: | ||||
| Equity shareholders | 4,972 | 4,122 | 12,332 | |
| Non-controlling interests | 566 | 794 | 1,575 | |
| 5,538 | 4,916 | 13,907 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 26 weeks ended 29 February 2020
| 26 weeks ended) 29 February 2020) (unaudited) |
26 weeks ended 2 March 2019 (unaudited) |
52 weeks Ended 31 August 2019 (audited) |
||
| Notes | £’000 | £’000 | £’000 | |
| Profit for the period | 9,131 | 8,450 | 13,624 | |
| Other comprehensive (expense)/income | ||||
| Items that may be reclassified subsequently to profit or loss: | ||||
| Foreign exchange translation (losses)/gains arising on translation of overseas subsidiaries |
(2,778) |
(1,487) |
1,857 |
|
| Net investment hedges | 210 | 177 | 37 | |
| Taxation charge on net investment hedges | (40) | (33) | (7) | |
| Items that will not be reclassified subsequently to profit or loss: | ||||
| Actuarial losses on retirement benefit asset: | ||||
| - Group | 14 | (1,187) | (2,640) | (1,845) |
| - Share of associate | - | - | (88) | |
| Taxation credit on actuarial losses on retirement benefit asset: | ||||
| - Group | 202 | 449 | 314 | |
| - Share of associate | - | - | 15 | |
| Other comprehensive (expense)/income for the period, net of tax | (3,593) | (3,534) | 283 | |
| Total comprehensive income for the period | 5,538 | 4,916 | 13,907 | |
| Total comprehensive income attributable to: | ||||
| Equity shareholders | 4,972 | 4,122 | 12,332 | |
| Non-controlling interests | 566 | 794 | 1,575 | |
| 5,538 | 4,916 | 13,907 |
CONDENSED CONSOLIDATED BALANCE SHEET
As at 29 February 2020
| As at 29 February 2020 (unaudited) | As at 2 March 2019 (unaudited) | As at 31 August 2019 (audited) | |||
| Notes | £’000) | £’000 | £’000 | ||
| Non-current assets | |||||
| Goodwill | 11 | 32,070 | 28,138 | 32,877 | |
| Other intangible assets | 11 | 9,315 | 2,737 | 9,318 | |
| Property, plant and equipment | 11 | 36,767 | 40,029 | 41,917 | |
| Right-of-use assets | 11 | 15,870 | - | - | |
| Investment property | 11 | 161 | 167 | 164 | |
| Investment in associate | 13,846 | 13,783 | 13,392 | ||
| Interest in joint ventures | 10,392 | 8,980 | 9,671 | ||
| Other investments | 74 | 74 | 76 | ||
| Financial assets | |||||
| - Non-current receivables | 21 | 20 | 22 | ||
| Retirement benefit asset | 14 | 6,643 | 6,841 | 7,769 | |
| Deferred tax assets | 410 | - | 410 | ||
| 125,569 | 100,769 | 115,616 | |||
| Current assets | |||||
| Inventories | 48,915 | 51,542 | 46,270 | ||
| Contract assets | 8,412 | 6,958 | 9,466 | ||
| Trade and other receivables | 60,537 | 59,553 | 56,349 | ||
| Current tax assets | 328 | 554 | - | ||
| Financial assets | |||||
| - Cash and cash equivalents | 12 | 29,318 | 29,239 | 28,649 | |
| 147,510 | 147,846 | 140,734 | |||
| Total assets | 273,079 | 248,615 | 256,350 | ||
| Current liabilities | |||||
| Financial liabilities | |||||
| - Borrowings | 12 | (26,855) | (28,507) | (23,856) | |
| - Leases | 12 | (2,557) | - | - | |
| Contract liabilities | (2,351) | (441) | (1,269) | ||
| Trade and other payables | (62,520) | (65,020) | (62,653) | ||
| Current tax liabilities | (158) | (1,296) | (1,010) | ||
| (94,441) | (95,264) | (88,788) | |||
| Non-current liabilities | |||||
| Financial liabilities | |||||
| - Borrowings | 12 | (27,896) | (24,012) | (28,586) | |
| - Leases | 12 | (12,666) | - | - | |
| Deferred tax liabilities | (4,634) | (3,737) | (4,987) | ||
| Other non-current liabilities | (2,537) | (2,696) | (2,999) | ||
| (47,733) | (30,445) | (36,572) | |||
| Total liabilities | (142,174) | (125,709) | (125,360) | ||
| Net assets | 130,905 | 122,906 | 130,990 | ||
| Shareholders’ equity | |||||
| Share capital | 15 | 2,312 | 2,298 | 2,299 | |
| Share premium | 15 | 9,165 | 9,149 | 9,165 | |
| Other reserves | 4,379 | 4,411 | 7,922 | ||
| Retained earnings | 98,655 | 90,878 | 94,864 | ||
| Total shareholders’ equity | 114,511 | 106,736 | 114,250 | ||
| Non-controlling interests | 16,394 | 16,170 | 16,740 | ||
| Total equity | 130,905 | 122,906 | 130,990 | ||
The comparative periods presented have not been restated for the adoption of IFRS 16
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 26 weeks ended 29 February 2020
Share Capital | Share Premium | Treasury Share Reserve | Equity Compensation Reserve | Foreign Exchange Reserve | Other Reserve | Retained Earnings) | Total Shareholders’ Equity | Non- Controlling Interests | Total Equity | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000) | £’000) | £’000 | £’000) | ||
| As previously reported | ||||||||||
| at 31 August 2019 (audited) | 2,299 | 9,165 | - | 1,577 | 6,146 | 199 | 94,864 | 114,250 | 16,740 | 130,990 |
| Effect of IFRS 16 adoption | - | - | - | - | - | - | (1,093) | (1,093) | (615) | (1,708) |
| At 1 September 2019 (restated)¹ (unaudited) | 2,299 | 9,165 | - | 1,577 | 6,146 | 199 | 93,771 | 113,157 | 16,125 | 129,282 |
| Profit for the period | - | - | - | - | - | - | 8,565 | 8,565 | 566 | 9,131 |
| Other comprehensive expense | - | - | - | - | (2,608) | - | (985) | (3,593) | - | (3,593) |
| Total comprehensive (expense)/income | - | - | - | - | (2,608) | - | 7,580 | 4,972 | 566 | 5,538 |
| Dividends paid | - | - | - | - | - | - | (3,344) | (3,344) | (294) | (3,638) |
| Equity-settled share based payment transactions | - | - | - | (933) | - | - | 659 | (274) | (3) | (277) |
| Allotment of shares | 13 | - | - | - | - | - | - | 13 | - | 13 |
| Purchase of own shares held in trust | - | - | (13) | - | - | - | - | (13) | - | (13) |
| Transfer | - | - | 12 | - | - | (1) | (11) | - | - | - |
| At 29 February 2020 (unaudited) | 2,312 | 9,165 | (1) | 644 | 3,538 | 198 | 98,655 | 114,511 | 16,394 | 130,905 |
| At 2 September 2018 (audited) | 2,285 | 9,141 | - | 1,427 | 4,259 | 202 | 87,843 | 105,157 | 15,685 | 120,842 |
| Profit for the period | - | - | - | - | - | - | 7,656 | 7,656 | 794 | 8,450 |
| Other comprehensive expense | - | - | - | - | (1,343) | - | (2,191) | (3,534) | - | (3,534) |
| Total comprehensive (expense)/income | - | - | - | - | (1,343) | - | 5,465 | 4,122 | 794 | 4,916 |
| Dividends paid | - | - | - | - | - | - | (3,139) | (3,139) | (343) | (3,482) |
| Equity-settled share based payment transactions | - | - | - | (133) | - | - | 721 | 588 | 34 | 622 |
| Allotment of shares | 13 | 8 | - | - | - | - | - | 21 | - | 21 |
| Purchase of own shares held in trust | - | - | (13) | - | - | - | - | (13) | - | (13) |
| Transfer | - | - | 13 | - | - | (1) | (12) | - | - | - |
| At 2 March 2019 (unaudited) | 2,298 | 9,149 | - | 1,294 | 2,916 | 201 | 90,878 | 106,736 | 16,170 | 122,906 |
| At 2 September 2018 (audited) | 2,285 | 9,141 | - | 1,427 | 4,259 | 202 | 87,843 | 105,157 | 15,685 | 120,842 |
| Profit for the period | - | - | - | - | - | - | 12,049 | 12,049 | 1,575 | 13,624 |
| Other comprehensive income/(expense) | - | - | - | - | 1,887 | - | (1,604) | 283 | - | 283 |
| Total comprehensive income | - | - | - | - | 1,887 | - | 10,445 | 12,332 | 1,575 | 13,907 |
| Dividends paid | - | - | - | - | - | - | (4,173) | (4,173) | (588) | (4,761) |
| Equity-settled share based payment transactions | - | - | - | 53 | - | - | 759 | 812 | 68 | 880 |
| Allotment of shares | 14 | 24 | - | - | - | - | - | 38 | - | 38 |
| Purchase of own shares held in trust | - | - | (13) | - | - | - | - | (13) | - | (13) |
| Reclassified from liabilities | - | - | - | 97 | - | - | - | 97 | - | 97 |
| Transfer | - | - | 13 | - | - | (3) | (10) | - | - | - |
| At 31 August 2019 (audited) | 2,299 | 9,165 | - | 1,577 | 6,146 | 199 | 94,864 | 114,250 | 16,740 | 130,990 |
[1] Restated for the adoption of IFRS 16 (note 19)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the 26 weeks ended 29 February 2020
| 26 weeks ended 29 February 2020 (unaudited) |
26 weeks ended 2 March 2019 (unaudited) |
52 weeks ended 31 August 2019 (audited) |
||
| Notes | £’000) | £’000 | £’000 | |
| Cash flows from operating activities | ||||
| Cash generated from continuing operations | 16 | 7,840 | 5,015 | 16,004 |
| Interest received | 111 | 86 | 178 | |
| Interest paid | (897) | (596) | (1,276) | |
| Tax paid | (2,139) | (734) | (2,306) | |
| Net cash generated from operating activities | 4,915 | 3,771 | 12,600 | |
| Cash flows from investing activities | ||||
| Acquisition of subsidiaries (net of overdraft/cash acquired) | - | (4,717) | (9,868) | |
| Contingent/deferred consideration paid | (1,596) | (155) | (379) | |
| Dividends received from associate and joint ventures | 294 | 343 | 711 | |
| Other loans | 382 | 53 | 79 | |
| Purchase of intangible assets | (845) | (550) | (1,310) | |
| Proceeds from sale of property, plant and equipment | 141 | 362 | 831 | |
| Purchase of property, plant and equipment | (2,569) | (1,851) | (4,471) | |
| Purchase of own shares held in trust | (13) | (13) | (13) | |
| Net cash used in investing activities | (4,206) | (6,528) | (14,420) | |
| Cash flows from financing activities | ||||
| Proceeds from issue of ordinary share capital | 13 | 21 | 38 | |
| New bank loans and movement on RCF | 2,500 | 8,394 | 14,430 | |
| Lease principal repayments | (1,569) | &(641) | (1,278) | |
| Repayment of borrowings | (1,247) | (1,628) | (2,493) | |
| Increase/(decrease) in other borrowings | 114 | 3,766 | (1,352) | |
| Dividends paid to shareholders | (3,344) | (3,139) | (4,173) | |
| Dividends paid to related party | (294) | (343) | (588) | |
| Net cash (used in)/generated from financing activities | (3,827) | 6,430 | 4,584 | |
| Effects of exchange rate changes | (410) | (538) | 526 | |
| Net (decrease)/increase in cash and cash equivalents | (3,528) | 3,135 | 3,290 | |
| Cash and cash equivalents at beginning of the period | 24,295 | 21,005 | 21,005 | |
| Cash and cash equivalents at end of the period | 20,767 | 24,140 | 24,295 | |
| Cash and cash equivalents consist of: | ||||
| Cash and cash equivalents per the balance sheet | 29,318 | 29,239 | 28,649 | |
| Bank overdrafts included in borrowings | (8,551) | (5,099) | (4,354) | |
| 20,767 | 24,140 | 24,295 |
Notes to the Interim Statements
For the 26 weeks ended 29 February 2020
The notes are available in the printable pdf of the results. To download it, please click here