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%
 
Net debt2, excluding leases, of £25.4m (£20.9m net debt at 31 August 2019 excluding finance leases)

 

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 6,7 199,957 206,210403,905
Cost of sales  (172,924)(176,702)(349,798)
     
Gross profit  27,033 29,50854,107
     
Net operating expenses  (17,685) (20,885)(39,289)
     
Adjusted¹ share of post-tax results of associate and joint ventures  1,892 2,2072,683
Non-recurring items 8 - - (306)
Share of post-tax results of associate and joint ventures 1,892 2,2072,377
     
Adjusted¹ operating profit 6 10,322 11,92218,930
Amortisation of acquired intangible assets and non-recurring items 8 918 (1,092)(1,735)
Operating profit 6 11,240 10,83017,195
     
Finance income  178 226463
Finance costs  (905) (722)(1,349)
     
Adjusted¹ profit before taxation 6 9,595 11,42618,044
Amortisation of acquired intangible assets and non-recurring items 8 918 (1,092)(1,735)
Profit before taxation 6 10,513 10,33416,309
     
Taxation  (1,382) (1,884)(2,685)
     
  
Profit for the period 9,131 8,45013,624
  
Profit attributable to:   
Equity shareholders 8,565 7,65612,049
Non-controlling interests 566 7941,575
  
  
  9,131 8,45013,624
  
  
Earnings per share (pence)   
Basic 9 9.3 8.313.1
Diluted 9 9.1 8.112.8
Adjusted¹ 9 8.0 9.414.6
Diluted adjusted¹ 9 7.9 9.114.2
     

[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 9,1318,450 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  21017737
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  202449314
- 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 5,5384,91613,907
     
Total comprehensive income attributable to:
 
  
Equity shareholders 4,9724,12212,332
Non-controlling interests 5667941,575
     
  5,5384,91613,907

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

 

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