TIDMBAG
RNS Number : 5944N
Barr(A.G.) PLC
26 September 2023
IMMEDIATE RELEASE 26 September 2023
A.G. BARR p.l.c.
("A.G. BARR" or "the Group")
A.G. BARR p.l.c., a branded multi-beverage business with a
portfolio of market-leading UK brands, including IRN-BRU, Rubicon,
FUNKIN and Boost
INTERIM RESULTS FOR THE 26 WEEKSED 30 JULY 2023
Strong first half performance - confident of delivering full
year profit in line with recently increased market
expectations.
Financial summary
26 wks to 30 26wks to 31
July 2023 July 2022 Change
Revenue GBP210.4m GBP157.9m 33.2%
------------ ----------- -------
Like-for-like revenue * GBP174.3m GBP157.9m 10.4%
------------ ----------- -------
Reported profit before tax GBP27.8m GBP24.7m 12.6%
------------ ----------- -------
Adjusted profit before tax
*(1) GBP27.0m GBP25.3m 6.7%
------------ ----------- -------
Adjusted operating profit
margin *(1) 12.5% 16.2% (3.7)pp
------------ ----------- -------
Cash and cash equivalents GBP47.3m GBP61.3m (22.8)%
------------ ----------- -------
Basic EPS 18.87p 18.98p (0.6)%
------------ ----------- -------
Interim dividend per share 2.65p 2.50p 6.0%
------------ ----------- -------
Highlights
-- Strong financial performance and significant progress across
strategic priorities - including successfully bringing Boost Drinks
and MOMA Foods into the A.G. Barr Group
-- Increased profit delivered by strong trading across the
Group, with volume growth and market share gains in soft drinks in
particular
-- Acceleration of innovation plans enabling a number of
exciting brand launches across the Group in the second half of the
year
-- Operating margin in line with expectations reflecting the
impact of current lower margin Boost business model
-- EPS down as a result of higher tax rate; excluding this impact, EPS in growth (up 12%)*
-- Strong balance sheet with GBP47.3m of cash and cash
equivalents, reflecting H2 2022/23 acquisitions
-- Interim dividend of 2.65 pence per share representing an increase on the prior year of 6.0%
Roger White, Chief Executive, commented:
"We have made significant financial and strategic progress in
the first half and have exciting plans in place for the balance of
the year to sustain our growth momentum.
We remain confident in delivering a full year profit performance
in line with our recently increased market expectations and are
well positioned to deliver strong shareholder returns for the
long-term."
For more information, please contact :
A.G. BARR 0330 390 3900 Instinctif Partners 020 7457 2020
Roger White, Chief Executive Justine Warren
Stuart Lorimer, Finance Director Matthew Smallwood
___________________________________________________________________
Interim statement
We are pleased to report a strong financial performance in the
first half of the current year and have made significant progress
across our strategic priorities.
Revenue was GBP210.4m representing year on year growth of :
-- 33.2% on a reported revenue basis, including the contribution
from the Boost Drinks business acquired in December 2022
-- 10.4% on a like-for-like* basis
Reported profit before tax in the period increased 12.6% to
GBP27.8m (2022/23 H1 : GBP24.7m) as a result of revenue growth
across the Group, with strong volume growth and market share gains
in soft drinks in particular.
Adjusted profit*(1) in the period was GBP27.0m, an increase of
6.7% on the prior year first half (2022/23 H1 : GBP25.3m).
Adjusted operating profit margin*(1) of 12.5% in the reporting
period (2022/23 H1 : 16.2%) was in line with our expectations,
impacted by persistent cost inflation, alongside the known
near-term impact of the lower margin Boost division. In addition,
we chose not to pass on the full impact of cost inflation to
customers in order to remain focused on offering consumers great
value, affordable brands in an uncertain and challenging economic
environment.
Market context
Soft drinks : The total UK soft drinks market increased in value
by 8.8% across the period, while reported volumes fell by 4.2%.
Sustained price inflation has continued to feature across the
market. Against this backdrop we have gained both value and volume
market share.
(Source : Circana data for the 26 weeks to 29 July 2023)
Cocktails : The value of GB cocktails across the on-trade
continues to grow and is now worth GBP716m. This growth in value
has been driven primarily by inflation, with a slight reduction in
cocktails' overall share of the spirits market. We believe this
reflects current wider economic conditions, and expect on-trade
cocktail consumption to return to growth in the longer term.
Ready to drink (RTD) cocktails in the take home market grew
14.6%, more than four times the rate of the RTD category as a
whole. FUNKIN remains the number one RTD cocktail brand within this
growing sector.
(Source: Nielsen pre-mixed alcoholic drinks total coverage MAT
29/07/2023 ; CGA Q1 2023)
Oat milk : Total dairy milk alternatives grew in value by 1.0%
however within this market the oat milk sub category grew by 12%.
Oat milk is driving category growth and is now the biggest segment,
making up 52% of the dairy milk alternatives category.
MOMA's oat milk sales grew twice as fast as the oat milk
category as a whole.
(Source : Nielsen Top 5 Grocery 52 weeks to 3 June 2023)
Business performance
Trading has been strong across the Group :
Reported revenue Change vs Like for like Change vs
(GBPm) H1 2022/23 revenue* (GBPm) H1 2022/23
(%) (%)
Soft drinks GBP181.9m 38.9% GBP145.8m 11.3%
------------------ ------------ ----------------- ------------
FUNKIN GBP23.3m 2.6% GBP23.3m 2.6%
------------------ ------------ ----------------- ------------
Other GBP5.2m 23.8% GBP5.2m 23.8%
------------------ ------------ ----------------- ------------
Across soft drinks, revenue growth has been driven by volume,
price and mix, alongside effective execution of our sales plans and
successful consumer marketing activity. The IRN-BRU brand grew
revenue by 8% gaining further market share in England and Wales and
the Rubicon brand enjoyed a very strong period with revenue
increasing by 17%. The Boost brand grew by 37% and made excellent
volume progress driven by significant distribution gains.
FUNKIN delivered further UK off-trade growth of 11%, supported
by increased consumer marketing investment and continued exciting
innovation. While cocktail consumption in the on-trade slowed
following last year's post-Covid high, FUNKIN maintained its
position as the UK's Number 1 cocktail brand.
Within the MOMA Foods division, brand and consumer marketing
investment supported significant year on year revenue growth of
24%, as oat milk continued to outperform other plant-based milk
categories.
Having accelerated our innovation plans across the summer, we
have a number of exciting brand launches planned across the Group
in the second half of the year. We are particularly excited to
extend the IRN-BRU brand further with PWR-BRU, a new and
distinctive addition to our portfolio within the high growth energy
category which launched in August.
Cash flow and balance sheet
Net cash from operating activities at GBP15.1m was ahead of the
prior year (2022/23 H1 : GBP11.4m). Our strong profit performance
was partially offset by higher working capital and an increased
corporation tax rate (25% versus 19% in the prior year).
The absolute levels of working capital have increased versus the
prior year through the inclusion of the Boost business, acquired in
December 2022. The increase in overall net working capital
primarily reflects the phasing of trading activity during the
period, with strong revenues achieved in June remaining in
receivables at the balance sheet date and higher inventory levels
reflecting strong production performance but lower, weather
impacted, revenues in July. Our balance sheet management remains
tightly controlled with healthy inventory levels and no significant
unrecoverable trade debt.
Capital expenditure in the first half of the year was GBP6.5m
(2022/23 H1 : GBP7.0m). This reflects the phasing of the capital
investment programme towards the second half of the year. Our asset
refresh programme at our Cumbernauld factory continues on plan and
to budget, with the successful upgrade of the site's primary PET
line completed and successfully commissioned during the period.
Full year capital expenditure is estimated at around GBP15m
(2022/23 : GBP14.6m). In the medium term capital expenditure is
expected to be maintained in the range of GBP15-20m as our
Cumbernauld programme completes and we continue our capacity
expansion plans across the Group to support our growth and access
to benefits from production in-sourcing.
The Group closed the period with cash balances of GBP47.3m
(2022/23 H1 : GBP61.3m), a reduction of GBP14.0m on the prior year
as a result of the Boost and MOMA acquisitions at the end of
2022/23. The closing cash balance was GBP5.6m less than the period
opening position (GBP52.9m) due to the normal funding of dividend,
tax and capital expenditure, alongside the seasonal demands for
working capital during our peak summer trading period.
Earnings per share reduced by 0.6% to 18.87p per share. This was
attributable to the new higher corporation tax rate despite the
increase in ongoing operating profit, the addition of the
contribution from the Boost acquisition and the benefit of
increased finance income from cash on deposit.
Responsibility
We continue to make good progress across our responsibility
agenda. Our journey towards net-zero is progressing, with the
arrival of a number of new lower emission bio-fuelled commercial
vehicles. We have strengthened our charity partnership with Marie
Curie, enjoying high levels of employee engagement and enthusiastic
fundraising support. We are also proud to report that FUNKIN
achieved a further significant milestone in its development,
successfully attaining B Corp status, certifying its high standards
of social and environmental performance.
Board
After over 62 years with the business, Robin Barr stepped down
from the Board in May and we would once again like to recognise the
invaluable role Robin played for over six decades.
The Board welcomed Julie Barr and Louise Smalley, who took up
their Non-Executive Director positions in May and June
respectively.
As communicated on 1 August, Roger White intends to step down
from his role as CEO, and retire from the Group within the next 12
months. The Board has commenced a formal succession process,
including an external search, to ensure a smooth leadership
transition.
Dividend
The Board has declared an interim dividend for the 26 weeks
ended 30 July 2023 of 2.65 pence per share (2022/23 : 2.50 pence)
payable on 27 October 2023 to shareholders on the register on 6
October 2023.
Outlook
In a year of investment across the business, supporting the
Group's long-term revenue and profit growth ambitions, we are
pleased to report we have made significant financial and strategic
progress in line with our plan.
Our medium-term plan to rebuild operating profit margin is
progressing well, supported by brand and portfolio development,
Group manufacturing optimisation and disciplined cost control.
We have strong plans in place across the business for the
balance of the year to support our growth momentum. In August we
communicated our expectation of delivering a full year profit
performance marginally above the top end of analyst consensus.
Despite the extended period of poor weather across the summer, we
remain confident in delivering in line with these revised market
expectations.
Our portfolio of leading brands, clear business strategy,
talented teams and the quality of our infrastructure all ensure we
are well positioned to deliver strong shareholder returns for the
long-term.
Mark Allen Roger White
Chairman Chief Executive
* Items marked with an asterisk are non-GAAP measures.
Definitions and relevant reconciliations are provided at the end of
this announcement
(1) Adjusted profit* and adjusted profit margin* reflect the
release of a GBP0.8m prior year accrual related to two months of
the earn-out associated with the acquisition of Boost Drinks
Limited in December 2022. Certain conditions associated to the
earn-out have not been met and as such the earn-out, agreed at the
time of the acquisition, is now not payable. New incentive
arrangements have been put in place with Simon Gray pursuant to
which a cash bonus of up to GBP3.0m may be earned by him, in the
period to January 2025, subject to certain performance targets
being achieved. This incentive arrangement constitutes a smaller
related party transaction for the purposes of Listing Rule
11.1.10R. As a result, a written confirmation has been obtained by
the Company from its sponsor pursuant to LR 11.1.10R(2)(b) stating
that the terms of the incentive arrangement are fair and reasonable
as far as the Company's shareholders are concerned.
Consolidated Condensed Income Statement
Unaudited Unaudited Audited
Six months Six months Year ended
ended 30 ended 31 29 January
July 2023 July 2022 2023
Note GBPm GBPm GBPm
--------------------------- ---- ---------- ---------- ---------------
Revenue 6 210.4 157.9 317.6
Cost of sales (131.0) (88.5) (189.5)
--------------------------------- ========== ========== ===============
Gross profit 6 79.4 69.4 128.1
Other income - - 1.3
Operating expenses (52.2) (43.9) (84.1)
================================= ========== ========== ===============
Operating profit 8 27.2 25.5 45.3
Finance income 9 0.7 - 0.5
Finance costs 9 (0.1) (0.7) (1.4)
Share of after tax results of
associates - (0.1) -
================================= ========== ========== ===============
Profit before tax 27.8 24.7 44.4
Tax on profit 10 (6.8) (3.8) (10.5)
--------------------------- ---- ========== ========== ===============
Profit for the period 21.0 20.9 33.9
--------------------------------- ========== ========== ===============
Earnings per share (p)
============================================= ========== ===============
Basic earnings per share 11 18.87 18.98 30.47
Diluted earnings per share 11 18.67 18.81 30.22
=========================== ==== ========== ========== ===============
Consolidated Condensed Statement of Financial Position
Unaudited Unaudited Audited
As at As at 29
30 July As at 31 January
2023 July 2022 2023
Note GBPm GBPm GBPm
--------------------------------- ---- --------- ---------- --------
Non-current assets
Intangible assets 115.6 97.9 116.2
Property, plant and equipment 102.2 96.6 102.5
Right-of-use assets 5.2 3.8 5.4
Loans and receivables - 1.5 1.5
Investment in associates - 0.6 0.7
Retirement benefit surplus 3.2 - 2.4
--------------------------------- ---- --------- ---------- --------
226.2 200.4 228.7
--------------------------------------- --------- ---------- --------
Current assets
Inventories 36.0 24.0 34.7
Trade and other receivables 93.9 68.5 60.4
Derivative financial instruments 13 - - 0.1
Current tax assets - 0.6 -
Short-term investments - - 40.0
Cash and cash equivalents 47.3 61.3 13.6
--------------------------------- ---- --------- ---------- --------
177.2 154.4 148.8
--------------------------------------- --------- ---------- --------
Total assets 403.4 354.8 377.5
--------------------------------------- --------- ---------- --------
Current liabilities
Loans and other borrowings 14 - - 0.7
Trade and other payables 90.7 63.5 72.3
Derivative financial instruments 13 0.3 0.2 0.1
Lease liabilities 14 1.6 1.1 1.5
Provisions 0.5 0.9 0.8
Current tax liabilities 0.9 - 0.7
--------------------------------- ---- --------- ---------- --------
94.0 65.7 76.1
--------------------------------------- --------- ---------- --------
Non-current liabilities
Loans and other borrowings 14 - 0.2 -
Deferred tax liabilities 28.8 21.7 28.2
Lease liabilities 14 3.2 2.7 3.6
Put liability - 5.6 -
Contingent consideration - - 0.8
Retirement benefit obligations 15 - 1.2 -
--------------------------------- ---- --------- ---------- --------
32.0 31.4 32.6
--------------------------------------- --------- ---------- --------
Capital and reserves attributable to equity holders
Share capital 4.7 4.7 4.7
Share premium account 0.9 0.9 0.9
Share options reserve 4.0 2.6 3.4
Other reserves (0.1) (5.1) 0.1
Retained earnings 267.9 251.1 259.7
================================= ==== ========= ========== ========
Total shareholder equity 277.4 254.2 268.8
Non-controlling interest in equity - 3.5 -
--------------------------------------- --------- ---------- --------
277.4 257.7 268.8
--------------------------------------- --------- ---------- --------
Total equity and liabilities 403.4 354.8 377.5
--------------------------------------- --------- ---------- --------
Consolidated Condensed Statement of Comprehensive Income
Unaudited Unaudited Audited
Six months Six months Year ended
ended 30 ended 31 29 January
July 2023 July 2022 2023
GBPm GBPm GBPm
===================================== ========== ========== ===========
Profit for the period 21.0 20.9 33.9
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements on defined benefit
pension plans (Note 15) 0.7 (1.9) (1.5)
Deferred tax movements on items
above (0.2) 0.5 0.6
Items that will be or have been reclassified to profit or loss
Cash flow hedges:
(Losses)/gains arising during the
period (0.3) - 0.2
Deferred tax movements on items
above 0.1 - -
===================================== ========== ========== ===========
Other comprehensive income/(expense)
for the period, net of tax 0.3 (1.4) (0.7)
===================================== ========== ========== ===========
Total comprehensive income for
the period 21.3 19.5 33.2
===================================== ========== ========== ===========
Attributable to:
Equity shareholders of the parent
Company 21.3 19.7 33.2
Non-controlling interests - (0.2) -
===================================== ========== ========== ===========
Consolidated Condensed Statement of Changes in Equity (Unaudited)
Share Share
Share premium options Other Retained
capital account reserve reserves earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm
===================================== ======== ======== ======== ========= ========= ======
At 29 January 2023 4.7 0.9 3.4 0.1 259.7 268.8
Profit for the period - - - - 21.0 21.0
Other comprehensive (expense)/income - - - (0.2) 0.5 0.3
------------------------------------- -------- -------- -------- --------- --------- ------
Total comprehensive (expense)/income
for the period - - - (0.2) 21.5 21.3
Company shares purchased for
use by employee benefit trusts
(Note 16) - - - - (2.6) (2.6)
Proceeds on disposal of shares
by employee benefit trusts - - - - 0.8 0.8
Recognition of share-based
payment costs - - 1.0 - - 1.0
Transfer of reserve on share
award - - (0.3) - 0.3 -
Deferred tax on items taken
directly to reserves - - (0.1) - - (0.1)
Dividends paid - - - - (11.8) (11.8)
------------------------------------- -------- -------- -------- --------- --------- ------
At 30 July 2023 4.7 0.9 4.0 (0.1) 267.9 277.4
------------------------------------- -------- -------- -------- --------- --------- ------
Consolidated Condensed Statement of Changes in Equity (Unaudited)
Share Share
Share premium options Other Retained Non-controlling
capital account reserve reserves earnings Total interests Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
====================== ======== ======== ======== ========= ========= ====== =============== ======
At 30 January
2022 4.7 0.9 1.6 (5.1) 242.4 244.5 3.7 248.2
Profit for the
period - - - - 21.1 21.1 (0.2) 20.9
Other comprehensive
expense - - - - (1.4) (1.4) - (1.4)
---------------------- -------- -------- -------- --------- --------- ------ --------------- ------
Total comprehensive
income/(expense)
for the period - - - - 19.7 19.7 (0.2) 19.5
Recognition of
share-based payment
costs - - 1.0 - - 1.0 - 1.0
Transfer of reserve
on share award - - (0.1) - 0.1 - - -
Deferred tax on
items taken directly
to reserves - - 0.1 - - 0.1 - 0.1
Dividends paid - - - - (11.1) (11.1) - (11.1)
====================== -------- -------- -------- --------- --------- ------ --------------- ------
At 31 July 2022 4.7 0.9 2.6 (5.1) 251.1 254.2 3.5 257.7
---------------------- -------- -------- -------- --------- --------- ------ --------------- ------
Consolidated Condensed Statement of Changes in Equity (Audited)
Share Share
Share premium options Other Retained Non-controlling
capital account reserve reserves earnings Total interests Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
===================== ======== ======== ======== ========= ========= ====== =============== ======
As at 30 January
2022 4.7 0.9 1.6 (5.1) 242.4 244.5 3.7 248.2
Profit for the
year - - - - 33.9 33.9 - 33.9
Other comprehensive
income/(expense) - - - 0.2 (0.9) (0.7) - (0.7)
--------------------- -------- -------- -------- --------- --------- ------ --------------- ------
Total comprehensive
income for the
year - - - 0.2 33.0 33.2 - 33.2
Company shares
purchased for use
by employee benefit
trusts (Note 16) - - - - (0.7) (0.7) - (0.7)
Recognition of
share-based payment
costs - - 2.0 - - 2.0 - 2.0
Transfer of reserve
on share award - - (0.2) - 0.2 - - -
Derecognition of
put liability - - - 1.3 (1.3) - - -
Recognition of
non-controlling
interests - - - 3.7 - 3.7 (3.7) -
Dividends paid - - - - (13.9) (13.9) - (13.9)
--------------------- -------- -------- -------- --------- --------- ------ --------------- ------
At 29 January 2023 4.7 0.9 3.4 0.1 259.7 268.8 - 268.8
--------------------- -------- -------- -------- --------- --------- ------ --------------- ------
Consolidated Condensed Cash Flow Statement
Unaudited Unaudited Audited
Six months ended 30 July Six months ended 31 July 2022 Year ended 29 January 2023
2023
GBPm GBPm GBPm
============================= ============================ ============================= ==========================
Operating activities
Profit for the period before
tax 27.8 24.7 44.4
Adjustments for:
Interest and dividends
receivable (0.7) - (0.5)
Interest payable 0.1 0.7 1.4
Impairment of investment in
associate 0.7 - -
Write off of loans and
receivables 1.5 - -
Contingent consideration (0.8) - 0.8
Revaluation of put liability - - (2.7)
Depreciation of property,
plant and equipment 5.4 4.9 9.8
Amortisation of intangible
assets 0.6 0.7 1.2
Share-based payment costs 1.0 1.0 2.0
Loss/(gain) on sale of fixed
assets 0.1 (0.2) (1.0)
Share of results of
associates - 0.1 -
============================= ============================ ============================= ==========================
Operating cash flows before
movements in working capital 35.7 31.9 55.4
(Increase)/decrease in
inventories (1.3) 0.2 (4.5)
Increase in receivables (33.5) (24.2) (7.6)
Increase in payables 20.4 8.6 4.3
Difference between employer
pension contributions and
amounts recognised in the
income statement - (1.7) (4.9)
----------------------------- ---------------------------- ----------------------------- --------------------------
Cash generated by operations 21.3 14.8 42.7
Tax paid (6.2) (3.4) (6.8)
----------------------------- ---------------------------- ----------------------------- --------------------------
Net cash from operating
activities 15.1 11.4 35.9
Investing activities
Acquisition of subsidiary
(net of cash acquired) - - (18.6)
Purchase of property, plant
and equipment (6.5) (7.0) (14.6)
Proceeds on sale of property,
plant and equipment - 0.2 1.6
Funds placed on fixed term
deposit (25.0) - (40.0)
Funds returned from fixed
term deposit 65.0 - -
Interest received 1.1 - 0.1
============================= ============================ ============================= ==========================
Net cash used in investing
activities 34.6 (6.8) (71.5)
Financing activities
Acquisition of minority
interest - - (3.4)
Loans received 5.0 - -
Loans repaid (5.7) (0.1) (0.3)
Lease payments (1.0) (0.8) (1.7)
Purchase of Company shares by
employee benefit trusts (2.6) - (0.7)
Proceeds from disposal of
Company shares by employee
benefit trusts 0.8 - -
Dividends paid (11.8) (11.1) (13.9)
Interest paid - - (0.2)
----------------------------- ============================ ----------------------------- --------------------------
Net cash used in financing
activities (15.3) (12.0) (20.2)
Net increase/(decrease) in
cash and cash equivalents 34.4 (7.4) (55.8)
----------------------------- ---------------------------- ----------------------------- --------------------------
Cash and cash equivalents at
beginning of period 12.9 68.7 68.7
============================= ============================ ============================= ==========================
Cash and cash equivalents at
end of period 47.3 61.3 12.9
----------------------------- ---------------------------- ----------------------------- --------------------------
Cash and cash equivalents per the cash flow statement comprises cash and cash equivalents
per the statement of financial position of GBP13.6m, net of bank overdrafts of GBP0.7m for
the year ended 29 January 2023.
Notes to the Consolidated Condensed Financial Statements
1. General information
A.G. BARR p.l.c. (the "Company") and its subsidiaries (together
the "Group") manufacture, distribute and sell a range of beverages.
The Group has manufacturing sites in the UK and sells mainly to
customers in the UK with some international sales.
The Company is a public limited company, which is listed on the
London Stock Exchange and incorporated and domiciled in Scotland.
The address of its registered office is Westfield House, 4 Mollins
Road, Cumbernauld, G68 9HD.
This consolidated condensed interim financial information does
not comprise statutory accounts within the meaning of section 434
of the Companies Act 2006. Statutory accounts for the year ended 29
January 2023 were approved by the Board of Directors on 28 March
2023 and delivered to the Registrar of Companies. The comparative
figures for the financial year ended 29 January 2023 are an extract
of the Company's statutory accounts for that year. The report of
the auditor on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under section 498 (2) or (3) of the Companies Act 2006.
This consolidated condensed interim financial information is
unaudited but has been reviewed by the Company's Auditor.
2. Basis of preparation
This consolidated condensed interim financial information for
the 26 weeks ended 30 July 2023 has been prepared in accordance
with UK-adopted International Accounting Standard 34, 'Interim
Financial Reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct
Authority. The interim report does not include all of the notes of
the type normally included in an annual financial report.
Accordingly, this report is to be read in conjunction with the
annual report for the year ended 29 January 2023, which has been
prepared in accordance with UK-adopted international accounting
standards and with the requirements of the Companies Act 2006.
Going concern basis
The directors have adopted the going concern basis in preparing
these accounts after assessing the principal risks.
This assessment was undertaken through modelling a number of
severe but plausible downside scenarios that could impact the
business (both individually and cumulatively) over the period until
January 2027. These scenarios include a major brand issue which
impacts reputation and consumer purchasing, a cyber attack and a
global pandemic. In each scenario the Group continues to be cash
generative throughout the forecast horizon, resulting in our
liquidity headroom being maintained.
Our experience through the Covid-19 pandemic has given us
confidence that the Group can remain profitable and cash generative
through prolonged disruption.
The most significant potential financial impact would be due to
a significant reduction in sales. The revenue and operational
leverage impact of such a volume loss would have a negative impact
on Group profitability, however the scenario modelling would
indicate that the Group would remain profitable over the next 12
months and we would anticipate a recovery in the following
years.
The Group has GBP20m of committed and unutilised revolving
credit facility providing the business with a secure funding
platform. The facility expires in February 2026. Throughout these
severe but plausible downside scenarios, the Group continues to
have significant liquidity headroom on existing facilities and
against the revolving credit facilities financial covenants.
The directors believe that the Group is well placed to manage
its financing and other business risks satisfactorily, and have a
reasonable expectation that the Group and parent Company will have
adequate resources to continue in operation for at least 12 months
from the signing date of these condensed consolidated financial
statements. They therefore consider it appropriate to adopt the
going concern basis of accounting in preparing these financial
statements.
3. Accounting policies
New standards and interpretations applied for the first time
In the current year, the Group has applied a number of
amendments to IFRS Accounting Standards issued by the International
Accounting Standards Board (IASB) and endorsed for use in the UK
which are mandatorily effective for accounting periods beginning on
or after 30 January 2023. Apart from those changes to accounting
policies noted below, the accounting policies applied in these
condensed interim financial statements are the same as those
applied in the most recent annual report for the year ended 29
January 2023. There has been no material impact on the amounts
reported or disclosures required in these condensed interim
financial statements.
- IAS 12 Income Taxes - International Tax Reform - Pillar Two
Model Rules
- IFRS 17 Insurance Contracts
- Amendments to IAS 12 Income Taxes - Deferred Tax related to
Assets and Liabilities arising from a Single Transaction
- Amendments to IAS 1 Presentation of Financial Statements and
IFRS Practice Statement 2 Making Materiality Judgements -
Disclosure of Accounting Policies
- Amendments to IAS 8 Accounting Policy, Changes in Accounting
Estimates and Errors - Definition of Accounting Estimates
4. Principal risks and uncertainties
The directors consider that the following principal risks and
uncertainties could have a material impact on the Group's
performance in the balance of the financial year. Further detail
can be found on pages 62 - 69 of the Group's annual financial
statements as at 29 January 2023, which are available on our
website, www.agbarr.co.uk.
- Changes in consumer preferences, perception or purchasing
behaviour
- Consumer rejection of reformulated products
- Loss of product integrity
- Loss of continuity of supply of major raw materials
- Adverse publicity in relation to the soft drinks industry, the
Group or its brands
- Government intervention on climate change and environmental
issues e.g. packaging waste
- Failure to maintain customer relationships or take account of
changing market dynamics
- Inability to protect the Group's intellectual property
rights
- Failure of the Group's operational infrastructure
- Failure of critical IT systems or a breach of cyber
security
- Financial risks
- Environmental Social and Governance (ESG) risks
- Cost inflation
The Group has reviewed its exposure to climate-related and other
emerging business risks but has not identified any specific risks
that would impact the financial performance or position of the
Group at 30 July 2023.
5. Financial risk management and financial instruments
The Group's activities expose it to a variety of financial
risks: market risk (including foreign exchange risk, cash flow and
fair value interest rate risk and price risk), credit risk and
liquidity risk.
The condensed interim financial statements should be read in
conjunction with the Group's annual financial statements as at 29
January 2023 as they do not include all financial risk management
information and disclosures contained within the annual financial
statements. There have been no changes in the risk management
policies since the year end.
6. Segment reporting
The Board and senior executives have been identified as the Group's chief operating decision-makers,
who review the Group's internal reporting in order to assess performance and allocate resources.
The performance of the operating segments is assessed by reference to their gross profit.
Unaudited
Six months ended 30 July 2023
Cocktail
Soft drinks solutions Other Total
GBPm GBPm GBPm GBPm
--------------------------- ---------------------- ---------------------------------- --------- ---------
Total revenue 181.9 23.3 5.2 210.4
Gross profit 69.9 7.9 1.6 79.4
=========================== ====================== ================================== ========= =========
Unaudited
Six months ended 31 July 2022
Soft drinks Cocktail solutions Other Total
GBPm GBPm GBPm GBPm
--------------------------- ---------------------- ---------------------------------- --------- ---------
Total revenue 131.0 22.7 4.2 157.9
Gross profit 58.9 9.1 1.4 69.4
=========================== ====================== ================================== ========= =========
Audited
Year ended 29 January 2023
Soft drinks Cocktail solutions Other Total
GBPm GBPm GBPm GBPm
--------------------------- ---------------------- ---------------------------------- --------- ---------
Total revenue 266.6 42.8 8.2 317.6
Gross profit 109.6 16.2 2.3 128.1
=========================== ====================== ================================== ========= =========
There are no material intersegment sales. All revenue is in relation to product sales, which
is recognised at point in time, upon delivery to the customer.
All of the assets and liabilities of the Group are managed on a central basis rather than
at a segment level. As a result no reconciliations of segment assets and liabilities to the
consolidated condensed statement of financial position has been disclosed for any of the periods
presented.
Included in revenues arising from the above segments are revenues of approximately GBP37.5m
which arose from sales to the Group's largest customer. In the year ended 29 January 2023
and six months ended 31 July 2022, revenues of approximately GBP60.3m and GBP30.5m respectively
arose from sales to the Group's largest customer. No other single customers contributed 10
per cent or more to the Group's revenue in the comparative period to July 2022 or January
2023.
All of the segments included within "Soft drinks" and "Cocktail solutions" meet the aggregation
criteria set out in IFRS 8 Operating Segments.
7. Seasonality of operations
Revenues and reported profits are affected by weather conditions, cost inflation, the timing
of marketing and promotional investment and innovation launches. It is anticipated that the
reported profits for the second half of the year to 28 January 2024 will be lower than those
for the 26 weeks ended 30 July 2023.
8. Operating profit
The following items have been charged/(credited) to operating profit during the period:
Unaudited Unaudited Audited
Six months ended Six months Year ended
30 July 2023 ended 31 July 29 January
2022 2023
GBPm GBPm GBPm
------------------------------------------ --------------------- ----------------- --------------
Loss/(gain) on sale of property,
plant and equipment 0.1 (0.2) (1.3)
Impairment of inventories 0.4 0.1 0.2
========================================== ===================== ================= ==============
Inventories are stated at the lower of cost and net realisable value. Net realisable value
is the estimated selling price in the ordinary course of business less the estimated costs
of completing production and selling expenses.
9. Net finance costs
Unaudited Unaudited Audited
Six months Six months Year ended
ended 30 July ended 31 July 29 January
2023 2022 2023
Finance income GBPm GBPm GBPm
================================== ============== ============== ===========
Interest receivable on short-term
deposits 0.6 - 0.5
Finance costs relating to
defined benefit pension plans 0.1 - -
================================== ============== ============== ===========
0.7 - 0.5
================================== ============== ============== ===========
Finance costs GBPm GBPm GBPm
================================== ============== ============== ===========
Interest payable - (0.1) (0.2)
Lease interest (0.1) - (0.1)
Unwind of discount - (0.6) (1.1)
================================== ============== ============== ===========
(0.1) (0.7) (1.4)
================================== ============== ============== ===========
10. Tax on profit
The interim period total tax charge of GBP6.8m (six months ended 31 July 2022: GBP3.8m; year
ended 29 January 2023: GBP10.5m) is accrued based on the estimated annual effective tax rate
of 24.5% (six months ended 31 July 2022: 15.4%; year ended 29 January 2023: 23.6%). The effective
tax rate is calculated using the forecast year end effective corporation tax rate and the
movement in deferred tax to 30 July 2023. The effective tax rate has increased in the six
months ended 30 July 2023 primarily due to a change in the anticipated level of capital allowances
available.
Unaudited Unaudited Audited
Six months Six months ended Year ended
ended 30 July 31 July 2022 29 January
2023 2023
Analysis of tax charge GBPm GBPm GBPm
----------------------------------------- -------------------- ----------------------- ----------------
Current income tax charge 6.4 3.2 7.7
Deferred income tax charge 0.4 0.6 2.8
========================================= ==================== ======================= ================
Total tax charge in the
condensed income statement 6.8 3.8 10.5
----------------------------------------- -------------------- ----------------------- ----------------
11. Earnings per share
Basic earnings per share has been calculated by dividing the earnings attributable to equity
holders of the parent by the weighted average number of shares in issue during the year, excluding
shares held by the employee share scheme trusts.
Unaudited Unaudited Audited
Six months
ended 30 July Six months ended Year ended 29
2023 31 July 2022 January 2023
===================================== ===================== ======================= ===================
Profit attributable
to equity holders
of the Company (GBPm) 21.0 21.1 33.9
Weighted average number
of ordinary shares
in issue 111,288,517 111,192,917 111,258,209
------------------------------------- --------------------- ----------------------- -------------------
Basic earnings per
share (pence) 18.87 18.98 30.47
------------------------------------- --------------------- ----------------------- -------------------
For diluted earnings per share, the weighted average number of ordinary shares in issue is
adjusted to assume conversion of all potentially dilutive ordinary shares. These represent
share options granted to employees where the exercise price is less than the average market
price of the Company's ordinary shares during the period. The number of shares calculated
as above is compared with the number of shares that would have been issued assuming the exercise
of the share options.
Unaudited Unaudited Audited
Six months
ended 30 July Six months ended Year ended 29
2023 31 July 2022 January 2023
===================================== ===================== ======================= ===================
Profit attributable
to equity holders
of the Company (GBPm) 21.0 21.1 33.9
Weighted average number
of ordinary shares
in issue 111,288,517 111,192,917 111,258,209
Adjustment for dilutive
effect of share options 1,193,573 998,620 920,512
------------------------------------- --------------------- ----------------------- -------------------
Diluted weighted average
number of ordinary
shares in issue 112,482,090 112,191,537 112,178,721
------------------------------------- --------------------- ----------------------- -------------------
Diluted earnings
per share (pence) 18.67 18.81 30.22
------------------------------------- --------------------- ----------------------- -------------------
12. Dividends
Six months Six months Six months
ended ended Year ended Six months ended Year ended
30 July 31 July 29 January ended 30 31 July 29 January
2023 2022 2023 July 2023 2022 2023
per share per share per share
(p) (p) (p) GBPm GBPm GBPm
---------------------- ---------- ---------- ----------- ---------- ---------- -----------
Paid final dividend 10.60 10.00 10.00 11.8 11.1 11.1
Paid interim dividend - - 2.50 - - 2.8
---------------------- ========== ========== =========== ========== ========== ===========
10.60 10.00 12.50 11.8 11.1 13.9
---------------------- ========== ========== =========== ========== ========== ===========
An interim dividend of 2.65 pence per share was approved by the
Board on 26 September 2023 and will be paid on 27 October 2023 to
shareholders on the register as at 6 October 2023.
13. Financial instruments
Current assets of GBPnil (at 31 July 2022: GBPnil; 29 January
2023: GBP0.1m) relate to forward foreign currency contracts with a
maturity of less than 12 months and are recognised at fair value
through the cash flow hedge reserve, included within other
reserves.
Current liabilities of GBP0.3m (at 31 July 2022: GBP0.2m; 29
January 2023: GBP0.1m) relate to forward foreign currency contracts
with a maturity of less than 12 months and are recognised at fair
value through the cash flow hedge reserve, included within other
reserves.
Fair value hierarchy
Fair value hierarchies 1 to 3 are based on the degree to which
fair value is observable:
Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based on
observable market data
The fair value of financial instruments that are not traded in
an active market (for example, over-the-counter derivatives) is
determined by using valuation techniques. These valuation
techniques maximise the use of observable market data where it is
available and rely as little as possible on entity specific
estimates. The fair value of the forward foreign exchange contracts
is determined using forward exchange rates at the date of the
consolidated condensed statement of financial position, with the
resulting value discounted accordingly as relevant.
All financial instruments carried at fair value are Level 2.
Fair values of financial assets and financial liabilities
The following table shows the carrying amounts and fair values
of financial assets and financial liabilities. It does not include
fair value information for financial assets and financial
liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value.
Carrying amount
========================== ----------------------------------------------------------
Other financial
Fair value Other financial liabilities
- hedging assets at amortised at amortised
Unaudited instruments cost cost Total
As at 30 July 2023 GBPm GBPm GBPm GBPm
-------------------------- ------------ -------------------- --------------- -----
Financial assets - Current
Trade receivables - 93.9 - 93.9
Cash and cash equivalents - 47.3 - 47.3
-------------------------- ------------ -------------------- --------------- -----
- 141.2 - 141.2
-------------------------- ------------ -------------------- --------------- -----
Financial liabilities - Non-current
Lease liabilities - - 3.2 3.2
-------------------------- ------------ -------------------- --------------- -----
- - 3.2 3.2
-------------------------- ------------ -------------------- --------------- -----
Financial liabilities - Current
Foreign exchange
contracts used for
hedging 0.3 - - 0.3
Lease liabilities - - 1.6 1.6
Trade payables - - 90.7 90.7
-------------------------- ------------ -------------------- --------------- -----
0.3 - 92.3 92.6
-------------------------- ------------ -------------------- --------------- -----
Carrying amount
=============================== ---------------------------------------------------------------
Other financial Other financial
assets at liabilities
Fair value amortised at amortised
Unaudited - hedging instruments cost cost Total
As at 31 July 2022 GBPm GBPm GBPm GBPm
------------------------------- ---------------------- --------------- --------------- -----
Financial assets - Non-current
Loan receivable - 0.5 - 0.5
Loan receivable from associate - 1.0 - 1.0
------------------------------- ---------------------- --------------- --------------- -----
- 1.5 - 1.5
------------------------------- ---------------------- --------------- --------------- -----
Financial assets - Current
Trade receivables - 68.5 - 68.5
Cash and cash equivalents - 61.3 - 61.3
------------------------------- ---------------------- --------------- --------------- -----
- 129.8 - 129.8
------------------------------- ---------------------- --------------- --------------- -----
Financial liabilities - Non-current
Bank borrowings - - 0.2 0.2
Lease liabilities - - 2.7 2.7
------------------------------- ---------------------- --------------- --------------- -----
- - 2.9 2.9
------------------------------- ---------------------- --------------- --------------- -----
Financial liabilities - Current
Foreign exchange contracts
used for hedging 0.2 - - 0.2
Lease liabilities - - 1.1 1.1
Trade payables - - 63.5 63.5
------------------------------- ---------------------- --------------- --------------- -----
0.2 - 64.6 64.8
------------------------------- ---------------------- --------------- --------------- -----
Carrying amount
============================ ----------------------------------------------------------------------------
Other financial
liabilities
Other financial at fair Other financial
Fair value assets at value through liabilities
- hedging amortised profit and at amortised
Audited instruments cost loss cost Total
As at 29 January
2023 GBPm GBPm GBPm GBPm GBPm
---------------------------- ------------- ---------------- ---------------- ---------------- ---------
Financial assets - Non-current
Loan receivable - 0.5 - - 0.5
Loan receivable
from associate - 1.0 - - 1.0
---------------------------- ------------- ---------------- ---------------- ---------------- ---------
- 1.5 - - 1.5
---------------------------- ------------- ---------------- ---------------- ---------------- ---------
Financial assets - Current
Foreign exchange
contracts used for
hedging 0.1 - - - 0.1
Trade receivables - 55.8 - - 55.8
Short-term investments - 40.0 - - 40.0
Cash and cash equivalents - 13.6 - - 13.6
---------------------------- ------------- ---------------- ---------------- ---------------- ---------
0.1 109.4 - - 109.5
---------------------------- ------------- ---------------- ---------------- ---------------- ---------
Financial liabilities - Non-current
Contingent consideration - - 0.8 - 0.8
Lease liabilities - - - 3.6 3.6
---------------------------- ------------- ---------------- ---------------- ---------------- ---------
- - 0.8 3.6 4.4
---------------------------- ------------- ---------------- ---------------- ---------------- ---------
Financial liabilities - Current
Bank borrowings - - - 0.7 0.7
Foreign exchange
contracts used for
hedging 0.1 - - - 0.1
Lease liabilities - - - 1.5 1.5
Accruals - - - 27.2 27.2
Trade payables - - - 37.2 37.2
---------------------------- ------------- ---------------- ---------------- ---------------- ---------
0.1 - - 66.6 66.7
---------------------------- ------------- ---------------- ---------------- ---------------- ---------
The loans receivable balances at 29 January 2023 were reviewed during the period to 30 July
2023 and it was assessed that there was no reasonable expectation of recovery and the balances
were written off.
14. Loans and other borrowings
Movements in borrowings are analysed as follows:
Unaudited Unaudited Audited
Six months Six months Year ended
ended 30 July ended 31 29 January
2023 July 2022 2023
GBPm GBPm GBPm
------------------------------------------ -------------------- ------------- ------------------
Opening borrowings balance 5.8 4.4 4.4
Net lease movements (0.3) (0.3) 1.0
Borrowings made 5.0 - 0.7
Bank overdraft/loans repaid (5.7) (0.1) (0.3)
------------------------------------------ -------------------- ------------- ------------------
Closing borrowings balance 4.8 4.0 5.8
------------------------------------------ -------------------- ------------- ------------------
The reconciliation of the above closing borrowings balance to the figures on the face of the
consolidated condensed statement of financial position is as follows:
Unaudited Unaudited Audited
As at 30 As at 31 As at 29
July 2023 July 2022 January 2023
GBPm GBPm GBPm
------------------------------------------ -------------------- ------------- ------------------
Bank borrowings - 0.2 0.7
Lease liabilities 4.8 3.8 5.1
------------------------------------------ -------------------- ------------- ------------------
Total borrowings and loans 4.8 4.0 5.8
------------------------------------------ -------------------- ------------- ------------------
Disclosed as:
Current liabilities 1.6 1.1 2.2
Non-current liabilities 3.2 2.9 3.6
========================================== ==================== ============= ==================
The reconciliation to net debt is as follows:
Unaudited Unaudited Audited
As at 30 As at 31 As at 29
July 2023 July 2022 January 2023
GBPm GBPm GBPm
========================================== -------------------- ------------- ------------------
Closing borrowings balance (4.8) (4.0) (5.8)
Short-term investments - - 40.0
Cash and cash equivalents 47.3 61.3 13.6
------------------------------------------ -------------------- ------------- ------------------
Net funds 42.5 57.3 47.8
------------------------------------------ -------------------- ------------- ------------------
The drawn/undrawn facilities at 30 July 2023 are as follows:
Total facility Drawn Undrawn
GBPm GBPm GBPm
------------------------------------------ -------------------- ------------- ------------------
Revolving credit facility -
five years, expires February
2026 20.0 - 20.0
Overdraft 1.5 - 1.5
------------------------------------------ -------------------- ------------- ------------------
21.5 - 21.5
------------------------------------------ -------------------- ------------- ------------------
15. Retirement benefit obligations
On 1 May 2016 the A.G. BARR p.l.c. (2008) Pension and Life Assurance Scheme was closed to
future accrual following a negotiated agreement between the Company and the board of trustees.
The defined retirement benefit scheme had a surplus of GBP3.2m as at 30 July 2023 (deficit
as at 31 July 2022: GBP1.2m; surplus as at 29 January 2023: GBP2.4m). The reconciliation of
the closing surplus/(deficit) is as follows:
Unaudited Unaudited Audited
Six months Six months Year ended
ended 30 ended 31 29 January
July 2023 July 2022 2023
GBPm GBPm GBPm
=================================================== -------------- -------------- -----------------
Opening present value of obligation (76.9) (114.9) (114.9)
Current service cost - --
Interest cost (1.6) (1.2) (2.4)
Remeasurement - changes in financial
assumptions 6.2 20.6 35.6
Benefits paid 1.9 2.5 4.8
--------------------------------------------------- ============== ============== =================
Closing present value of obligation (70.4) (93.0) (76.9)
--------------------------------------------------- ============== ============== =================
Opening fair value of plan assets 79.3 113.9 113.9
Interest income 1.7 1.2 2.4
Remeasurement - actuarial return
on assets (5.5) (22.5) (37.1)
Employer contributions - 1.7 4.9
Benefits paid (1.9) (2.5) (4.8)
--------------------------------------------------- ============== ============== =================
Closing fair value of plan assets 73.6 91.8 79.3
--------------------------------------------------- ============== ============== =================
As at 30 As at 31 As at 29
July 2023 July 2022 January 2023
GBPm GBPm GBPm
=================================================== -------------- -------------- -----------------
Present value of funded obligations (70.4) (93.0) (76.9)
Fair value of plan assets 73.6 91.8 79.3
--------------------------------------------------- ============== ============== =================
Surplus/(deficit) recognised
under IAS 19 3.2 (1.2) 2.4
--------------------------------------------------- ============== ============== =================
The key financial assumptions used to value the liabilities were as follows:
As at 30 As at 31 As at 29
July 2023 July 2022 January 2023
% %%
--------------------------------------------------- -------------- -------------- ----------------
Discount rate 5.2 3.5 4.4
Inflation assumption 3.2 3.2 3.2
--------------------------------------------------- -------------- -------------- -----------------
16. Movements in own shares held by employee benefit trusts
During the six months to 30 July 2023 the employee benefit
trusts of the Group acquired 520,218 (six months to 31 July 2022:
20,613; year to 29 January 2023: 141,890) of the Company's shares.
The total amount paid to acquire the shares has been deducted from
shareholders' equity and is included within retained earnings. At
30 July 2023 the shares held by the Company's employee benefit
trusts represented 1,187,730 (31 July 2022: 787,283; 29 January
2023: 887,553) shares at a purchased cost of GBP6.6m (31 July 2022:
GBP4.7m; 29 January 2023: GBP5.2m).
220,041 (six months to 31 July 2022: 16,203; year to 29 January
2023: 37,210) shares were utilised in satisfying share options from
the Company's employee share schemes during the same period. The
related weighted average share price at the time of exercise for
the six months to 30 July 2023 was GBP4.66 (six months to 31 July
2022: GBP5.30; year to 29 January 2023: GBP4.69)
17. Contingencies and commitments
Unaudited Unaudited Audited
As at 30 July 2023 As at 31 July 2022 As at 29 January 2023
GBPm GBPm GBPm
------------------------------------------------------- ------------------ ------------------ ---------------------
Commitments for the acquisition of property, plant and
equipment 7.7 21.9 8.7
------------------------------------------------------- ------------------ ------------------ ---------------------
18. Related party transactions
There have been no related party transactions in the first 26
weeks of the current financial year which have materially affected
the financial position or performance of the Group.
RESPONSIBILITY AND CAUTIONARY STATEMENTS
Responsibility Statement
Company law required the directors to prepare statements for
each financial year. Under that law the directors are required to
prepare group financial statements in accordance with international
accounting standards in conformity with the requirements of the
Companies Act 2006 and UK-adopted International Financial Reporting
Standards.
The directors confirm that these consolidated condensed interim
financial statements have been prepared in accordance with
International Accounting Standard 34 Interim Financial Reporting.
The interim management report 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 condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
-- material related party transactions in the first six months
and any material changes in the related party transactions
described in the last annual report.
Cautionary Statement
This report is addressed to the shareholders of A.G. BARR p.l.c.
and has been prepared solely to provide information to them.
This report is intended to inform the shareholders of the
Group's performance during the six months to 30 July 2023. This
report contains forward-looking statements based on knowledge and
information available to the directors as at the date the report
was prepared. These statements should be treated with caution due
to the inherent uncertainties underlying any such forward-looking
information and any statements about the future outlook may be
influenced by factors that could cause actual outcomes and results
to be materially different.
The directors of A.G. BARR p.l.c. that served during the six
months to 30 July 2023 and up to the date of signing, and their
respective responsibilities, were:
Mark Allen OBE (Chair)
Roger A. White (Chief Executive)
Stuart Lorimer (Finance Director)
Jonathan D. Kemp (Commercial Director)
W. Robin G. Barr (resigned 26 May 2023)
Susan V. Barratt
Zoe L. Howorth
David J. Ritchie
Nicholas B. E. Wharton
Julie A. Barr (appointed 26 May 2023)
Louise H. Smalley (appointed 1 June 2023)
For and on behalf of the Board of Directors
Roger White Stuart Lorimer
Chief Executive Finance Director
26 September 2023 26 September 2023
Glossary
Non-GAAP measures are provided because they are tracked by management to assess the Group's
operating performance and to inform financial, strategic and operating decisions.
Adjusting items
The Group excludes adjusting items from its non-GAAP measures because of their size, frequency
and nature to allow shareholders to understand better the elements of financial performance
in the year, so as to facilitate comparison with prior periods and to assess trends in financial
performance more readily. These items are primarily non-operational.
Definitions of non-GAAP measures used are provided below:
Capital expenditure is a non-GAAP measure and is defined as the cash purchases of property,
plant and equipment and is disclosed in the consolidated condensed cash flow statement.
Adjusted profit attributable to equity holders is a non-GAAP measure calculated as adjusted
profit attributable to equity holders.
Adjusted operating profit margin is a non-GAAP measure calculated by dividing adjusted operating
profit by revenue.
Adjusted profit before tax is a non-GAAP measure calculated as reported profit before tax
after adjusting items.
Movement in earnings per share excluding the impact of tax is a non-GAAP measure calculated
as the current period profit before tax less the tax charge if calculated at the prior period
effective tax rate; then divided by the weighted average number of ordinary shares in issue
and compared to the reported basic EPS.
Like-for-like revenue is a non-GAAP measure comparing adjusted revenue less Boost revenue
to the prior period adjusted revenue.
Reconciliation of Non-GAAP measures
Adjusted Consolidated Income Statements
Six months ended 30 July Six months ended 31 July
2023 2022 Year ended 29 January 2023
------------------------------- ---------------------------- ------------------------------------------------------------------
Boost
earn-out
accrual Unwind MOMA Gain on Boost
write of acquisition sale of acquisition Boost
Reported back Adjusted Reported discount Adjusted Reported impact property fees earn-out Adjusted
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------ -------- -------- ----------- -------- -------- -------- -------- ----------- -------- ----------- -------- ----------
Revenue 210.4 - 210.4 157.9 - 157.9 317.6 - - - - 317.6
Cost of
sales (131.0) - (131.0) (88.5) - (88.5) (189.5) - - - - (189.5)
------------ -------- -------- ----------- -------- -------- -------- -------- ----------- -------- ----------- -------- ----------
Gross profit 79.4 - 79.4 69.4 - 69.4 128.1 - - - - 128.1
Other income - - - - - - 1.3 - (1.3) - - -
Operating
expenses (52.2) (0.8) (53.0) (43.9) - (43.9) (84.1) (2.7) - 1.2 0.8 (84.8)
------------ -------- -------- ----------- -------- -------- -------- -------- ----------- -------- ----------- -------- ----------
Operating
profit 27.2 (0.8) 26.4 25.5 - 25.5 45.3 (2.7) (1.3) 1.2 0.8 43.3
Finance
income 0.7 - 0.7 - - - 0.5 - - - - 0.5
Finance
costs (0.1) - (0.1) (0.7) 0.6 (0.1) (1.4) 1.1 - - - (0.3)
Share of
after
tax results
of
associates - - - (0.1) - (0.1) - - - - - -
============ ======== ======== =========== ======== ======== ======== ======== =========== ======== =========== ======== ==========
Profit
before
tax 27.8 (0.8) 27.0 24.7 0.6 25.3 44.4 (1.6) (1.3) 1.2 0.8 43.5
Tax on
profit (6.8) - (6.8) (3.8) - (3.8) (10.5) - - - - (10.5)
------------ -------- -------- ----------- -------- -------- -------- -------- ----------- -------- ----------- -------- ----------
Profit for
the period 21.0 (0.8) 20.2 20.9 0.6 21.5 33.9 (1.6) (1.3) 1.2 0.8 33.0
------------ -------- -------- ----------- -------- -------- -------- -------- ----------- -------- ----------- -------- ----------
Adjusting entries:
Boost earn-out reversal - certain conditions associated with the Boost earn-out have not
been met and as such the earn-out will not be payable in its previous form but has been incorporated
into employee reward incentives.
Adjusted operating profit
margin GBPm GBPm GBPm
-------------------------------- ----------- -------- ----------
Revenue 210.4 157.9 317.6
Adjusted operating profit 26.4 25.5 43.3
-------------------------------- ----------- -------- ----------
Adjusted operating profit
margin 12.5% 16.2% 13.6%
-------------------------------- ----------- -------- ----------
Like-for-like revenue GBPm GBPm
================================ ----------- --------
Reported revenue 210.4 157.9
Less Boost revenue (36.1) -
================================ =========== ========
Like-for-like revenue 174.3 157.9
================================ =========== ========
Net cash at bank GBPm GBPm
================================ ----------- --------
Cash and cash equivalents 47.3 13.6
Short term
investments - 40.0
Loans and other borrowings - (0.7)
================================ =========== ========
Net cash at bank 47.3 52.9
================================ =========== ========
EPS excluding the impact of tax
=============================================
Reported Profit before tax 27.8
Tax charge at prior year
effective tax rate (15.3%) (4.3)
================================ ===========
Profit after tax if calculated
using prior year effective
tax rate 23.5
Weighted average number
of ordinary shares in issue 111,288,517
================================ ===========
EPS if calculated using
prior year effective tax
rate 21.12
================================ ===========
EPS reported 18.87
================================ ===========
Movement 12%
================================ ===========
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END
IR EANNSAFADEFA
(END) Dow Jones Newswires
September 26, 2023 02:00 ET (06:00 GMT)
Barr (a.g.) (LSE:BAG)
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De Abr 2024 a May 2024
Barr (a.g.) (LSE:BAG)
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