TIDMCRAW
RNS Number : 0720S
Crawshaw Group PLC
12 May 2009
12th May 2009
Crawshaw Group PLC (Formerly Felix Group PLC)
Final Results
Crawshaw Group PLC ( "the Company"), the meat focussed retailer, today reports
its audited results for the year ended 31 January, 2009.
Highlights
Financial
* Sales for the year to 31 January 2009 are GBP16.0m (GBP11.3m for the 42 weeks to
31 January 2008)
* EBITDA (before exceptional costs) of GBP1.2m
* Operating profit of GBP854k before exceptional costs of GBP1,521k mostly
associated with the reverse acquisition in April 2008
* Loss before tax GBP(846k)
* Earnings per share, basic (2.21p), normalised 1.27p.
* Post balance sheet events - net debt at 31 January 2009 at GBP2.7m reduced to
GBP2.0m in February partly due to a loan note for equity swap
Operational
* Sales performance in the second half of the year strong with retail like for
like sales in Q3 ahead by 5% and in Q4 ahead by 6%. Retail like for like sales
for full year to 31 January 2009 ahead by 2%
* 5 new stores opened in the period
* One new store opened in April 2009 and a further store is planned for June 2009.
Trading Performance
Trading was strong during the period under review as good quality food available
locally at a value price remained popular with our customers.
As indicated at the half year, it is difficult to make useful comparisons when
reviewing performance against the prior year, largely due to exceptional costs
incurred in relation to the reverse acquisition in April 2008. The comparative
figures reported below for the prior year also only include 42 weeks of trading.
However, based on the underlying performance of the trading company, I am
delighted to say that sales for the year rose to just over GBP16m, up GBP1.5m
(+10%) versus the comparable prior year period. GBP1.3m of this increase was
accounted for by the opening of 5 new stores and GBP0.2m was generated from
improved sales performance from existing stores. Wholesale sales were GBP1.5m
for the period under review (2008: GBP1.4m).
Sales from existing units were higher than the prior year despite the closure of
units at Rotherham Market in November 2007 and Meadowhall in July 2008. Like for
like sales for the full year (52 week period) are ahead by 2% which has been
strengthened by an improved second half performance with like for likes for Q3
ahead by 5% and Q4 ahead by 6%. Second half sales performance was positively
impacted by the store rebranding exercise.
Gross profit margin reduced slightly as a consequence of higher input prices.
Operating profit was GBP854k (2008: GBP954k) before exceptional costs of
GBP1,521k (2008: GBP125k) which were mostly associated with the reverse
acquisition. EBITDA before exceptional costs was GBP1.2m (2008: GBP1.1m). Loss
before tax including exceptional costs was GBP(846k) (2008: profit GBP458k).
Gross margins were slightly lower than expected as increases in product costs,
particularly towards the end of the period, were absorbed by the business to
maintain our competitive advantage and value proposition. Net margins for the
period were 5.3% (2008: 8.4%). This reduction was due to (i) the costs
associated with being an AIM listed business, (ii) greater ongoing focus on food
safety, (iii) processes and systems to support expansion, (iv) investment in
training and HR, and (v) additional resource and pre opening costs associated
with the new store opening programme.
No dividend is proposed.
New Units
Despite most of the new stores not opening until towards the back end of the
year they did start to generate a trading profit by the end of the reporting
period. New stores typically take two to three months of trading before a
sufficient level of performance is generated to produce a positive cash return
after pre opening costs.
As indicated in our pre close statement on 9 March 2009, the new stores cover a
variety of different locations and the board now wishes to delay opening new
stores until such a time as the financial returns of each store type can be
fully evaluated - enabling the board to maximise its returns on further new
stores going forward. The board feels this cautious approach is appropriate in
the current external financial environment.
During the year five new stores were opened: Retford in July, Castleford in
October, Chesterfield and Mansfield in November and Huddersfield in January. Of
these five stores one store is trading significantly above, three are in line
and one is below management's sales expectations.
Cash Flow and Balance Sheet
At 31 January 2009, the Group had cash in bank of approximately GBP1.5m, total
interest bearing loans and borrowings of approximately GBP4.2m and gross assets
of GBP14.4m.
In line with the Group's stated expansion strategy, cash has been utilised on
the opening of new retail outlets and on the repayment of a proportion of the
loan notes. As a result, the net debt position as at 31 January 2009 was
approximately GBP2.7 million consisting of a cash balance of GBP1.5m, a bank
loan of GBP1.1m, a loan note balance of GBP2.3m, and GBP0.8m related to
mortgages secured on the Group's distribution centre in Grimsby and a store in
Hull.
In February 2009, the Board finalised the conversion of GBP1m of debt owed to
the loan note holders into shares issued by the Company reducing the net debt
position to GBP2.0m.
The GBP2.5m facility agreement with the Royal Bank of Scotland PLC has been
extended to 30 June 2010.
Food Safety
Food safety is a key priority for the business and during the period under
review the company has embarked on the development and implementation of two
food safety management systems (one for the distribution centres and the other
to support the retail sites) to ensure that consistent safe quality products are
always provided to all our customers.
During 2008, both distribution centers gained EC Approval from the Food
Standards Agency (FSA) recognising improvements in our quality management
systems and standards within all our retail sites have been verified by the
relevant local authority as being consistently high.
In addition nutritional calculations have been completed for meat preparations
which will now allow the company to provide customers with calorific and
nutritional information for company manufactured meat preparations in accordance
with the FSA traffic light initiative. Crawshaws, as far as we are aware, would
be the first SME independent retail butcher to be able to supply this
information in this format.
People
Over the last year our people have provided an excellent service to our
customers whilst managing new shop openings, integrating new systems and
improving standards.
I would like to express the Board's appreciation to all the members of the
Crawshaw team for their continued hard work and commitment to our success.
Current trading and Outlook
Like for like sales for the first 13 weeks of the current year are ahead of the
corresponding period last year. Retail gross margin across the group for the
current year to date is approximately 4 percentage points lower than planned as
a consequence of much higher input prices and promotional activity at new
stores. Whilst the new opening promotions have now ended at all but the most
recently opened store and this has reduced the margin shortfall at these stores,
input prices remain high across most product categories. We continue to absorb a
proportion of these increases to maintain our competitive market advantage and
intend to keep the situation under review.
A further new store was opened in April 2009 and is trading significantly ahead
of management's expectation.
The Board expects that the Group's 20th store will open in June 2009.
Richard Rose
Chairman
12th May 2009.
Consolidated Income Statement
for the year ended 31 January 2009
+-------------------------------------------------+---------+----------------------+------------------+
| | | Year ended | Period ended |
+-------------------------------------------------+---------+----------------------+------------------+
| | | 31 January | 31 January |
+-------------------------------------------------+---------+----------------------+------------------+
| | | 2009 | 2008 |
+-------------------------------------------------+---------+----------------------+------------------+
| | Note | GBP | GBP |
+-------------------------------------------------+---------+----------------------+------------------+
| Revenue | | 16,044,771 | 11,338,631 |
+-------------------------------------------------+---------+----------------------+------------------+
| Cost of sales | | (9,221,902) | (6,452,804) |
+-------------------------------------------------+---------+----------------------+------------------+
| Gross profit | | 6,822,869 | 4,885,827 |
+-------------------------------------------------+---------+----------------------+------------------+
| Other operating income | 5 | 12,420 | 105,250 |
+-------------------------------------------------+---------+----------------------+------------------+
| Administrative expenses | | (7,501,617) | (4,161,854) |
+-------------------------------------------------+---------+----------------------+------------------+
| Operating profit before one-off costs | | 854,349 | 954,497 |
+-------------------------------------------------+---------+----------------------+------------------+
| Restructuring costs | 3 | - | (63,671) |
+-------------------------------------------------+---------+----------------------+------------------+
| Refinancing costs | 3 | (254,908) | - |
+-------------------------------------------------+---------+----------------------+------------------+
| Reverse acquisition costs | 3 | (1,051,522) | - |
+-------------------------------------------------+---------+----------------------+------------------+
| Costs for flood remedial works | 3 | - | (61,603) |
+-------------------------------------------------+---------+----------------------+------------------+
| Intangible impairment | 3 | (214,247) | |
+-------------------------------------------------+---------+----------------------+------------------+
| Operating (loss)/profit | | (666,328) | 829,223 |
+-------------------------------------------------+---------+----------------------+------------------+
| Financial income | 9 | 42,883 | 19,943 |
+-------------------------------------------------+---------+----------------------+------------------+
| Financial expenses | 9 | (235,715) | (410,133) |
+-------------------------------------------------+---------+----------------------+------------------+
| Net finance expense | | (192,832) | (390,190) |
+-------------------------------------------------+---------+----------------------+------------------+
| Share of profit of equity accounted investees | | 13,414 | 18,852 |
| (net of income tax) | | | |
+-------------------------------------------------+---------+----------------------+------------------+
| (Loss)/profit before income tax | | (845,746) | 457,885 |
+-------------------------------------------------+---------+----------------------+------------------+
| Income tax expense | 10 | (118,977) | (161,286) |
+-------------------------------------------------+---------+----------------------+------------------+
| (Loss)/profit for the period attributable to | | | |
+-------------------------------------------------+---------+----------------------+------------------+
| equity holders of the parent | | (964,723) | 296,599 |
+-------------------------------------------------+---------+----------------------+------------------+
| Earnings per share (pence) | | | |
+-------------------------------------------------+---------+----------------------+------------------+
| · basic | | (2.21p) | 1.09p |
+-------------------------------------------------+---------+----------------------+------------------+
| · diluted | | (2.21p) | 1.09p |
+-------------------------------------------------+---------+----------------------+------------------+
Figures for the period ended 31 January 2008 only include the trading results of
Crawshaw Butchers Limited from 15 April 2007 onwards, the date that Crawshaw
Butchers Limited was acquired by Crawshaw Holdings Limited.
Statements of Recognised Income and Expense
for the period ended 31 January 2009
+-----------------------------------+--------+----------------+------------------+----------------+------------------+
| | | Group | Group | Company | Company |
+-----------------------------------+--------+----------------+------------------+----------------+------------------+
| | Note | Year ended | Period ended | Year ended | Period ended |
+-----------------------------------+--------+----------------+------------------+----------------+------------------+
| | | 31 January | 31 January | 31 January | 31 January |
+-----------------------------------+--------+----------------+------------------+----------------+------------------+
| | | 2009 | 2008 | 2009 | 2008 |
+-----------------------------------+--------+----------------+------------------+----------------+------------------+
| | | GBP | GBP | GBP | GBP |
+-----------------------------------+--------+----------------+------------------+----------------+------------------+
| (Loss)/profit for the period | | (964,723) | 296,599 | (1,086,688) | (25,844,242) |
+-----------------------------------+--------+----------------+------------------+----------------+------------------+
| Total recognised income and | | | | | |
| expense | 21 | (964,723) | 296,599 | (1,086,688) | (25,844,242) |
+-----------------------------------+--------+----------------+------------------+----------------+------------------+
Balance Sheets
At 31 January 2009
+----------------------------+------+------------+--------------+-------------+--------------+
| Non-current assets | Note | Group | Group | Company | Company |
| | | 2009 | 2008 | 2009 | 2008 |
| | | GBP | GBP | GBP | GBP |
+----------------------------+------+------------+--------------+-------------+--------------+
| Property, plant and | 12 | 4,231,603 | 2,318,610 | - | - |
| equipment | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Intangible assets | 13 | 7,720,084 | 7,754,762 | - | - |
+----------------------------+------+------------+--------------+-------------+--------------+
| Investment in equity | 14 | 109,746 | 96,332 | - | - |
| accounted investees | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Investments in | 15 | | - | 11,700,000 | - |
| subsidiaries | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Total non-current assets | | 12,061,433 | 10,169,704 | 11,700,000 | - |
+----------------------------+------+------------+--------------+-------------+--------------+
| Current assets | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Inventories | 17 | 461,521 | 277,226 | - | - |
+----------------------------+------+------------+--------------+-------------+--------------+
| Trade and other | 18 | 447,528 | 234,890 | 4,732,966 | 136,630 |
| receivables | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Cash and cash equivalents | | 1,463,545 | 531,443 | - | 2,616,701 |
+----------------------------+------+------------+--------------+-------------+--------------+
| Total current assets | | 2,372,594 | 1,043,559 | 4,732,966 | 2,753,331 |
+----------------------------+------+------------+--------------+-------------+--------------+
| Total assets | | 14,434,027 | 11,213,263 | 16,432,966 | 2,753,331 |
+----------------------------+------+------------+--------------+-------------+--------------+
| Current liabilities | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Loans and borrowings | 22 | 2,252,018 | 713,335 | - | - |
+----------------------------+------+------------+--------------+-------------+--------------+
| Trade and other payables | 19 | 2,376,787 | 1,372,995 | 37,500 | 887,383 |
+----------------------------+------+------------+--------------+-------------+--------------+
| Tax payable | | - | 118,983 | - | - |
+----------------------------+------+------------+--------------+-------------+--------------+
| Total current liabilities | | 4,628,805 | 2,205,313 | 37,500 | 887,383 |
+----------------------------+------+------------+--------------+-------------+--------------+
| Non-current liabilities | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Loans and borrowings | 22 | 1,950,000 | 7,978,118 | - | - |
+----------------------------+------+------------+--------------+-------------+--------------+
| Other payables | 19 | 100,289 | 9,136 | - | - |
+----------------------------+------+------------+--------------+-------------+--------------+
| Deferred tax liabilities | 16 | 457,233 | 391,816 | - | - |
+----------------------------+------+------------+--------------+-------------+--------------+
| Total non-current | | 2,507,522 | 8,379,070 | - | - |
| liabilities | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Total liabilities | | 7,136,327 | 10,584,383 | 37,500 | 887,383 |
+----------------------------+------+------------+--------------+-------------+--------------+
| Net assets | | 7,297,700 | 628,880 | 16,395,466 | 1,865,948 |
+----------------------------+------+------------+--------------+-------------+--------------+
| Equity | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Share capital | 21 | 2,334,009 | 2,406,763 | 2,334,009 | 2,406,763 |
+----------------------------+------+------------+--------------+-------------+--------------+
| Share premium | 21 | 4,981,049 | 15,981,764 | 4,981,049 | 15,981,764 |
+----------------------------+------+------------+--------------+-------------+--------------+
| Reverse acquisition | 21 | 446,563 | (18,175,942) | - | - |
| reserve | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Capital contribution | 21 | 149,311 | 119,696 | - | - |
| reserve | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Merger reserve | 21 | - | - | 10,140,000 | |
+----------------------------+------+------------+--------------+-------------+--------------+
| Retained earnings | 21 | (613,232) | 296,599 | (1,059,592) | (16,522,579) |
+----------------------------+------+------------+--------------+-------------+--------------+
| Total equity attributable | | 7,297,700 | 628,880 | 16,395,466 | 1,865,948 |
| to equity holders of the | | | | | |
| parent | | | | | |
+----------------------------+------+------------+--------------+-------------+--------------+
Cash Flow Statements
for the period ended 31 January 2009
+--------------------------------+-----------------+------------+-------------+--------------+
| Cash flows from | Group | Group | Company | Company |
| operating activities | NoteYear ended | Period | Year | Period |
| | 31 January | ended | ended | ended |
| | 2009 | 31 January | 31 | 31 January |
| | GBP | 2008 | January | 2008 |
| | | GBP | 2009 | GBP |
| | | | GBP | |
+--------------------------------+-----------------+------------+-------------+--------------+
| (Loss)/profit for the | (964,723) | 296,599 | (1,086,688) | (26,260,232) |
| period | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Adjustments for: | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Depreciation and | 259,570 | 181,532 | - | - |
| amortisation | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Impairment of | 214,247 | - | - | - |
| intangible | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Impairment of fixed | - | - | - | 11,830,258 |
| asset investments | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Impairment of debt | - | - | - | 12,952,356 |
| due from subsidiary | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Financial income | (42,883) | (19,943) | - | (96,477) |
+--------------------------------+-----------------+------------+-------------+--------------+
| Financial expenses | 235,715 | 410,133 | - | - |
+--------------------------------+-----------------+------------+-------------+--------------+
| Share based payment | 54,892 | - | - | - |
| charge | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Share of profit of equity | (13,414) | (18,852) | - | - |
| Accounted investees (net of | | | | |
| income tax) | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Profit on sale of property, | 12,817 | (2,225) | - | - |
| plant and equipment | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Taxation | 118,977 | 161,286 | - | - |
+--------------------------------+-----------------+------------+-------------+--------------+
| Operating cash flow before | (124,802) | 1,008,530 | (1,086,688) | (1,574,095) |
| movements in working capital | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| (Increase)/decrease in trade | (212,376) | 26,807 | (85,038) | (1,624,699) |
| and other receivables | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| (Increase)/decrease in | (184,295) | (33,324) | - | - |
| inventories | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| Increase/(decrease) in trade | 1,019,066 | 432,969 | (841,883) | 841,271 |
| and other payables | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
| | 497,593 | 1,434,982 | (2,013,609) | (2,357,523) |
+--------------------------------+-----------------+------------+-------------+--------------+
| Income tax paid | (172,806) | (293,853) | - | - |
+--------------------------------+-----------------+------------+-------------+--------------+
| Net cash from | 324,787 | 1,141,129 | (2,013,609) | (2,357,523) |
| operating activities | | | | |
+--------------------------------+-----------------+------------+-------------+--------------+
Cash Flow Statements
(continued)
for the period ended 31 January 2009
+------------------------------+------+-------------+-------------+-------------+------------+
| | Note | Group | Group | Company | Company |
| | | Year ended | Period | Year ended | Period |
| | | 31 January | ended | 31 January | ended |
| | | 2009 | 31 January | 2009 | 31 January |
| | | | 2008 | | 2008 |
| | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Cash flows from investing | | GBP | GBP | GBP | GBP |
| activities | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Proceeds from sale of | | 3,860 | 20,636 | - | 96,477 |
| property, plant and | | | | | |
| equipment | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Interest received | | 42,883 | 19,943 | - | - |
+------------------------------+------+-------------+-------------+-------------+------------+
| Interest paid | | (206,100) | (277,991) | - | - |
+------------------------------+------+-------------+-------------+-------------+------------+
| Dividend received | | - | 5,000 | - | - |
+------------------------------+------+-------------+-------------+-------------+------------+
| Proceeds from sale of | | - | - | - | 235,000 |
| investments | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Acquisition of property, | | (2,154,564) | (101,374) | - | - |
| plant and equipment | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Acquisition of subsidiary, | 4 | - | (6,889,492) | - | - |
| net of cash acquired | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Net cash recognised on | 4 | 1,666,899 | - | - | - |
| reverse acquisition | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Net cash from investing | | (647,022) | (7,223,278) | - | 331,477 |
| activities | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Proceeds from issue of share | | - | 2,012,152 | - | 4,160,793 |
| capital | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Proceeds from medium term | | - | 3,555,500 | - | - |
| loan | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Mortgage | | - | 840,000 | - | - |
+------------------------------+------+-------------+-------------+-------------+------------+
| Loan notes | | - | 752,690 | - | - |
+------------------------------+------+-------------+-------------+-------------+------------+
| Repayment of loans | | (3,771,869) | (546,750) | - | - |
+------------------------------+------+-------------+-------------+-------------+------------+
| Bank loan | | 1,110,000 | - | - | - |
+------------------------------+------+-------------+-------------+-------------+------------+
| Movements in amounts owed by | | - | - | (4,519,298) | - |
| group companies | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Proceeds from issue of share | | 3,916,206 | - | - | - |
| capital (net of issue costs) | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Issue of ordinary shares | | - | - | 3,916,206 | - |
| (net of issue costs) | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Net cash from financing | | 1,254,337 | 6,613,592 | (603,092) | 4,160,793 |
| activities | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Net increase/(decrease) in | | 932,102 | 531,443 | (2,616,701) | 2,134,747 |
| cash and cash equivalents | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| Cash and cash equivalents at | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| 1 February 2008 | | 531,443 | - | 2,616,701 | 481,954 |
+------------------------------+------+-------------+-------------+-------------+------------+
| Net cash and cash | | | | | |
| equivalents at | | | | | |
+------------------------------+------+-------------+-------------+-------------+------------+
| 31 January 2009 | | 1,463,545 | 531,443 | - | 2,616,701 |
+------------------------------+------+-------------+-------------+-------------+------------+
Notes to the financial statements
(forming part of the financial statements)
1. BACKGROUND AND BASIS OF PREPARATION
The consolidated financial information presented for the year ended 31 January
2009 comprise Crawshaw Group PLC ('Company' formerly Felix Group PLC) and its
subsidiaries (together referred to as the 'Group').
On 11 April 2008, the Company, then named Felix Group PLC, became the legal
parent company of Crawshaw Group Limited (which subsequently changed its name to
Crawshaw Holdings Limited) in a share for share exchange. Due to the relative
sizes of the companies, the former Crawshaw Holdings Limited became the majority
shareholders of the enlarged group. Following the transaction the Company's
continuing operations and executive management were predominantly those of
Crawshaw Holdings Limited. Accordingly the substance of the combination was that
Crawshaw Holdings Limited acquired Felix Group PLC in a reverse acquisition.
Felix Group PLC subsequently changed its name to Crawshaw Group PLC.
As a consequence of applying reverse acquisition accounting, the results of the
Group at 31 January 2009 comprise the results of Crawshaw Holdings Limited for
the year ended 31 January 2009 and those of Crawshaw Group PLC from 11 April
2008. However the equity structure appearing in these consolidated financial
statements reflects the equity structure of the legal parent, including the
equity instruments issued by the legal parent to effect the combination. The
comparative figures for the Group are those of Crawshaw Holdings Limited for the
period ended 31 January 2008. The fair values of Crawshaw Group PLC's assets and
liabilities as at 11 April 2008 have been consolidated as set out in note 4.
The consolidated financial information have been prepared and approved by the
directors in accordance with International Financial Reporting Standards as
adopted by the European Union ("IFRSs").
2. ACCOUNTING POLICIES
Significant accounting policies
The accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in this financial information.
Judgements made by the directors, in the application of these accounting
policies that have significant effect on the financial information and estimates
with a significant risk of material adjustment in the next period are discussed
below.
The financial statements have been prepared on the going concern basis,
notwithstanding net current liabilities of the Group of GBP2,256,211 which the
directors believe to be appropriate given the long term financing in place, the
post balance sheet conversion of GBP1 m of debt into equity (see note 29) and
the directors' assessment of the adequacy of future cash flows. Adherence to the
Groups short term obligations is a key focus and closely monitored via working
capital management, short term cash flow forecasting and cost control. The
directors believe that it remains appropriate to prepare the financial
statements on a going concern basis.
The directors have reviewed the Group's projected working capital requirements
and fixed asset expenditure and believe that the Group has sufficient funding
for the foreseeable future.
Basis of consolidation
The consolidated financial information includes the financial information of the
company and its subsidiary undertakings made up to 31 January 2009. Subsidiaries
are defined as entities controlled by the group. Control exists when the group
has the power, directly or indirectly, to govern the financial and operating
policies of an entity so as to obtain benefits from its activities.
On 11 April 2008, Crawshaw Holdings Limited acquired by a reverse acquisition
Crawshaw Group PLC. As a result of the business combination, the shareholders of
Crawshaw Holdings Limited became the majority shareholders of the enlarged
group. Accordingly the transaction was accounted for as a reverse acquisition in
accordance with IFRS 3 'Business Combinations'.
As a consequence of applying reverse acquisition accounting, the results of the
Group at 31 January 2009 comprise the results of Crawshaw Holdings Limited for
the year ended 31 January 2009 and those of Crawshaw Group PLC from 11 April
2008. However the equity structure appearing in these consolidated financial
statements reflects the equity structure of the legal parent, including the
equity instruments issued by the legal parent to effect the combination. The
comparative figures for the Group are those of Crawshaw Holdings Limited for the
period ended 31 January 2008. The fair values of Crawshaw Group PLC's assets and
liabilities as at 11 April 2008 have been consolidated as set out in note 4.
Classification of financial instruments issued by the Group
In applying policies consistent with IAS 32, financial instruments issued by the
Group are treated as equity only to the extent that they meet the following two
conditions:
* they include no contractual obligations upon the Group to deliver cash or other
financial assets or to exchange financial assets or financial liabilities with
another party under conditions that are potentially unfavourable to the Group;
and
* where the instrument will or may be settled in the Group's own equity
instruments, it is either a non-derivative that includes no obligation to
deliver a variable number of the Group's own equity instruments or is a
derivative that will be settled by the Group's exchanging a fixed amount of cash
or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are
classified as a financial liability. Where the instrument so classified takes
the legal form of the Group's own shares, the amounts presented in this
financial information for called up share capital and share premium account
exclude amounts in relation to those shares.
Preference share capital is classified as equity if it is non-redeemable, or
redeemable only at the Company's option, and any dividends are discretionary.
Dividends thereon are recognised as distributions within equity upon approval by
the Group's shareholders.
Preference share capital is classified as a liability if it is redeemable on a
specific date or at the option of the shareholders, or if dividend payments are
not discretionary. Dividends thereon are recognised as interest expense in
profit or loss as accrued.
Finance payments associated with financial liabilities are dealt with as part of
finance expenses. Finance payments associated with financial instruments that
are classified in equity are treated as distributions and are recorded directly
in equity.
Non-derivative Financial Instruments
Non-derivative financial instruments comprise investments in equity securities,
trade and other receivables, cash and cash equivalents and trade and other
payables.
Trade and other receivables are recognised at stated cost less impairment
losses. It is the Company's policy to review trade and other receivable balances
for evidence of impairment at each reporting date. Any receivables which give
significant cause for concern are written down to the best estimate of the
recoverable amount.
Cash and cash equivalents comprise cash-in-hand and cash-at bank. Trade and
other payables are recognised at stated cost.
Associates and jointly controlled entities (equity accounted investees)
Associates are those entities in which the Group has significant influence, but
not control, over the financial and operating policies. Significant influence is
presumed to exist when the Group holds between 20 and 50% of the voting power of
another entity. Joint ventures are those entities over whose activities the
Group has joint control, established by contractual agreement and requiring
unanimous consent for strategic financial and operating decisions.
Associates and jointly controlled entities are accounted for using the equity
method (equity accounted investees) and are initially recognised at cost. The
Group's investment includes goodwill identified on acquisition, net of any
accumulated impairment losses. The consolidated financial statements include the
Group's share of the income and expenses and equity movements of equity
accounted investees, after adjustments to align the accounting policies with
those of the Group, from the date that significant influence or joint control
commences until the date that significant influence or joint control ceases.
When the Group's share of losses exceeds its interest in an equity accounted
investee, the carrying amount of that interest (including any long-term
investments) is reduced to nil and the recognition of further losses is
discontinued except to the extent that the Group has an obligation or has made
payments on behalf of the investee.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and impairment losses.
Depreciation is charged to the income statement on a straight-line basis over
the estimated useful lives of each part of an item of property, plant and
equipment. Residual values of property, plant and equipment is assumed to be
nil. Land is not depreciated. The estimated useful lives are as follows:
+----------------------------------+-------------------------------+
| Freehold property | 2% |
+----------------------------------+-------------------------------+
| Leasehold buildings | in accordance with the lease |
| | term |
+----------------------------------+-------------------------------+
| Leasehold improvements | in accordance with the lease |
| | term |
+----------------------------------+-------------------------------+
| Plant, equipment and vehicles | 10-25% on reducing balance |
+----------------------------------+-------------------------------+
Intangible assets and goodwill
Goodwill represents amounts arising on acquisition of businesses. In respect of
business acquisitions that have occurred since 11 December 2006, goodwill
represents the difference between the cost of the acquisition and the fair value
of the net identifiable assets acquired. Identifiable intangibles are those
which can be sold separately or which arise from legal rights regardless of
whether those rights are separable.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is
allocated to cash-generating units and is not amortised but is tested annually
for impairment. Any impairment is then recognised immediately in profit or loss
and is not subsequently reversed.
Intangible assets that are acquired by the Group, which have finite useful
lives, are measured at cost less accumulated amortisation and accumulated
impairment losses.
Amortisation
Amortisation is recognised in profit and loss on a straight-line basis over the
estimated useful lives of intangible assets, other than goodwill, from the date
that they are available for use. The estimated useful lives for the current and
comparative periods are as follows:
+-------+---------------------------------+
| Brand | 20 years |
+-------+---------------------------------+
Impairment
The carrying amounts of the Group's assets are reviewed at each balance sheet
date to determine whether there is any indication of impairment. If any such
indication exists, the asset's recoverable amount is estimated.
For goodwill and intangible assets that are not yet available for use, the
recoverable amount is estimated at each balance sheet date.
An impairment loss is recognised whenever the carrying amount of an asset or its
cash-generating unit exceeds its recoverable amount. Impairment losses are
recognised in the income statement.
Impairment losses recognised in respect of cash-generating units are allocated
first to reduce the carrying amount of any goodwill allocated to cash-generating
units and then to reduce the carrying amount of the other assets in the unit on
a pro rata basis. A cash generating unit is the smallest identifiable group of
assets that generates cash inflows that are largely independent of the cash
inflows from other assets or groups of assets.
Goodwill and intangible assets that are not yet available for use were tested
for impairment as at 1 February 2006, the notional date of transition to Adopted
IFRSs, even though no indication of impairment existed.
Calculation of recoverable amount
The recoverable amount of other assets is the greater of their fair value less
costs to sell and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the
risks specific to the asset. For an asset that does not generate largely
independent cash inflows, the recoverable amount is determined for the
cash-generating unit to which the asset belongs.
Reversals of impairment
An impairment loss in respect of goodwill is not reversed.
In respect of other assets, an impairment loss is reversed when there is an
indication that the impairment loss may no longer exist and there has been a
change in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset's carrying
amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised.
Provisions
A provision is recognised in the balance sheet when the Group has a present
legal or constructive obligation as a result of a past event, and it is probable
that an outflow of economic benefits will be required to settle the obligation.
If the effect is material, provisions are determined by discounting the
expected, risk adjusted, future cash flows at a pre-tax risk-free rate.
Trade and other receivables
Trade and other receivables are recognised at their fair value and thereafter at
amortised cost less impairment charges.
Inventories
Inventories are stated at the lower of cost and net realisable value, after
making due allowance for obsolete and slow moving items. Cost comprises purchase
price. Net realisable value is estimated selling price in the ordinary course of
business, less the estimated costs of completion and selling expenses.
Inventories are primarily goods for resale.
Cash and cash equivalents
Cash and cash equivalents comprise cash-in-hand and cash-at bank. Bank
overdrafts that are repayable on demand and form an integral part of the Group's
cash management are included as a component of cash and cash equivalents for the
purpose only of the statement of cash flows.
Employee benefits
Defined contribution plans
The Group operates a defined contribution pension scheme. The assets of the
scheme are held separately from those of the Group in an independently
administered fund. Obligations for contributions to defined contribution pension
plans are recognised as an expense in the income statement as incurred.
Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis
and are expensed as the related service is provided. A provision is recognised
for the amount expected to be paid under short-term cash bonus or profit-sharing
plans if the Group has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation
can be estimated reliably.
Revenue
Revenue is derived from retail butcher activities, stated after trade discounts,
VAT and any other sales taxes. Revenue from the sale of goods is recognised in
the income statement when the significant risks and rewards of ownership have
been transferred to the buyer. Where the Group sells to distributors, revenue
from the sale of goods is recognised where there are no further obligations on
the Group and when the associated economic benefits are due to the Group and the
turnover can be reliably measured.
Expenses
Operating lease payments
Payments made under operating leases are recognised in the income statement on a
straight-line basis over the term of the lease. Lease incentives received are
recognised in the income statement as an integral part of the total lease
expense.
Net financing costs
Net financing costs comprise interest payable, finance charges on shares
classified as liabilities, interest receivable on funds invested and dividend
income.
Interest income and interest payable is recognised in profit or loss as it
accrues, using the effective interest method. Dividend income is recognised in
the income statement on the date the entity's right to receive payments is
established.
Borrowing costs
In the current year borrowing costs are expensed in the consolidated income
statement as incurred.
Taxation
Tax on the profit or loss for the period comprises current and deferred tax. Tax
is recognised in the income statement except to the extent that it relates to
items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the period,
using tax rates enacted or substantively enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous periods.
Deferred tax is provided on temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes. The following temporary differences are not provided for:
the initial recognition of goodwill; the initial recognition of assets or
liabilities that affect neither accounting nor taxable profit other than in a
business combination, and differences relating to investments in subsidiaries to
the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected manner of realisation
or settlement of the carrying amount of assets and liabilities, using tax rates
enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised.
Bank loans, overdrafts and loan notes
Interest-bearing bank loans, overdrafts and loan notes are recorded at the
proceeds received, net of direct issue costs. Finance charges, including
premiums payable on settlement or redemption and direct issue costs, are
accounted for on an accruals basis in profit or loss using the effective
interest rate method and are added to the carrying amount of the instrument to
the extent that they are not settled in the period in which they arise.
Segmental reporting
A segment is a distinguishable component of the Group that is engaged either in
providing related products or services (business segment), or in providing
products or services within a particular economic environment (geographical
segment), which is subject to risks and returns that are different from those of
other segments.
Based on the sources of risks and returns impacting the Group's activities, the
Directors consider that the primary reporting format is by business segment. The
Directors consider that there is only one business segment being retail
butchers. The disclosures for the primary segment are therefore given by the
primary financial statements and related notes.
The Group's business operations are conducted exclusively in the UK so a
geographical segment report is not required.
Applicable new standards and interpretations of existing standards that have
been issued and endorsed by the EU but are not yet adopted by the Group
The following new applicable standards, amendments to standards and
interpretations are not yet effective for the period ended 31 January 2009 and
have not been applied in preparing the financial information:
+-------------------------------------+-------------------------------------+-------------------------------------+
| International Accounting Standards | | Effective date |
| (IAS/IFRS) | | |
+-------------------------------------+-------------------------------------+-------------------------------------+
| IFRS 2 (Amendment) | Share based payments | 1 January 2009 |
+-------------------------------------+-------------------------------------+-------------------------------------+
| IFRS 8 | Operating segments | 1 January 2009 |
+-------------------------------------+-------------------------------------+-------------------------------------+
| IAS 1 (Revised) | Presentation of Financial | 1 January 2009 |
| | Statements | |
+-------------------------------------+-------------------------------------+-------------------------------------+
| IAS 23 (Revised) | Borrowing costs | 1 January 2009 |
+-------------------------------------+-------------------------------------+-------------------------------------+
| IAS 32 (Amendment) | Financial instruments presentation | 1 January 2009 |
+-------------------------------------+-------------------------------------+-------------------------------------+
IFRS 8 which becomes mandatory for the Group's 2010 Financial Statements will
require the disclosure of segment information based on the internal reports
regularly reviewed by the Group's Chief Operating decision maker in order to
assess each segment's performance and to allocate resources to them. Currently
the Group does not present segmental information as the Directors have
determined that only one segment exists. However going forward consideration of
this will be required should it possess distinguishable segments.
The effect of the other new standards and interpretations is not expected to be
material.
Significant judgements and estimates
The preparation of the financial information in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and underlying assumptions are reviewed on an
ongoing basis.
The estimates associated with the assumptions are based on historical experience
and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgements about
the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to estimates are recognised in the period in which the estimate is
revised if the revision only affects that period, or in the period of revision
and future periods if the revision affects both current and future periods.
The key sources of estimation uncertainty at the balance sheet date are:
Goodwill
Determining whether goodwill is impaired requires an estimation of the value in
use of the cash-generating unit(s) to which goodwill has been allocated. The
value in use calculation requires the entity to estimate the future cash flows
expected to arise from the cash-generating unit and a suitable discount rate in
order to calculate present value.
The carrying amount of goodwill at the balance sheet date was GBP7.1 m. Details
of the present value calculation are provided in note 13.
Brand intangibles
The royalty relief approach was utilised to determine the value of the brand. A
royalty percentage of 1% has been applied to revenue streams for the twenty
years ended 31 January 2028 from the branch network carrying the Crawshaw brand,
as part of the business combination occurring in the prior period. These have
then been discounted at 15.7% to arrive at an initial carrying value of
GBP693,558. This will be amortised over the finite life of twenty years, with
the amortisation charge being included within administrative expenses.
3. EXCEPTIONAL COSTS
Exceptional items in the period relate to
+-----------------------------------------------------------------------------------+----------------+--------------+
| | 2009 | 2008 |
+-----------------------------------------------------------------------------------+----------------+--------------+
| | GBP | GBP |
+-----------------------------------------------------------------------------------+----------------+--------------+
| Refinancing costs | 254,908 | - |
+-----------------------------------------------------------------------------------+----------------+--------------+
| Acquisition costs related to reverse acquisition (see note 4) | 1,051,522 | - |
+-----------------------------------------------------------------------------------+----------------+--------------+
| Intangible impairment related to reverse acquisition (see note 4) | 214,247 | - |
+-----------------------------------------------------------------------------------+----------------+--------------+
| Restructuring costs | - | 63,671 |
+-----------------------------------------------------------------------------------+----------------+--------------+
| Costs from flood remedial works | - | 61,603 |
+-----------------------------------------------------------------------------------+----------------+--------------+
| | 1,520,677 | 125,274 |
+-----------------------------------------------------------------------------------+----------------+--------------+
Refinancing costs are in relation to fees incurred on a change in the company's
bankers. Acquisition costs and intangible impairment relate to the reverse
acquisition of Felix Group PLC.
4. ACQUISITION IN THE PERIOD
On 11 April 2008, the Company, then named Felix Group PLC, became the legal
parent company of Crawshaw Group Limited (which subsequently changed its name to
Crawshaw Holdings Limited) in a share for share exchange. Due to the relative
sizes of the companies, the former Crawshaw Holdings Limited shareholders became
the majority shareholders of the enlarged group. Following the transaction the
Company's continuing operations and executive management were predominantly
those of Crawshaw Holdings Limited. Accordingly the substance of the combination
was that Crawshaw Holdings Limited acquired Felix Group PLC in a reverse
acquisition. Felix Group PLC subsequently changed its name to Crawshaw Group
PLC.
The acquisition has been accounted for as a reverse acquisition as required by
IFRS 3, with all acquisition costs being expensed.
The value of net assets acquired and other intangibles arising was as follows:
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
| |
+----------------------------+
| | Book Value Prior | Fair Value | Acquisition |
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
| | To Acquisition | Adjustments | Amounts |
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
| | GBP | GBP | GBP |
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
| Trade and other | 1,422,714 | - | 1,422,714 |
| receivables | | | |
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
| Cash and cash equivalents | 1,668,899 | - | 1,668,899 |
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
| Trade and other payables | (1,500,550) | - | (1,500,550) |
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
| Net identifiable assets | 1,591,063 | - | 1,591,063 |
| and liabilities | | | |
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
| Fair value of | | | 1,805,310 |
| consideration | | | |
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
| Other intangibles | | | 214,247 |
+----------------------------+-----------------------------------------------------------------------+-----------------------------------------------------------------+-----------------------------------------------------------------------+
4. ACQUISITION IN THE PERIOD (continued)
The combination was effected by the issue of 31,200,000 shares of 5p each
including those shares issued to acquire the preference share capital (see note
15). The fair value of the consideration is calculated based on the number of
shares that would have been issued by Crawshaw Holdings Limited to provide the
same percentage ownership interest of the enlarged group to the owners of the
legal parent, being 13.37%.
The value of the shares issued was GBP11,700,000 (37.5p per 5p share) which
represented the market value at that date.
The other intangibles balance generated of GBP214,247, which represents the
acquisition of a listing by Crawshaw Holdings Limited, has been immediately
impaired as Felix Group PLC has no ongoing trade.
In the year to 31 January 2009, Crawshaw Group PLC contributed a net loss of
GBP(811,757) to the consolidated net loss for the year.
5. OTHER OPERATING INCOME
+-----------------------------------------------------------------------------------+--------------+---------------+
| | 2009 | 2008 |
+-----------------------------------------------------------------------------------+--------------+---------------+
| | GBP | GBP |
+-----------------------------------------------------------------------------------+--------------+---------------+
| RGV management charge | 12,000 | 6,000 |
+-----------------------------------------------------------------------------------+--------------+---------------+
| Insurance proceeds | - | 99,250 |
+-----------------------------------------------------------------------------------+--------------+---------------+
| Other | 420 | - |
+-----------------------------------------------------------------------------------+--------------+---------------+
| | 12,420 | 105,250 |
+-----------------------------------------------------------------------------------+--------------+---------------+
The Group charges RGV Refrigeration a management charge each period for
administration services. The Group has investment in RGV Refrigeration, which is
described further in note 12.
Insurance proceeds in 2008 were received in respect of consequential loss of
profits following the closure of a store due to a flood.
6. EXPENSES AND AUDITORS' REMUNERATION
Included in operating profit
are the following:
+------------------------------------------------------------------------------------+---------------+-------------+
| | 2009 | 2008 |
+------------------------------------------------------------------------------------+---------------+-------------+
| | GBP | GBP |
+------------------------------------------------------------------------------------+---------------+-------------+
| Depreciation of property, plant and equipment (owned) | 224,892 | 154,079 |
+------------------------------------------------------------------------------------+---------------+-------------+
| Amortisation of intangible assets (note 13) | 34,678 | 27,453 |
+------------------------------------------------------------------------------------+---------------+-------------+
| Loss/(profit) on sale of property, plant and equipment | 12,817 | (2,225) |
+------------------------------------------------------------------------------------+---------------+-------------+
| Auditors' remuneration: | | |
+------------------------------------------------------------------------------------+---------------+-------------+
| | 2009 | 2008 |
+------------------------------------------------------------------------------------+---------------+-------------+
| | GBP | GBP |
+------------------------------------------------------------------------------------+---------------+-------------+
| Audit of these financial statements | 12,500 | 3,500 |
+------------------------------------------------------------------------------------+---------------+-------------+
| Amounts receivable by the auditors and their associates in respect of: | | |
+------------------------------------------------------------------------------------+---------------+-------------+
| Audit of financial statements of subsidiaries pursuant to legislation | 15,000 | 10,500 |
+------------------------------------------------------------------------------------+---------------+-------------+
| Other services relating to taxation | 1,500 | 3,500 |
+------------------------------------------------------------------------------------+---------------+-------------+
| Other services relating to accountancy | - | 20,000 |
+------------------------------------------------------------------------------------+---------------+-------------+
| Services relating to corporate finance transactions | 229,500 | - |
+------------------------------------------------------------------------------------+---------------+-------------+
| Total auditors' remuneration | 258,500 | 37,500 |
+------------------------------------------------------------------------------------+---------------+-------------+
+--------------------------------------------------------+---------------+------------+
| 7. STAFF NUMBERS AND COSTS |
| The average number of persons employed by the Company (including directors) during |
| the period, analysed by category, was as follows: |
| |
+-------------------------------------------------------------------------------------+
| | Number | of |
| | | employees |
+--------------------------------------------------------+---------------+------------+
| | 2009 | 2008 |
+--------------------------------------------------------+---------------+------------+
| Management | 7 | 7 |
+--------------------------------------------------------+---------------+------------+
| Other | 183 | 176 |
+--------------------------------------------------------+---------------+------------+
| | 190 | 183 |
+--------------------------------------------------------+---------------+------------+
| The aggregate payroll costs of these | | |
| persons were as follows: | | |
+--------------------------------------------------------+---------------+------------+
| | 2009 | 2008 |
+--------------------------------------------------------+---------------+------------+
| | GBP | GBP |
+--------------------------------------------------------+---------------+------------+
| Wages and salaries | 3,332,696 | 2,275,754 |
+--------------------------------------------------------+---------------+------------+
| Social security costs | 272,129 | 204,611 |
+--------------------------------------------------------+---------------+------------+
| Other pension costs | 65,893 | 79,223 |
+--------------------------------------------------------+---------------+------------+
| | 3,670,718 | 2,559,588 |
+--------------------------------------------------------+---------------+------------+
8. KEY MANAGEMENT COMPENSATION
+-----------------------------------------------------------------------------+------------------+---------------+
| | 2009 | 2008 |
+-----------------------------------------------------------------------------+------------------+---------------+
| | GBP | GBP |
+-----------------------------------------------------------------------------+------------------+---------------+
| Wages and salaries | 327,005 | 179,646 |
+-----------------------------------------------------------------------------+------------------+---------------+
| Company contributions to money purchase pension plans | 61,629 | 75,065 |
+-----------------------------------------------------------------------------+------------------+---------------+
The Group considers key management personnel as defined in IAS24 'Related Party
Disclosures' to be the Directors of the Group. Detailed disclosures of
individual remuneration, pension entitlements and share options, for those
directors who served during the year, are given in the Report of the
Remuneration Committee.
+-------------------------------------------------------------------+----------------------+---------------------+
| Retirement benefits accruing under: | No. of Directors | No. of Directors |
+-------------------------------------------------------------------+----------------------+---------------------+
| | 2009 | 2008 |
+-------------------------------------------------------------------+----------------------+---------------------+
| Money Purchase Schemes | 2 | 3 |
+-------------------------------------------------------------------+----------------------+---------------------+
+-------------------------------------------------------------+----------+---------+
| 9. FINANCE INCOME AND EXPENSE | | |
+-------------------------------------------------------------+----------+---------+
| | 2009 | 2008 |
+-------------------------------------------------------------+----------+---------+
| | GBP | GBP |
+-------------------------------------------------------------+----------+---------+
| Bank interest | 42,883 | 19,943 |
+-------------------------------------------------------------+----------+---------+
| Financial income | 42,883 | 19,943 |
+-------------------------------------------------------------+----------+---------+
| Bank interest | 103,269 | 277,991 |
+-------------------------------------------------------------+----------+---------+
| Loan note interest | 132,446 | 119,696 |
+-------------------------------------------------------------+----------+---------+
| Other finance costs | - | 12,446 |
+-------------------------------------------------------------+----------+---------+
| Financial expenses | 235,715 | 410,133 |
+-------------------------------------------------------------+----------+---------+
+---------------------------------------------------+---------------------+-----------+
| 10. TAXATION | | |
+---------------------------------------------------+---------------------+-----------+
| Recognised in the income | | |
| statement | | |
+---------------------------------------------------+---------------------+-----------+
| | 2009 | 2008 |
+---------------------------------------------------+---------------------+-----------+
| | GBP | GBP |
+---------------------------------------------------+---------------------+-----------+
| Current tax expense | | |
+---------------------------------------------------+---------------------+-----------+
| Current period | 53,560 | 198,420 |
+---------------------------------------------------+---------------------+-----------+
| | 53,560 | 198,420 |
+---------------------------------------------------+---------------------+-----------+
| Deferred tax expense | | |
+---------------------------------------------------+---------------------+-----------+
| Origination and reversal of | 42,402 | (23,015) |
| temporary differences | | |
+---------------------------------------------------+---------------------+-----------+
| Reduction in tax rate | - | (14,116) |
+---------------------------------------------------+---------------------+-----------+
| Adjustments for prior year | 23,015 | - |
+---------------------------------------------------+---------------------+-----------+
| | 65,417 | (37,134) |
+---------------------------------------------------+---------------------+-----------+
| Total tax in income statement | 118,977 | 161,286 |
+---------------------------------------------------+---------------------+-----------+
| Reconciliation of effective | | |
| tax rate | | |
+---------------------------------------------------+---------------------+-----------+
| | 2009 | 2008 |
+---------------------------------------------------+---------------------+-----------+
| | GBP | GBP |
+---------------------------------------------------+---------------------+-----------+
| (Loss)/profit for the period | (964,723) | 296,599 |
+---------------------------------------------------+---------------------+-----------+
| Total tax expense | 118,977 | 161,286 |
+---------------------------------------------------+---------------------+-----------+
| (Loss)/profit excluding | (845,746) | 457,885 |
| taxation | | |
+---------------------------------------------------+---------------------+-----------+
| Tax using the UK corporation | (239,527) | 137,366 |
| tax rate of 28% | | |
+---------------------------------------------------+---------------------+-----------+
| Non-deductible expenses | 335,489 | 38,036 |
+---------------------------------------------------+---------------------+-----------+
| Reduction in tax rate | - | (14,116) |
+---------------------------------------------------+---------------------+-----------+
| Adjustments for prior years | 23,015 | - |
+---------------------------------------------------+---------------------+-----------+
| Total tax expense | 118,977 | 161,286 |
+---------------------------------------------------+---------------------+-----------+
11. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings attributable to
the ordinary shareholders by the weighted average number of ordinary share in
issue during the year.
Diluted EPS is not calculated as the share options are anti-dilutive. As per
IAS33 potential ordinary shares are antidilutive when their conversion to
ordinary shares would increase earnings per share or decrease loss per share
from continuing operations. The calculation of diluted earnings per share does
not assume conversion, exercise, or other issue of potential ordinary shares
that would have an antidilutive effect on earnings per share.
11. EARNINGS PER SHARE (continued)
Reconciliation of the earnings and weighted average number of shares used in the
calculation are set out below
+--------------------------------------+-----------+--------------+-----------+------------+
| | Earnings | Weighted | Earnings | Weighted |
| | | average | | average |
+--------------------------------------+-----------+--------------+-----------+------------+
| | 2009 | Number of | 2008 | Number of |
| | | ordinary | | ordinary |
+--------------------------------------+-----------+--------------+-----------+------------+
| | GBP'000's | Shares 2009 | GBP'000's | Shares |
| | | | | 2008 |
+--------------------------------------+-----------+--------------+-----------+------------+
| Earnings per share | (965) | 43,711,390 | 297 | 27,281,282 |
+--------------------------------------+-----------+--------------+-----------+------------+
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| * 12. PROPERTY, PLANT AND EQUIPMENT | | |
| | | |
+-------------------------------------------------------+---------------------------------------+-----------+
| Cost | Asset | Land and | Leasehold | Freehold | Total |
| | under | buildings | Plant, | improvements | |
| | construction | | equipment | and vehicles | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| | GBP | GBP | GBP | GBP | GBP |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Balance | - | 731,935 | 290,930 | 1,412,042 | 2,434,907 |
| at 1 | | | | | |
| February | | | | | |
| 2008 | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Additions | 73,192 | - | 1,881,612 | 199,758 | 2,154,562 |
| at cost | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Disposals | - | - | - | (95,869) | (95,869) |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Balance | 73,192 | 731,935 | 2,172,542 | 1,515,931 | 4,493,600 |
| at 31 | | | | | |
| January | | | | | |
| 2009 | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Depreciation | | | | | |
| and | | | | | |
| impairment | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Balance | - | 11,641 | 9,957 | 94,699 | 116,297 |
| at 1 | | | | | |
| February | | | | | |
| 2008 | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Depreciation | - | 14,405 | 51,168 | 159,319 | 224,892 |
| charge for | | | | | |
| the year | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Disposals | - | - | - | (79,192) | (79,192) |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Balance | - | 26,046 | 61,125 | 174,826 | 261,997 |
| at 1 | | | | | |
| January | | | | | |
| 2009 | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| Net | | | | | |
| book | | | | | |
| value | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| At | - | 720,294 | 280,973 | 1,317,343 | 2,318,610 |
| 31 | | | | | |
| January | | | | | |
| 2008 | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
| At | 73,192 | 705,889 | 2,111,417 | 1,341,105 | 4,231,603 |
| 31 | | | | | |
| January | | | | | |
| 2009 | | | | | |
+----------------------------------------+--------------+-----------+------------+--------------+-----------+
There are no items of property, plant and equipment in the Company.
For details of security given over property, plant and equipment see note 22.
12. PROPERTY, PLANT AND EQUIPMENT (continued) Prior year
+--------------------------------------+----------+------------------+-----------+------------+
| Group | Freehold | Land and | Plant, | Total |
| Cost or deemed | GBP | buildings | equipment | GBP |
| cost | | Leasehold | and | |
| | | improvements | vehicles | |
| | | and building | GBP | |
| | | GBP | | |
+--------------------------------------+----------+------------------+-----------+------------+
| Acquisitions | 731,935 | 273,223 | 1,384,568 | 2,389,726 |
| through business | | | | |
| combinations | | | | |
+--------------------------------------+----------+------------------+-----------+------------+
| Additions at cost | - | 17,707 | 83,667 | 101,374 |
+--------------------------------------+----------+------------------+-----------+------------+
| Disposals | - | - | (56,193) | (56,193) |
+--------------------------------------+----------+------------------+-----------+------------+
| Balance at 31 | 731,935 | 290,930 | 1,412,042 | 2,434,907 |
| January 2008 | | | | |
+--------------------------------------+----------+------------------+-----------+------------+
| Depreciation and | | | | |
| impairment | | | | |
+--------------------------------------+----------+------------------+-----------+------------+
| Depreciation | 11,641 | 9,957 | 132,481 | 154,079 |
| charge for the | | | | |
| period | | | | |
+--------------------------------------+----------+------------------+-----------+------------+
| Disposals | - | - | (37,782) | (37,782) |
+--------------------------------------+----------+------------------+-----------+------------+
| Balance at 31 | 11,641 | 9,957 | 94,699 | 116,297 |
| January 2008 | | | | |
+--------------------------------------+----------+------------------+-----------+------------+
| Net book value | | | | |
+--------------------------------------+----------+------------------+-----------+------------+
| At 31 January 2008 | 720,294 | 280,973 | 1,317,343 | 2,318,610 |
+--------------------------------------+----------+------------------+-----------+------------+
+--------------------------------------+-------------+------------+-----------+-----------+
| 13. INTANGIBLE | Other | Goodwill | Brand | Total |
| ASSETS | intangibles | GBP | GBP | |
| Group | GBP | | | |
| Cost or deemed cost | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| At 1 February 2008 | - | 7,088,657 | 693,558 | 7,782,215 |
+--------------------------------------+-------------+------------+-----------+-----------+
| Reverse acquisition | 214,247 | - | - | 214,247 |
| (see note 4) | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Balance at 31 | 214,247 | 7,088,657 | 693,558 | 7,996,462 |
| January 2009 | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Amortisation and | | | | |
| impairment | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| At 1 February 2008 | - | - | 27,453 | 27,453 |
+--------------------------------------+-------------+------------+-----------+-----------+
| Amortisation charge | - | - | 34,678 | 34,678 |
| for the period | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Impairment losses | 214,247 | - | - | 214,247 |
| for the period - | | | | |
| exceptional | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Balance at 31 | 214,247 | - | 62,131 | 276,378 |
| January 2009 | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Net book value | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| At 31 January 2009 | - | 7,088,657 | 631,427 | 7,720,084 |
+--------------------------------------+-------------+------------+-----------+-----------+
| At 31 January 2008 | - | 7,088,657 | 666,105 | 7,754,762 |
+--------------------------------------+-------------+------------+-----------+-----------+
| Prior year | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| | | Goodwill | Brand | Total |
+--------------------------------------+-------------+------------+-----------+-----------+
| | | GBP | GBP | GBP |
+--------------------------------------+-------------+------------+-----------+-----------+
| Group | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Cost or deemed cost | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Acquisitions | | 7,088,657 | 693,558 | 7,782,215 |
| through business | | | | |
| combinations | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Balance at 31 | | 7,088,657 | 693,558 | 7,782,215 |
| January 2008 | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Amortisation and | | | | |
| impairment | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Amortisation charge | | - | 27,453 | 27,453 |
| for the period | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Balance at 31 | | - | 27,453 | 27,453 |
| January 2008 | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| Net book value | | | | |
+--------------------------------------+-------------+------------+-----------+-----------+
| At 31 January 2008 | | 7,088,657 | 666,105 | 7,754,762 |
+--------------------------------------+-------------+------------+-----------+-----------+
13. INTANGIBLE ASSETS (continued)
Other intangibles impaired in the period relates to the excess fair value of
consideration against net assets following the reverse acquisition of Crawshaw
Group PLC.
Acquired brand values are calculated using the royalty relief approach and are
amortised over twenty years. The remaining amortisation period is 18 years and 2
months.
Impairment testing
For the purpose of impairment testing, goodwill is allocated to the Group's
branch network, which represents the lowest level within the Group at which the
goodwill is monitored for internal management purposes. The cash generating unit
for the purpose of assessing the carrying value of goodwill is therefore the
branch network as a whole.
The recoverable amount of the cash generating unit has been calculated with
reference to its value in use. The key features of this calculation are shown
below:
+--------------------------------------------------------------+---------+----------+
| | 2009 | 2008 |
+--------------------------------------------------------------+---------+----------+
| Period on which management approved forecasts are based | 2 years | 2 years |
+--------------------------------------------------------------+---------+----------+
| Growth rate applied beyond approved forecast period | 1% | 1% |
+--------------------------------------------------------------+---------+----------+
| Discount rate | 15.7% | 15.7% |
+--------------------------------------------------------------+---------+----------+
Value in use was determined by discounting the future cash flows generated from
the continuing operations of the branch network over the next 20 years and was
based on the following key assumptions:
* Detailed 2 year management forecasts
* A growth rate of 1% was assumed thereafter (18 years)
* Cash flows were discounted based on 15.7%, which was based on weighted average
cost of capital, including a market risk premium in line with industry guidance.
14. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES
+----------------------------------+---------------+------------+-----------+---------+
| | Group | Group | Company | Company |
| | 2009 | 2008 | 2009 | 2008 |
| | | | | |
+----------------------------------+---------------+------------+-----------+---------+
| | GBP | GBP | GBP | GBP |
+----------------------------------+---------------+------------+-----------+---------+
| Non-current | | | | |
| | | | | |
+----------------------------------+---------------+------------+-----------+---------+
| Investment in | 109,746 | 96,332 | - | - |
| equity | | | | |
| accounted | | | | |
| investees | | | | |
+----------------------------------+---------------+------------+-----------+---------+
Other investments comprise a 50% share in RGV Refrigeration, a partnership
jointly owned by Crawshaw Butchers Limited and Mr M Hornsby. The Group does not
exert control over the entity. The Group accounts for the investment using the
equity method as detailed in note 2.
The carrying value of investments in equity accounted investees includes
GBP27,246 outstanding dividend declared by RGV Refrigeration.
15. INVESTMENTS IN SUBSIDIARIES
+-----------------------------------------------------------------------------------+-----------------+----------------+
| | Company | Company |
+-----------------------------------------------------------------------------------+-----------------+----------------+
| | 2009 | 2008 |
+-----------------------------------------------------------------------------------+-----------------+----------------+
| | GBP | GBP |
+-----------------------------------------------------------------------------------+-----------------+----------------+
| Non-current | | |
+-----------------------------------------------------------------------------------+-----------------+----------------+
| Investment in Crawshaw Holdings Limited | 9,872,433 | - |
+-----------------------------------------------------------------------------------+-----------------+----------------+
| Loans to group undertakings | 1,827,567 | - |
+-----------------------------------------------------------------------------------+-----------------+----------------+
| Total | 11,700,000 | - |
+-----------------------------------------------------------------------------------+-----------------+----------------+
On 11 April 2008 the company acquired Crawshaw Holdings Limited via a share for
share exchange for a fair value consideration of GBP11 .7m, representing the
market value of the shares issued at that date. As part of the share for share
exchange, 1,827,567 preference shares of GBP1 were acquired in Crawshaw Holdings
Limited. These shares were classified as debt within this company hence this
element of the transaction has been treated as an acquisition of debt.
+-------------------------------------------------+------------+------------+-------------+
| 16. DEFERRED TAX | | | Group |
| LIABILITIES | | | Liabilities |
| Recognised deferred | | | |
| tax liabilities | | | |
| Deferred tax | | | |
| liabilities are | | | |
| attributable to the | | | |
| following: | | | |
+-------------------------------------------------+------------+------------+-------------+
| | | | 2008 |
+-------------------------------------------------+------------+------------+-------------+
| | | | GBP |
+-------------------------------------------------+------------+------------+-------------+
| Plant and equipment | | | 300,170 |
+-------------------------------------------------+------------+------------+-------------+
| Intangible assets - | | | 174,080 |
| brand | | | |
+-------------------------------------------------+------------+------------+-------------+
| Share based payments | | | (17,017) |
+-------------------------------------------------+------------+------------+-------------+
| | | | 457,233 |
+-------------------------------------------------+------------+------------+-------------+
| Movement in deferred | | | |
| tax during the | | | |
| period | | | |
+-------------------------------------------------+------------+------------+-------------+
| | | Recognised | |
+-------------------------------------------------+------------+------------+-------------+
| | 31 January | in income | 31 January |
+-------------------------------------------------+------------+------------+-------------+
| | 2008 | Current | 2009 |
| | | period | |
+-------------------------------------------------+------------+------------+-------------+
| | GBP | GBP | GBP |
+-------------------------------------------------+------------+------------+-------------+
| Plant and equipment | 222,273 | 77,897 | 300,170 |
+-------------------------------------------------+------------+------------+-------------+
| Deferred tax | 186,509 | (12,429) | 174,080 |
| relating to | | | |
| intangible assets - | | | |
| brand | | | |
+-------------------------------------------------+------------+------------+-------------+
| Share based payments | (16,966) | (51) | (17,017) |
+-------------------------------------------------+------------+------------+-------------+
| | 391,816 | 65,417 | 457,233 |
+-------------------------------------------------+------------+------------+-------------+
+-------------------------------------+-------------+-----------+------------+---------+
| 17. INVENTORIES | | | | |
+-------------------------------------+-------------+-----------+------------+---------+
| | Group | Group | Company | Company |
+-------------------------------------+-------------+-----------+------------+---------+
| | 2009 | 2008 | 2009 | 2008 |
+-------------------------------------+-------------+-----------+------------+---------+
| | GBP | GBP | GBP | GBP |
+-------------------------------------+-------------+-----------+------------+---------+
| | | | | |
+-------------------------------------+-------------+-----------+------------+---------+
| Finished goods | 461,521 | 277,226 | - | - |
+-------------------------------------+-------------+-----------+------------+---------+
| 18. TRADE AND OTHER RECEIVABLES | | | | |
+-------------------------------------+-------------+-----------+------------+---------+
| | Group | Group | Company | Company |
+-------------------------------------+-------------+-----------+------------+---------+
| | 2009 | 2008 | 2009 | 2008 |
+-------------------------------------+-------------+-----------+------------+---------+
| | GBP | GBP | GBP | GBP |
+-------------------------------------+-------------+-----------+------------+---------+
| Trade | 125,083 | 131,910 | - | - |
| receivables | | | | |
+-------------------------------------+-------------+-----------+------------+---------+
| Other tax and | 168,738 | 37,690 | 111,459 | - |
| social security | | | | |
+-------------------------------------+-------------+-----------+------------+---------+
| Prepayments and | 153,707 | 65,290 | 794 | 17,764 |
| accrued income | | | | |
+-------------------------------------+-------------+-----------+------------+---------+
| Amounts owed by | - | - | 4,620,713 | 110,866 |
| group | | | | |
| undertakings | | | | |
+-------------------------------------+-------------+-----------+------------+---------+
| | 447,528 | 234,890 | 4,732,886 | 128,630 |
+-------------------------------------+-------------+-----------+------------+---------+
No interest is charged on receivables. The directors consider that the carrying
amount of trade and other receivables approximates their fair value.
Aged analysis of trade receivables
+---------------------------+-------------+-----------+-------------+-------------+-----------+-------------+
| | | 31 Jan | | | 31 Jan | |
| | | 2009 | | | 2009 | |
+---------------------------+-------------+-----------+-------------+-------------+-----------+-------------+
| | Gross | Provision | Net | Gross | Provision | Net |
| | | for | trade | | for | trade |
+---------------------------+-------------+-----------+-------------+-------------+-----------+-------------+
| | receivables | Doubtful | receivables | receivables | Doubtful | receivables |
| | | debt | | | debt | |
+---------------------------+-------------+-----------+-------------+-------------+-----------+-------------+
| | GBP | GBP | GBP | GBP | GBP | GBP |
+---------------------------+-------------+-----------+-------------+-------------+-----------+-------------+
| Not | 98,949 | - | 98,949 | 94,834 | - | 94,834 |
| past | | | | | | |
| due | | | | | | |
+---------------------------+-------------+-----------+-------------+-------------+-----------+-------------+
| Up | 20,286 | - | 20,286 | 19,442 | - | 19,442 |
| to | | | | | | |
| 1 | | | | | | |
| month | | | | | | |
| past | | | | | | |
| due | | | | | | |
+---------------------------+-------------+-----------+-------------+-------------+-----------+-------------+
| Over | 18,399 | (12,551) | 5,848 | 30,185 | (12,551) | 17,634 |
| 1 | | | | | | |
| month | | | | | | |
| past | | | | | | |
| due | | | | | | |
+---------------------------+-------------+-----------+-------------+-------------+-----------+-------------+
| | 137,634 | (12,551) | 125,083 | 144,461 | (12,551) | 131,910 |
+---------------------------+-------------+-----------+-------------+-------------+-----------+-------------+
+----------------------------------+---------------+------------+-----------+---------+
| 19. TRADE AND | Group | Group | Company | Company |
| OTHER PAYABLES | 2009 | 2008 | 2009 | 2008 |
| Current: | GBP | GBP | GBP | GBP |
+----------------------------------+---------------+------------+-----------+---------+
| Trade payables | 1,870,097 | 1,112,444 | - | 8,580 |
+----------------------------------+---------------+------------+-----------+---------+
| Other creditors | 506,690 | 260,551 | 37,500 | 878,803 |
| and accruals | | | | |
+----------------------------------+---------------+------------+-----------+---------+
| | 2,376,787 | 1,372,995 | 37,500 | 887,383 |
+----------------------------------+---------------+------------+-----------+---------+
| Non-current: | | | | |
+----------------------------------+---------------+------------+-----------+---------+
| Accruals | 100,289 | 9,136 | - | - |
+----------------------------------+---------------+------------+-----------+---------+
| | 100,289 | 9,136 | - | - |
+----------------------------------+---------------+------------+-----------+---------+
Trade payables and other creditors comprise amounts outstanding for trade
purchases and ongoing costs. The directors consider that the carrying amount of
trade payables approximates to their fair value.
Non-current accruals relate to reverse lease premiums, which are credited to the
income statement on a straight-line basis over the lease term.
20. EMPLOYEE BENEFITS
Pension plans
Defined contribution plans
The Group operates a defined contribution pension plan. The assets of the scheme
are held separately from those of the Group in an independently administered
fund. The amount charged to the income statement represents the contributions
payable to the scheme in respect of the accounting period. Pension costs for the
defined contribution scheme are as follows:
+----------------------------------------------------------------+---------+----------+
| | 2009 | 2008 |
+----------------------------------------------------------------+---------+----------+
| | GBP | GBP |
+----------------------------------------------------------------+---------+----------+
| Defined contribution scheme | 3,293 | 5,343 |
+----------------------------------------------------------------+---------+----------+
Share Based Payments
Share Options
Share options granted prior to the reverse acquisition are held by former
employees of Felix Group PLC. Further share options were granted post reverse
acquisition on 14 April 2008 to current directors of the enlarged group,
Crawshaw Group PLC.
The share options in issue which all relate to ordinary shares of 5p and are to
be settled by the physical delivery of shares are as follows
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| | | Number | | | | | |
| | | of | | | | | |
| | | options | | | | | |
| | | at | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| Date | Exercise | 1 | Granted | Exercised | Lapsed | Number | |
| | | February | | | | of | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| granted | price | 2008 | in | in | in | options | Exercise Period |
| | | | period | period | period | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 14 | 250p | 45,000 | - | - | - | 45,000 | 14 July 2003 to 13 |
| July | | | | | | | July 2013 |
| 2003 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 8 | 187p | 21,984 | - | - | 21,984 | - | 8 March 2004 to 21 |
| March | | | | | | | January 2014 |
| 2004 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 8 | 187p | 4,813 | - | - | - | 4,813 | 17 February 2005 to |
| March | | | | | | | 16 February 2009 |
| 2004 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 8 | 1,000p | 15,000 | - | - | - | 15,000 | 8 March 2005 to 7 |
| March | | | | | | | March 2009 |
| 2004 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 14 | 619p | 60,200 | - | - | 60,200 | - | 14 July 2006 to 13 |
| July | | | | | | | July 2016 |
| 2006 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 17 | 619p | 1,500 | - | - | 1,500 | - | 17 July 2006 to 16 |
| July | | | | | | | July 2016 |
| 2006 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 4 | 619p | 17,655 | - | - | 17,655 | - | 4 September 2006 to |
| September | | | | | | | 3 September 2016 |
| 2006 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 1 | 237.5p | 1,500 | - | - | 1,500 | - | 1 February 2007 to |
| February | | | | | | | 31 January 2017 |
| 2007 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 16 | 400p | 2,000 | - | - | 2,000 | - | 16 April 2007 to 15 |
| April | | | | | | | April 2017 |
| 2007 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
| 14 | 42.5p | - | 1,235,292 | - | - | 1,235,292 | 14 April 2008 to 12 |
| April | | | | | | | April 2010 |
| 2008 | | | | | | | |
+------------------------------+----------+----------+-----------+-----------+--------+-----------+--------------------------+
The expected volatility is wholly based on the historic volatility (calculated
based on the weighted average remaining life of the share options), adjusted for
any expected changes to future volatility due to publicly available information.
The fair value of the share appreciation rights at grant date of 14 April 2008
is determined based on the black scholes model. The model inputs were the share
price of 42.5p, the exercise price of 42.5p, expected volatility of 43%,
expected dividends of GBPNil, a term of two years and a risk free rate of 5%.
The fair value of the liability is remeasured at each balance sheet date and
settlement date.
The total expense for the year recognised in relation to equity-settled share
based payments is GBP54,892.
21. CAPITAL AND RESERVES
Reconciliation of movement in capital and reserves - Group
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Balance | Share | Share | Reverse | Capital | Retained | Total |
| at 1 | capital | premium | acquisition | contribution | earnings | equity |
| February | GBP | GBP | reserve | reserve | GBP | GBP |
| | | | GBP | GBP | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| 2008 | 2,406,763 | 15,981,764 | (18,175,942) | 119,696 | 296,599 | 628,880 |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Total | - | - | - | - | (964,723) | (964,723) |
| recognised | | | | | | |
| income and | | | | | | |
| expense | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Share | - | - | - | - | 54,892 | 54,892 |
| based | | | | | | |
| payment | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Issue of shares | 1,316,000 | - | 489,263 | - | - | 1,085,263 |
| to effect | | | | | | |
| reverse | | | | | | |
| acquisition | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Issue | | | | | | |
| of | | | | | | |
| shares | | | | | | |
| for | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Crawshaw | | | | | | |
| Holdings | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Limited | 244,000 | - | 1,583,567 | - | - | 1,827,567 |
| preference | | | | | | |
| shares | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Proceeds | 533,333 | 3,382,873 | - | - | - | 3,916,206 |
| from | | | | | | |
| share | | | | | | |
| issue | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Cancellation of | (2,166,087) | (14,383,588) | 16,549,675 | - | - | - |
| 0.9p deferred | | | | | | |
| shares | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Capital | - | - | - | 29,615 | - | 29,615 |
| contribution | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| Balance | | | | | | |
| at 31 | | | | | | |
| January | | | | | | |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
| 2009 | 2,334,009 | 4,981,049 | 446,563 | 149,311 | (613,232) | 7,297,700 |
+--------------------------------+-------------+--------------+--------------+--------------+-----------+-----------+
On 11 April 2008, the company acquired in a share for share exchange the whole
of the ordinary share capital of Crawshaw Holdings Ltd. The reverse acquisition
reserve arises on the accounting for the share for share exchange. Reserve
acquisition accounting requires that Crawshaw Holdings Limited is treated as the
acquirer and the company the acquired. A reverse acquisition arises which
represents the difference between the issued equity instruments of Crawshaw
Holdings Limited immediately before the share exchange and the equity
instruments of the company along with the shares issued to effect the share for
share exchange.
The intention of the reverse acquisition accounting is to present the group as
having always existed except that the capital reserves presented in the group
balance sheet are those of the company in all the years and not Crawshaw
Holdings Ltd. As a result the reverse acquisition reserve arises at February
2007 that being the start of the earliest comparative period.
In conjunction with the acquisition, 10,666,667 ordinary shares were issued at
37.5p per share raising a total of GBP4,000,000. The premium arising on the
issue on these shares was GBP3,382,873 net of issue costs of GBP83,794.
The capital contribution reserve arose in relation to the waiver of shareholder
loan note interest in the current year (prior to the reverse acquisition) and
prior period.
21. CAPITAL AND RESERVES (continued)
The capital of the company was by virtue of a written special resolution dated
10 April 2008 and with the sanction of an order of the High Court dated 21 July
2008 reduced by the cancellation of the 240,676,350 0.9p deferred shares leaving
the number of issued shares as 46,680,194 5p ordinary shares.
By order of the court, the sum arising on the reduction of capital was
transferred to a special reserve. Following confirmation from potential
creditors the special reserve has been transferred to the profit and loss
account by an order of the High Court dated 13 August 2008.
Reconciliation of movement in capital and reserves - Company
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
| | Share | Share | Capital | Merger | Retained | Total |
| | capital | premium | reduction | reserve | earnings | equity |
| | | | reserve | | | |
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
| | GBP | GBP | GBP | GBP | GBP | GBP |
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
| Balance | 2,406,763 | 15,981,764 | - | - | (16,522,579) | 1,865,948 |
| at 1 | | | | | | |
| February | | | | | | |
| 2008 | | | | | | |
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
| Issue | 533,333 | 3,382,873 | - | - | | 3,916,206 |
| of | | | | | | |
| shares | | | | | | |
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
| Total | - | - | - | - | (1,086,688) | (1,086,688) |
| recognised | | | | | | |
| income and | | | | | | |
| expense | | | | | | |
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
| Cancellation | (2,166,087) | (14,383,588) | 16,549,675 | - | - | - |
| of 0.9p | | | | | | |
| deferred | | | | | | |
| shares | | | | | | |
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
| Transfer | - | - | (16,549,675) | - | 16,549,675 | - |
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
| Issue of shares in | 1,560,000 | - | - | 10,140,000 | - | 11,700,000 |
| connection with reverse | | | | | | |
| acquisition | | | | | | |
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
| Balance | 2,334,009 | 4,981,049 | - | 10,140,000 | (1,059,592) | 16,395,466 |
| at 31 | | | | | | |
| January | | | | | | |
| 2009 | | | | | | |
+--------------------------------+-------------+--------------+-------------------------+------------+--------------+-------------+
10,666,667 ordinary shares were issued in order to raise funds at a premium of
32.5p per 5p share, raising GBP4m. The premium arising on the issue on these
shares was GBP3,382,873, net of issue costs of GBP83,794. 31,200,000 5p shares
were issued in connection with the reverse acquisition. The value of the shares
issued was GBP11,700,000 (37.5p per 5p share), which represented the market
value at that date.
The original 240,676,303 1p shares of Crawshaw Group PLC were increased to
240,676,350 via the issue of 47 additional shares. These shares were then split
into 240,676,350 0.1p shares and 240,676,350 0.9p deferred shares. The 0.1 p
ordinary shares were swapped for 5p ordinary shares via a 50:1 share exchange,
leaving 4,813,527 5p ordinary shares and 240,676,350 0.9p deferred shares. The
additional 31,200,000 shares issued by Crawshaw Group PLC and 10,666,667 shares
issued to raise new funds left a total of 46,680,194 issued ordinary 5p shares
and 240,676,350 0.9p deferred shares.
The capital of the company was by virtue of a written special resolution dated
10 April 2008 and with the sanction of an order of the High Court dated 21 July
2008 reduced by the cancellation of the 240,676,350 0.9p deferred shares leaving
the number of issued shares as 46,680,194 5p ordinary shares.
By order of the court, the sum arising on the reduction of capital was
transferred to a special reserve. Following confirmation from potential
creditors the special reserve has been transferred to the profit and loss
account by an order of the High Court dated 13 August 2008.
+----------------------------------------+--------------------+-----------+-----------+
| 21. CAPITAL AND | Number of shares | 2009 | 2008 |
| RESERVES (continued) | | GBP | GBP |
| Share capital - Group | | | |
| and Company | | | |
| Authorised | | | |
+----------------------------------------+--------------------+-----------+-----------+
| Ordinary shares of 5p | 96,678,257 | 4,833,913 | - |
+----------------------------------------+--------------------+-----------+-----------+
| Ordinary shares of 1p | 500,000,000 | - | 5,000,000 |
+----------------------------------------+--------------------+-----------+-----------+
| | | 4,833,913 | 5,000,000 |
+----------------------------------------+--------------------+-----------+-----------+
| Allotted, called up | | | |
| and fully paid | | | |
+----------------------------------------+--------------------+-----------+-----------+
| Ordinary shares of 5p | 46,680,194 | 2,334,009 | - |
+----------------------------------------+--------------------+-----------+-----------+
| Ordinary shares of 1p | 240,676,350 | - | 2,406,763 |
+----------------------------------------+--------------------+-----------+-----------+
| | | 2,334,009 | 2,406,763 |
+----------------------------------------+--------------------+-----------+-----------+
| Total issued share | | | |
| capital: | | | |
+----------------------------------------+--------------------+-----------+-----------+
| Included in equity | 46,680,194 | 2,334,009 | 2,406,763 |
+----------------------------------------+--------------------+-----------+-----------+
| | | 2,334,009 | 2,406,763 |
+----------------------------------------+--------------------+-----------+-----------+
The company was incorporated as Felix Group PLC and had an authorised share
capital of GBP5,000,000 representing 500,000,000 1 p ordinary shares.
The company changed its name to Crawshaw Group PLC on 11 April 2008.
On 11 April 2008, the authorised share capital was decreased to GBP4,833,913
following the reverse acquisition of Crawshaw Group PLC by Crawshaw Holdings
Limited. The shares were reclassified as 96,678,257 ordinary shares of 5p each.
All issued shares are fully paid. The holders of ordinary shares are entitled to
receive dividends as declared from time to time and are entitled to one vote per
share at the meetings of the company.
+-------------------------------------------------+----------------------+-----------+
| 22. LOANS AND BORROWINGS - GROUP | 2009 | 2008 |
| | GBP | GBP |
+-------------------------------------------------+----------------------+-----------+
| Non-current liabilities | | |
+-------------------------------------------------+----------------------+-----------+
| Medium term loan | 1,110,000 | 2,307,861 |
+-------------------------------------------------+----------------------+-----------+
| Mortgage | 840,000 | 840,000 |
+-------------------------------------------------+----------------------+-----------+
| Loan notes | - | 3,002,690 |
+-------------------------------------------------+----------------------+-----------+
| Redeemable preference shares | - | 1,827,527 |
| of GBP1 each | | |
+-------------------------------------------------+----------------------+-----------+
| | 1,950,000 | 7,978,118 |
+-------------------------------------------------+----------------------+-----------+
| Current liabilities | | |
+-------------------------------------------------+----------------------+-----------+
| Current portion of secured | - | 713,335 |
| bank loans | | |
+-------------------------------------------------+----------------------+-----------+
| Current portion of loan notes | 2,252,018 | - |
+-------------------------------------------------+----------------------+-----------+
As part of the acquisition of Crawshaw Holdings Limited on 11 April 2008, the
1,827,567 preference shares were acquired. The liability in the current year is
now due to Crawshaw Group Plc, hence eliminated on consolidation.
The holders of preference shares are entitled to attend all general meetings
with no right to vote. They do not have any rights to any granted dividend. The
shares are redeemable on an exit, which is defined as a sale, a disposal
followed by the winding-up of the company or a listing. A sale is considered to
be within the control of the shareholders but not within the control of the
company. Therefore as the Group's
preference shares are mandatory redeemable on a takeover, the are classed as a
liability. In the event of a winding up of the preference shareholders rank
above other holders of any other share (but after payment of the Group's debts
and liabilities).
+----------------------------------+----------------+----------+-----------+-----------+
| Terms and | | | | |
| debt | | | | |
| repayment | | | | |
| schedule | | | | |
+----------------------------------+----------------+----------+-----------+-----------+
| | Nominal | Year of | | Carrying |
+----------------------------------+----------------+----------+-----------+-----------+
| | interest rate | maturity | Fair | amount |
| | | | value | |
+----------------------------------+----------------+----------+-----------+-----------+
| | | | GBP | GBP |
+----------------------------------+----------------+----------+-----------+-----------+
| Mortgage | LIBOR+1.5% | 2023 | 840,000 | 840,000 |
+----------------------------------+----------------+----------+-----------+-----------+
| Loan notes | 5% | 2009 | 2,401,329 | 2,252,018 |
+----------------------------------+----------------+----------+-----------+-----------+
| Bank loan | LIBOR+1.5% | 2010 | 1,110,000 | 1,110,000 |
+----------------------------------+----------------+----------+-----------+-----------+
| | | | 4,351,329 | 4,202,018 |
+----------------------------------+----------------+----------+-----------+-----------+
LOANS AND BORROWINGS - GROUP (continued)
The following liabilities disclosed under bank loans and loan notes are secured
by fixed and floating charges over the assets of the Group.
+------------------------------------------------+--------------------+-----------+
| | 2009 | 2008 |
| | GBP | GBP |
+------------------------------------------------+--------------------+-----------+
| Non-current liabilities | | |
+------------------------------------------------+--------------------+-----------+
| Medium term loan | 1,110,000 | 2,307,861 |
+------------------------------------------------+--------------------+-----------+
| Mortgage | 840,000 | 840,000 |
+------------------------------------------------+--------------------+-----------+
| | 1,950,000 | 3,147,861 |
+------------------------------------------------+--------------------+-----------+
| Current liabilities | | |
+------------------------------------------------+--------------------+-----------+
| Current portion of secured bank loans | - | 713,335 |
+------------------------------------------------+--------------------+-----------+
| The principle features of the loans are as | | |
| follows: | | |
+------------------------------------------------+--------------------+-----------+
* A loan of GBP1,110,000 was taken out in two tranches GBP500,000 on the 15
January 2009 and GBP610,000 on 30 January 2009, both sums carry an interest rate
of LIBOR +1.5%.
* A mortgage of GBP840,000 against freehold property was taken out on the 21 May
2008 over a 15 year period at a rate of LIBOR +1.5%. The mortgage is repayable
over the final 10 years of the 15 year period, with interest only payments due
during the first five years.
(c) Loan notes of GBP2,252,018. The loan notes were taken out on 16 April 2007
at a value of GBP3,002,690. Repayments were made on 1 August 2008, excluding
interest due up to 11 April 2008 which was waived by the loan notes holders and
totalled GBP29,615 in the current year (1 February 2008 to 11 April 2008). This
has been treated as a capital contribution from the shareholders in the year
(see note 21). The loan notes carry an interest rate of 5%. Repayments of
GBP750,672 were made during the year. Loan notes of GBP1,000,000 were converted
into equity share capital during February 2009 (See note 29).
23. FINANCIAL INSTRUMENTS
The Group's principal financial instruments comprise loans and borrowings, cash
and trade creditors. The main purpose of these financial instruments is to raise
finance for the Group's operations.
The main risks arising from the Group's financial instruments are interest rate
risk, liquidity risk and credit risk. The board reviews and agrees policies for
managing each of these risks and they are summarised below.
23. FINANCIAL INSTRUMENTS (continued)
Interest rate risk
The Group's exposure to market risk for changes in interest rates relates
primarily to the Group's long term debt obligations.
The Group has not currently entered into any steps to mitigate its risk to
variability in interest rates.
Credit risk
The Group's principal financial assets are cash and receivables. The Group's
credit risk is primarily attributable to trade receivables. Trade receivables
are included in the balance sheet net of doubtful receivables, estimated by the
Group's management based on prior experience and their assessment of current
economic conditions.
At the balance sheet date the Directors consider there to be no significant
credit risk.
Liquidity risk
The Group's objective is to maintain a balance between continuity of funding and
flexibility through the use of cash and bank loans. Prior to the acquisition
Crawshaw Butchers Limited was increasingly cash-generative and had no external
loans and borrowings. This trend is forecast to continue in the future subject
to levels of capital expenditure.
Effective interest rates
In respect of income-earning financial assets and interest-bearing financial
liabilities, the following table indicates their effective interest rates at the
balance sheet date and the periods in which they mature or, if earlier, are
repriced.
+--------------+--------------+--------------+--------------+--------------+--------------+
| Financial | Effective | < 1 year | 1 to < 2 | 2 to < 5 | 5 years and |
| Instrument | Interest | | years | years | over |
| | Rate | | | | |
+--------------+--------------+--------------+--------------+--------------+--------------+
| | | GBP | GBP | GBP | GBP |
+--------------+--------------+--------------+--------------+--------------+--------------+
| Cash | - | 1,463,545 | - | - | - |
+--------------+--------------+--------------+--------------+--------------+--------------+
| Loans | 3.19% | - | 1,110,000 | - | 840,000 |
+--------------+--------------+--------------+--------------+--------------+--------------+
Sensitivity analysis
In managing interest rate risks the Group aims to reduce the impact of a general
increase of one percentage point in interest rates would have an impact on
consolidated earnings.
At 31 January 2009, it is estimated that the full period impact of a general
increase of one percentage point in interest rates would decrease the Group's
profit before tax by approximately GBP20,000.
24. CAPITAL MANAGEMENT
The Group's objectives are to safeguard its ability to continue as a going
concern providing returns to shareholders, through the optimisation of the debt
and equity balance, and to maintain a strong credit rating and headroom. The
Group manages its capital structure and makes appropriate decisions in light of
the current economic conditions and strategic objectives of the Group.
A key objective of the Group's capital management is to maintain compliance with
the covenants set out in the bank facility.
Throughout the year, the Group has complied with this policy.
There has been no change in the objectives, policies or processes with regards
to capital management during the years ended 31 January 2009 and 31 January
2008.
25. CAPITAL COMMITMENTS
+--------------------------------------------------+---------------+---------------+
| | 2009 | 2008 |
+--------------------------------------------------+---------------+---------------+
| | GBP | GBP |
+--------------------------------------------------+---------------+---------------+
| Contracts placed for future capital expenditure | 540,000 | - |
| not provided in the financial statements | | |
+--------------------------------------------------+---------------+---------------+
26. OPERATING LEASES
Non-cancellable operating lease rentals are payable as follows:
+----------------------------------+--------------+-----------+----------+----------+
| | Group | Company |
+----------------------------------+--------------------------+---------------------+
| | 2009 | 2008 | 2009 | 2008 |
+----------------------------------+--------------+-----------+----------+----------+
| | GBP | GBP | GBP | GBP |
+----------------------------------+--------------+-----------+----------+----------+
| Less than one year | 556,807 | 318,082 | - | - |
+----------------------------------+--------------+-----------+----------+----------+
| Between one and five years | 1,799,158 | 710,258 | - | - |
+----------------------------------+--------------+-----------+----------+----------+
| More than five years | 3,393,649 | 1,062,769 | - | - |
+----------------------------------+--------------+-----------+----------+----------+
| | 5,749,614 | 2,019,109 | - | - |
+----------------------------------+--------------+-----------+----------+----------+
The Company leases a number of warehouse and factory facilities under operating
leases. Land and buildings have been considered separately for lease
classification. During the period GBP536,360 was recognised as an expense in
the income statement in respect of operating leases.
27. RELATED PARTIES
Group
Richard Rose was Chairman of both Felix Group PLC and Crawshaw Group Limited at
the time of the reverse acquisition therefore this acquisition is classified as
a related party transaction under the AIM rules. Details of this transaction are
provided in note 4.
Transactions with key management personnel and directors
Key management personnel compensation
See note 8.
Other transactions
The Company lease the property owned by Colin Crawshaw Pension Scheme for
factory facilities and paid rental fee of GBP13,000 in 2009 (2008: GBP12,875).
Other related party transactions
The aggregate value of transactions and outstanding balances relating to
entities over which they have control or significant influence were as follows:
+-----------------------------------------------------+----------------------------+------------------------------+
| | Transaction value |
+-----------------------------------------------------+-----------------------------------------------------------+
| | 2009 | 2008 |
+-----------------------------------------------------+----------------------------+------------------------------+
| | GBP | GBP |
+-----------------------------------------------------+----------------------------+------------------------------+
| Purchase of services | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties | 61,309 | 74,803 |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other income | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties - management fee | 12,000 | 6,000 |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties - dividend | 13,414 | 18,852 |
+-----------------------------------------------------+----------------------------+------------------------------+
+-----------------------------------------------------+----------------------------+------------------------------+
| | Balance outstanding |
+-----------------------------------------------------+-----------------------------------------------------------+
| | 2009 | 2008 |
+-----------------------------------------------------+----------------------------+------------------------------+
| | GBP | GBP |
+-----------------------------------------------------+----------------------------+------------------------------+
| Payable | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties | 8,026 | - |
+-----------------------------------------------------+----------------------------+------------------------------+
| | | |
| Receivable | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties | 27,746 | 13,832 |
+-----------------------------------------------------+----------------------------+------------------------------+
The aggregate value of transactions and outstanding balances relating to
entities over which they have control or significant influence were as follows:
+-----------------------------------------------------+----------------------------+------------------------------+
| | | Transaction value |
+-----------------------------------------------------+----------------------------+------------------------------+
| | Note | 2008 |
+-----------------------------------------------------+----------------------------+------------------------------+
| | | GBP |
+-----------------------------------------------------+----------------------------+------------------------------+
| Purchase of services | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties | | 52,882 |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other income | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties - management fee | 4 | 6,000 |
| | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties - dividend | | 18,852 |
+-----------------------------------------------------+----------------------------+------------------------------+
| | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| | | Balance outstanding |
+-----------------------------------------------------+----------------------------+------------------------------+
| | | 2008 |
+-----------------------------------------------------+----------------------------+------------------------------+
| | | GBP |
+-----------------------------------------------------+----------------------------+------------------------------+
| Payable | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties | | - |
+-----------------------------------------------------+----------------------------+------------------------------+
| Receivable | | |
+-----------------------------------------------------+----------------------------+------------------------------+
| Other related parties | | 13,832 |
| | | |
+-----------------------------------------------------+----------------------------+------------------------------+
28. PRINCIPAL SUBSIDIARY UNDERTAKINGS
At 31 January 2009 Crawshaw Group PLC had the following principal subsidiary
undertakings:
Crawshaw Holdings Limited - United Kingdom - Intermediate Holding Company
Crawshaw Butchers Limited - United Kingdom - Retail Butchers
Chestnut Prospects Limited - United Kingdom - Dormant
The shareholdings were 100% of the subsidiary undertakings' ordinary and
preference shares. Each of the subsidiaries is included in the consolidated
financial statements.
29. POST BALANCE SHEET EVENTS
Given the current economic climate and its general impact on the costs and
restrictions associated with borrowings the Board decided that it would be
prudent to reduce the Group's dependency on bank borrowings and provide the
Group with greater financial flexibility in the future. Therefore, two weeks
after the reporting date, the Board finalised the conversion of GBP1 m of debt
owed to the loan note holders into shares issued by the Company. Added to this,
the scheduled loan note repayment was also made in February of GBP602k and
therefore by the end of February the Company had reduced the debt position owing
to the loan note holders to GBP650k which is due to be repaid in June 2009.
The preliminary results have been prepared in accordance with International
Financial Reporting Standards ("IFRS") and IFRIC interpretations as adopted by
the EU and with those parts of the Companies Act 1985 applicable to companies
reporting under IFRS. The preliminary announcement does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. This
announcement has been agreed with the company's auditors for release.
A copy of the full annual report will be sent to all shareholders shortly and
will be available from the company's registered office : Unit 15 Bradmarsh
Business Park, Bow Bridge Close, Rotherham, S60 1BY, shortly. It will also be
published on the Company's website www.crawshawgroupplc.com.
The statutory accounts for the period ended 31 January 2008, which have been
delivered to the Registrar of Companies, included an audited report which was
unqualified and which did not contain a statement under Section237(2) or (3) of
the Companies Act 1985.
For further information please contact:
Crawshaw Group PLC
Lynda Sherratt, Company Secretary,
01709 369 602
Investec Investment Banking
James Grace/Martin Smith
0207 597 5970
This information is provided by RNS
The company news service from the London Stock Exchange
END
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