TIDMCRAW
RNS Number : 0505L
Crawshaw Group PLC
23 April 2015
23rd April 2015
Crawshaw Group PLC
Final Results
Crawshaw Group PLC ("the Company"), the fresh meat and
food-to-go retailer, today reports its audited results for the year
ended 31 January 2015.
Results highlights for the year to 31(st) January 2015.
-- Total Group Sales for the year up 17% to GBP24.6m (2014: GBP21.0m)
-- Full year like for like sales up 5% (2014: 11%)
-- EBITDA up 15% to GBP1.6m (2014: GBP1.4m)
-- Adjusted EBITDA* up 30% to GBP1.8m (2014: GBP1.4m)
-- Profit before tax GBP1.2m (2014: GBP1.0m)
-- Net cash GBP9.1m (2014: GBP1.0m)
-- Earnings per share lower at 1.30p (2014: 1.42p) as a result
of the share placing in the year
-- LFL sales first 10 weeks of current year down 4% (2014: +19%)
with good outlook for the year ahead
Sales and gross margin
Total Group sales for the 53 weeks ended 31 January 2015 were
GBP24.6m (2014: GBP21.0m), an increase of 17%.
Excluding the impact of the additional week in the current year
the growth in total Group sales compared with the same 52 weeks in
2014 was 15%. Wholesale sales rose 13% to GBP1.1m (2014: GBP0.9m)
and like-for-like sales grew by 5% (2014: 11%) over the year.
Additional sales have been generated by our new shop opening in
Sheffield in March and our new factory shop in Rotherham in
November.
Average customer spend continues to rise and is up 3.5% to
GBP6.22 versus last year (2014: +13%) as we maintain our focus on
larger value packs and multi buy offers. Customer numbers are 3.2%
higher than last year (2014: -1%) driven by our hot cooked products
as we improve the range and consistency of our lunchtime and take
home offer.
I am pleased to say that in November we moved from 3 separate
head office and factory locations into one newly refurbished
facility in Rotherham. This single location can now support up to
60 shops and also contains a new factory shop which is performing
well above expectations.
Gross margin levels have further strengthened to 44.4% (2014:
43.8%) as a result of lower meat prices in the year plus continued
improvements in operational efficiency.
Costs
In total, overheads were 19% higher at GBP9.8m (2014: GBP8.2m).
However, this figure can be further analysed between those
overheads required to support the existing operation, GBP9.6m and
the investment in infrastructure costs to support our growth
strategy in the year GBP0.2m. Operating overheads (excluding
investment in infrastructure costs) as a proportion of sales was
39% (2014: 39%).
Profit
Reported EBITDA for the year increased 15% to GBP1.6m (2014:
GBP1.4m), however, excluding infrastructure costs the adjusted
EBITDA was 30% higher than last year at GBP1.8m. This increase in
profitability can be directly attributed to the improvements in
like for like sales in addition to management control of gross
margin and overheads. Profit before tax rose to GBP1.2m (2014:
GBP1.0m) however, due to the successful share placing in the year,
where the number of shares in circulation increased by 20,999,994,
earnings per share reduced to 1.30p (2014: 1.42p).
Dividend
The Board is delighted to propose the payment of a final
dividend of 0.47 pence per share, which together with the interim
dividend of 0.10 pence per share, paid on 31st October 2014, takes
the total dividend for the year to 0.57 pence per share, an
increase of 10% (2014: 0.52 pence per share). Shareholder approval
will be sought at the Annual General Meeting, to be held on 23rd
June 2015, to pay the final dividend on 31st July 2015 to
shareholders on the register on 3(rd) July 2015. The ex-dividend
date will be 2nd July 2015. As last year, shareholders will have
the opportunity to elect to reinvest their cash dividend and
purchase existing shares in the Company through a Dividend
Reinvestment Plan ('DRIP').
Cash
Operating cash flow before movements in working capital was
GBP1.6m (2014: GBP1.4m). After working capital movements and higher
taxation payments the cash generated from operating activities was
GBP1.5m (2014: GBP1.4m). Other cash outflows during the year
include GBP1.5m on capital projects (GBP1.0m to cover the cost of
our new operating facility, head office and factory shop, leasehold
improvements of GBP0.3m and equipment/vehicles of GBP0.2m), GBP0.2m
on acquisitions, GBP0.4m on the repayment of loans and GBP0.3m on
dividends. After the cash inflow of GBP8.6m from the share placing,
cash balances at the end of January 2015 were GBP7.7m higher at
GBP9.1m (2014: GBP1.4m).
As we have now have no debt within the company, at the reporting
year end we also held net cash of GBP9.1m (2014: GBP1.0m).
Growth Plan
I am very pleased with the progress made to date on our plans to
open 200 shops. The post year end acquisition of Gabbotts Farm has
provided 11 additional profitable shops and a distribution centre
in the North West of England. We have also recently signed leases
on new shops in Leeds and Bolton which are currently being fitted
out. In addition there are a number of other locations in the
process of being signed up.
CEO
I am delighted to welcome Noel into the business as our new CEO.
He is developing many initiatives and plans to grow sales and
profits through our existing estate, to drive the integration,
performance, and synergy benefits at Gabbotts, and is putting in
place a robust infrastructure to ensure we are properly and
expertly resourced to handle the scale of store rollout we have
planned.
Outlook
LFL sales started the year lower than last year which is in line
with expectation given the exceptional growth from the comparable
period last year.
Each and every one of our stores were profitable during the year
under review, and this gives us much confidence in the scalability
of our model.
It is a very exciting time for the business and whilst short
term profits will be held in check for a while as we add
infrastructure costs ahead of the curve, we very much look forward
to reporting on our progress as we build scale as quickly as
practically possible.
Richard Rose
Chairman
23rd April 2015.
* Adjusted EBITDA is earnings before interest, taxation,
depreciation, amortization and infrastructure costs. Infrastructure
costs are defined as investments in people, processes and systems
in the year to provide the building blocks to support future
growth.
Enquiries:
Crawshaw Group plc
Lynda Sherratt 01709 369 600
Peel Hunt LLP
Dan Webster, Richard Brown 0207 418 8869
Strategy and Business Model
Mission
To use our expertise to source, prepare and retail quality meat
products at a price and a service level that delight our
customers.
Principal Activities
The principal activity of the Group continues to be the
operation of a chain of meat focused retail food stores.
The Group operates from a head office and distribution centre in
Rotherham, plus 22 retail locations across Yorkshire, Lincolnshire,
Nottinghamshire and Derbyshire.
Business Model
Our management team have extensive experience in sourcing
quality meat products from tried and tested local and international
suppliers at the lowest possible prices. Whilst we do buy longer
term to ensure that we have a core range of products, we pride
ourselves on identifying key lines in the spot market that offer
value to our customers.
We have our own distribution centre where we control additional
processing and logistics as well as the production of our very own
award winning sausages.
Our retail outlets are manned with skilled butchers who are
happy to help customers with advice on choosing the right product,
in the right quantities, as well as how to cook it.
Our product range is split into 2 distinct areas:
-- Traditional raw meat - we have a wide range of products sold
either (i) loose in a serve over counter for the traditional
experience or (ii) as multi buy packs on supermarket style multi
deck counters which have all been cut and packaged in store.
-- Hot and cold cooked food - freshly prepared roast chickens,
gammon and pork joints, hot roast sandwiches, shop cooked curries
and casseroles, chicken and chips as well as other traditional deli
products.
Operational Strategy
The Board is focused on growing the business through identifying
new profitable store locations and investing resources in a
controlled expansion programme, whilst ensuring the core business
continues to deliver quality products and excellent customer
service at competitive prices.
Key operational objectives:
-- New store locations are regularly reviewed for suitability to
grow/replace our existing retail estate.
-- New products are researched, tested and trialled frequently.
-- Customer feedback is sought and reviewed on an ongoing basis.
-- Key price points from competitors are monitored regularly.
-- Our food safety management systems are continually reviewed
and updated to ensure our procedures are in line with the highest
standards.
As raw meat is a traded commodity, the business operates in an
environment where input prices can fluctuate based on worldwide
natural and economic factors such as a growing world population,
climate change, exchange rates and changing dietary habits.
The Company's purchasing and sales strategy is designed to
minimise these risks by ensuring (i) we sell a broad range of
products and in particular, as we split into 2 complementary retail
areas, we cover 2 distinct customer types rather than relying on
one product for one customer and (ii) we use a broad range of tried
and tested suppliers across the globe rather than relying on any
specific supplier or region.
Food Safety
We invest continually to ensure our food safety management
systems are implemented, delivered and continuously audited at
every site and we protect our customers and our brand by sourcing
quality products with full traceability. As the largest independent
retail butchers chain to have a direct Primary Authority
Partnership, we continue to work with our partner, the
Environmental Health Department at Wakefield Council, to ensure our
food safety policies and procedures are endorsed by them. This
ensures consistency in food safety as all our shops as they are all
working to the same standards and interpretations of the
regulations.
We have very good working relationships with all the Local
Authorities who regulate us and we continue to recognise the
importance of food safety. Positive consistent progresshascontinued
this year and our food hygiene ratings have improvedyet again with
68% of our shops on a food hygiene rating of 5 ('very good' the
highest rating achievable) and 32% on a food hygiene rating of 4
('good'). Furthermore we have increased our '5' ratings by 8% in
the last year.
Our new factory at Hellaby opened in November 2014 and was
designed to our own specifications to ensure it met our high food
safety standards. Throughput at our factory has increased to match
the increase in sales and we continue to invest in trainingacross
the board which not only provides legal compliance but has also
equipped managerswith further knowledge and confidenceto maintain
and improve food safety.
The maintenance and continueddevelopment of our food
safetymanagement system hasbeen fundamental in maintaining and
continuously improving food safety standards acrossthe company.
Whilstwe recognise the Company will continue to face challenges,
including changes in legislation, we continue to be focused on food
safety and the origin and traceability of products. Werecognise
this as being essential to ensure we meet the requirementsof our
customers and continue to supply safeand legal products.
KPIs and Risk Management
The performance of the business is regularly monitored against
Key Performance Indicators (KPIs). Most of the KPIs identified
below are discussed in more detail in the Chairman's Statement.
KPI 2015 2014 Notes
------------------------- ---------- ---------- ---------------------------------
Revenue GBP24.6m GBP21.0m After trade discounts
and excluding VAT
------------------------- ---------- ---------- ---------------------------------
Gross profit as a percentage
Gross profit 44.4% 43.8% of revenue
------------------------- ---------- ---------- ---------------------------------
EBITDA GBP1.6m GBP1.4m Earnings before interest,
taxation, depreciation
and amortisation
------------------------- ---------- ---------- ---------------------------------
Adjusted EBITDA GBP1.8m GBP1.4m Earnings before interest,
taxation, depreciation,
amortisation and infrastructure
costs
------------------------- ---------- ---------- ---------------------------------
Profit after tax divided
by the average number
EPS 1.30p 1.42p of shares in issue
------------------------- ---------- ---------- ---------------------------------
Turnover/average number GBP83,174 GBP85,446 Sales per employee
employees
------------------------- ---------- ---------- ---------------------------------
Operational overheads Operational overheads
% 39% 39% as a percentage of revenue
------------------------- ---------- ---------- ---------------------------------
The principal risks and uncertainties affecting the Group
include the following:
-- Raw material availability and prices: the Group monitors raw
material sources on a global basis and negotiates spot and forward
purchase contracts based in sterling where appropriate with key
suppliers. However, the volatility of international currency
markets and their impact on spot raw material prices in sterling is
an ongoing issue.
-- Customer loss and competition - There is an ongoing risk of
customer loss from enhanced competition. The Groups strategy is to
be aware of competitor pricing, to maintain customer loyalty
through value pricing and
varied promotions and to deliver superior service and product expertise at all times.
-- Environmental risks: the Group places considerable emphasis
upon environmental compliance in its business and not only seeks to
ensure ongoing compliance with relevant legislation but also
strives to ensure that environmental best practice is incorporated
into its key processes.
-- Major disruption/disaster: business continuity planning is reviewed regularly.
-- Food Safety: compliance with legislation is continually
assessed and monitored at every location.
-- The effect of legislation or other regulatory activities: the
Group monitors forthcoming and current legislation.
-- Shrinkage: All retailers are exposed to customer and employee
theft. The Group has a zero tolerance to theft and we continually
review internal systems and controls. We maximise the use of CCTV
surveillance in store and aim to prosecute where relevant.
Directors' Report
The directors present their report together with audited
financial statements for the year ended 31 January 2015.
Crawshaw Group Plc ('the Company') is a public limited company
incorporated and domiciled in the United Kingdom and under the
Companies Act 2006.
The address of the Company's registered office is Crawshaw Group
Plc, Unit 4, Sandbeck Way, Hellaby Industrial Estate, Rotherham S66
8QL.
The Company has its primary listing on AIM, part of the London
Stock Exchange.
The Group financial statements were authorised for issue by the
Board of Directors on 23rd April 2015.
Further information on the activities of the business, the Group
strategy and an indication of the outlook for the business are
presented in the Chairman's Statement and the Strategy and Business
Model sections of the report.
Results and Dividends
Reported under IFRS the Group profit before taxation is
GBP1,194,398 (2014: GBP984,789).
After a taxation charge of GBP299,804 (2014: GBP164,421) the
Group profit for the year is GBP894,594
(2014: GBP820,548).
The directors propose a final dividend of 0.47 pence per share
(2014: 0.43 pence) to be paid on 31(st) July 2015, to shareholders
on the register at the close of business on 3(rd) July 2015. The
share price will be marked ex dividend with effect from the 2(nd)
July 2015.
Dividend Reinvestment Plan ('DRIP')
In line with last year shareholders can choose to reinvest any
dividends received to purchase further shares in the Company
through a DRIP. A DRIP application form is available from our
registrar Capita Asset Services.
Substantial Shareholdings
At 19(th) March 2015, the directors had been notified of the
following interests, of 3% and over, in the Company's issued
ordinary share capital:
Shareholder Number of
Ordinary
Shares %
-------------------------------- ----------- -----
Arrowgrass Capital Partners 11,055,713 14.0
-------------------------------- ----------- -----
Unicorn Asset Management 7,276,475 9.2
-------------------------------- ----------- -----
Living Bridge 7,161,015 9.1
-------------------------------- ----------- -----
Hargreave Hale 6,484,528 8.2
-------------------------------- ----------- -----
Colin Crawshaw 6,265,711 7.9
-------------------------------- ----------- -----
Richard Rose 5,241,547 6.7
-------------------------------- ----------- -----
John Kelly 4,421,762 5.6
-------------------------------- ----------- -----
Schroder Investment Management 3,799,317 4.8
-------------------------------- ----------- -----
Kevin Boyd 3,316,311 4.2
-------------------------------- ----------- -----
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
---------------------------------------------------------------------------------
FOR THE YEAR ENDED 31 JANUARY 2015
---------------------------------------------------------------------------------
Year ended Year ended
------------------------------------------ ------- ------------- ---------------
31 Jan 2015 31 Jan 2014
------------------------------------------ ------- ------------- ---------------
Note GBP GBP
------------------------------------------ ------- ------------- ---------------
Revenue 24,619,589 21,019,596
------------------------------------------ ------- ------------- ---------------
Cost of sales (13,698,483) (11,818,044)
------------------------------------------ ------- ------------- ---------------
Gross profit 10,921,106 9,201,552
------------------------------------------ ------- ------------- ---------------
Other operating income 2 18,678 18,060
------------------------------------------ ------- ------------- ---------------
Administrative expenses (9,802,982) (8,231,788)
------------------------------------------ ------- ------------- ---------------
Operating profit 1,136,802 987,824
========================================== ======= ============= ===============
Analysed as:
------------------------------------------ ------- ------------- ---------------
EBITDA 3 1,573,174 1,368,459
------------------------------------------ ------- ------------- ---------------
Impairment,depreciation and amortization 4 (436,372) (380,635)
------------------------------------------ ------- ------------- ---------------
Operating profit 1,136,802 987,824
========================================== ======= ============= ===============
Finance income 7 48,365 2,116
------------------------------------------ ------- ------------- ---------------
Finance expenses 7 (6,233) (16,111)
------------------------------------------ ------- ------------- ---------------
Net finance income/(expense) 42,132 (13,995)
------------------------------------------ ------- ------------- ---------------
Share of profit of equity accounted
investees (net of tax) 15,464 10,960
------------------------------------------ ------- ------------- ---------------
Profit before income tax 1,194,398 984,789
------------------------------------------ ------- ------------- ---------------
Income tax expense 8 (299,804) (164,241)
------------------------------------------ ------- ------------- ---------------
Total recognised income for the period 894,594 820,548
------------------------------------------ ------- ------------- ---------------
Attributable to:
------------------------------------------ ------- ------------- ---------------
Equity holders of the Company 894,594 820,548
------------------------------------------ ------- ------------- ---------------
Basic profit per ordinary share 1.301p 1.419p
------------------------------------------ ------- ------------- ---------------
Diluted profit per ordinary share 1.301p 1.419p
------------------------------------------ ------- ------------- ---------------
The Company is taking advantage of the exemption in section 408 of
the Companies Act 2006
not to present its individual income statement.
Balance Sheets
At 31 January 2015
--------------------
Group Group Company Company
------------------ ------ ------------- ------------- ----------- ------------------
Note 2015 2014 2015 2014
------------------ ------ ------------- ------------- ----------- ------------------
ASSETS GBP GBP GBP GBP
------------------ ------ ------------- ------------- ----------- ------------------
Non Current
Assets
------------------ ------ ------------- ------------- ----------- ------------------
Property, plant
and equipment 10 5,363,236 4,170,059 - -
------------------ ------ ------------- ------------- ----------- ------------------
Intangible
assets
- goodwill and
related
Acquisition
intangibles 11 7,629,305 7,486,684 - -
------------------ ------ ------------- ------------- ----------- ------------------
Investment in
equity
accounted
investees 12 106,424 90,960 - -
------------------ ------ ------------- ------------- ----------- ------------------
Investments in
Subsidiaries 13 - - 11,946,500 11,700,000
------------------ ------ ------------- ------------- ----------- ------------------
Total Non Current
Assets 13,098,965 11,747,703 11,946,500 11,700,000
------------------ ------ ------------- ------------- ----------- ------------------
Current Assets
------------------ ------ ------------- ------------- ----------- ------------------
Inventories 15 640,400 691,569 - -
------------------ ------ ------------- ------------- ----------- ------------------
Trade and other
receivables 16 483,400 354,085 6,666,106 72,632
------------------ ------ ------------- ------------- ----------- ------------------
Cash and cash
equivalents 9,090,286 1,428,216 7,945 4,445
------------------ ------ ------------- ------------- ----------- ------------------
Total Current
Assets 10,214,086 2,473,870 6,674,051 77,077
------------------ ------ ------------- ------------- ----------- ------------------
Total Assets 23,313,051 14,221,573 18,620,551 11,777,077
------------------ ------ ------------- ------------- ----------- ------------------
SHAREHOLDERS'
EQUITY
------------------ ------ ------------- ------------- ----------- ------------------
Share capital 19 3,940,940 2,890,940 3,940,940 2,890,940
------------------ ------ ------------- ------------- ----------- ------------------
Share premium 19 13,897,023 6,317,618 13,897,023 6,317,618
------------------ ------ ------------- ------------- ----------- ------------------
Reverse
acquisition
reserve 19 446,563 446,563 - -
------------------ ------ ------------- ------------- ----------- ------------------
Merger Reserve 19 - - 508,146 508,146
------------------ ------ ------------- ------------- ----------- ------------------
Retained earnings 19 1,686,501 1,119,348 268,297 394,155
------------------ ------ ------------- ------------- ----------- ------------------
Total
Shareholders'
Equity 19,971,027 10,774,469 18,614,406 10,110,859
------------------ ------ ------------- ------------- ----------- ------------------
LIABILITIES
------------------ ------ ------------- ------------- ----------- ------------------
Non Current
Liabilities
------------------ ------ ------------- ------------- ----------- ------------------
Other payables 17 272,265 229,801 - -
------------------ ------ ------------- ------------- ----------- ------------------
Interest bearing
loans and
borrowings 20 - 270,000 - -
------------------ ------ ------------- ------------- ----------- ------------------
Deferred tax
liabilities 14 531,980 398,855 - -
------------------ ------ ------------- ------------- ----------- ------------------
Total Non Current
Liabilities 804,245 898,656 - -
------------------ ------ ------------- ------------- ----------- ------------------
Current
Liabilities
------------------ ------ ------------- ------------- ----------- ------------------
Trade and other
payables 17 2,537,779 2,368,448 6,145 1,666,218
------------------ ------ ------------- ------------- ----------- ------------------
Interest bearing
loans and
borrowings 20 - 180,000 - -
------------------ ------ ------------- ------------- ----------- ------------------
Total Current
Liabilities 2,537,779 2,548,448 6,145 1,666,218
------------------ ------ ------------- ------------- ----------- ------------------
Total Liabilities 3,342,024 3,447,104 6,145 1,666,218
------------------ ------ ------------- ------------- ----------- ------------------
Total Equity and
Liabilities 23,313,051 14,221,573 18,620,551 11,777,077
------------------ ------ ------------- ------------- ----------- ------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
----------------------------------------------------------------------------------------
Reverse
Share Share Acquisition Retained
Capital Premium Reserve Earnings Total Equity
GBP GBP GBP GBP GBP
-------------- ------------- ------------- ------------- ---------- -------------
Balance at 1
February
2013 2,890,940 6,317,618 446,563 466,476 10,121,597
-------------- ------------- ------------- ------------- ---------- -------------
Profit for
the
Period - - - 820,548 820,548
-------------- ------------- ------------- ------------- ---------- -------------
Dividend on
Equity
Shares - - - (167,676) (167,676)
-------------- ------------- ------------- ------------- ---------- -------------
Balance at 31
January 2014 2,890,940 6,317,618 446,563 1,119,348 10,774,469
-------------- ------------- ------------- ------------- ---------- -------------
Balance at 1
February
2014 2,890,940 6,317,618 446,563 1,119,348 10,774,469
-------------- ------------- ------------- ------------- ---------- -------------
Profit for
the
period - - - 894,593 894,593
-------------- ------------- ------------- ------------- ---------- -------------
Dividend on
Equity
Shares - - - (327,440) (327,440)
-------------- ------------- ------------- ------------- ---------- -------------
Share Placing
20,999,994
Shares 1,050,000 7,579,405 - - 8,629,405
-------------- ------------- ------------- ------------- ---------- -------------
Balance at 31
January 2015 3,940,940 13,897,023 446,563 1,686,501 19,971,027
-------------- ------------- ------------- ------------- ---------- -------------
Cash Flow Statements
For the period ended 31 January 2015
--------------------------------------
Group Group Company Company
--------------------------------- ------------ ----------- ------------- -----------
Year Year Year Year
Ended Ended ended ended
--------------------------------- ------------ ----------- ------------- -----------
31 January 31 January 31 January 31 January
2015 2014 2015 2014
--------------------------------- ------------ ----------- ------------- -----------
Cash flows from operating
activities GBP GBP GBP GBP
--------------------------------- ------------ ----------- ------------- -----------
Profit/(Loss)for the period 894,594 820,548 (125,858) 404,826
--------------------------------- ------------ ----------- ------------- -----------
Adjustments for:
--------------------------------- ------------ ----------- ------------- -----------
Depreciation and amortization 432,116 379,748 - -
--------------------------------- ------------ ----------- ------------- -----------
Loss on sale of property,
plant and equipment 4,256 914 - -
--------------------------------- ------------ ----------- ------------- -----------
Net financial charges (42,131) 13,995 - -
--------------------------------- ------------ ----------- ------------- -----------
Share of profit of equity
accounted investees (net
of tax) (15,464) (10,960) - -
--------------------------------- ------------ ----------- ------------- -----------
Taxation 299,804 164,241 (78,213) (71,521)
--------------------------------- ------------ ----------- ------------- -----------
Operating cash flow before
movements in working capital 1,573,175 1,368,486 (204,071) 333,305
--------------------------------- ------------ ----------- ------------- -----------
Movement in trade and other
receivables (129,965) (37,309) (24,180) (43)
--------------------------------- ------------ ----------- ------------- -----------
Movement in trade and other
payables 260,765 304,857 (5,784) 836
--------------------------------- ------------ ----------- ------------- -----------
Movement in inventories 66,480 (184,189) - -
--------------------------------- ------------ ----------- ------------- -----------
Tax Paid (218,263) (81,080) 71,521 -
--------------------------------- ------------ ----------- ------------- -----------
Net cash generated/(used
in) from operating activities 1,552,192 1,370,765 (162,514) 334,098
--------------------------------- ------------ ----------- ------------- -----------
Cash flows from investing
activities
--------------------------------- ------------ ----------- ------------- -----------
Purchase of property, plant
and equipment (1,559,393) (247,338) - -
--------------------------------- ------------ ----------- ------------- -----------
Proceeds from sale of
property,plant
& equipment 12,545 11,433 - -
--------------------------------- ------------ ----------- ------------- -----------
Received from equity accounted
investees - 14,350 - -
--------------------------------- ------------ ----------- ------------- -----------
Acquisition of subsidiaries
net of cash acquired (237,371) - (246,500) -
--------------------------------- ------------ ----------- ------------- -----------
Interest received 48,365 2,116 - -
--------------------------------- ------------ ----------- ------------- -----------
Interest paid (6,233) (16,111) - -
--------------------------------- ------------ ----------- ------------- -----------
Dividend Received - - 327,440 -
--------------------------------- ------------ ----------- ------------- -----------
Dividend paid (327,440) (167,676) (327,440) (167,676)
--------------------------------- ------------ ----------- ------------- -----------
Net cash (used in) investing
activities (2,069,527) (403,226) (246,500) (167,676)
--------------------------------- ------------ ----------- ------------- -----------
Cash flows from financing
activities
--------------------------------- ------------ ----------- ------------- -----------
Repayment of loans (450,000) (390,000) - -
--------------------------------- ------------ ----------- ------------- -----------
Share Placing 8,629,405 - 8,629,405 -
--------------------------------- ------------ ----------- ------------- -----------
Movements in amounts owed
by group companies - - (8,216,893) (161,977)
--------------------------------- ------------ ----------- ------------- -----------
Net cash (used in)/ generated
from financing activities 8,179,405 (390,000) 412,514 (161,977)
--------------------------------- ------------ ----------- ------------- -----------
Net change in cash and cash
equivalents 7,662,070 577,539 3,500 4,445
--------------------------------- ------------ ----------- ------------- -----------
Cash and cash equivalents
at start of period 1,428,216 850,677 4,445 -
--------------------------------- ------------ ----------- ------------- -----------
Cash and cash equivalents
at end of period 9,090,286 1,428,216 7,945 4,445
--------------------------------- ------------ ----------- ------------- -----------
1. ACCOUNTING POLICIES
Crawshaw Group Plc (the "Company") is a company incorporated and
domiciled in the UK.
The group financial statements consolidate those of the Company
and its subsidiaries (together referred to as the "Group") and
equity account the Group's interest in jointly controlled entities.
The parent company financial statements present information about
the Company as a separate entity and not about its group.
Both the parent company financial statements and the group
financial statements have been prepared and approved by the
directors in accordance with International Financial Reporting
Standards as adopted by the EU ("Adopted IFRSs"). On publishing the
parent company financial statements here together with the group
financial statements, the Company is taking advantage of the
exemption in s408 of the Companies Act 2006 not to present its
individual income statement and related notes that form a part of
these approved financial statements.
The following new and revised IFRS have been adopted in these
consolidated financial statements. The application of these new and
revised IFRSs has not had any material impact on the amounts
reported for the current and prior years but may affect the
accounting for future transactions or arrangements. Other new
standards and interpretations have no significant impact on the
Group.
The following amendments to standards are mandatory for the
first time for the financial period ended 1 February 2015, but do
not have a material impact on the Group:
IFRS 10** Consolidated financial statements
IFRS 11** Joint arrangements
IFRS 12** Disclosures of interests in other
entities
IAS 27** Separate financial statements (revised
2011)
IAS 28** Associates and joint ventures (revised
2011)
** Endorsed by the European Union for periods
starting on or after 1 January 2014
New IFRS and amendments to IAS and interpretation
There are a number of standards and interpretations issued by
the IASB that are effective for financial statements after this
reporting period.
The application of these standards and interpretations, which
include IFRS 9 Financial instruments and IFRS15 Revenue from
contracts with customers, both of which are effective for annual
periods beginning on or after 1 January 2017, is not anticipated to
have a material effect on the Group's financial statements.
The Group is in the process of assessing the impact that the
application of these standards and interpretation will have on the
Group's financial statements.
BASIS OF CONSOLIDATION
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group
controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity..
In assessing control, the Group takes into consideration potential
voting rights that are currently exercisable. The acquisition date
is the date on which control is transferred to the acquirer. The
financial statements of subsidiaries are included in the
consolidated financial statements from the date that control
commences until the date that control ceases. Losses applicable to
the non-controlling interests in a subsidiary are allocated to the
non-controlling interests even if doing so causes the
non-controlling interests to have a deficit balance.
Joint Arrangements
A joint arrangement is an arrangement over which the Group and
one or more third parties have joint control. These joint
arrangement are in turn classified as:
-- Joint ventures whereby the Group has rights to the net assets
of the arrangement, rather than rights to its assets and
obligations for its liabilities; and
-- Joint operations whereby the Group has rights to the assets
and obligations for the liabilities relating to the
arrangement.
The accounting policies in this note have, unless otherwise
stated, been applied consistently to all periods presented in these
consolidated financial statements.
2. OTHER OPERATING INCOME
2015 2014
----------------------- ------- -------
GBP GBP
----------------------- ------- -------
RGV management charge 12,000 12,000
----------------------- ------- -------
Other 6,678 6,060
----------------------- ------- -------
TOTAL 18,678 18,060
----------------------- ------- -------
The Group charges RGV Refrigeration a management charge each
period for administration services. The Group has an investment in
RGV Refrigeration, which is described further in note 12.
3. EBITDA
EBITDA is operating profit before impairment, depreciation and
amortization.
Adjusted EBITDA is defined as operating profit before
impairment, depreciation, amortization and infrastructure costs.
Infrastructure costs are defined as investments in people,
processes and systems in the year to provide the building blocks to
support future growth.
Current year costs cover the setting up of a new long term
incentive plan and staff recruitment expenses.
2015 2014
---------------------- ---------- ----------
GBP GBP
---------------------- ---------- ----------
Reported EBITDA 1,573,174 1,368,459
---------------------- ---------- ----------
Infrastructure Costs 205,080 -
---------------------- ---------- ----------
Adjusted EBITDA 1,778,254 1,368,459
---------------------- ---------- ----------
4. EXPENSES AND AUDITOR'S REMUNERATION
Included in operating profit are the following:
2015 2014
GBP GBP
Depreciation of property, plant and equipment(owned)(note10) 397,436 345,068
Amortisation of intangible assets (note
11) 34,680 34,680
Loss/(profit) on sale of property, plant
and equipment 4,256 914
Auditor's remuneration:
2015 2014
GBP GBP
Audit of these financial statements 15,300 15,150
Amounts receivable by the auditors and their
associates in respect of:
Audit of financial statements of subsidiaries
pursuant to legislation 22,500 20,000
Other services relating to taxation 7,100 8,075
Other advisory services 26,150 2,625
-------- ------
Total auditors' remuneration 71,050 45,850
======== ======
5. 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
2015 2014
Management 5 5
Other 291 241
296 246
The aggregate payroll costs of these persons were as
follows:
2015 2014
GBP GBP
Wages and salaries 5,038,156 4,209,650
Social security costs 417,870 349,276
Other pension costs 56,044 60,833
5,512,070 4,619,759
6. KEY MANAGEMENT COMPENSATION
2015 2014
GBP GBP
Wages and salaries 362,531 289,991
Company contributions to money purchase
pension plans 56,044 60,883
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 on page 8, these numbers have been audited. The aggregate
of emoluments and amounts receivable under long term incentive
schemes of the highest paid director was GBP87,083 (2014:
GBP78,595), and company pension contributions of GBP40,833 (2014:
GBP40,833) were made to a money purchase scheme on his behalf.
Number of directors
2015 2014
Retirement benefits are accruing to the
following number of directors under:
Money purchase schemes 2 2
7. FINANCE AND INCOME EXPENSE
2015 2014
GBP GBP
Bank interest received 48,365 2,116
------ ------
Financial income 48,365 2,116
------ ------
Bank interest paid 6,233 16,111
------ ------
Financial expenses 6,233 16,111
------ ------
8. INCOME TAX EXPENSE
Recognised in the income statement 2015 2014
------------------------------------------------ --------- ---------
The income tax expense is based on the GBP GBP
estimated effective rate of taxation
on trading for the period and represents:
------------------------------------------------ --------- ---------
Current tax 206,772 259,124
------------------------------------------------ --------- ---------
Adjustments for prior year (40,093) (36,521)
------------------------------------------------ --------- ---------
166,679 222,603
------------------------------------------------ --------- ---------
Deferred tax:
------------------------------------------------ --------- ---------
Origination and reversal of timing differences 84,710 (5,709)
------------------------------------------------ --------- ---------
Adjustments for prior year 48,415 -
------------------------------------------------ --------- ---------
Effect of rate change - (52,653)
------------------------------------------------ --------- ---------
Income tax expense 299,804 164,241
------------------------------------------------ --------- ---------
Reconciliation of effective tax rate 2015 2014
-------------------------------------- ---------- ---------
GBP GBP
-------------------------------------- ---------- ---------
Profit/(Loss) for the period 894,594 820,548
-------------------------------------- ---------- ---------
Total Tax Expense 299,804 164,241
-------------------------------------- ---------- ---------
Profit/(Loss) excluding taxation 1,194,398 984,789
-------------------------------------- ---------- ---------
Tax using UK Corporation tax rate of
21.33% 254,801 228,176
-------------------------------------- ---------- ---------
Non-deductible expenses 42,326 24,383
-------------------------------------- ---------- ---------
Adjustment in respect of prior years 8,323 (36,521)
-------------------------------------- ---------- ---------
Change of deferred tax rate to 20% - (52,654)
-------------------------------------- ---------- ---------
Tax not at standard rate (5,646) 857
-------------------------------------- ---------- ---------
Total tax expense 299,804 164,241
-------------------------------------- ---------- ---------
The corporation tax rate for the period is 21.33%.
A further reduction in the main corporation tax rate to 20%
(effective from 1 April 2015) was substantively enacted on 2 July
2013. Accordingly deferred tax balances are carried at 20% (2014:
20%).
9. EARNINGS PER ORDINARY SHARE
Basic earnings per ordinary share is calculated by dividing the
earnings attributable to the ordinary shareholders by the weighted
average number of ordinary shares outstanding during the year of
68,556,045 (31/1/14: 57,818,801).
Diluted EPS is calculated by dividing the profit for the year
attributable to ordinary shareholders by the weighted average
number of ordinary shares in issue adjusted to assume conversion of
all potentially dilutive ordinary shares from the start of the year
giving a figure of 68,556,045 (31/1/14: 57,818,801).
The calculation of the basic and diluted earnings per share is
based on the following data:
2015 2014
-------------------------- -------- --------
GBP GBP
-------------------------- -------- --------
Earnings attributable to
shareholders 894,594 820,548
-------------------------- -------- --------
10. PROPERTY, PLANT AND EQUIPMENT
Land and Buildings
------------------------- -------------- ------------------------- ------------------------------------------
Assets under Leasehold Plant, equipm't
Construction Freehold improvements and vehicles Total
------------------------- -------------- --------- -------------- ---------------- ------------------------
Cost GBP GBP GBP GBP GBP
------------------------- -------------- --------- -------------- ---------------- ------------------------
Balance at 1 February
2014 40,745 815,379 3,472,805 1,833,169 6,162,098
------------------------- -------------- --------- -------------- ---------------- ------------------------
Additions at cost 79,500 - 1,192,635 287,258 1,559,393
------------------------- -------------- --------- -------------- ---------------- ------------------------
Addition on acquisition 48,022 48,022
------------------------- -------------- --------- -------------- ---------------- ------------------------
Disposals - - - (80,841) (80,841)
------------------------- -------------- --------- -------------- ---------------- ------------------------
Transfer (40,745) - 40,745 - -
------------------------- -------------- --------- -------------- ---------------- ------------------------
Balance at 31 January
2015 79,500 815,379 4,706,185 2,087,608 7,688,672
------------------------- -------------- --------- -------------- ---------------- ------------------------
Depreciation and
impairment
------------------------- -------------- --------- -------------- ---------------- ------------------------
Balance at 1 February
2014 - 110,508 1,149,074 732,457 1,992,039
------------------------- -------------- --------- -------------- ---------------- ------------------------
Depreciation charge
for the year - 38,549 209,249 149,638 397,436
------------------------- -------------- --------- -------------- ---------------- ------------------------
Disposals - - - (64,040) (64,040)
------------------------- -------------- --------- -------------- ---------------- ------------------------
Balance at 31 January
2015 - 149,057 1,358,323 818,055 2,325,435
------------------------- -------------- --------- -------------- ---------------- ------------------------
Net book value
------------------------- -------------- --------- -------------- ---------------- ------------------------
At 31 January 2015 79,500 666,322 3,347,862 1,269,553 5,363,236
------------------------- -------------- --------- -------------- ---------------- ------------------------
At 31 January 2014 40,745 704,871 2,323,731 1,100,712 4,170,059
------------------------- -------------- --------- -------------- ---------------- ------------------------
There are no items of property, plant and equipment in the
Company.
PRIOR YEAR
Land and Buildings
----------------------- --------------- ------------------------- ---------------- ----------
Asset under Leasehold Plant,equipment
construction Freehold improvements and vehicles Total
----------------------- --------------- --------- -------------- ---------------- ----------
Cost GBP GBP GBP GBP GBP
----------------------- --------------- --------- -------------- ---------------- ----------
Balance at 1 February
2013 - 815,379 3,472,450 1,661,514 5,949,343
----------------------- --------------- --------- -------------- ---------------- ----------
Additions at cost 40,745 - 355 206,238 247,338
----------------------- --------------- --------- -------------- ---------------- ----------
Disposals - - - (34,583) (34,583)
----------------------- --------------- --------- -------------- ---------------- ----------
Balance at 31
January 2014 40,745 815,379 3,472,805 1,833,169 6,162,098
----------------------- --------------- --------- -------------- ---------------- ----------
Depreciation and
impairment
----------------------- --------------- --------- -------------- ---------------- ----------
Balance at 1 February
2013 - 90,126 958,987 620,093 1,669,206
----------------------- --------------- --------- -------------- ---------------- ----------
Depreciation charge
for the year - 20,382 190,087 134,599 345,068
----------------------- --------------- --------- -------------- ---------------- ----------
Disposals - - - (22,235) (22,235)
----------------------- --------------- --------- -------------- ---------------- ----------
Balance at 31
January 2014 - 110,508 1,149,074 732,457 1,992,039
----------------------- --------------- --------- -------------- ---------------- ----------
Net book value
----------------------- --------------- --------- -------------- ---------------- ----------
At 31 January
2013 - 725,323 2,513,463 1,041,421 4,280,137
----------------------- --------------- --------- -------------- ---------------- ----------
At 31 January
2014 40,745 704,871 2,323,731 1,100,712 4,170,059
----------------------- --------------- --------- -------------- ---------------- ----------
11. INTANGIBLE ASSETS
Other Intangibles Goodwill Brand Total
----------------------------- ------------------ ---------- -------- ----------
Group GBP GBP GBP GBP
----------------------------- ------------------ ---------- -------- ----------
Cost or deemed cost
----------------------------- ------------------ ---------- -------- ----------
At 1 February 2014 214,247 7,028,657 693,558 7,936,462
----------------------------- ------------------ ---------- -------- ----------
Additions from acquisitions - 177,301 - 177,301
----------------------------- ------------------ ---------- -------- ----------
At 31 January 2015 214,247 7,205,958 693,558 8,113,763
----------------------------- ------------------ ---------- -------- ----------
Amortisation and impairment
----------------------------- ------------------ ---------- -------- ----------
At 1 February 2014 214,247 - 235,531 449,778
----------------------------- ------------------ ---------- -------- ----------
Amortisation charge for the
year - - 34,680 34,680
----------------------------- ------------------ ---------- -------- ----------
Balance at 31 January 2015 214,247 - 270,211 484,458
----------------------------- ------------------ ---------- -------- ----------
Net book value
----------------------------- ------------------ ---------- -------- ----------
At 31 January 2015 - 7,205,958 423,347 7,629,305
----------------------------- ------------------ ---------- -------- ----------
At 31 January 2014 - 7,028,657 458,027 7,486,684
----------------------------- ------------------ ---------- -------- ----------
Goodwill was recognized in the year on the acquisition of East
Yorkshire Beef Ltd (See Note 26)
PRIOR YEAR
Other Intangibles Goodwill Brand Total
----------------------------- ------------------ ---------- -------- ----------
Group GBP GBP GBP GBP
----------------------------- ------------------ ---------- -------- ----------
Cost or deemed cost
----------------------------- ------------------ ---------- -------- ----------
At 1 February 2013 and 31
January 2014 214,247 7,028,657 693,558 7,936,462
----------------------------- ------------------ ---------- -------- ----------
Amortisation and impairment
----------------------------- ------------------ ---------- -------- ----------
At 1 February 2013 214,247 - 200,851 415,098
----------------------------- ------------------ ---------- -------- ----------
Amortisation charge for the
year - - 34,680 34,680
----------------------------- ------------------ ---------- -------- ----------
Balance at 31 January 2014 214,247 - 235,531 449,778
----------------------------- ------------------ ---------- -------- ----------
Net book value
----------------------------- ------------------ ---------- -------- ----------
At 31 January 2014 - 7,028,657 458,027 7,486,684
----------------------------- ------------------ ---------- -------- ----------
At 31 January 2013 - 7,028,657 492,707 7,521,364
----------------------------- ------------------ ---------- -------- ----------
There are no intangible assets within the Company.
Goodwill is tested for impairment annually.
Acquired brand values were calculated using the royalty relief
approach and are amortised over twenty years. The remaining
amortisation period is 12 years and 2 months.
The amortisation and impairment charge is recognised in the
following line items in the consolidated statement of comprehensive
income:
2015 2014
------------------------- ------- -------
GBP GBP
------------------------- ------- -------
Administrative expenses 34,680 34,680
------------------------- ------- -------
Impairment testing
Goodwill arose on the Group's original acquisition of Crawshaw
Butchers Limited and East Yorkshire Beef Ltd.
For Crawshaw Butchers Limited, the goodwill is allocated against
these older more established stores as a group of cash generating
units as follows:
2015 2014
-------------------------------------------- ---------- ----------
GBP GBP
-------------------------------------------- ---------- ----------
Crawshaw Butchers Limited (at acquisition) 7,028,657 7,028,657
-------------------------------------------- ---------- ----------
East Yorkshire Beef Ltd Acquisition 177,301 -
-------------------------------------------- ---------- ----------
The recoverable amount of Crawshaw Butchers Ltd at acquisition
has been calculated with reference to its value in use. The key
assumptions of this calculation are shown below:
2015 2014
-------------------------------------- ------ ------
Growth rate applied (beyond approved
forecast period) 3.0% 3.0%
-------------------------------------- ------ ------
Discount rate (pre tax) 15.0% 15.0%
-------------------------------------- ------ ------
The growth rate used in the value in use calculation reflects
management's assessment of the likely growth rate achievable by the
Group at the stores that were in existence at the acquisition of
Crawshaw Butchers Limited.
Management have determined the discount rate by reference to
other companies of similar nature within their industry and their
assessment of the optimal long-term capital structure for the
business.
East Yorkshire Beef Ltd has been reviewed under the same
criteria and no impairment issues have been identified.
12. INVESTMENTS IN EQUITY ACCOUNTED INVESTEES
Group Group
------------------------------------------ -------- -------
2015 2014
------------------------------------------ -------- -------
GBP GBP
------------------------------------------ -------- -------
Non-current
------------------------------------------ -------- -------
Investment in equity accounted investees 106,424 90,960
------------------------------------------ -------- -------
Other investments comprise a 50% share in RGV Refrigeration, a
partnership jointly owned by Crawshaw Butchers Limited and Mr M
Hornsby. The principal place of business for RGV Refrigeration is
Unit 4,Sandbeck Way, Hellaby Industrial Estate, Rotherham S66 8QL.
The last year end being 30 September 2014. The Group does not exert
control over the entity.
The carrying value of investments in equity accounted investees
includes GBP26,424 (2014: GBP10,960) of outstanding dividend
declared by RGV Refrigeration.
13. OTHER INVESTMENTS
Company Company
--------------------------------------- ----------- -----------
2015 2014
--------------------------------------- ----------- -----------
GBP GBP
--------------------------------------- ----------- -----------
Non-current
--------------------------------------- ----------- -----------
Investment in Crawshaw Butchers Ltd 11,700,000 11,700,000
--------------------------------------- ----------- -----------
Investment in East Yorkshire Beef Ltd 246,500 -
--------------------------------------- ----------- -----------
Total 11,946,500 11,700,000
--------------------------------------- ----------- -----------
14. DEFERRED TAX LIABILITIES
Recognised deferred tax liabilities
Deferred tax liabilities are attributable to the following:
Group Liabilities
--------------------------- --------------------
2015
--------------------------- --------------------
GBP
--------------------------- --------------------
Plant and equipment 450,777
--------------------------- --------------------
Intangible assets - brand 82,726
--------------------------- --------------------
Temporary differences (1,523)
--------------------------- --------------------
531,980
--------------------------- --------------------
Movement in deferred tax during the year
31 January Recognised 31 January
2014 in income 2015
Current year
------------------------------------- ----------- ----------------------- -----------
GBP GBP GBP
------------------------------------- ----------- ----------------------- -----------
Plant and equipment 307,821 142,956 450,777
------------------------------------- ----------- ----------------------- -----------
Deferred tax relating to intangible
assets - brand 89,662 (6,936) 82,726
------------------------------------- ----------- ----------------------- -----------
Temporary differences 1,372 (2,895) (1,523)
------------------------------------- ----------- ----------------------- -----------
398,855 133,125 531,980
------------------------------------- ----------- ----------------------- -----------
15. INVENTORIES
Group Group
---------------- -------- --------
2015 2014
---------------- -------- --------
GBP GBP
---------------- -------- --------
Finished goods 640,400 691,569
---------------- -------- --------
Finished goods recognised as cost of sales in the year amounted
to GBP13,698,483 (2014: GBP11,818,044)
16. TRADE AND OTHER RECEIVABLES
Group Group Company Company
------------------------------- -------- -------- ---------- --------
2015 2014 2015 2014
------------------------------- -------- -------- ---------- --------
GBP GBP GBP GBP
------------------------------- -------- -------- ---------- --------
Trade receivables 167,517 117,315 - -
------------------------------- -------- -------- ---------- --------
Other tax and social security 452 11,772 - -
------------------------------- -------- -------- ---------- --------
Prepayments and accrued
income 315,431 197,960 25,289 1,111
------------------------------- -------- -------- ---------- --------
Amounts owed from group - - 6,562,604 -
undertakings
------------------------------- -------- -------- ---------- --------
Corporation tax recoverable - 27,038 78,213 71,521
------------------------------- -------- -------- ---------- --------
483,400 354,085 6,666,106 72,632
------------------------------- -------- -------- ---------- --------
The directors consider that the carrying amount of trade and
other receivables approximates their fair value.
Aged analysis of trade receivables
31 January 2015 31 January 2014
--------------- ------------------------------------------------- --------------------------------------------
Gross receivables Provision Net trade Gross Provision Net trade
for doubtful receivables receivables for doubtful receivables
debt debt
--------------- ------------------ -------------- ------------- ------------- -------------- -------------
GBP GBP GBP GBP GBP GBP
--------------- ------------------ -------------- ------------- ------------- -------------- -------------
Not past due 137,282 - 137,282 66,870 - 66,870
--------------- ------------------ -------------- ------------- ------------- -------------- -------------
Up to 1 month
past due 24,628 (2,199) 22,429 50,040 - 50,040
--------------- ------------------ -------------- ------------- ------------- -------------- -------------
Over 1 month
past due 17,770 (9,964) 7,806 7,658 (7,253) 405
--------------- ------------------ -------------- ------------- ------------- -------------- -------------
179,680 (12,163) 167,517 124,568 (7,253) 117,315
--------------- ------------------ -------------- ------------- ------------- -------------- -------------
Provision for doubtful debt
GBP
---------------------------------- ---------
Provision at 31(st) January 2014 (7,253)
---------------------------------- ---------
Created during the year (4,910)
---------------------------------- ---------
Released during the year -
---------------------------------- ---------
Provision at 31(st) January 2015 (12,163)
---------------------------------- ---------
17. TRADE AND OTHER PAYABLES
Group Group Company Company
----------------------- ---------- ---------- -------- ----------
2015 2014 2015 2014
----------------------- ---------- ---------- -------- ----------
GBP GBP GBP GBP
----------------------- ---------- ---------- -------- ----------
Current:
----------------------- ---------- ---------- -------- ----------
Trade payables 1,735,848 1,652,559 - -
----------------------- ---------- ---------- -------- ----------
Other creditors and
accruals 588,906 456,764 6,145 11,929
----------------------- ---------- ---------- -------- ----------
Corporation Tax 213,025 259,125 - -
----------------------- ---------- ---------- -------- ----------
Amounts owed to Group
undertakings - - - 1,654,289
----------------------- ---------- ---------- -------- ----------
2,537,779 2,368,448 6,145 1,666,218
----------------------- ---------- ---------- -------- ----------
Non-current:
----------------------- ---------- ---------- -------- ----------
Accruals 272,265 229,801 - -
----------------------- ---------- ---------- -------- ----------
272,265 229,801 - -
----------------------- ---------- ---------- -------- ----------
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 and rent
free periods, which are credited to the income statement on a
straight-line basis over the lease term.
18. 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:
2015 2014
GBP GBP
----------------------------- ------ ------
Defined contribution scheme 1,595 1,595
----------------------------- ------ ------
Share Based Payments
Share Options
Share options were granted post the reverse acquisition on 14
April 2008 to key employees of the enlarged group, Crawshaw Group
PLC. In line with the scheme rules, options for employees who leave
the business lapse after 6 months.
The share options in issue all relate to ordinary shares of 5p
and are to be settled by the physical delivery of shares are as
follows:
Date granted Exercise Number Granted Exercised Lapsed Number Exercise
price of options in period in period in period of options period
at at 31
1 Feb Jan 2015
2014
--------------- --------- ------------ ----------- ----------- ----------- ------------ ------------
14 April
2008 to 14
14 April 2008 42.5p 823,528 - - - 823,528 April 2018
--------------- --------- ------------ ----------- ----------- ----------- ------------ ------------
During the year the Group recognised a charge of GBPnil (2014:
GBPnil) in relation to equity settled share based payments in the
income statement. No further charge is expected in relation to
options in issue.
19. CAPITAL AND RESERVES
Reconciliation of movements in capital and reserves - Group
Share Share Rev. Retained Total
Capital Premium Acq. Earnings Equity
Reserve
-------------------------- ---------- ----------- --------- ---------- -----------
GBP GBP GBP GBP GBP
-------------------------- ---------- ----------- --------- ---------- -----------
Balance at 1 February
2013 2,890,940 6,317,618 446,563 466,476 10,121,597
-------------------------- ---------- ----------- --------- ---------- -----------
Profit for the year - - - 820,548 820,548
-------------------------- ---------- ----------- --------- ---------- -----------
Dividends paid (167,676) (167,676)
-------------------------- ---------- ----------- --------- ---------- -----------
Balance at 31 January
2014 2,890,940 6,317,618 446,563 1,119,348 10,774,469
-------------------------- ---------- ----------- --------- ---------- -----------
Profit for the year - - - 894,594 894,594
-------------------------- ---------- ----------- --------- ---------- -----------
Dividends paid - - - (327,440) (327,440)
-------------------------- ---------- ----------- --------- ---------- -----------
Share Placing 20,999,994
Shares 1,050,000 7,579,405 - - 8,629,405
-------------------------- ---------- ----------- --------- ---------- -----------
Balance at 31 January
2015 3,940,940 13,897,023 446,563 1,686,501 19,971,027
-------------------------- ---------- ----------- --------- ---------- -----------
The reverse acquisition reserve was established under IFRS3 'Business
Combinations' following the deemed acquisition of Crawshaw Group Plc
by Crawshaw Holdings Limited on 11 April 2008.
Reconciliation of movement in capital and reserves -
Company Merger Retained
Share capital Share premium reserve earnings Total equity
------------------ -------------- -------------- --------- ---------- -------------
GBP GBP GBP GBP GBP
------------------ -------------- -------------- --------- ---------- -------------
Balance at
1 February
2014 2,890,940 6,317,618 508,146 394,155 10,110,859
------------------ -------------- -------------- --------- ---------- -------------
Total recognised
income and
expense - - - 201,582 201,582
------------------ -------------- -------------- --------- ---------- -------------
Dividend Paid - - - (327,440) (327,440)
------------------ -------------- -------------- --------- ---------- -------------
Share placing
20,999,994
shares 1,050,000 7,579,405 - - 8,629,405
------------------ -------------- -------------- --------- ---------- -------------
Balance at
31 January
2015 3,940,940 13,897,023 508,146 268,297 18,614,406
------------------ -------------- -------------- --------- ---------- -------------
The merger reserve was established on 11 April 2008 following a share
for share exchange between the Company and Crawshaw Holdings Limited
(CHL) as part of a reverse acquisition. As a result of this transaction
the Company acquired CHL which in turn owned 100% of the share capital
of Crawshaw Butchers Limited (CBL).
20. LOANS AND BORROWINGS - GROUP
2015 2014
------------------------- ------ --------
GBP GBP
------------------------- ------ --------
Current liabilities
------------------------- ------ --------
Bank Overdraft - -
------------------------- ------ --------
Mortgage - 180,000
------------------------- ------ --------
Non-current liabilities
------------------------- ------ --------
Mortgage - 270,000
------------------------- ------ --------
The Company repaid their bank mortgage in full in August 2014.
21. FINANCIAL INSTRUMENTS
The Group's principal financial instruments comprise 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.
Interest rate risk
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 a provision
for 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 facilities.
The cash generative nature of the business has led to the Company having
no bank facility requirements. The Directors are confident that there
will continue to be sufficient headroom to cover liquidity risk.
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 1.0% 9,090,286 - - -
------------- ---------- ---------- --------- --------- ------------
Overdraft - -
------------- ---------- ---------- --------- --------- ------------
22. CAPITAL MANAGEMENT
The capital structure of the Group is a mixture of (i) net cash made
up of cash balances and (ii) equity comprising issued share capital
and reserves as detailed in note 19.
The Group's primary objective is to safeguard its ability to continue
as a going concern, through the optimisation of the debt and equity
balance, and to maintain a strong credit rating and headroom. The Group
manages its capital structure through detailed management forecasts
and clear authorization procedures for significant capital expenditure.
The Board makes appropriate decisions in light of the current economic
conditions and strategic objectives of the Group.
There has been no change in the objectives, policies or processes with
regards to capital management during the years ended 31 January 2015
and 31 January 2014.
23. CAPITAL COMMITMENTS
The Group had no capital commitments at the current and preceding year
ends. 24. OPERATING LEASES
Non-cancellable operating lease rentals are payable as
follows: Group Group Company Company
---------------------- ---------- ---------- -------- --------
2015 2014 2015 2014
---------------------- ---------- ---------- -------- --------
GBP GBP GBP GBP
---------------------- ---------- ---------- -------- --------
Less than one year 802,330 727,745 - -
---------------------- ---------- ---------- -------- --------
Between one and five
years 284,098 2,637,873 - -
---------------------- ---------- ---------- -------- --------
More than five years 2,348,439 2,425,411 - -
---------------------- ---------- ---------- -------- --------
Total 3,434,867 5,791,029 - -
---------------------- ---------- ---------- -------- --------
The Company leases a number of retail outlets, warehouse and factory
facilities under operating leases. Land and buildings have been considered
separately for lease classification. During the year GBP943,156 (2014:
GBP856,199) was recognised as an expense in the income statement in
respect of operating leases.
25. RELATED PARTY TRANSACTIONS
Transactions with key management personnel:
The Board and certain members of senior management are related
parties within the definition of IAS 24 (Related Party
Disclosures). Summary information of the transactions with key
management personnel is provided in note 6. Detailed disclosure of
the individual remuneration of Board members is included in The
Report of the Remuneration Committee. There is no difference
between transactions with key management personnel of the Company
and the Group.
Transactions with subsidiaries:
The Company has entered into transactions with its subsidiary
undertakings in respect of the following: provision of Group
services (including senior management, IT, accounting, purchasing
and legal services). Recharges are made to subsidiary undertakings
for intra- group balances, based on their amount and interest rates
set by Group management.
During the year these charges amounted to:
2015 2014
-------------------- -------- --------
GBP
-------------------- -------- --------
Management charges 200,000 200,000
-------------------- -------- --------
The amount outstanding from subsidiary undertakings to the
Company at 31 January 2015 totalled GBPnil (2014: GBPnil). Amounts
owed to subsidiary undertakings by the Company at 31 January 2015
totalled GBP0 (2014: GBP1,654,289).
The Company has suffered no expense in respect of bad or
doubtful debts of subsidiary undertakings in the year (2014:
GBPnil).
Transactions with jointly controlled entities
Crawshaw Butchers Limited, a subsidiary of the Company, holds a
50% share in a partnership which trades under the name of RGV
Refrigeration. The operations of the partnership comprise of the
maintenance and repair of refrigeration machinery for a variety of
customers.
During the year the transactions amounted to:
2015 2014
------------------------------------------- -------- --------
GBP
------------------------------------------- -------- --------
Amounts received in respect of management
charges 12,000 12,000
------------------------------------------- -------- --------
Amounts paid in respect of repair
and maintenance services 202,129 117,343
------------------------------------------- -------- --------
The amount outstanding from jointly controlled entities to the
Group at 31 January 2015 totalled GBP26,424 (2014: GBP10,800).
Amounts owed to jointly controlled entities by the Group at 31
January 2015 totalled GBP20,013 (2014: GBP20,767).
The Group has suffered no expense in respect of bad or doubtful
debts of jointly controlled entities in the year (2014:
GBPnil).
Transaction with other related parties
During the year the Group paid GBP10,000 (2014: GBP40,000) to
Electro Switch Limited in respect of Consultancy services. Mr R
Rose was a director of Electro Switch Limited, which is a company
which provides Consultancy services, and also a Director of
Crawshaw Group Plc. Mr R Rose resigned as a director of Electro
Switch Limited in March 2014. Amounts owed to Electro Switch
Limited by the Group at 31 January 2015 totalled GBPnil (2014:
GBPnil).
The Group leases a property owned by The Colin Crawshaw Pension
Scheme for factory facilities and paid a rental fee of GBP13,500 in
2015 (2014: GBP13,500). Amounts owed to The Colin Crawshaw Pension
Scheme by the Group at 31 January 2015 totalled GBPnil (2014:
GBPnil).
26. ACQUISITION
On 12(th) May the Company acquired the entire share capital of
East Yorkshire Beef Ltd for a total consideration of GBP246,500 in
cash.
The acquisition has been accounted for under the acquisition
method of accounting. The provisional fair value of assets acquired
is GBP69,199. Goodwill of GBP177,301 has therefore arisen.
Net Assets Acquired Book Value Fair Value Fair Value
Adjs
--------------------------------- ----------- ----------- -----------
Tangible Fixed Assets 48,021 - 48,021
--------------------------------- ----------- ----------- -----------
Current Assets
--------------------------------- ----------- ----------- -----------
Stock 15,311 - 15,311
--------------------------------- ----------- ----------- -----------
Debtors 24,543 - 24,543
--------------------------------- ----------- ----------- -----------
Cash at bank and in Hand 9,129 - 9,129
--------------------------------- ----------- ----------- -----------
Total Assets 97,004 - 97,004
--------------------------------- ----------- ----------- -----------
Creditors (27,805) - (27,805)
--------------------------------- ----------- ----------- -----------
Net Assets 69,199 - 69,199
--------------------------------- ----------- ----------- -----------
Less Consideration paid
--------------------------------- ----------- ----------- -----------
Cash Consideration 246,500
--------------------------------- ----------- ----------- -----------
Goodwill Arising on Acquisition
(note 11) 177,301
--------------------------------- ----------- ----------- -----------
27. POST BALANCE SHEET EVENT
On the 14(th) April 2015 the Company acquired 100% of the share
capital of Gabbotts Farm Limited for GBP3.9m utilising existing
cash resources on a "debt free cash free" basis from Cribbin Family
Butchers (Holdings) Ltd.
Gabbotts Farm Limited is the holding company for Gabbotts Farm
(Retail) Limited which operates 11 retail butchers units, which
includes a factory meat mart attached to a small distribution
centre, in the North West of England. Their retail format is almost
identical to that of the Company, selling quality fresh meats and
food to go at value prices.
28. PRINCIPAL SUBSIDIARY UNDERTAKINGS
At 31 January 2015 Crawshaw Group PLC had the following
principal subsidiary undertakings:
Crawshaw Holdings Limited - United Kingdom - Non-trading
subsidiary
Crawshaw Butchers Limited - United Kingdom - Retail Butchers
East Yorkshire Beef Limited - United Kingdom - Retail
Butchers
The shareholdings were 100% of the subsidiary undertakings'
ordinary and preference shares. Each of the subsidiaries is
included in the consolidated financial statements.
29. ULTIMATE PARENT COMPANY
The Company is the ultimate parent company of the Group.
No other group financial statements include the results of the
Company.
LONG TERM INCENTIVE PLAN
A new long term incentive plan is being reviewed by the
Remuneration Committee and there will be an announcement to provide
the plan details in due course.
AGM AND DISPATCH OF ACCOUNTS
ANNUAL REPORT
The Annual Report will be posted to shareholders on 7(th) May
2015 and will also be available from the Company's website at
www.crawshawgroupplc.com from today.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at Unit 4, Hellaby
Industrial Estate, Sandbeck Way, Rotherham, S66 8QL on 23 June 2015
at 12 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UUUNRVVASUAR
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