TIDMGLI
RNS Number : 8984I
Glisten PLC
22 March 2010
+--------------------------------+----------------------------------+
| | |
| For Release | |
| 7.00 AM | |
| Monday, 22 March 2010 | |
+--------------------------------+----------------------------------+
GLISTEN plc
("Glisten" or "the Group")
Interim Results
Glisten Plc (AIM:GLI.L), the ambitious impulse snack and confectionery foods
group, today reports its Interim Results for the six months ended 31 December
2009.
Headline Performance
+----------------------------------------------------------------+
| * Turnover GBP39.0 million (2008: GBP35.4 million) |
+----------------------------------------------------------------+
| * EBITDA GBP4.0 million (2008: GBP3.8 million) |
+----------------------------------------------------------------+
| * Profit before tax and exceptional items GBP2.2 million |
| (2008: GBP2.0 million) |
+----------------------------------------------------------------+
| * Adjusted diluted earnings per share 11.3 pence (2008: |
| 10.1 pence) |
+----------------------------------------------------------------+
| * Good progress in fruit and cereal snacks division |
+----------------------------------------------------------------+
| * Net debt at GBP27.1m (2008: GBP27.4m) |
+----------------------------------------------------------------+
| |
+----------------------------------------------------------------+
For further information please contact:
+--------------------------------+----------------------------+
| Glisten plc | |
+--------------------------------+----------------------------+
| Paul Simmonds, Chief Executive | Tel: +44 (0) 113 218 1950 |
| | www.glistenplc.co.uk |
| paul.simmonds@glisten.plc.uk | |
+--------------------------------+----------------------------+
| Rob Davies, Finance Director | Tel: +44 (0) 113 218 1950 |
| rob.davies@glisten.plc.uk | www.glistenplc.co.uk |
+--------------------------------+----------------------------+
+---------------------------------+---------------------------+
| KBC Peel Hunt | |
+---------------------------------+---------------------------+
| Julian Blunt, Corporate Finance | Tel: +44 (0) 20 7418 8900 |
| | www.kbcpeelhunt.com |
+---------------------------------+---------------------------+
Media enquiries:
+--------------------------------------+----------------------+
| Cubitt Consulting | |
+--------------------------------------+----------------------+
| Brian Coleman-Smith / James | Tel: +44 (0) 20 7367 |
| Verstringhe / Nicola Krafft | 5100 |
+--------------------------------------+----------------------+
| | www.cubitt.com |
+--------------------------------------+----------------------+
Background note
Glisten Plc is an ambitious impulse food-group operating at the leading edge of
health, nutrition, and premium snacking. It serves a wide variety of customers
including most high street retailers, many major food manufacturers and the
foodservice sector. Glisten also exports to more than 20 countries worldwide.
The principal activities of Glisten are the manufacture of cereal, fruit snack
bars and health bars, many of which have a diet-control or sports/energy
dimension. Glisten is a leader in organic and natural snacks and premium
confectionery.
Glisten also manufactures specialised coatings which it markets to the broader
food industry, particularly Europe's largest ice-cream and bakery manufacturers.
Glisten's brands include: 'Fruitus', produced by Lyme Regis Foods, Dormen,
Skinny Candy and 'SunMaid', where Glisten has the Europe-wide confectionery and
fruit-snacking rights.
In addition to these areas Glisten has well established integrated relationships
with some of Europe's biggest brand-name food companies where it produces
snacking products under license.
It listed on the AIM market of the London Stock Exchange in June 2002 with sales
of GBP14.3m. Group turnover for the year ended 30 June 2009 was GBP74.4m.
The Company now employs approximately 650 people across its manufacturing sites
around the UK. Some of Glisten's sites are nut-free and have organic-food
accreditation.
Head Office and Group Companies
The Head Office is in Harewood, near Leeds, Yorkshire. The Group's operations
are set out below
Confectionery Division ('GCD')
+-------------------------------+-----------------------------+
| Glisten Confectionery: | Blackburn, Lancashire |
+-------------------------------+-----------------------------+
| | Skegness, Lincolnshire |
+-------------------------------+-----------------------------+
| Nimbus Foods | Dolgellau, Gwynedd, North |
| | Wales |
+-------------------------------+-----------------------------+
| Fruit and Cereals Snacks | |
| Division ('FCSD') | |
+-------------------------------+-----------------------------+
| Halo Foods Limited | Tywyn, Gwynedd, North Wales |
+-------------------------------+-----------------------------+
| | Newport, South Wales |
+-------------------------------+-----------------------------+
| Lyme Regis Fine Foods | Liphook, Hampshire |
+-------------------------------+-----------------------------+
| Savoury Snacks Division | |
| ('SSD') | |
+-------------------------------+-----------------------------+
| Dormen Foods | Swindon, Wiltshire |
+-------------------------------+-----------------------------+
| Glisten Snacks | Park Royal, London, |
+-------------------------------+-----------------------------+
| | Boston, Lincolnshire |
+-------------------------------+-----------------------------+
CHIEF EXECUTIVE'S STATEMENT
Results Overview
Following the General Meeting which approved the recommended cash offer for
Glisten Plc ("Glisten" or "the Group") by Raisio UK Limited, a subsidiary of
Raisio oyj, by means of a scheme of arrangement under part 26 of the Companies
Act 2006 this will be, subject to court approval, Glisten's last set of results
as an AIM quoted company. Our interim results for the six months ended 31
December 2009 show like for like growth up 10% versus the previous year mainly
on the back of a good start to the year in July and August. Our sales in the 6
months to December 2009 increased to GBP39.0m (2008: GBP35.4m) and adjusted
operating profits were GBP3.1m (2008: GBP2.9m) up 7%. Our adjusted diluted
earnings per share increased to 11.3p (2008: 10.1p) up 12%.
Operational Review
Most parts of our business are performing steadily and we are satisfied with
progress to date this year but remain cautious about continued sales growth
during the second half of the year. We believe that consumer focus on both
premium and better-for-you/healthier snacks will return strongly but in the
short term there is no doubt that the absolute priorities for many consumers
continue to be price and value.
Divisional Breakdown
Glisten operates as three market sector-focused Divisions. Sales and profits by
Operating Division are set out below:-
+----------------------+----------+-----------+----------+-----------+
| | 2009/10 | 2008/09 |
+----------------------+----------------------+----------------------+
| | Sales | Operating | Sales | Operating |
| | | profit | | profit |
+----------------------+----------+-----------+----------+-----------+
| Fruit/Cereal Snacks | GBP14.3m | GBP1.3m | GBP12.6m | GBP1.1m |
| ("FCSD") | | | | |
+----------------------+----------+-----------+----------+-----------+
| Confectionery | GBP16.2m | GBP1.5m | GBP15.7m | GBP1.4m |
| ("GCD") | | | | |
+----------------------+----------+-----------+----------+-----------+
| Savoury Snacks | GBP8.5m | GBP0.8m | GBP7.0m | GBP0.9m |
| ("SSD") | | | | |
+----------------------+----------+-----------+----------+-----------+
| Head Office /PLC | - | (GBP0.5m) | GBP0.1m | (GBP0.5m) |
+----------------------+----------+-----------+----------+-----------+
| Total Glisten Group | GBP39.0m | GBP3.1m | GBP35.4m | GBP2.9m |
+----------------------+----------+-----------+----------+-----------+
Fruit & Cereal Snacks Division (FCSD)
First half sales growth, which was all like for like, increased in FCSD by 14%
to GBP14.3m (2008: GBP12.6m) and operating profits increased to GBP1.3m (2008
GBP1.1m) up 18% due mainly to a much improved July and August compared to the
previous year. Overall sales demand in the half remained inconsistent and our
14% sales growth was achieved in spite of a major customer de-stocking during
the half.
The issues we experienced in Halo Foods last June, which is a major contributor
to FCSD are fully resolved; we have a strengthened management team and we are
satisfied that Halo's operating profit performance is back on track and the
business is moving forward again. Overall we are pleased with progress in FCSD
and believe its prospects remain positive.
Confectionery Division (GCD)
First half sales increased in GCD by 3% to GBP16.2m (2008: GBP15.7m) and
operating profits rose 7% to GBP1.5m (2008: GBP1.4m).
The retail confectionery market continues to experience price deflation (source:
TNS) and the switch to brands supported by promotional activity experienced last
year has been maintained affecting own label sales particularly in our chocolate
business. We have responded by developing a range of fair-trade products under
the "Traidcraft" label which are winning market share and by diversifying and
channeling our products into export and adjacent markets sectors to traditional
confectionery.
Savoury Snacks Division (SSD)
We are pleased with the progress made in our Savoury Snacking Division over the
last six months. Our branded nut business Dormen has had a steady six months and
our Weightwatcher savoury snacking products continue to show good sales growth
momentum.
Sales in the first half were GBP8.5m and were 21% ahead of 2008 (GBP7.0m)
assisted by significant promotional activity in Savoury Snacking. During the
period we invested selectively in the Dormen brand and incurred the full cost of
strengthening the management team in the previous financial year. As a result of
these measures operating profits in the half were broadly static at GBP0.8m
(2008: GBP0.9m).
Financial Review
We are satisfied with our cash generated from operations in the first half of
GBP0.4m (2008: GBP3.6m). This has been used to fund capital expenditure of
GBP0.2m (2008: GBP1.4m). At 31 December 2009 Group net borrowings were GBP27.1m
(2008: GBP27.4m), which is 85% of our available facilities of GBP32m. Within the
working capital outflow in the half of GBP3.5m, debtor levels were relatively
unchanged (GBP0.1m better). Stock levels increased by GBP1.1m driven by higher
anticipated demand in GCD during the second half. We expect to see stock levels
fall in GCD during the second half. Our trade creditors reduced by (GBP2.5m),
primarily in FCSD (GBP1.9m) caused by lower seasonal activity and the return to
more normal payment terms in Halo Foods during the half (GBP0.75m).
On 31 October 2009 Glisten paid the final GBP1.25m of deferred consideration to
the vendors of Dormen Foods Limited. The Group has no further deferred
consideration liabilities (2008 GBP1.25m).
Net interest costs in the period were GBP0.84m (2008: GBP0.91m).
The Group agreed amended loan facilities of GBP32m with its lenders on 30
November 2009. These facilities, provided by Barclays Bank PLC are renewable on
31 December 2012 and are at variable rates which average 3.61% over LIBOR.
GBP7.5m of this loan is repayable in quarterly instalments between March 2010
and December 2012. As part of agreeing bank facilities the Group has issued a
warrant with a six year life over 5% of its issued ordinary share capital (circa
750,000 ordinary shares) at a warrant price of 12.5p. The cost incurred in
relation to these loans is GBP0.64m. The Group also has a commitment to issue
two further tranches of warrants each of 2.5% (circa. 375,000 ordinary shares)
at 12.5p in February and May 2010 or pay two amounts of GBP0.45m, one in
February and one in May 2010. The Group has paid the costs which fell due at the
end of February rather than issue a 2.5% warrant.
In September 2007 the Group entered into an interest hedge at base rates between
4.25% and 6% against GBP23m of its borrowing until December 2010. At the same
time, it entered into an interest hedge at rates between 4.47% and 6% with a
minimum interest rate of 5.43% should base rate fall below 4.47% against GBP23m
of its borrowing for the period from December 2010 until 2015 to be exercised at
its lenders discretion at that time.
We entered into these arrangements purely to bring stability to our financing
costs. Given the fall in interest rates, these hedges have a fair value cost at
31 December 2009 of GBP3.7m (2008: GBP4.3m) and the cost has been included under
current liabilities. The change in fair value of this hedge at 31 December 2009
has given rise to a gain of GBP0.69m in the six month period to December 2009.
These hedges are a non-cash provision and equate to discounted interest costs
above the ruling base rates and the projection thereof at 31 December 2009 for a
period of six years from the balance sheet date.
Group Capital Investment
Given the current climate we anticipate our capital expenditure will be around
GBP1.8m for the full year and in line with depreciation. We continue to invest
carefully to improve the capabilities and the market position of our business
for the medium term and, at the end of the half year, we commenced further
investment in expanding capacity in our savoury snacking division at Park Royal.
In the first half our capital spend was GBP0.2m (2008: GBP1.4m) versus
depreciation at GBP1.0m (2008: GBP1.0m).
Dividend
The Board has decided not to pay a dividend as a consequence of the offer to
acquire Glisten by Raisio oyj (2008: nil).
Staff
The Board joins me in thanking all our employees for the efforts they have made
during this six months of trading, and welcoming all those who joined us during
the period.
Outlook and Current Trading
Consumer spending remains unpredictable and conditions remain challenging, but
given the stronger start to 2009/10, particularly during July and August as
previously noted, the Board is comfortable that overall the business is trading
in line with its expectations for the current year, with underlying sales for
the first 11 weeks of the second half in line with the same period last year.
Paul Simmonds
Chief Executive
CONSOLIDATED INCOME STATEMENT
for the SIX MONTHS ended 31 December 2009
+----------------------------+-------+--------------+--------------+---+--------+
| | | Half year ended | Year |
| | | | to |
+----------------------------+-------+---------------------------------+--------+
| | | 31 | 31 | 30 June |
| | | December | December | 2009 |
| | | 2009 | 2008 | (audited) |
| |Notes | (un-audited) | (un-audited) | |
| | | | | GBP'000 |
| | | GBP'000 | GBP'000 | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| Revenue | | | | |
+----------------------------+-------+--------------+--------------+------------+
| From continuing operations | | 39,021 | 35,372 | 74,433 |
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| Cost of sales | | (29,861) | (27,986) | (58,658) |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| GROSS PROFIT | | 9,160 | 7,386 | 15,775 |
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| Administrative and | | (6,097) | (4,498) | (10,646) |
| distribution expenses | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| OPERATING PROFIT | | 3,063 | 2,888 | 5,129 |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| Finance costs | | (840) | (909) | (1,747) |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| PROFIT on ordinary | | | | |
| activities before taxation | | 2,223 | 1,979 | 3,382 |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| Taxation - on ordinary | 3 | (614) | (519) | (883) |
| activities | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| PROFIT on ordinary | | | | |
| activities after taxation | | 1,609 | 1,460 | 2,499 |
| | | | | |
| Share based payment | | - | - | 507 |
| Finance amortisation | 4 | (457) | (63) | (240) |
| Administrative expenses | 4 | (134) | - | (286) |
| -exceptional | 4 | 691 | (3,942) | (4,006) |
| Change in market value of | | | | (103) |
| derivatives | 4 | (34) | (103) | 954 |
| Unwinding of discount on | 3 4 | (27) | 1,104 | |
| deferred consideration | | | | |
| Taxation | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | 39 | (3,004) | (3,174) |
| | | | | |
| Profit/(Loss) for the | | | | |
| period attributable to | | | | |
| equity holders of the | | 1,648 | (1,544) | (675) |
| parent | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
| | | | | |
| Basic earnings per share | 6 | 11.7p | (11.1p) | (4.8p) |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
+----------------------------+-------+--------------+--------------+------------+
| | | | | |
| Diluted earnings per share | 6 | 11.5p | (10.7p) | (4.7p) |
+----------------------------+-------+--------------+--------------+------------+
| | | | | | |
+----------------------------+-------+--------------+--------------+---+--------+
CONSOLIDATED balance sheet
31 DECEMBER 2009
+----------------------------+-----+--------------+--------------+-----------+
| | | 31 | 31 | 30 June |
| | | December | December | (Audited) |
| | | (Un-audited) | (Un-audited) | 2009 |
| | | 2009 | 2008 | |
+----------------------------+-----+--------------+--------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+-----+--------------+--------------+-----------+
| Non-CURRENT assets | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Goodwill | | 37,418 | 37,416 | 37,418 |
+----------------------------+-----+--------------+--------------+-----------+
| Other intangible assets - | | 2,211 | 2,211 | 2,211 |
| Brands | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Property plant and | | 12,705 | 13,753 | 13,474 |
| equipment | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Deferred taxation | | - | 123 | - |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| | | 52,334 | 53,503 | 53,103 |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| current assets | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Inventories | | 8,347 | 7,306 | 7,319 |
+----------------------------+-----+--------------+--------------+-----------+
| Trade and other | | 11,198 | 10,315 | 11,327 |
| receivables | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Cash at bank and in hand | | 5 | 454 | 1,310 |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| | | 19,550 | 18,075 | 19,956 |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| TOTAL ASSETS | | 71,884 | 71,578 | 73,059 |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| CURRENT LIABILITIES | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Trade and other payables | | (10,874) | (10,723) | (12,957) |
+----------------------------+-----+--------------+--------------+-----------+
| Deferred grant income | | (15) | (15) | (14) |
+----------------------------+-----+--------------+--------------+-----------+
| Fixed deferred | | - | (1,627) | (1,627) |
| consideration | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Performance related | | - | - | - |
| deferred consideration | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Current tax liabilities | | (1,124) | (513) | (678) |
+----------------------------+-----+--------------+--------------+-----------+
| Other financial | | (3,682) | (4,309) | (4,373) |
| liabilities | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Obligations under finance | | (2) | (29) | (38) |
| leases | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Loan notes | | | (10) | - |
| | | - | | |
+----------------------------+-----+--------------+--------------+-----------+
| Borrowings | | (1,625) | - | (1,950) |
+----------------------------+-----+--------------+--------------+-----------+
| | | (17,322) | (17,226) | (21,637) |
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Net CURRENT | | 2,228 | 849 | (1,681) |
| ASSETS/(LIABILITIES) | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| LONG TERM LIABILITIES | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Deferred grant income | | (108) | (96) | (89) |
+----------------------------+-----+--------------+--------------+-----------+
| Fixed deferred | | - | - | - |
| consideration | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Obligations under finance | | - | - | - |
| leases | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Borrowings | | (25,347) | (27,373) | (24,093) |
+----------------------------+-----+--------------+--------------+-----------+
| Deferred taxation | | (263) | - | (70) |
+----------------------------+-----+--------------+--------------+-----------+
| Dilapidation provision | | (367) | (358) | (363) |
+----------------------------+-----+--------------+--------------+-----------+
| | | (26,085) | (27,827) | (24,615) |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| TotAL LIABILITIES | | (43,407) | (45,053) | (46,252) |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| net assets | | 28,477 | 26,525 | 26,807 |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| capital and reserves | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Called up share capital | | 1,766 | 1,744 | 1,744 |
+----------------------------+-----+--------------+--------------+-----------+
| Share premium account | | 14,499 | 14,499 | 14,499 |
+----------------------------+-----+--------------+--------------+-----------+
| Equity reserve | | 466 | 1,053 | 466 |
+----------------------------+-----+--------------+--------------+-----------+
| Profit and loss account | | 11,746 | 9,228 | 10,098 |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| Minority interest | | - | 1 | - |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| | | | | |
+----------------------------+-----+--------------+--------------+-----------+
| total shareholders' funds | | 28,477 | 26,525 | 26,807 |
+----------------------------+-----+--------------+--------------+-----------+
Consolidated Statement of changes in shareholders' equity
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | Profit | | |
| | Share | Share | Equity | and | Minority | Total |
| | capital | premium | reserve | loss | interest | equity |
| | | | | account | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| At 1 July 2008 | 1,744 | 14,499 | 1,053 | 10,933 | 1 | 28,230 |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| Profit for the six | | | | 1,294 | - | 1,294 |
| months | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
| Change in market | | | | | | |
| value of derivative | - | - | - | (2,838) | - | (2,838) |
| Dividends (note 5) | - | - | - | (161) | - | (161) |
| Arising on shares | | | | | | |
| issued in the | - | - | - | - | - | - |
| period | - | - | - | - | - | - |
| Added during the | | | | | | |
| period | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| Share based payment | - | - | - | - | - | - |
| charge | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | - | |
+---------------------+---------+---------+---------+---------+----------+---------+
| At 31 December 2008 | 1,744 | 14,499 | 1,053 | 9,228 | 1 | 26,525 |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| Profit for the six | - | - | - | 918 | (1) | 917 |
| months | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
| Change in market | | | | | | |
| value of derivative | - | - | - | (48) | - | (48) |
+---------------------+---------+---------+---------+---------+----------+---------+
| Share based payment | - | - | (587) | - | - | (587) |
| charge | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| At 30 June 2009 | 1,744 | 14,499 | 466 | 10,098 | - | 26,807 |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| Profit for the six | - | - | - | 1,150 | - | 1,150 |
| months | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
| Change in market | | | | | | |
| value of derivative | - | - | - | 498 | - | 498 |
| Dividends (note 5) | - | - | - | - | - | - |
| Arising on shares | | | | | | |
| issued in the year | 22 | - | - | - | - | 22 |
| Arising on | - | - | - | - | - | - |
| acquisition | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| Share based payment | - | - | - | | - | - |
| charge | | | | - | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| | | | | | | |
+---------------------+---------+---------+---------+---------+----------+---------+
| At 31 December 2009 | 1,766 | 14,499 | 466 | 11,746 | - | 28,477 |
+---------------------+---------+---------+---------+---------+----------+---------+
Within the share premium account is an amount of GBP1,044,000 (2008:
GBP1,044,000) of merger reserve.
+-----------------------------+-----------+------------+-----------------+
| CONSOLIDATED CASH FLOW STATEMENT | | |
+-----------------------------------------+------------+-----------------+
| FOR THE SIX MONTHS ENDED 31 DECEMBER | | |
| 2009 | | |
| | | |
+-----------------------------------------+------------+-----------------+
| | Unaudited | Unaudited | Audited |
| | | six | Year |
| | six | months | ended |
| | months | ended | |
| | ended | | |
+-----------------------------+-----------+------------+-----------------+
| GBP000 | 31 | 31December | 30 June |
| | December | | |
+-----------------------------+-----------+------------+-----------------+
| | 2009 | 2008 | 2009 |
+-----------------------------+-----------+------------+-----------------+
| Cash flow from operating | | | |
| activities | | | |
+-----------------------------+-----------+------------+-----------------+
| Profit on ordinary | 2,223 | 1,979 | (746) |
| activities before taxation | | | |
+-----------------------------+-----------+------------+-----------------+
| Finance costs | 840 | 909 | 6,093 |
+-----------------------------+-----------+------------+-----------------+
| Exceptional administration | (134) | - | - |
| expenses | | | |
+-----------------------------+-----------+------------+-----------------+
| Share based payments | - | - | (587) |
+-----------------------------+-----------+------------+-----------------+
| Depreciation | 933 | 959 | 1,948 |
+-----------------------------+-----------+------------+-----------------+
| Loss on sale of tangible | (4) | - | (6) |
| fixed assets | | | |
+-----------------------------+-----------+------------+-----------------+
| (Increase)/decrease in | (3,499) | (278) | 1,036 |
| working capital | | | |
+-----------------------------+-----------+------------+-----------------+
| Cash generated from | 359 | 3,569 | 7,738 |
| operations | | | |
+-----------------------------+-----------+------------+-----------------+
| Dividend | - | (161) | (160) |
+-----------------------------+-----------+------------+-----------------+
| Interest paid | (748) | (830) | (1,746) |
+-----------------------------+-----------+------------+-----------------+
| Exchange Loss | - | - | - |
+-----------------------------+-----------+------------+-----------------+
| Tax paid | - | (72) | (228) |
+-----------------------------+-----------+------------+-----------------+
| Net cash flow from | (389) | 2,506 | 5,604 |
| operating activities | | | |
+-----------------------------+-----------+------------+-----------------+
| Cash flow from investing | | | |
| activities | | | |
+-----------------------------+-----------+------------+-----------------+
| Purchase of property plant | (159) | (1,401) | (2,106) |
| and equipment | | | |
+-----------------------------+-----------+------------+-----------------+
| Acquisitions | (1,250) | (3,402) | (3,400) |
+-----------------------------+-----------+------------+-----------------+
| Cash and cash equivalents | - | - | - |
| acquired | | | |
+-----------------------------+-----------+------------+-----------------+
| Net cash flow from | (1,409) | (4,803) | (5,506) |
| investing activities | | | |
+-----------------------------+-----------+------------+-----------------+
| Cash flows from financing | | | |
| activities | | | |
+-----------------------------+-----------+------------+-----------------+
| Net proceeds from issue of | 22 | - | - |
| ordinary share capital | | | |
+-----------------------------+-----------+------------+-----------------+
| Repayment of loan notes | | | (993) |
+-----------------------------+-----------+------------+-----------------+
| Proceeds from/(repayment | (1,000) | 1,600 | 1,280 |
| of) new borrowings | | | |
+-----------------------------+-----------+------------+-----------------+
| Finance lease repayments | (2) | (48) | (70) |
+-----------------------------+-----------+------------+-----------------+
| Expenses paid in connection | (152) | - | (207) |
| with borrowings | | | |
+-----------------------------+-----------+------------+-----------------+
| Net cash flow from | (1,132) | 1,552 | 10 |
| financing activities | | | |
+-----------------------------+-----------+------------+-----------------+
| | | | |
+-----------------------------+-----------+------------+-----------------+
| Net (decrease) in cash and | (2,930) | (745) | 108 |
| cash equivalents | | | |
+-----------------------------+-----------+------------+-----------------+
| | | | |
+-----------------------------+-----------+------------+-----------------+
| | | | |
+-----------------------------+-----------+------------+-----------------+
| Cash and cash equivalents | 1,310 | 1,189 | 1,202 |
| at the beginning of the | | | |
| period | | | |
+-----------------------------+-----------+------------+-----------------+
| | | | |
+-----------------------------+-----------+------------+-----------------+
| | | | |
+-----------------------------+-----------+------------+-----------------+
| Cash and cash equivalents | (1,620) | 444 | 1,310 |
| at the end of the period | | | |
+-----------------------------+-----------+------------+-----------------+
| Cash and cash equivalents | | | |
| consist of: | | | |
+-----------------------------+-----------+------------+-----------------+
| Cash at bank | 5 | 454 | 1,310 |
+-----------------------------+-----------+------------+-----------------+
| Bank overdraft | (1,625) | - | - |
+-----------------------------+-----------+------------+-----------------+
| Loan notes | - | (10) | - |
+-----------------------------+-----------+------------+-----------------+
| | (1,620) | 444 | 1,310 |
+-----------------------------+-----------+------------+-----------------+
NOTES TO THE INTERIM REPORT
six months ended 31 DECEMBER 2009
1 BASIS OF PREPARATION
The condensed consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended 30 June
2009, which have been prepared in accordance with International Financial
Reporting Standards ("IFRS") as adopted by the European Union. The condensed
consolidated interim financial information has been prepared in line with the
requirements of IAS 34 Interim Financial Reporting.
The interim results have not been audited by the Group's Auditors' and do not
constitute statutory accounts. The comparative figures for 30 June 2009 have
been abridged from the statutory accounts for the period ended 30 June 2009. The
Auditors' opinion on those accounts was unqualified and did not contain any
statements under sections 495 and 496 of the Companies Act 2006. The statutory
accounts for the period ended 30 June 2009 have been filed with the Registrar of
Companies.
Accounting policies
The accounting policies applied are those which were adopted in the annual
financial statements for the year ended 30 June 2009, and which will be adopted
if the group is required to prepare consolidated IFRS compliant accounts for the
year ending 30 June 2010. These are consistent with the accounting policies used
in the financial statements for the year ended 30 June 2009 and which are set
out in those annual financial statements.
The Group has adopted the following amended IFRS' as of 1 July 2009:
IFRS 8 'Operating segments' - effective 1 January 2009. The revised standard
requires the group to present its operating segments on the same basis as that
provided to the chief operating decision maker; such chief operating decision
maker being the chief executive director. The presentation of segmental results
for the comparatives has been restated to align with IFRS 8 and is unaudited.
Taxes on income in the interim periods are accrued using the tax rate that would
be applicable to expected total annual earnings.
2 Segmental reporting
Operating segments are identified on the same basis as the Group allocates its
resources such as management, tangible assets and working capital. The
reportable operating segments derive their revenue from the manufacture and sale
of relative snacking products.
The performance of reportable segments is assessed on a measure of adjusted
operating profit, excluding non-recurring items such as restructuring costs;
share based payment (charges)/credits and unrealised gains/(losses) on financial
instruments.
+--------------------------+----------+----------+----------+
| | Six | Six | |
| | months | months | Year |
| | ended | ended | ended |
| | 31 | 31 | 30 June |
| | December | December | 2009 |
| | 2009 | 2008 | GBP000's |
| | GBP000's | GBP000's | |
+--------------------------+----------+----------+----------+
| Revenue: | | | |
+--------------------------+----------+----------+----------+
| Confectionery | 16,212 | 15,737 | 30,253 |
+--------------------------+----------+----------+----------+
| Fruit & Cereal Snacks | 14,305 | 12,596 | 28,160 |
+--------------------------+----------+----------+----------+
| Savoury Snacks | 8,504 | 7,039 | 16,020 |
+--------------------------+----------+----------+----------+
| Unallocated | - | - | - |
+--------------------------+----------+----------+----------+
| | 39,021 | 35,372 | 74,433 |
+--------------------------+----------+----------+----------+
| Operating profit: | | | |
+--------------------------+----------+----------+----------+
| Confectionery | 1,483 | 1,353 | 2,284 |
+--------------------------+----------+----------+----------+
| Fruit & Cereal Snacks | 1,313 | 1,080 | 1,826 |
+--------------------------+----------+----------+----------+
| Savoury Snacks | 812 | 928 | 1,895 |
+--------------------------+----------+----------+----------+
| Unallocated | (545) | (473) | (876) |
+--------------------------+----------+----------+----------+
| | 3,063 | 2,888 | 5,129 |
+--------------------------+----------+----------+----------+
| Net assets employed: | | | |
+--------------------------+----------+----------+----------+
| Confectionery | 12,828 | 11,114 | 12,257 |
+--------------------------+----------+----------+----------+
| Fruit & Cereal Snacks | 4,202 | 4,258 | 3,137 |
+--------------------------+----------+----------+----------+
| Savoury Snacks | 2,079 | 1,492 | 1,495 |
+--------------------------+----------+----------+----------+
| Unallocated | 9,368 | 9,661 | 9,918 |
+--------------------------+----------+----------+----------+
| | 28,477 | 26,525 | 26,807 |
+--------------------------+----------+----------+----------+
The net assets of the group are held in the UK and are wholly attributable to
the principal activities of the group. A geographical analysis of revenue is
reported below:
+---------------------------+-----------+-----------+-----------+
| | Six | Six | |
| | months | months | Year |
| | ended | ended | ended |
| | 31 | 31 | 30 June |
| | December | December | 2009 |
| | 2009 | 2008 | |
+---------------------------+-----------+-----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------+-----------+-----------+-----------+
| | | | |
+---------------------------+-----------+-----------+-----------+
| UK | 35,519 | 31,168 | 65,644 |
+---------------------------+-----------+-----------+-----------+
| Europe | 3,066 | 3,867 | 8,284 |
+---------------------------+-----------+-----------+-----------+
| Rest of the World | 436 | 337 | 505 |
+---------------------------+-----------+-----------+-----------+
| | | | |
+---------------------------+-----------+-----------+-----------+
| Total | 39,021 | 35,372 | 74,433 |
+---------------------------+-----------+-----------+-----------+
3 TAXATION
The taxation charge for the period is provided at 28.0% (2008: 26.2%) and is
based on the estimated effective tax rate for the year charged on profit on
ordinary activities before other items.
4 EXCEPTIONAL ITEMS
+--------------------------------+-----------+-------------+
| | Six | Six |
| | months | months |
| | ended | ended |
| | 31 | 31 |
| | December | December |
| | 2009 | 2008 |
+--------------------------------+-----------+-------------+
| | GBP'000 | GBP'000 |
+--------------------------------+-----------+-------------+
| | | |
+--------------------------------+-----------+-------------+
| Unwinding of discount on | 34 | 103 |
| deferred consideration | | |
+--------------------------------+-----------+-------------+
| Amortisation of finance costs | 457 | 63 |
+--------------------------------+-----------+-------------+
| Exceptional administrative | 134 | - |
| expenses | | |
+--------------------------------+-----------+-------------+
| Change in market value of | (691) | 3,942 |
| derivatives | | |
+--------------------------------+-----------+-------------+
| Taxation on adjusted items | 27 | (1,104) |
+--------------------------------+-----------+-------------+
| | | |
+--------------------------------+-----------+-------------+
| Total | (39) | 3,004 |
+--------------------------------+-----------+-------------+
The Directors consider that the above items do not form part of the underlying
operating activities of the business and have shown them separately in order to
aid the reader's understanding of its performance.
In September 2007 the Group entered into an interest hedge at base rates between
4.25% and 6% against GBP23m of its borrowing until December 2010. At the same
time, it entered into an interest hedge at rates between 4.47% and 6% with a
minimum interest rate of 5.43% should base rate fall below 4.47% against GBP23m
of its borrowing for the period from December 2010 until 2015 to be exercised at
its lenders discretion at that time.
We entered into these arrangements purely to bring stability to our financing
costs. Given the fall in interest rates, these hedges have a fair value cost at
31 December 2009 of GBP3,682,000 (2008: GBP4,309,000) and this cost has been
included under current liabilities. The change in fair value of this hedge at 31
December 2009 has given rise to a gain of GBP691,000 in the six month period to
December 2009.
These hedges are a non-cash provision and equate to discounted interest costs
above the ruling base rates and the projection thereof at 31 December 2009 for a
period of six years from the balance sheet date. These hedges replaced a
previous hedge of GBP15m and under IAS 39 are classed as derivatives.
Following the agreement of amended facilities on 30 November 2009 the group
wrote off the non- amortised element of it bank costs relating to its previous
facilities of GBP457,000.
The exceptional administrative expenses of GBP134,000 relate mainly to Halo
Foods.
5DIVIDEND
In the period an amount of GBPnil (2008: GBP161,000) was charged to reserves.The
board has decided not to pay an interim dividend due to the current offer by
Raisio Oyj (2008: nil).
6 EARNINGS PER SHARE
Earnings per share is calculated on the basis of profit/(loss) for the period of
GBP1,648,000 (2008: loss of GBP1,544,000) divided by the weighted average number
of shares in issue for the six months to 31 December 2009 of 14,124,162 (2008:
13,954,541). The diluted earnings per share is calculated on the assumption all
vested options were exercised, this would give rise to a total weighted average
number of ordinary shares in issue of 14,285,894 (2008: 14,409,514).
Adjusted basic and diluted earnings per share is arrived at by using the profit
after taxation before adjusted items (exceptional cost, share based payment,
exceptional exchange losses, market value of derivatives, amortisation and
taxation thereon) as set out in the profit and loss account of GBP1,609,000
(2008: GBP1,460,000) divided by the relevant weighted average number of shares.
This is described as the adjusted earnings per share. It is this measure of
earnings per share that the directors believe demonstrates the progress of the
business.
+-------------------+----------+-----------+----------+----------+----------+----------+
| | Basic earnings per | | Diluted earnings | |
| | share | | per share | |
+-------------------+----------------------+----------+---------------------+----------+
| | Six | Six | Six months | Six months ended |
| | months | months | ended | 31 December |
| | ended | ended | 31 December | 2008 |
| | 31 | 31 | 2009 | |
| | December | December | | |
| | 2009 | 2008 | | |
+-------------------+----------+-----------+---------------------+---------------------+
| | | | | |
+-------------------+----------+-----------+---------------------+---------------------+
| Basic and diluted | 11.7p | (11.1p) | 11.5p | (10.7p) |
| earnings per | | | | |
| share | | | | |
+-------------------+----------+-----------+---------------------+---------------------+
| | | | | |
| Adjusted basic | 11.4p | 10.5p | 11.3p | 10.1p |
| and diluted | | | | |
| earnings per | | | | |
| share | | | | |
+-------------------+----------+-----------+---------------------+---------------------+
| | | | | | | |
+-------------------+----------+-----------+----------+----------+----------+----------+
7 PURCHASE OF SUBSIDIARY UNDERTAKINGS
On 31 October 2009 Glisten paid the final GBP1,250,000 of deferred consideration
to the vendors of Dormen Foods Limited. The Group has no further deferred
consideration liabilities (2008: GBP1,250,000).
8 ANALYSIS OF NET DEBT
+-------------------------------+-----------+-----------+----------+----------+
| | Six | Six | | |
| | months | months | | Year |
| | ended | Ended | | ended |
| | 31 | 31 | | 30 June |
| | December | December | | 2009 |
| | 2009 | 2008 | | |
+-------------------------------+ + +----------+ +
| | | | | |
+-------------------------------+-----------+-----------+-----------+----------+
| | GBP'000 | GBP'000 | | GBP'000 |
+-------------------------------+-----------+-----------+----------+----------+
| | | | | |
+-------------------------------+-----------+-----------+----------+----------+
| Cash at bank | 5 | 454 | | 1,310 |
+-------------------------------+-----------+-----------+----------+----------+
| Loan notes | - | (10) | | - |
+-------------------------------+-----------+-----------+----------+----------+
| Cash and cash equivalents | 5 | 444 | | 1,310 |
+-------------------------------+-----------+-----------+----------+----------+
| Debt due in less than 1 year | (1,625) | - | | (1,950) |
+-------------------------------+-----------+-----------+----------+----------+
| Debt due after more than one | (25,500) | (27,800) | | (24,550) |
| year | (2) | (29) | | (38) |
| Finance leases | | | | |
+-------------------------------+-----------+-----------+----------+----------+
| | | | | |
| | | | | |
+-------------------------------+-----------+-----------+----------+----------+
| | | | | |
| NET DEBT | (27,122) | (27,385) | | (25,228) |
+-------------------------------+-----------+-----------+----------+----------+
9 RELATED PARTIES
There have been no related party transactions in the first six months of the
financial year nor any changes in the related party transactions described in
the last annual report that have, or could have, materially affected the
financial position or performance of the business.
10 DISTRIBUTION OF INTERIM REPORT TO SHAREHOLDERS
This report is available on our web site (www.glisten.plc.uk) and for inspection
by the public at the registered office of the Company during normal business
hours on any weekday. Further copies are available on request from Glisten plc,
6a Harewood Yard, Harewood, Leeds, LS17 9LF.-
Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAKDNFSLEEFF
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