TIDMHOTC
RNS Number : 8876M
Hotel Chocolat Group PLC
19 October 2016
19 October 2016
Hotel Chocolat Group plc
("Hotel Chocolat", the "Company" or the "Group")
Preliminary Results
Hotel Chocolat Group plc, a premium British chocolatier and
omni-channel retailer, today announces its Preliminary Results for
the period ended 26 June 2016.
Financial highlights:
-- Revenue up 12% to GBP91.1m (2015: GBP81.1m), proforma revenue
of GBP92.6m (2015: GBP82.6m) (1)
-- EBITDA (pre-exceptional) (2) up 57% to GBP12.3m (2015:
GBP7.8m)
-- Pre-tax profit (pre-exceptional) (2) up 181% to GBP8.2m
(2015: GBP2.9m)
-- Profit after tax (pre-exceptional) (2) up 229% to GBP6.7m
(2015: GBP2.0m)
-- Digital revenue growth of 20%
Operational Highlights:
-- Completed GBP8.3m of capex projects in support of growth
strategy
-- Opened 7 new stores taking the Group total to 83 stores
-- Investment in chocolate factory in Huntington completed on
time; capacity increased by over 20%
-- New website on track to launch in H1 2017
-- Fifth Shop+Cafe format opened in Worcester and trading
well
(1) Including the results of Hotel Chocolat Estates Limited,
Saint Lucia for 12 months in 2016 and 2015.
(2) Exceptional costs of GBP2.6m relate solely to the
acquisition of Hotel Chocolat Estates Limited and the admission to
trading on AIM:
2016 2016 2016 2015
Adjusted Exceptional Statutory Statutory
Profit Reconciliation Basis Costs Basis Basis
GBPm GBPm GBPm GBPm
------------------------- --------- ------------ ---------- ----------
Pre-tax profit 8.2 (2.6) 5.6 2.9
Profit after tax 6.7 (2.6) 4.1 2.0
Angus Thirlwell, Co-founder and Chief Executive Officer of Hotel
Chocolat said:
"I am very pleased with our performance since we were admitted
to trading on AIM in May this year. Our results are strong, the
Hotel Chocolat brand has continued to strengthen and we have made
good progress with our three strategic priorities of investing
further in our British chocolate manufacturing operations, growing
our store estate and developing our digital offering."
"Our plans for the peak winter season are well set and I am
confident that our Christmas ranges will be our best ever, as
customers continue to appreciate our "more cocoa, less sugar"
approach throughout all our categories. I look forward to further
progress in the year ahead."
This announcement contains inside information for the purposes
of the Market Abuse Regulation.
For further information:
Hotel Chocolat Group plc c/o Citigate + 44 (0) 20 7638 9571
Angus Thirlwell, Co-founder and Chief Executive Officer
Peter Harris, Co-founder and Development Director
Matt Pritchard, Chief Financial Officer
Citigate Dewe Rogerson - Financial PR + 44 (0) 20 7638 9571
Simon Rigby
Ellen Wilton
Liberum Capital Limited - Nominated Advisor and Broker + 44 (0)
20 3100 2222
Clayton Bush
Steven Tredget
Anna Hartropp
Jill Li
Notes to Editors:
Hotel Chocolat is a premium British chocolatier with a strong
and distinct brand that is at the core of its offering. The
business was founded in 1993 by Angus Thirlwell and Peter Harris
and has traded under the Hotel Chocolat brand since 2003. The Group
sells its products online and through a network of 83 stores in the
UK and abroad. The Group has five Shop+Cafe format stores, two
restaurants in the UK and a cocoa plantation and hotel in Saint
Lucia. The Group was admitted to trading on AIM in 2016.
Chairman's statement
OVERVIEW
FY16 represented a landmark year in the history of Hotel
Chocolat. The IPO in May 2016 marked the next stage of the
development and growth of the business and provides the capital to
accelerate our growth strategy whilst raising the profile of the
business.
RESULTS
The Group achieved a pleasing result in FY16 with revenue of
GBP91.1m and growth of 12% versus FY15. Strong control of costs
meant that operating margins improved with pre-exceptional EBITDA
margin rising from 9.7% to 13.5%.
PEOPLE
The Group continues to be led by a strong founder-led executive
management team that have built a successful business. In April we
welcomed Sophie Tomkins to the Board as a Non-executive Director.
She has already made a valuable contribution to the Board and
brings excellent experience to her role as Chair of the Audit
Committee. I would also like to extend my thanks to the whole Hotel
Chocolat team for their hard work, commitment and for a job well
done.
DIVIDS
The Group remains in a growth phase and is presented with many
strong investment opportunities, each of which is assessed using a
disciplined approach to capital allocation and risk. The Board
intends to invest the IPO proceeds to support the business
strategy, with the goal of accelerating the growth of the business
and a target of improving returns. The Board therefore does not
recommend a dividend for FY16 but is committed to adopting a
progressive dividend policy in future as the business grows.
Andrew Gerrie
Chairman
Chief Executive's statement
In my first Chief Executive's statement I am pleased to report a
year of significant progress for the Group. Revenue grew by 12% to
GBP91.1m and profit before tax increased by 91% to GBP5.6m. We
further refined our business model and all channels achieved
growth, whilst a focus on cost efficiency resulted in an improved
EBITDA margin.
I would like to thank the whole team for their enthusiasm and
tireless commitment, without which these results would not have
been possible.
SALES CHANNEL REVIEW
Our multi-channel model continues to work well; each channel
supports the others and all channels are in growth. Digital growth
of +20% was particularly strong.
Our stores continued to perform well and the opening of our
fifth Shop+Cafe site in Worcester represented an encouraging step
as we continue to hone this new format. We will continue to open
both pure chocolate shops and Shop+Cafe formats to best match the
opportunity in each location.
In the year we opened seven new stores in Regent Street and
Tottenham Court Road in London, Birmingham New Street Station,
Glasgow Braehead, Manchester Market Street, Manchester Piccadilly
Station and Sheffield Fargate.
In the year we also closed three stores that had reached the end
of their leases and weren't meeting our returns hurdles, thus
improving the overall profitability of the retail estate.
Since the end of the financial period we have opened three
stores in Worcester, Peterborough and Chelmsford, and have signed
leases on a further five including our first Designer Outlet store
at Cheshire Oaks, all of which we expect to be trading before
Christmas 2016.
Our international operations remain at the exploratory stage and
highlights have included a refit of our Shop+Cafe site in
Copenhagen city centre and the opening of a new franchised store in
Gibraltar, with our partner Sandpiper, who already operate Hotel
Chocolat franchise stores in Jersey and Guernsey.
OPERATIONAL REVIEW
A major focus for the period was on improving availability to
ensure customers can always find their favourite Hotel Chocolat
products which helped increase sales growth rates across all
channels. The key seasonal ranges have also traded strongly.
MANUFACTURING INVESTMENT
Following the end of Easter and preceding the build-up for the
winter peak, each summer presents our annual 'window' to undertake
infrastructure investment.
In summer 2015 we completed a GBP1.0m investment to relocate the
packing of our finished products from our factory in Huntingdon to
our nearby Distribution Centre in St Neots. This change increased
the factory's capacity by freeing up space, allowing more efficient
and responsive supply of product and reducing the amount of miles
travelled moving product between our sites.
In summer 2016 we completed a GBP3.7m investment installing a
mezzanine floor in the factory and significantly upgrading one of
our three key production lines. This has resulted in an increase in
factory capacity of over 20% as well as improved efficiency and the
ability to conjure up more exciting recipes.
We also invested to increase our 'bean to bar' manufacturing
capacity enabling us to produce more of our super-premium Rare
& Vintage product range.
Further investments are planned for summer 2017 to improve
capacity and efficiency.
BRAND REVIEW
As a result of our continued nurturing the Hotel Chocolat brand
continues to strengthen. At the beginning of FY16 we relaunched our
key boxed chocolate ranges, improving the packaging and adding new
recipes to increase choice. Over the Christmas gifting season,
redesigned boxed chocolates proved a particular success.
We won an impressive 18 awards from the Academy of Chocolate
including for our new Teaolat infusion drinks, our Saint Lucian
Buffalo Milk 65% Chocolate and our new 'Banana Bread'
chocolate.
We also launched new gift sleeves which allow guests to quickly
personalise a product for a gift recipient, with early signs being
very encouraging. This is part of our strategy to become a leading
one-stop destination for gifts, both digitally and in-store.
CONSUMER TRS
Wellness
We see an increasing trend that consumers want uncompromisingly
delicious and hedonistic chocolate that's also made with
responsible amounts of sugar. Hotel Chocolat's 12-year track record
of "more cocoa, less sugar" is applied to every grade of chocolate,
from our whites, through milks and darks. We carry a very wide
range of darks with cocoa percentages ranging from 70% all the way
up to 100%. Our new supermilk genre means we can offer a milky and
mellow taste, but with less sugar than most dark chocolates on the
market. Our award-winning vegan dark chocolates also continue to
see significant sales growth.
Experiences
Experiences are becoming increasingly popular as a new luxury
and consumers are seeking to go beyond the purely transactional. We
are well positioned to take advantage of this trend. Whilst a stay
at our Boucan Hotel in Saint Lucia remains the pinnacle, great
experiences are available throughout the UK. We offer School of
Chocolate customer experiences nationwide, priced from GBP20 to
GBP120 and we introduced new brunches and afternoon teas at our
London and Leeds flagships. Our amazing Hot Chocolat is now
available in more locations as we expand our new Shop+Cafe format.
We intend to continue to develop the range of experiences we can
offer, showcasing the brand specialisation from farm to finished
product and aspire to turn customers into advocates.
Mobile
Living an increasingly mobile and flexible life is a clear
trend. Plans are underway to make it easier to send a Hotel
Chocolat gift whilst on the move with our new digital capability
coming on stream in H1 2017. This will deliver improved content
optimised for smartphones and tablets.
OUTLOOK
I am confident that our plan for the coming year is robust. Our
capital plans are based on proven store formats and digital
channels, and on making greater use of existing production methods
and technology. Our strategy remains on track and our continued
innovation and focus on customer happiness aim to deliver increased
sales, combined with disciplined capex and a tight control on costs
with the goal of improving returns.
The market and wider economy may not be without challenges, but
we still have significant addressable market headroom and benefit
from having distribution and manufacturing directly under our
control, which supports the resilience of our business.
Ensuring that we maintain the strong relationship we enjoy with
our customers will always be our top priority.
Angus Thirlwell
Co-founder and Chief Executive Officer
Financial review
Strong sales growth coupled with improving margins and cost
control have resulted in an improvement in profitability.
Period ended Period ended
26 June 2016 28 June 2015
GBP000 GBP000
----------------------------- -------------- --------------
Revenue 91,090 81,068
Gross profit 60,853 53,982
Operating expenses (48,522) (46,148)
Pre-exceptional EBITDA 12,331 7,834
Depreciation & amortisation (3,194) (4,239)
Exceptional costs (2,642) -
Operating profit 6,366 3,463
Finance income 172 188
Finance expense (947) (720)
Profit before tax 5,591 2,931
Tax expense (1,507) (884)
Profit for the period 4,084 2,047
REVENUE
Revenue grew by 12% from GBP81.1m to GBP91.1m. An overview of
revenue is included in the Chief Executive's statement.
GROSS MARGIN AND OPERATING EXPENSE
Gross profit margin improved from 66.6% to 66.8%, as a result of
a focus on efficiency and better buying, partially offset by
ongoing investment in product quality. A focus on cost control
meant that operating expenses as a percentage of sales reduced from
56.9% to 53.3%.
EXCEPTIONAL COSTS
The exceptional costs of GBP2.6m relate to the costs of
flotation of the Group in May 2016 and to the acquisition of Hotel
Chocolat Estates Limited, Saint Lucia by the Group at the time of
IPO.
FINANCE EXPENSE
A GBP5.6m loan was taken out with Lloyds bank in July 2015 and
was repaid in full from operating cash flow prior to the IPO. In
addition the Group made use of an overdraft facility provided by
Lloyds bank. This was replaced with an GBP18m 2-year RCF facility
in April 2016.
TAXATION
The effective rate of taxation is 27%. This is higher than the
standard rate primarily as a result of costs relating to the IPO,
which are not allowable for tax purposes.
EARNINGS PER SHARE (EPS) AND DIVIDS
The capital reorganisation in conjunction with the IPO increased
the number of shares in issue to 112,837,828 resulting in an FY16
EPS of 3.9p.
The business continues to be in a growth phase and has recently
raised new capital to finance investment activity with the goal of
increasing returns. Therefore the Board does not propose a
dividend, but intends to adopt a progressive dividend policy in
future years as the business grows.
CASH POSITION
The Group had GBP6.5m of cash at year end and GBP6.7m of
borrowings in the form of chocolate bonds where bondholders receive
boxes of chocolate or gift cards in lieu of interest.
WORKING CAPITAL
Closing inventories increased by GBP2.1m driven by an investment
in inventory to improve availability for customers which has
supported sales growth, and by a requirement to build additional
inventory in advance of a temporary factory shutdown to complete
capital investment in July and August 2016.
CAPITAL EXPITURE
Capital expenditure of GBP8.3m comprised investments in new
stores and re-sites, IT projects and in operational projects
including upgrades to factory capacity and capability.
ACQUISITION OF HOTEL CHOCOLAT ESTATES LIMITED, SAINT LUCIA
(HCESL)
Hotel Chocolat Group Limited acquired HCESL on 24 April 2016. As
such the audited Group financial statements are required by the
Companies Act to include the activities, assets and liabilities of
HCESL from the date of acquisition. The admission document
published prior to the IPO was required to include the results of
HCESL as if the Company had always been a member of the Group. The
proforma numbers below are therefore provided for comparative
purposes.
Period ended Period ended
26 June 2016 28 June 2015
Hotel Chocolat Group plc proforma basis GBP000 GBP000
------------------------------------------- -------------- --------------
Revenue 92,636 82,614
Pre-exceptional EBITDA 12,270 8,106
PERFORMANCE INDICATORS
The Group monitors its performance using a number of key
indicators which are agreed at Board meetings and monitored at
operational and Board level.
Revenue growth %
Revenue grew 12% year-on-year
Gross margin %
Gross margin improved from 66.6% to 66.8%
Pre-exceptional EBITDA margin %
EBITDA margin before exceptional costs improved from 9.7% to
13.5%
Matt Pritchard
Chief Financial Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 26 June 2016
52 weeks ended 52 weeks ended
26 June 2016 28 June 2015
Notes GBP GBP
------------------------------------------------------------- -------- --------------- ---------------
Revenue 91,089,824 81,068,364
Cost of Sales (30,237,009) (27,086,522)
--------------- ---------------
60,852,815 53,981,842
Administrative expenses 2 (54,486,943) (50,519,091)
--------------- ---------------
6,365,872 3,462,751
Finance income 172,106 188,489
Finance expenses (946,884) (719,808)
--------------- ---------------
Profit before tax 5,591,094 2,931,432
Tax expense (1,507,290) (884,209)
--------------- ---------------
Profit for the period 4,083,804 2,047,223
Other comprehensive income:
Derivative financial liabilities (581,959) -
Deferred tax charge on derivative financial liabilities 114,446 -
Currency translation differences arising from consolidation 896,053 (380,039)
--------------- ---------------
Total comprehensive income for the period 4,512,344 1,667,184
--------------- ---------------
Earnings per share - Basic and Diluted 3 3.9p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 26 June 2016
As at As at As at
26 June 2016 28 June 2015 29 June 2014
Notes GBP GBP GBP
------------------------------------------- -------- -------------- -------------- --------------
ASSETS
Non-current assets
Intangible assets 1,856,800 1,553,433 1,512,191
Property, plant and equipment 4 26,111,111 12,294,264 14,030,984
Prepayments 7,461 - -
Deferred tax asset 149,903 215,993 240,019
-------------- -------------- --------------
28,125,275 14,063,690 15,783,194
Current assets
Inventories 6,604,104 4,493,841 3,926,952
Trade and other receivables 5,534,835 13,672,466 15,131,549
Corporation tax recoverable - 166,709 952,873
Cash and cash equivalents 6,475,446 4,939,924 4,796,735
-------------- -------------- --------------
18,614,385 23,272,940 24,808,109
Total assets 46,739,660 37,336,630 40,591,303
LIABILITIES
Current liabilities
Trade and other payables 5 16,334,191 12,210,082 14,006,130
Corporation tax payable 611,051 - -
Derivative financial liabilities 554,529 - -
Bank overdraft - 10,637,314 13,931,197
Borrowings 6 432,544 954,521 723,613
17,932,315 23,801,917 28,660,940
Non-current liabilities
Other payables and accruals 5 1,485,090 1,774,731 1,143,491
Derivative financial liabilities 85,075 - -
Borrowings 6 6,643,212 7,298,718 7,723,393
Provisions 464,486 668,898 939,715
8,677,863 9,742,347 9,806,599
Total liabilities 26,610,178 33,544,264 38,467,539
NET ASSETS 20,129,482 3,792,366 2,123,764
EQUITY
Share capital 112,838 103,418 107,078
Share premium 11,749,487 - -
Retained earnings 8,087,350 4,003,546 1,956,323
Translation reserve 353,126 (542,927) (162,888)
Merger reserve 223,251 223,251 223,251
Capital redemption reserve 6,301 5,078 -
Other reserves (402,871) - -
-------------- -------------- --------------
Total equity attributable to shareholders 20,129,482 3,792,366 2,123,764
-------------- -------------- --------------
CONSOLIDATED STATEMENT OF CASH FLOW
For the period ended 26 June 2016
52 weeks ended 52 weeks ended
26 June 2016 28 June 2015
Notes GBP GBP
------------------------------------------------------------------------ -------- --------------- ---------------
Profit before tax for the period 5,591,094 2,931,432
Adjusted by:
Depreciation of property, plant and equipment 4 2,516,632 4,044,602
Impairment of property, plant and equipment - 131,998
Amortisation of intangible assets 676,977 194,542
Net interest expense 774,778 531,319
Share-based payments 64,642 -
Loss on disposal of property, plant and equipment and intangible assets 128,874 -
--------------- ---------------
Operating cash flows before movements in working capital 9,752,997 7,833,893
Increase in inventories (2,294,585) (566,890)
(Increase)/decrease in trade and other receivables (309,174) 1,252,819
(Increase)/decrease in trade and other payables and provisions 1,516,121 (1,001,379)
--------------- ---------------
Cash inflow generated from operations 8,665,359 7,518,443
Interest received 109 -
Income tax paid (548,994) (74,019)
Interest paid on:
* finance leases and hire purchase loans (30,020) (31,654)
* bank loans and overdraft (660,663) (593,801)
--------------- ---------------
Cash flows from operating activities 7,425,791 6,818,969
--------------- ---------------
Purchase of property, plant and equipment (5,625,076) (2,889,611)
Proceeds from disposal of property, plant and equipment 200,000 -
Purchase of intangible assets (760,224) (235,784)
Acquisition of subsidiary 228,006 -
Cash flows used in investing activities (5,957,294) (3,125,395)
--------------- ---------------
(Buy back)/issue of Chocolate bonds (145,000) 406,500
Capital element of hire purchase and finance leases repaid (378,462) (439,850)
Repayment of bank loans (654,021) (160,416)
Cost of issue of new equity (240,000) -
Issue/(buy-back) of shares 12,000,130 (3,660)
--------------- ---------------
Cash flows from/(used in) financing activities 10,582,647 (197,426)
--------------- ---------------
Net change in cash and cash equivalents 12,051,144 3,496,148
Cash and cash equivalents at beginning of period (5,697,390) (9,134,462)
Foreign currency movements 121,692 (59,076)
Cash and cash equivalents at end of period 6,475,446 (5,697,390)
--------------- ---------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 26 June 2016
Capital
Share Share Retained Translation Merger redemption Other
capital Premium earnings reserve reserve reserve reserves Total
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ----------- ----------- ---------- ------------- ---------- ----------- ---------- -----------
As at 30 June
2014 107,078 - 1,956,323 (162,888) 223,251 - - 2,123,764
Profit for the
period - - 2,047,223 - - - - 2,047,223
Capital
redemption (5,078) - - - - 5,078 - -
Shares issued
in the period 1,418 - - - - - - 1,418
Other
comprehensive
expense for
the period - - - (380,039) - - - (380,039)
----------- ----------- ---------- ------------- ---------- ----------- ---------- -----------
Equity as at
28 June 2015 103,418 - 4,003,546 (542,927) 223,251 5,078 - 3,792,366
Profit for the
period - - 4,083,804 - - - - 4,083,804
Capital
redemption (1,223) - - - - 1,223 - -
Shares issued
in the period 10,643 11,989,487 - - - - - 12,000,130
Costs of issue
of equity
shares - (240,000) - - - - - (240,000)
Share-based
payments - - - - - - 64,642 64,642
Derivative
financial
liabilities - - - - - - (581,959) (581,959)
Deferred tax
charge on
derivative
financial
liabilities - - - - - - 114,446 114,446
Other
comprehensive
income for
the period - - - 896,053 - - - 896,053
----------- ----------- ---------- ------------- ---------- ----------- ---------- -----------
Equity as at
26 June 2016 112,838 11,749,487 8,087,350 353,126 223,251 6,301 (402,871) 20,129,482
----------- ----------- ---------- ------------- ---------- ----------- ---------- -----------
NOTES TO THE PRELIMINARY FINANCIAL INFORMATION
1. Basis of preparation
The consolidated financial information has been prepared in
accordance with International Financial Reporting Standards,
International Accounting Standards and Interpretations
(collectively IFRSs), as adopted by the European Union.
For all periods up to and including the period ended 28 June
2015, the Group prepared its financial statements in accordance
with United Kingdom Generally Accepted Accounting Principles (UK
GAAP). These financial statements for the period ended 26 June 2016
are the first the Group has prepared in accordance with IFRS.
The financial information for the period ended 26 June 2016 and
the period ended 28 June 2015 does not constitute the Group's
statutory accounts for those years.
Statutory accounts for the period ended 28 June 2015 have been
delivered to the Registrar of Companies. The statutory accounts for
the period ended 26 June 2016 will be delivered to the Registrar of
Companies following the Group's Annual General Meeting.
The auditors' reports on the accounts for 26 June 2016 and 28
June 2015 were unqualified, did not draw attention to any matters
by way of emphasis, and did not contain a statement under 498(2) or
498(3) of the Companies Act 2006.
2. Profit from operations
Profit from operations is arrived at after
charging/(crediting):
52 weeks ended 52 weeks ended
26 June 2016 28 June 2015
GBP GBP
------------------------------------------------------------------------- --------------- ---------------
Staff cost 24,835,020 22,444,632
Depreciation of property, plant and equipment 2,516,632 4,044,602
Impairment of property, plant and equipment - 131,998
Amortisation of intangible assets 676,977 194,542
Loss on disposal of property, plant and equipment and intangible assets 128,874 -
Operating leases:
* Property 8,189,509 7,865,974
* Plant and equipment 145,185 185,133
Exchange differences 48,725 (281,005)
Exceptional costs 2,642,177 -
Bad debt expense 126,967 43,016
--------------- ---------------
Exceptional costs for the period ended 26 June 2016 relate
solely to the acquisition of Hotel Chocolat Estates Limited and the
listing on AIM.
3. Earnings per share
Profit for the period used in the calculation of the basic and
diluted earnings per share:
52 weeks ended 52 weeks ended
26 June 2016 28 June 2015
GBP GBP
--------------------------------- --------------- ---------------
Profit after tax for the period 4,083,804 2,047,223
--------------- ---------------
The weighted average number of shares for the purposes of
diluted earnings per share reconciles to the weighted average
number of shares used in the calculation of basic earnings per
share as follows:
52 weeks ended 52 weeks ended
26 June 2016 28 June 2015
GBP GBP
------------------------------------------------------------------------------- --------------- ---------------
Weighted average number of shares in issue used in the calculation of earnings
per share (number) 103,411,610 10,200,040
Earnings per share (pence) - Basic and Diluted 3.9 20.1
--------------- ---------------
Due to the nature of the options granted under the Hotel
Chocolat Group plc 2016 Long-Term Incentive Plan, they are
considered contingently issuable shares and therefore have no
dilutive effect.
4. Property, plant and equipment
Furniture &
fittings,
Equipment,
Computer software
Freehold property Leasehold & hardware Plant & machinery
GBP property GBP GBP Total
GBP GBP
--------------------
52 weeks ended 28
June 2015
Cost:
As at 29 June 2014 2,840,841 734,999 19,110,012 9,343,245 32,029,097
Additions - - 2,268,415 169,390 2,437,805
Disposals - - - - -
Translation
differences - - (59,341) - (59,341)
------------------- ------------------- -------------------
As at 28 June 2015 2,840,841 734,999 21,319,086 9,512,635 34,407,561
------------------- ------------------- ------------------- ------------------- ------------
Accumulated
depreciation:
As at 29 June 2014 251,082 730,406 10,510,017 6,506,608 17,998,113
Depreciation charge 28,409 950 2,841,888 1,173,355 4,044,602
Impairments - - 131,998 - 131,998
Translation
differences - - (61,416) - (61,416)
------------------- ------------------- ------------------- ------------------- ------------
As at 28 June 2015 279,491 731,356 13,422,487 7,679,963 22,113,297
------------------- ------------------- ------------------- ------------------- ------------
Net book value
------------------- ------------------- ------------------- ------------------- ------------
As at 28 June 2015 2,561,350 3,643 7,896,599 1,832,672 12,294,264
------------------- ------------------- ------------------- ------------------- ------------
52 weeks ended 26
June 2016
Cost:
As at 29 June 2015 2,840,841 734,999 21,319,086 9,512,635 34,407,561
Acquisition on
business
combinations 8,244,800 - 505,625 - 8,750,425
Additions 35,009 - 2,342,334 5,191,022 7,568,365
Disposals - - (1,425,415) (41,069) (1,466,484)
Translation
differences 348,805 - 157,562 - 506,367
As at 26 June 2016 11,469,455 734,999 22,899,192 14,662,588 49,766,234
------------------- ------------------- ------------------- ------------------- ------------
Accumulated
depreciation:
As at 29 June 2015 279,491 731,356 13,422,487 7,679,963 22,113,297
Depreciation charge 51,943 950 1,601,429 862,310 2,516,632
Disposal - - (1,106,985) (41,069) (1,148,054)
Translation
differences 77,178 - 96,070 - 173,248
------------------- ------------------- ------------------- ------------------- ------------
As at 26 June 2016 408,612 732,306 14,013,001 8,501,204 23,655,123
------------------- ------------------- ------------------- ------------------- ------------
Net book value
------------------- ------------------- ------------------- ------------------- ------------
As at 26 June 2016 11,060,843 2,693 8,886,191 6,161,384 26,111,111
------------------- ------------------- ------------------- ------------------- ------------
Included above are assets held under finance leases and hire
purchase agreements which, as at 26 June 2016 had a net book value
of 557,454 (28 June 2015: GBP869,845).
5. Trade and other payables
52 weeks ended 52 weeks ended
26 June 2016 28 June 2015
GBP GBP
----------------------------- --------------- ---------------
Current
Trade payables 5,439,251 4,631,750
Other payables 3,416,370 1,629,735
Other taxes payable 810,114 1,418,345
Accruals 6,668,456 4,530,252
--------------- ---------------
16,334,191 12,210,082
--------------- ---------------
Non-current
Other payables and accruals 1,485,090 1,774,731
--------------- ---------------
1,485,090 1,774,731
--------------- ---------------
6. Borrowings
52 weeks ended 52 weeks ended
26 June 2016 28 June 2015
GBP GBP
--------------------------------------------- --------------- ---------------
Current
Finance and lease hire purchase liabilities 425,544 397,750
Chocolate bonds 102,000 -
Bank loans - 556,771
527,544 954,521
Unamortised costs of issue (95,000) -
--------------- ---------------
Total current borrowings 432,544 954,521
--------------- ---------------
Non-current
Finance and lease hire purchase liabilities 35,462 441,718
Chocolate bonds 6,610,000 6,857,000
6,645,462 7,298,718
Unamortised costs of issue (2,250) -
--------------- ---------------
Total non-current borrowings 6,643,212 7,298,718
--------------- ---------------
Total borrowings 7,075,756 8,253,239
--------------- ---------------
Chocolate bonds pay a return either in boxes of luxury
chocolates or by way of a Hotel Chocolat gift card. For those bonds
with a return in the form of chocolate, the coupon is fixed by
number of boxes. For bonds where there is a return paid by way of a
Hotel Chocolat gift card, there is a fixed rate of interest. The
interest as stated on issue of the bonds ranged between 6.7% and
7.3%.
Chocolate bonds are repayable subject to formal notice given six
months prior to a redemption note. In order to redeem the bond,
notice must be given by January and payment is made in July of the
same year. For the chocolate bonds issued in June 2010, where
notice has been given the amount repayable is shown within current
liabilities. The remaining bonds for which notice has not yet been
given are shown within non-current liabilities. The first notice
date for the chocolate bonds issued in June 2014, will be January
2017 and therefore all amounts are shown within non-current
liabilities. Both bonds are unsecured.
On 27 April 2016, the Group negotiated a two-year, bilateral
revolving credit facility (RCF). Interest is charged at 1.9% over
base rate and a commitment fee of 0.8% is due on the available
commitment, not yet drawn down.
In the previous financial period, interest on the bank loan was
charged at 3.9% over base rate. The bank loan was repaid in March
2016 and was secured by a charge over the Group's assets and cross
guarantees.
The hire purchase and finance leases are secured by a charge
over the related fixed assets and have incurred interest at an
effective annual rate of 2.0%.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAXEPFSKKFFF
(END) Dow Jones Newswires
October 19, 2016 02:00 ET (06:00 GMT)
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