Released: 09/06/2009
Part 2 : For preceding part double click [nRn1I5515T]
Cash and cash equivalents comprise:
Cash 1,464 10,308
Overdrafts - (2,995)
1,464 7,313
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2008
1. PRESENTATION OF FINANCIAL STATEMENTS
General Information
The Real Good Food Company plc is a public limited company incorporated in the
United Kingdom under the Companies Act 1985 (registered number 4666282). The
Company is domiciled in the United Kingdom and its registered address is 229
Crown Street, Liverpool, Merseyside, L8 7RF. The Company's shares are traded on
the Alternative Investment Market (AIM).
The principal activities of the Group are the sourcing, manufacture and
distribution of food to the retail and industrial sectors.
Basis of preparation
These consolidated financial statements are presented on the basis of
International Financial Reporting Standards (IFRS) as adopted by the European
Union and interpretations issued by the International Financial Reporting
Interpretations Committee (IFRIC) and have been prepared in accordance with AIM
rules and the Companies Act 1985, as applicable to companies reporting under
IFRS.
These consolidated financial statements have been prepared in accordance with
the accounting policies set out in Note 2 and under the historical cost
convention, except where modified by the revaluation of certain financial
instruments and commodities.
2. SIGNIFICANT ITEMS
Year ended31 December2008 Year ended31 December2007As restated
£'000s £'000s
(Loss)/profit on disposal of division (12) 8,070
Management restructuring costs (968) (523)
Bank restructuring fees (827) -
Onerous lease provision (161) -
(1,968) 7,547
Interest on loan notes 648 -
(1,320) 7,547
Taxation credit/(charge) on significant items 366 (6,172)
(954) 1,375
During the year the Group incurred a number of significant items as detailed
above. The management restructuring costs reflect a number of fundamental
reorganisations within our operating divisions during the year, including the
formation of Renshawnapier, the restructuring of the night shift operations at
our Bakery Division along with a number of other material changes to the
operations of the Divisions.
The Group also incurred costs associated with the re-financing during the summer
including bank break costs and the release of the associated prepaid loan
arrangement fees.
The onerous lease provision relates to a vacant property that the Group has been
unable to re-lease.
The write back of accrued interest relates to an outstanding loan note.
3. TAXATION
Year ended Year ended
31 December 31 December
2008 2007
£'000s £'000s
CURRENT TAX
UK Current tax on (loss)/profits of the year (8) 1,047
UK Corporation tax on discontinued activities - 690
UK Current tax on Significant items (287) 6,172
Adjustments in respect of prior years (392) -
Total current tax (687) 7,909
Deferred Tax
Deferred tax charge re pension scheme 116 93
Origination and reversal of timing differences 108 (137)
Effect of tax rate change on deferred tax - (75)
Deferred tax charge/(credit) on significant items (79) -
Adjustments in respect of prior years 380 -
Deferred tax impact of withdrawal of industrial buildings 874 -
allowance
Total deferred tax 1,399 (119)
Tax on (loss)/profit on ordinary activities 712 7,790
4. BORROWINGS
Year ended31 December2008 Year ended31 December2008 Year ended31 December 2007 Year ended31 December 2007
Group Company Group Company
£000's £000's £000's £000's
Unsecured borrowings at amortised cost
Bank overdrafts - - 2,995 860
Loan notes 2,773 - 3,422 -
Secured borrowings at amortised cost
Bank term loans 12,227 12,227 15,669 15,669
Revolving credit facilities 17,112 748 16,500 16,500
Hire purchase 798 327 1,054 428
32,910 13,302 39,640 33,457
Amounts due for settlement within 12 months 19,258 2,730 22,479 20,234
Amounts due for settlement after 12 months 13,652 10,572 17,161 13,223
32,910 13,302 39,640 33,457
Features of the Group's borrowings are as follows:
The Group's financial instruments comprise cash, a term loan, hire purchase and
finance leases, revolving credit facility, overdraft and various items arising
directly from its operations such as trade payables and receivables. The main
purpose of these financial instruments is to finance the Group's operations.
The main risks from the Group's financial instruments are interest rate risk and
liquidity risk. The Group also has some currency exposure in relation to its
sugar trade but the majority of this risk is hedged, and also some currency
exposure in relation to the purchase of Almonds from the United States, however
this is mitigated by the use of forward exchange contracts. The Board reviews
and agrees policies, which have remained substantially unchanged for the year
under review, for managing these risks.
5. SEGMENT REPORTING
Business segments
The Group has adopted IFRS 8 'Operating segments' in advance of its effective
date, with effect from 1 January 2006. IFRS 8 requires that operating segments
be identified on the basis of internal reporting and decision-making. The
Group's operating segments are Sugar, Bakery Ingredients and Bakery as the
Group's management and reporting structure is set out along these lines.
The following table shows the Group's revenue and results for the year under
review analysed by operating segment. Segment profit represents the trading
profit after depreciation but before any interest and significant items.
Year ended 31 December 2008
Sugar Bakery Ingredients Bakery Total Before Significant Items Significant Items Total After Significant Items
Total Revenue 176,694 35,000 18,342 230,036 - 230,056
Revenue - Internal (9,467) (1,913) - (11,380) - (11,380)
External Revenue 167,227 33,087 18,342 218,656 - 218,656
Operating Profit 3,616 1,824 (555) 4,885 (1,968) 2,917
Finance Costs (net of interest received) (2,965) 648 (2,317)
Pension finance income 320 - 320
Head Office and consolidated adjustments (1,353) - (1,353)
Profit/(loss) before tax 887 (1,320) (433)
Tax (1,078) 366 (712)
Profit/(loss) after tax as per income statement (191) (954) (1,145)
Inter-segment sales are charged at prevailing market rates.
The Group operates a central function, finance costs cannot be meaningfully
allocated to individual operating segments.
6. DISTRIBUTION OF THE ANNUAL REPORT AND ACCOUNTS TO SHAREHOLDERS
The announcement set out above does not constitute a full financial statement of
the company's affairs for the year ended 31 December 2008. The company's
auditors have reported on the full accounts of the said years and have
accompanied them with an unqualified report. The accounts have yet to be
delivered to the Registrar of Companies.
The annual report and accounts will be posted to all shareholders of the
Company, and will be available on our web site www.realgoodfoodplc.com and for
inspection by the public at the registered office of the Company during normal
business hours on any weekday. Further copies will be available on request from
The Real Good Food Company plc, 229 Crown Street, Liverpool L8 7RF
This information is provided by RNS
The company news service from the London Stock Exchange
END
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