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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Cake Box Holdings Plc | LSE:CBOX | London | Ordinary Share | GB00BDZWB751 | ORD GBP0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -2.50 | -1.47% | 167.50 | 165.00 | 170.00 | 167.50 | 167.50 | 167.50 | 1,239 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Bread, Bakery Pds, Ex Cookie | 34.8M | 4.24M | 0.1059 | 15.82 | 67M |
From Apr 2019 to Apr 2024
TIDMCBOX
RNS Number : 1070D
Cake Box Holdings PLC
24 June 2019
Cake Box Holdings plc
("Cake Box", "the Company" or "the Group")
Full Year Results for the twelve months ended 31 March 2019
Record results in first year as a listed business
Financial Highlights
Hot Features
Premium
Full year Full year Change
ended ended
31 March 19 31 March 18
---------------- ------------------
Revenue GBP16.9m GBP12.7m +33%
---------------- ------------------ -------------
Gross profit GBP7.7m GBP5.5m +41%
---------------- ------------------ -------------
EBITDA* GBP4.4m GBP3.7m +20%
---------------- ------------------ -------------
Pre-tax profit GBP3.8m GBP3.3m +14%
---------------- ------------------ -------------
Adjusted Pre-tax profit** GBP4.0m GBP3.3m +19%
---------------- ------------------ -------------
Cash at Bank GBP3.1m GBP2.5m +23%
---------------- ------------------ -------------
Earnings per share 7.5p 6.9p +9%
---------------- ------------------ -------------
Adjusted Earnings per share** 7.9p 6.9p +14%
---------------- ------------------ -------------
Final dividend 2.4p 1.6p +50%
---------------- ------------------ -------------
* EBITDA is calculated as operating profit before depreciation
**Calculated after adjusting for AIM listing costs of GBP599k and fair value uplift of GBP444k
-- Group revenue up 33% to GBP16.9m (2018: GBP12.7m) -- Gross margin improved to 45.7% (2018: 42.9%) -- Cash from operations of GBP3.6 million (2018: GBP3.5 million) -- Strong balance sheet with GBP3.1 million cash at period end (31 March 2018: GBP2.5 million) -- Dividend per share: 3.6 pence per share
o Proposed final dividend of 2.4 pence per share (interim dividend of 1.2 pence per share)
Operational highlights
-- IPO on AIM successfully completed in June 2018 -- 27 new franchise stores added in the period (2018: 23 new franchise stores) -- 113 franchise stores in operation as at 31 March 2019 -- Acquired two new production and distribution centres to support further growth
Franchisee store highlights
-- Franchisee total turnover up by 18% to GBP30.7 million (2018: GBP25.9 million) -- Franchisee online sales up 58% to GBP4.4 million (2018: GBP2.8 million) -- Like-for-like(1) sales growth of 6.5% in franchise stores (2018: 15.0%)
(1) Like-for-like: Stores trading for at least one full financial year prior to 31 March 2019
Current trading and outlook
-- The Board is pleased with trading so far in the current financial year -- Strong pipeline of new openings -- Confident of delivering growth strategy of six new franchise stores per quarter (two a month)
Neil Sachdev, Non-executive Chairman, commented:
"This has been a landmark year for Cake Box, due to both the successful completion of our initial public offering and the significant expansion of our family of franchisees.
"Although we have only been on AIM for a short period, we have made a huge amount of progress. New store openings have kept pace with our plans, our franchisees are enjoying good performance and we have a solid platform for growth with two new warehouse and distribution centres secured. As such, we look forward with great confidence."
Sukh Chamdal, Chief Executive Officer, commented:
"In the year Cake Box celebrated its 10(th) birthday, I'm delighted to be announcing such a strong set of maiden full year results as a listed business. In just a decade, we have developed a unique proposition and a much-loved national brand which has significant potential for significant further expansion, as we look to introduce more customers to our fabulous fresh cream cake offering.
"These results demonstrate the continuing appeal of the Cake Box brand, to both customers and franchises, combined with the financial strength of the Group, particularly the strong cash generative nature of our business model. In the past financial year, we have made good progress with our strategic priorities of new store growth, growing our existing stores, introducing new products lines and developing our digital marketing. We are pleased that our geographical spread has increased but there remain plenty of regions where we are confident there is still significant scope for expansion.
"The new financial year has started well and we have already opened four new franchise stores, with two more expected to open before the end of June 2019. The Group is well placed for further progress and the Board is confident of another successful year of growth."
For further information please contact: Cake Box Holdings plc +44 (0) 20 8443 1113 Sukh Chamdal, CEO Pardip Dass, CFO Shore Capital (Nominated Adviser and Broker) +44 (0) 20 7408 4090 Stephane Auton / Patrick Castle / James Thomas MHP Communications (Financial PR) +44 (0) 20 3128 8570 Oliver Hughes / Simon Hockridge / Charlie Barker / Pete Lambie
Chairman's Statement
Results
The Group has delivered a strong performance in its inaugural year as a listed business, with revenues of GBP16.9 million, reflecting growth of 33% over the previous year. Our new franchise store openings mean that Cake Box is now present in new geographies such as Feltham, Croydon and Bury. The openings have continued to deliver solid returns for franchisees and customer satisfaction continues to be at high levels, as does our brand awareness.
Dividend
As outlined at the time of IPO, the Company has adopted a progressive dividend policy to reflect the cash flow generation and earnings of the Group.
The Board is pleased to recommend a final dividend of 2.4 pence per share, bringing the total dividend for the year to 3.6 pence per share. If approved by the shareholders at the Company's AGM on 23 July 2019, the final dividend of 2.4 pence per share will be paid on 2 August 2019 to shareholders on the register on 5 July 2019.
Our colleagues and franchisees
I joined the Board in June 2018 as non-Executive Chairman, along with two new non-executives, Martin Blair and Adam Batty. It is a great privilege to work alongside such a talented, founder-led management team. Collectively, the executive directors have made the business the success that it currently is.
We have an amazing and diverse network of franchisees, many of whom are running their own businesses for the first time, and some of whom have expanded their business to encompass multiple shops. All are working hard to please customers in their local communities, helping them to celebrate important occasions with friends and family.
This is a young, incredibly diverse business that is driven by talented Head Office staff at Enfield and around the country in our franchise stores. On behalf of the Board and shareholders, I would like to record my thanks for their incredible enthusiasm and entrepreneurship that is the making of Cake Box now and in the future.
Looking ahead
We expect continued delivery of our growth plans and implementation of our strategy into 2019 and beyond. We remain focused on what works for customers and delivering them the very best products across the UK.
As we look ahead, we are focused on continuing to introduce new product lines and roll-out a sustainable pipeline of new stores, as well building our online and digital capabilities to ensure our customers everywhere can access our products from a choice of channels that are convenient for them. Our stores will always remain the heart of what we do.
I am looking forward to working with the Board, our staff and the franchisee community to deliver our vision of making Cake Box accessible to all.
Neil Sachdev MBE
Non-Executive Chairman
CEO Statement and Business Review
I am proud to be writing my first CEO Statement in our first year as an AIM company, particularly following another year of significant growth for the Cake Box business. During the year, we grew Group revenues from GBP12.8m to GBP16.9m, and increased underlying EBITDA by 20% to GBP4.4m.
The Cake Box brand has continued to go from strength to strength and we have made good progress since floatation on our strategic priorities of new store growth, introducing new products lines, growing our store estate and developing our digital marketing. Our geographical spread has also increased into new towns and cities across England - from Southampton in the south, to Newcastle in the north. With only one franchise store currently in Scotland (Glasgow), this is a region we can target for growth, along with Wales where we do not have any franchise stores.
Sales
Our performance during the last twelve months has been pleasing, with average franchise store revenue increasing by 18% and our estate growing by 27 franchise stores to 113 franchise stores.
During the summer of 2018, the extended period of hot weather had an impact on the rate of like-for-like franchise store sales growth, which slowed from 15.0% last year to 6.5% for the year. As soon as temperatures reverted to seasonal norms, our franchise stores saw a pick-up in sales growth, and this strengthened through the fourth quarter with franchise store like-for-like sales growth recovering to 8.6% in the second half, compared to 4.4% in the first half. Franchisee total turnover rose to GBP30.7m for the year (2018: GBP25.9m).
Financial results
These results demonstrate the continuing appeal of the Cake Box brand and our unique customer offer, combined with the financial strength of the Group and the strong cash generative nature of our business model. We have achieved impressive growth in revenues and profits despite the hot weather which adversely impacted high street footfall during the summer months.
Stores
Expansion is continuing in line with our target of opening an average of six new franchise stores per quarter (two per month). Our progress here brought the franchise store count to 113 at the year end and continuing this delivery, we opened four new stores since the start of the new financial year, with two more expected to open before the end of Q1 2019.
Trading environment
In contrast to the challenges being seen widely across the UK high street, we continue to perform strongly. The strength of our approach is underlined by our ability to offer our customers the unique Cake Box offer and the convenience they want. We give our customers the flexibility to either pop in at one of our stores, order a cake and get it personalised on the spot for no extra charge, or order online and collect in a hassle-free fashion.
Strong franchise model
We have grown from just one store to 113 franchise stores in our first decade of operation, committing to a franchise model from the start. We believe that our focus on our people and our franchisees who, as owner occupiers, are driven to increase sales and offer exceptional customer service with the support of Head Office, will allow us to continue delivering resilient sales growth.
Warehouse and distribution centres and production facilities
We are in the process of opening two new warehouse and distribution centres to complement our existing facility in Enfield, London. This will provide us with a more streamlined production and distribution operation, reducing the delivery time to within 90 minutes for 95% of our franchise stores. This also addresses our goals of reducing food delivery miles which helps improve our environmental impact.
As well as acting as a distribution centre, the intention is to install some sponge production capability at the new sites which would enable us to reduce our existing distribution costs and provide a back up to our production facility in Enfield. We are also investing to improve efficiency in our production methods and technology, whilst improving our recipes. New baking equipment is also allowing us to increase yield and command better prices with our ever-increasing buying power.
Outlook
Following a strong first full year results since our IPO, the Board is pleased with trading so far in the current financial year. We have a strong pipeline of new franchise store openings and are confident of delivering our growth strategy of six new franchise stores a quarter (two a month) during the year.
Sukh Chamdal
Chief Executive Officer
CFO Financial Review
FY19 FY18
GBPm GBPm
--------------------------------- ----- -----
Revenue 16.9 12.7
Gross profit 7.7 5.5
Operating expenses 3.3 1.8
Underlying EBITDA* 4.4 3.7
Depreciation 0.4 0.3
Operating profit 4.5 3.4
Profit before tax 3.8 3.3
Tax 0.8 0.5
--------------------------------- ----- -----
Profit for the period 3.0 2.8
Adjusted Profit for the period* 3.2 2.8
--------------------------------- ----- -----
*after Exceptional AIM listing cost of GBP599k and fair value uplift of GBP444k
Revenue
Reported revenue for the year to 31 March 2019 was GBP16.9m. Revenue increased by 33% compared to the previous financial year. This was achieved through an increase in store like-for-like sales and with the addition of a record number of new stores openings in the year.
Gross margin
Gross profit as a percentage of sales improved from 42.9% to 45.7%. The was supported by an increase in cake sponge profitability from 67.3% to 69.1%. This was obtained by the increased efficiency of production achieved by the installation of new ovens at the start of the year.
Adjusted EBITDA
Adjusted EBITDA excludes AIM listing costs of GBP599k and fair value uplift of GBP444k. On this basis, adjusted EBITDA increased from GBP3.70m to GBP4.4m and represents an increase of 20% year on year.
Taxation
The effective rate of taxation was 21.0% (2018: 17.0%). This is higher than the standard rate of 19% due to the AIM listing costs which are a disallowable deduction for corporation tax.
Earnings per share (EPS)
Underlying earnings per share were 7.90p (2018: 6.92p). The number of shares in issue was 40,000,000 and is unchanged since the Company's IPO in June 2018.
Dividend
Having delivered a year of strong growth, the Board is pleased to propose a final dividend of 2.4 pence per share, bringing the total dividend for the year to 3.6 pence per share. As previously stated, the Company intends that the total dividend for each year will split into one third for the first six months of the year to two thirds for the year end respectively.
Financing of new warehouse and distribution centres
The purchase of the two freehold warehouse and distribution centres, a combined investment of GBP1.4m, was partly funded by way of a new 15 year mortgage of GBP650k, with the rest being paid through existing cash resources.
Cash position
The Group had GBP3.1m of cash at year end, an increase of GBP0.6m despite payment of net GBP0.75m for the freehold warehouses and payment of a maiden interim dividend of 1.2 pence which accounted for GBP0.4m. At year end, the Group has a net cash position of GBP0.9m which was unchanged from the previous year.
Trade and other receivables
The Group had GBP1,585,348 of trade and other receivables at 31 March 2019, a marginal increase on the prior year. The majority of this balance relates to trade receivables which have decreased by 5.9% despite the increase in turnover. This primarily represents the extended credit terms for franchisees in respect of payment of their initial franchise packages. Trading debts relating to purchases of products remain low in comparison as credit terms have a strict seven day payment term.
Trade and other payables
The Group had GBP1,414,693 of trade and other payables at the year end, an increase of 2.6% on the prior year. The Group actively sources cost effective suppliers without compromising on the quality of the products. Other payables are paid according to terms specified.
We have delivered another year of record profitability despite having plc & AIM floatation costs for the first time
Pardip Dass
Chief Financial Officer
Cake Box Holdings Plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 MARCH 2019
2019 2018
Note GBP GBP
Revenue 3 16,908,999 12,739,484
Cost of sales (9,189,297) (7,263,209)
------------- ------------
Gross profit 7,719,702 5,476,275
Administrative expenses 4 (3,742,684) (2,273,128)
Fair value movements 15 444,148 -
Other operating income 5 27,719 178,175
------------- ------------
Operating profit 6 4,448,885 3,381,322
Exceptional items 11 (598,645) -
Net finance costs 7 (41,534) (45,672)
------------- ------------
Profit before income tax 3,808,706 3,335,650
Income tax expense 12 (806,290) (568,053)
Profit after income tax 3,002,416 2,767,597
Other comprehensive income for
the year
Movement of deferred tax on
the revaluation of tangible
fixed assets - 16,970
------------- ------------
Total comprehensive income for
the year 3,002,416 2,784,567
============= ============
Earnings per share
Basic & diluted 32 7.51p 6.92p
============= ============
Cake Box Holdings Plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2019
2019 2018
Note GBP GBP
Assets
Non-current assets
Property, plant and equipment 14 5,047,791 3,340,520
Investment property 15 - 342,629
Trade and other receivables 18 52,861 259,459
----------- ----------
5,100,652 3,942,608
----------- ----------
Current assets
Inventories 17 909,716 709,212
Trade and other receivables 18 1,532,487 1,300,636
Cash and cash equivalents 3,082,044 2,505,657
Non-current assets held for sale 16 649,998 -
----------- ----------
6,174,245 4,515,505
----------- ----------
Total Assets 11,274,897 8,458,113
=========== ==========
Equity and liabilities
Equity
Issued share capital 19 400,000 160
Capital redemption reserve 20 40 40
Revaluation reserve 20 821,401 455,422
Retained earnings 20 5,401,933 4,205,336
----------- ----------
Equity attributable to the owners of
the Parent company 6,623,374 4,660,958
----------- ----------
Current liabilities
Trade and other payables 23 1,531,887 1,493,348
Short-term borrowings 21 212,183 185,594
Current tax payable 747,473 519,523
----------- ----------
2,491,543 2,198,465
----------- ----------
Non-current liabilities
Borrowings 21 1,937,577 1,457,377
Deferred tax liabilities 13 222,403 141,313
2,159,980 1,598,690
----------- ----------
Total Equity and Liabilities 11,274,897 8,458,113
=========== ==========
Cake Box Holdings Plc
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEARED 31 MARCH 2019
2019 2018
GBP GBP
Cash flows from operating activities
Profit before income tax 3,808,706 3,335,650
Adjusted for:
Depreciation 430,676 318,548
Profit on Disposal (3,222) (5,181)
Increase in inventories (200,504) (153,814)
Increase in trade and other receivables (25,254) (364,269)
Increase in trade and other payables 38,541 402,110
Net fair value gain (444,148) -
Finance income (6,981) (1,114)
-------------- ----------
Cash generated in operations 3,597,814 3,531,930
Finance costs 48,515 46,786
Taxation paid (497,250) (362,542)
-------------- ----------
Net cash generated from operating activities 3,149,079 3,216,174
-------------- ----------
Cash flows from investing activities
Sale of investment properties 140,000 190,000
Purchases of property, plant and equipment (567,154) (530,688)
Purchases of assets under construction (1,570,793) -
Interest received 6,981 1,114
-------------- ----------
Net cash used in investing activities (1,990,966) (339,574)
-------------- ----------
Cash flows from financing activities
New borrowings 870,000 -
Repayment of borrowings (329,983) (249,847)
Repayment of finance leases (33,228) (28,185)
Dividends paid (1,040,000) (521,826)
Interest paid (48,515) (46,786)
-------------- ----------
Net cash used in from financing activities (581,726) (846,644)
Net increase in cash and cash equivalents 576,387 2,029,956
Cash and cash equivalents brought forward 2,505,657 475,701
-------------- ----------
Cash and cash equivalents carried forward 3,082,044 2,505,657
============== ==========
Cake Box Holdings Plc
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 MARCH 2019
Attributable to the owners of the Parent Company
Share Capital Revaluation Retained Total
capital redemption reserve earnings
reserve
GBP GBP GBP GBP GBP
At 1 April
2017 160 40 438,452 1,959,565 2,398,217
Total
comprehensive
income for
the year - - - 2,767,597 2,767,597
Change in
deferred
tax rate - - 16,970 - 16,970
Dividends paid - - - (521,826) (521,826)
At 31 March
2018 160 40 455,422 4,205,336 4,660,958
=============== ================ ====================== ======================= ============
Total
comprehensive
income for
the year - - - 3,002,416 3,002,416
Share bonus
issue 399,840 (399,840) -
Fair value
gains
and relevant
deferred
tax
transferred
from
retained
earnings
to
revaluation
reserve 365,979 (365,979)
Dividends paid - - - (1,040,000) (1,040,000)
--------------- ---------------- ---------------------- ----------------------- ------------
At 31 March
2019 400,000 40 821,401 5,401,933 6,623,374
=============== ================ ====================== ======================= ============
Cake Box Holdings Plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARED 31 MARCH 2019
1. General information
Cake Box Holdings Plc is a listed company limited by shares, incorporated and domiciled in England and Wales. Its registered office is 20 - 22 Jute Lane, Enfield, Middlesex, EN3 7PJ. On 20 June 2018, the Company converted to a public company and on 27 June 2018 was admitted to trading on the AIM market of the London Stock Exchange.
The financial statements cover Cake Box Holdings Plc ('Company') and the entities it controlled at the end of, or during, the financial year (referred to as the 'Group').
The principal activity of the Group continues to be as a specialist retailer of fresh cream cakes.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 21(st) June 2019. The directors have the power to amend and reissue the financial statements.
2. Accounting policies
2.1 Basis of preparation of financial statements
The audited financial information does not constitute statutory financial statements for the years ended 31st March 2018 and 31 March 2019 as defined in section 434 of the Companies Act 2006. The figures for the period ended 31 March 2019 have been extracted from the Group's financial statements and those for the comparative period from the historic financial information for the year ended 31 March 2018. The statutory financial statements for the years ended 31 March 2019 received an audit report which was unqualified and did not include any reference to matters to which the auditors drew attention by way of emphasis without qualifying their report or any statement under section 498(2) or section 498(3) of the Companies Act 2006. The financial statements for the year ended 31 March 2019 will be dispatched to the shareholders and filed with the Registrar of Companies.
The financial statements for the year ended 31 March 2019 and the historic financial information for the year ended 31 March 2018 have been prepared under the historical cost convention as modified by fair value measurement of investment property and freehold property and, in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS"). This financial information has been prepared on a basis consistent with the accounting policies adopted in the financial statements and historic financial information, and in accordance with the recognition and measurement principles of IFRS but does not contain all the information required to be disclosed in financial statements prepared in full compliance with IFRS.
.
Sources of estimation uncertainty
The preparation of financial statements under IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis and any revision to estimates or assumptions are recognised in the period in which they are revised and in future periods affected.
Significant judgements and estimates
The material areas in which estimates and judgements are applied are as follows:
Franchise fees
Under the franchise agreement between the Company and the franchisee the promised goods and services are considered distinct from the franchise rights as they are separately identifiable and each franchisee can benefit from the main constituent elements in their own right and the related goods and services are materially performed prior to the franchisee operating at which point the transaction price is allocated and revenue recognised.
Sale of goods
Revenue from the sale of food, equipment and other direct goods supplied to the franchisees continue to be recognised upon delivery of the related products in accordance with the core principles.
Online sales
The directors consider the company continues to act as agent in relation to the fulfilment of online sales because the franchisee has primary responsibility to provide the specified goods to the customer.
Freehold land & buildings
Freehold land & buildings are held at valuation. Depreciation has not been provided for as deemed immaterial.
One property held at valuation has not been revalued by an independent valuer. The directors consider that the value of the freehold property is representative of the current market value after consideration to similar properties in the surrounding area based upon extensive research. See note 14 for further information.
Investment Properties
Investment properties have not been valued by an independent valuer. The directors consider that the value of the freehold investment properties is representative of the current market value after comparison to similar properties in the surrounding area. See note 15 for further information.
2.2 Functional and presentation currency
The currency of the primary economic environment in which the Group operates (the functional currency) is Pound Sterling ("GBP or GBP") which is also the presentation currency.
2.3 Basis of consolidation
The Group financial statements consolidate the financial statements of the Company and all its subsidiaries. Subsidiaries include all entities over which the Group has the power to govern financial and operating policies. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are consolidated from the date on which control commences until the date that control ceases. Intra-group transactions are eliminated in preparing the Consolidated Financial Statements.
A list of the significant investments in subsidiaries, including the name, country of incorporation and proportion of ownership interest is given in note 2 to the Company's separate financial statements.
2.4 Standards in issue not yet effective
IFRS 16 'Leases'
The Group has considered how leases are accounted for in accordance with IFRS 16 'Leases', including consideration of the transition method. The standard is expected to only affect the Group in respect of leases that it has in place that are currently treated as operating leases in accordance with current standards.
The Group acts as a lessee and lessor but will not be required to recognise operating leases on the balance sheet when the new standard is implemented. The leases are expected to fall under the definition of short-term leases exemption criteria. Early adoption of this standard has not been taken.
At the date of authorisation of these financial statements the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet effective:
Effective
Date
IFRS 9 Amendments regarding prepayment features with 1 January
negative compensation and modifications of 2019
financial liabilities
IFRS 11 Amendments to remeasurement of previously held 1 January
interest 2019
IAS 12 Amendments to income tax consequences of dividends 1 January
2019
IAS 28 Amendments regarding long-term interests in 1 January
associates and joint ventures 2019
IFRS 16 Leases 1 January
2019
IAS 23 Amendments to borrowing costs eligible for 1 January
capitalisation 2019
2.5 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors that make strategic decisions. Whilst the Group trading has numerous components, the chief operating decision maker (CODM) is of the opinion that there is only one operating segment. This is in line with internal reporting provided to the executive directors.
2.6 Going concern
Based on the current working capital forecast, the Group is unlikely to need additional funds within twelve months of the date of approval of these financial statements in order to maintain its proposed work levels of expenditure providing contracts progress as planned, new contracts are secured and the Group is able to continue successfully managing its cash resources. After making enquiries and considering the assumptions upon which the forecasts have been based, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
2.7 Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
-- the Group has transferred the significant risks and rewards of ownership to the buyer;
-- the Group retains neither continuing managerial involvement to the degree usually associated
with the ownership nor effective control over the goods sold; -- the amount of turnover can be measured reliably;
-- it is probable that the Group will receive the consideration due under the transaction; and
-- the costs incurred or to be incurred in respect of the transaction can be measured reliably;
Fees
Fee receivable from the franchisee for branding, equipment, training and initial support are recognised on delivery of the equipment and rendering of the services enabling the franchisee to operate at which time the company has performed its obligations under the franchise agreement in respect of the fees. Fees received in advance are held on the Consolidated statement of Financial position as deferred income.
Online sales
Online sales which include click and collect sales where the franchisee has the primary responsibility for the fulfillment of the order and the Group is collecting consideration on behalf of the franchisee as agent are not recognised as revenue of the Group. Only the net commission amount is recognized.
2.8 Current and deferred taxation
Current tax liabilities
Current tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset, limited to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.
Deferred Tax
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases (known as temporary differences). Deferred tax liabilities are recognised for all temporary differences that are expected to increase taxable profit in the future. Deferred tax assets are recognised for all temporary differences that are expected to reduce taxable profit in the future, and any unused tax losses or unused tax credits, limited to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.
The net carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to reflect the current assessment of future taxable profits. Any adjustments are recognised in the statement of comprehensive income. Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which it expects the deferred tax asset to be realised or the deferred tax liability to be settled, on the basis of tax rates that have been enacted or substantively enacted by the end of the reporting period.
Tax Expense
Income tax expense represents the sum of the tax currently payable and deferred tax movement for the current period. The tax currently payable is based on taxable profit for the year.
2.9 Tangible fixed assets - held at cost
Property, plant & equipment under the cost model, other than investment and freehold properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Land is not depreciated. Depreciation on other assets is charged to allocate the cost of assets less their residual value over their estimated useful lives, using the straight--line method.
Depreciation is provided on the following annual basis:
Plant & machinery - 25% Straight-line
method
Motor vehicles - 25% Straight-line
method
Fixtures & fittings - 25% Straight-line
method
Assets under construction - Not depreciated
Assets under the course of construction are carried at cost less any recognised impairment loss. Depreciation of these assets commences when the assets are ready for the intended use.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income.
2.10 Tangible fixed assets - held at valuation
Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at each Consolidated Statement of Financial Position date.
Fair values are determined by the directors from market-based evidence.
Revaluation gains and losses are recognised in the Other Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the profit and loss.
2.11 Investment property
Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Consolidated Statement of Comprehensive Income.
2.12 Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value.
An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.
Non-current assets classified as held for sale are presented separately from the other assets in the Consolidated statement of Financial position.
2.13 Inventories
Inventories are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
2.14 Financial instruments
Initial Measurement
Financial Instruments are initially measured at the transaction price (this includes transaction cost except in the initial measurement of financial assets and liabilities that will be measured at fair value through the Consolidated Statement of Comprehensive Income). If, however the arrangement constitutes a financing transaction it is then measured at the present value of the future payments, discounted at a market related interest rate.
Trade and other receivables
All sales are made on the basis of normal credit terms, and the receivables do not bear interest. Where credit is extended beyond normal credit terms, receivables are measured at amortised cost using the effective interest method. At the end of each reporting period, the carrying amounts of trade and other receivables are reviewed. Impairment provisions for current and non-current trade receivables are recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised within cost of sales in the consolidated statement of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.
Trade and other payables
Trade payables are obligations on the basis of normal credit terms and do not bear interest. Trade payables denominated in a foreign currency are translated into Sterling using the exchange rate at the reporting date. Foreign exchange gains or losses are included in other income or other expenses.
Bank loans and overdrafts
All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expenses are recognised on the basis of the effective interest method and are included in finance costs.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
2.15 Finance costs
Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
2.16 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
2.17 Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an Annual General Meeting.
2.18 Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the lessee. All other leases are classified as operating leases.
Finance Lease - Lessee
Rights to assets held under finance leases are recognised as assets of the Group at the fair value of the leased property (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and a reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Assets held under finance leases are included in property, plant and equipment, and depreciated and assessed for impairment losses in the same way as owned assets.
Operating Lease - Lessee
Rentals payable under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis over the term of the relevant lease.
Operating Lease - Lessor
Rental receipts under an operating lease are recognised as income in the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease term.
2.19 Employee benefits
Short Term Employee Benefits
The cost of short term employee benefits, (those payable within 12 months after the service is rendered, such as leave pay and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Consolidated Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
Termination benefits
The entity recognises the expense and corresponding liability for termination benefits when it is demonstrably committed to either of the following scenarios:
a. The termination of the employment of an employee or group of employees before the normal retirement age, or
b. The provision of termination benefits in relation to an offer made to encourage voluntary redundancy.
The value of such benefit is measured at the best estimate of the expenditure required to settle the obligation at the reporting date.
2.20 Provisions and contingencies
Provisions are recognised when the Group has an obligation at the reporting date as a result of a past event; it is probable that the Group will be required to transfer economic benefits in settlement; and the amount of the obligation can be estimated reliably.
Provisions are measured at the present value of the amount expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks to a specific obligation. The increase in the provision due to the passage of time is recognised as interest expense.
Provisions are not recognised for future operating losses.
Contingent assets and contingent liabilities are not recognised.
2.21 Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
2.22 Research and development
Research and development expenditure is charged to the Consolidated Statement of Comprehensive Income in the year in which it is incurred.
2.23 Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.
3. Segment reporting
Components reported to the chief operating decision maker (CODM) are not separately identifiable. The group makes varied sales to its customers but none are a separately identifiable component. The following information is disclosed:
2019 2018
GBP GBP
Sale of goods 14,121,607 10,490,687
Sale of services 2,787,392 2,248,797
16,908,999 12,739,484
========== ==========
All revenue occurred in the United Kingdom.
The operating segment information is the same information as provided throughout the consolidated financial statements and are therefore not duplicated.
The Group is not reliant upon any major customer.
4. Expenses by nature
The administrative expenses have been arrived at after charging:
2019 2018
GBP GBP
Wages and salaries 2,064,106 1,201,113
Travel and entertaining costs 264,992 210,282
Supplies costs 80,541 51,916
Professional costs 371,095 237,295
Depreciation costs 430,676 318,548
Rates and utilities costs 120,734 185,648
Property maintenance costs 116,187 70,742
Advertising costs 171,869 -
Other costs 122,484 (2,416)
3,742,684 2,273,128
========= =========
5. Other operating income
2019 2018
GBP GBP
Rent receivable 27,719 94,175
Other miscellaneous income - 84,000
27,719 178,175
======= =======
6. Operating profit
The operating profit is stated after charging:
2019 2018
GBP GBP
Depreciation of tangible fixed assets 430,676 318,548
Stock recognised as an expense 9,189,297 7,063,405
Research and development charged as an expense 226,653 178,737
AIM listing costs 598,645 -
Fees payable to the Group's auditor and its
associates for the audit of the Group's annual
financial statements* 45,000 12,000
Fees payable to the Group's auditor and its
associates for the audit of the Group's interim
financial statements* 6,000 -
Fees payable to the Group's auditor and its
associates for non-audit services* 90,000 12,848
Defined contribution pension cost 19,235 6,054
========= =========
*Comparative fees relate to the previous auditors.
7. Net finance costs
2019 2018
GBP GBP
Finance expenses
Bank loan interest 45,833 46,786
Interest on overdue tax 2,682 -
Finance income
Bank interest received (6,981) (1,114)
41,534 45,672
======= =======
8. Staff costs
Staff costs, including directors' remuneration, were as follows:
2019 2018
GBP GBP
Wages and salaries 1,849,542 1,085,515
Social security costs 174,848 90,537
Pension costs 19,235 6,054
2,043,625 1,182,106
========= =========
The average monthly number of employees, including directors, for the year was 67 (2018 - 54).
9. Dividends
2019 2018
GBP GBP
Interim dividend of 11.0p per ordinary share - 89,910
Interim dividend of 16.0p per ordinary share - 322,000
Interim dividend of 20.0p per ordinary share - 109,916
Interim dividend of 1.2 per ordinary share 480,000 -
Final dividend of 1.4p per ordinary share proposed
and paid during the year relating to the previous
year's results 560,000 -
1,040,000 521,826
========= =======
The Directors proposed the payment of a final dividend of 2.4 pence (2018 - 1.4 pence) per share totalling GBP960,000 (2018 - GBP1,040,000) for the year ended 31 March 2019.
10. Directors remuneration
The Directors' remuneration is disclosed within the Directors' Report. The Directors are considered key management personnel. Employers NIC paid on Directors' remuneration in the year was GBP49,541 (2018 - GBP3,657)
11. Exceptional items
2019 2018
GBP GBP
AIM listing costs 598,645 -
598,645 -
======= ====
12. Taxation
2019 2018
GBP GBP
Corporation tax
Current tax on profits for the year 716,221 519,523
Adjustments in respect of previous periods 8,979 65,117
Deferred tax
Arising from origination and reversal of
temporary differences 81,913 (16,587)
Adjustments in respect of previous periods (823)
Taxation on profit on ordinary activities 806,290 568,053
========== ==========
Factors affecting tax charge for the year
The tax assessed for the year is higher than (2018 - lower than)
the standard rate of corporation tax in the UK of 19% (2018
- 19%). The differences are explained below:
2019 2018
GBP GBP
Profit on ordinary activities before tax 3,808,706 3,335,650
Profit on ordinary activities multiplied
by standard rate of corporation tax in
the UK of 19% (2018 - 19%) 723,654 633,774
Effects of:
Expenses not deductible for tax purposes,
other than goodwill amortisation and impairment 52,294 4,781
Adjustment in research and development
tax credit leading to a decrease in the
tax charge (55,983) (39,520)
Deferred tax on revalued investment properties 78,169 -
Adjustments to tax charge in respect of
prior periods 8,156 65,117
Employee share scheme relief - (72,960)
Capital receipt - (10,827)
Other adjustments - (12,312)
Total tax charge for the year 806,290 568,053
========== ==========
Factors that may affect future tax charge
In the 2016 Budget the Government announced a further reduction to the main rate of UK corporation tax
from 1 April 2020, setting the rate at 17%. Where applicable deferred tax assets and liabilities reflect these rates.
The capital allowances special rate for qualifying plant and machinery assets will be reduced from 8% to
6% from 6 April 2019.
13. Deferred taxation
2019 2018
GBP GBP
Balance brought forward 141,313 174,870
Charged to the other comprehensive income:
Changes in tax rates - (16,970)
Deferred tax on revalued investment properties 78,169 -
Accelerated capital allowances 3,744 (16,587)
Adjustments to tax charge in respect of prior
periods (823) -
Balance carried forward 222,403 141,313
======= ========
2019 2018
GBP GBP
Accelerated capital allowances 77,301 74,380
Property revaluations (including indexation) 145,102 66,933
222,403 141,313
======= =======
Movements in deferred tax in direct relation to property revaluation are recognised immediately against the revaluation reserve.
14. Property, plant and equipment
Freehold Plant & Motor Fixtures
property machinery vehicles & fittings Total
GBP GBP GBP GBP GBP
Cost or valuation
At 1 April 2017 2,705,852 508,843 189,167 702,532 4,106,394
Additions - 284,561 148,756 97,371 530,688
Transfers to investment
property (205,852) - - - (205,852)
---------- ----------- ---------- ------------ ----------
At 31 March 2018 2,500,000 793,404 337,923 799,903 4,431,230
---------- ----------- ---------- ------------ ----------
Depreciation
At 1 April 2017 - 410,794 55,517 305,851 772,162
Charge for the year - 58,092 63,049 197,407 318,548
---------- ----------- ---------- ------------ ----------
At 31 March 2018 - 468,886 118,566 503,258 1,090,710
---------- ----------- ---------- ------------ ----------
Net book value
---------- ----------- ---------- ------------ ----------
At 31 March 2018 2,500,000 324,518 219,357 296,645 3,340,520
========== =========== ========== ============ ==========
During the year to 31 March 2018, a property was transferred to investment property due to a change in use.
Assets under Freehold Plant Motor Fixtures
construction property & machinery vehicles & fittings Total
GBP GBP GBP GBP GBP GBP
Cost or valuation
At 1 April 2018 - 2,500,000 793,404 337,923 799,903 4,431,230
Additions 1,570,793 - 310,248 54,387 202,519 2,137,947
At 31 March 2019 1,570,793 2,500,000 1,103,652 392,310 1,002,422 6,569,177
--------------- ---------- ------------- ---------- ------------ ----------
Depreciation
At 1 April 2018 - - 468,886 118,566 503,258 1,090,710
Charge for the
year - - 156,007 85,730 188,939 430,676
--------------- ---------- ------------- ---------- ------------ ----------
At 31 March 2019 - - 624,893 204,296 692,197 1,521,386
--------------- ---------- ------------- ---------- ------------ ----------
Net book value
--------------- ---------- ------------- ---------- ------------ ----------
At 31 March 2019 1,570,793 2,500,000 478,759 188,014 310,225 5,047,791
=============== ========== ============= ========== ============ ==========
The 2018 and 2019 valuations in respect of the freehold property were made by the directors, on an open market value for existing use basis. The valuations by the directors were made at the end of each financial year.
The net book value of assets held under finance leases or hire
purchase contracts, included above, are as follows:
2019 2018
GBP GBP
Motor vehicles - 33,512
Fixtures & fittings - 12,407
- 45,919
========= ============
If the freehold properties had been accounted for under the historic
cost accounting rules, the properties would have been measured
as follows:
2019 2018
GBP GBP
Historic cost 1,977,645 1,977,645
1,977,645 1,977,645
==================== ===================
15. Investment property
Freehold Investment
property
GBP
Valuation
At 1 April 2017 321,596
Disposals (184,819)
Transfers from property, plant and equipment 205,852
At 31 March 2018 342,629
Additions -
Disposals (136,779)
Revaluations 444,148
Transfer to non-current assets held for sale (649,998)
At 31 March 2019 -
===================
A freehold property was reclassified to an investment property in the prior year due to a change in use.
The 2018 and 2019 valuations were made by the directors, on an open market value for existing use basis after comparison to similar properties in the surrounding area.
The fair value of the investment property has not been adjusted significantly for the purpose of financial reporting. The fair value of investment property is categorised as a level 3 recurring fair value measurement. The reconciliation of opening and closing fair value is the same as disclosed above.
Investment properties with a carrying value of GBP649,998 (2018 - GBP342,629) are used in operating leases. The Group received rental income in relation to these operating leases amounting to GBP27,719 (2018 - GBP38,889).
16. Non-current Assets held for sale
2019 2018
GBP GBP
Investment property 649,998 -
======== =====
The investment property is presented as held for sale pending its disposal as part of a compulsory purchase order which was made post balance sheet date at its realised value in the sale post year end.
17. Inventories
2019 2018
GBP GBP
Finished goods and goods
for resale 909,716 709,212
======== ========
Inventories are charged to cost of sales in the Consolidated Statement of Comprehensive Income.
18. Trade and other receivables
2019 2018
GBP GBP
Trade receivables 1,345,105 1,429,182
Other receivables 201,037 27,539
Prepayments 39,206 103,374
1,585,348 1,560,095
========== ==========
Non-current 52,861 259,459
Current 1,532,487 1,300,636
1,585,348 1,560,095
========== ==========
The fair value of those trade and other receivables classified as financial assets are disclosed in the financial instruments note.
The Group's exposure to credit and market risks, including impairments and allowances for credit losses, relating to trade and other receivables is disclosed in the financial risk management and impairment of financial assets note.
All non-current assets are due within three years of the statement of financial position date.
19. Share capital
2019 2018
GBP GBP
12,316,500 GBP0.000004 Ordinary A Shares - 49.27
10,557,000 GBP0.000004 Ordinary B Shares - 42.23
7,038,000 GBP0.000004 Ordinary C Shares - 28.18
5,278,500 GBP0.000004 Ordinary D Shares - 21.11
2,000,000 GBP0.000004 Ordinary E Shares - 8.00
810,000 GBP0.000004 Ordinary F Shares - 3.24
2,000,000 GBP0.000004 Ordinary G Shares - 8.00
40,000,000 Ordinary shares of GBP0.01
each 400,000 -
-------- ------
400,000 160
======== ======
All shares rank equally in all respects.
On 4 June 2018 a bonus issue was made in the proportion of 2,500 shares for every 1 existing Ordinary share held. Immediately after the bonus issue the 100 billion GBP0.000004 Ordinary shares in issue were consolidated into 40,000,000 Ordinary shares of GBP0.01 each. No amendment to the rights and restrictions as set out in the Company's Articles of Association were made.
20. Reserves
The following describes the nature and purpose of each reserve within equity:
Capital redemption reserve
Amounts transferred from share capital on redemption of issued shares.
Revaluation reserve
Gain/(losses) arising on the revaluation of the Group's property (other than investment property)
Retained earnings
All other net gains and losses and transactions with owners (e.g. dividends, fair value movements of investment property) not recognised elsewhere.
21. Borrowings
2019 2018
GBP GBP
Non-current borrowings
Bank loans 1,937,577 1,452,334
Net obligations under finance leases and
hire purchase contracts - 5,043
1,937,577 1,457,377
========== ==========
Current borrowings
Bank loans 212,183 157,409
Net obligations under finance leases and
hire purchase contracts - 28,185
212,183 185,594
========== ==========
Bank loans of GBP2,149,760 (2018 - GBP1,609,743) are secured via fixed charges over specific properties and floating charges upon certain assets held by the Group. Interest rates of 1.65-2.23% above Bank of England base rate are charged on the loans. The loans are repayable in monthly instalments with final payments due between November 2020 and April 2028. The repayment dates can be extended as agreed with the bank by obtaining a new loan product.
Net obligations under finance leases and hire purchase contracts of GBPNil (2018 - GBP33,228) are secured on the assets to which they relate.
22. Leases
Operating Leases - Lessee
The Group leases a building and cars under non-cancellable operating lease agreements.
The total future value of minimum lease payments is as follows:
2019 2018
GBP GBP
Land and buildings
Not later than 1 year 45,000 45,000
Later than 1 year and not later than 5
years 23,671 67,500
Total 68,671 112,500
======= ========
Other
Not later than 1 year - 667
Later than 1 year and not later than 5
years - -
Total - 667
======= ========
Operating Leases - Lessor
One investment property (2018 - two) is leased. The total future value of minimum lease payments is due as follows:
2019 2018
GBP GBP
Not later than 1 year 50,496 75,246
Later than 1 year and not later than 5
years 46,346 96,784
Total 96,842 172,030
======= ========
23. Trade and other payables
2019 2018
GBP GBP
Trade payables 602,113 734,859
Other taxation and social security 249,497 99,899
Other payables 250,256 419,280
Accruals and deferred income 430,021 239,310
1,531,887 1,493,348
========== ==========
The fair value of the trade and other payables classified as financial instruments are disclosed in the financial instruments note.
The Group's exposure to market and liquidity risks related to trade and other payables is disclosed in the financial risk management and impairment of financial assets note. The Group pays its trade payables on terms and as such trade payables are not yet due at the statement of financial position dates.
Included within Other payables are amounts due to directors of GBP77,143 (2018 - GBP14,667).
24. Earnings per share
2019 2018
GBP GBP
Profit after tax attributable to the owners
of Cake Box Holdings Plc 3,002,416 2,767,597
=========== ===========
Number Number
Weighted average number of ordinary shares
used in calculating basic earnings per share 40,000,000 40,000,000
=========== ===========
Weighted average number of ordinary shares
used in calculating diluted earnings per share 40,000,000 40,000,000
=========== ===========
Pence Pence
Basic earnings per share 7.51 6.92
Diluted earnings per share 7.51 6.92
=========== ===========
Excluding exceptional AIM listing costs and
fair value uplift
Basic earnings per share 7.90 6.92
Diluted earnings per share 7.90 6.92
=========== ===========
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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