Statement regarding Potential Financing

 

 

OCADO GROUP PLC

 

12 June 2017

Potential Financing Transaction and Financial Summary

Ocado Group plc ("Ocado") today launches an offering of senior secured notes that would be issued with customary high yield terms (the "Offering") and the amendment and extension of our Revolving Credit Facility (conditional on the completion of the Offering) (the "Financing Transactions"). To support this offering, Ocado announces its financial summary statement for the 22 weeks ended 30 April 2017 ("P5 2017").

An offering memorandum has been prepared in connection with the Offering, which includes further details on the Offering and Financing Transactions and is available to eligible persons on the corporate website of Ocado (www.ocadogroup.com) from today.

These Financing Transactions are intended to extend the maturity profile of Ocado's debt and diversify its sources of funding. The Board believes that with its continued strong trading, increased scale and profitability, Ocado can benefit from the historically low financing costs in the public debt markets to put in place longer maturity financing on attractive terms. The proceeds of the Offering will support the continued growth of our UK retail capacity, and further improvements to our proprietary platform.  

Contacts

Duncan Tatton-Brown, Chief Financial Officer, on 01707 228 000

David Hardiman-Evans, Head of IR & Corporate Finance, on 01707 228 000

Michelle Clarke or Susanna Voyle, Tulchan Communications, on 020 7353 4200

 

Financial Calendar

Our financial reporting calendar for the remainder of the year will be a Half Year Results Statement on 5 July 2017, a Q3 Trading Statement on 19 September 2017 and a Q4 Trading Statement on 14 December 2017.

 

Financial and Statutory Highlights

It is important to note for comparability purposes that the P5 2017 trading period had 22 trading weeks, whereas the trading period ended 17 April 2016 had 20 weeks ("P5 2016"). This is because in November 2016, Ocado decided for financial years from 2017 onwards to move from a financial calendar comprising 13 four weekly accounting periods to a financial calendar of 12 accounting periods where each quarter comprises three periods of 5 weeks, 4 weeks and 4 weeks.

	As at or for the 22 weeks ended 30 April 2017	As at or for the 20 weeks ended 17 April 2016	Change
	(£ million)			%
Gross Sales (Retail)(1)	600.4	481.4	24.7
Revenue	600.5	481.7	24.7
Group EBITDA(2)	37.6	31.2	20.5
Profit before tax	6.7	4.6	45.7
Profit after tax	6.7	4.8	39.6
Cash and cash equivalents	41.9	61.5
External Net Debt(3)	(98.7)	(5.8)

(1)   Gross Sales (Retail) is an APM showing reported revenue for the Group's retail operation, before excluding value added tax and relevant vouchers.

(2)   Group EBITDA is an APM and is defined as the Profit (Loss) for the period before depreciation, amortisation, impairment, net finance expense, taxation and exceptional items.

(3)   External Net Debt is an APM showing loans and other borrowings (both current and non-current), less finance leases payable to joint venture interests of the Group and cash and cash equivalents.

Key Performance Indicators

	For the 22 weeks ended 30 April 2017	For the 20 weeks ended 17 April 2016		Change
				%
Average orders per week(1)	258,000		222,000	16.2
Average order size (₤)(2)	108.81		110.60	(1.6)
CFC efficiency (UPH)(3)	164		158	3.8
Average deliveries per van(4)	178		173	2.9
Average number of operational staff (full-time equivalent) (5)	10,324		9,131	13.1
Product waste (%)(6)	0.7		0.8	(0.1)

Source: The information in the table is derived and extracted from management accounts and internal financial and operating reporting systems and is unaudited.

(1)   Average orders per week is a measure of the order growth in our retail businesses and is used to evaluate the level of orders generated. Average orders per week refers to Ocado.com orders and includes standalone orders for Fetch.co.uk, Sizzle.co.uk and Fabled.com for periods where these destination sites were in operation. Average orders per week is calculated after cancelled orders are deducted.

(2)   Average order size is a measure of the size of the average shopping basket and is used to monitor the size of average orders. Average order size refers to Ocado.com orders and excludes standalone orders and total sales for Fetch.co.uk, Sizzle.co.uk and Fabled.com for periods where these destination sites were in operation. Average order size is calculated after cancelled orders are deducted.

(3)   CFC efficiency is measured using the units per labour hour ("UPH") efficiency measure and is a measure of the operational efficiency of mature CFCs. CFC efficiency (UPH) is measured as the number of units dispatched from the CFC per productive hour worked by operational personnel. A CFC is considered mature when it has been open for 12 months by the start of the half year reporting period.

(4)   Average deliveries per van per week measures efficiency of our service delivery operation through van utilisation. It is calculated as the number of deliveries completed by all vans per week divided by the total number of vans in our fleet. Average deliveries per van per week does not include Morrisons deliveries and vans.

(5)   Average number of operational staff measures the number of hourly paid staff who work in our fulfillment and service delivery areas to service the customers of Ocado.com, our General Merchandise business and Morrisons.com

(6)   Product waste measures efficiency of our operations in terms of waste minimisation and allows the accuracy of buying forecasts to be monitored. Product waste is defined as products purged for having passed Ocado's "use by" life guarantee, even if still edible and saleable. Product waste (%) is calculated as the cost of product waste as a percentage of retail revenue.

Preliminary results for the 22 weeks ended 30 April 2017

Results of Operations

The financial information in this section relates to the results from our continuing operations.

Comparison of Financial Results for P5 2017 and P5 2016

The following table sets out our unaudited consolidated income statement for P5 2017 and P5 2016:

	For the 22 weeks ended 30 April 2017	For the 20 weeks ended 17 April 2016	Change
	(£ million)		%
Revenue	600.5	481.7	24.7
Cost of sales	(391.5)	(317.6)	23.3
Gross profit	209.0	164.1	27.4
Other income	20.8	18.4	13.0
Distribution costs	(175.0)	(136.9)	27.8
Administrative expenses	(45.1)	(38.0)	18.7
Operating profit before result from joint venture and exceptional items	9.7	7.6	27.6
Share of result from joint venture	0.6	0.6	-
Exceptional items	(0.1)	-	-
Operating profit	10.2	8.2	24.4
Finance income	0.2	0.1	100.0
Finance costs	(3.7)	(3.7)	-
Profit before tax	6.7	4.6	45.7
Taxation	-	0.2	(100)
Profit for the period	6.7	4.8	39.6

 

Revenue and Gross Sales

Revenue increased from £481.7 million in P5 2016 to £600.5 million in P5 2017, an increase of £118.8 million, or 24.7%, reflecting contributions from our retail business, as well as from our arrangement with Morrisons. Gross Sales (Retail) increased from £481.4 million in P5 2016 to £600.4 million in P5 2017, an increase of 24.7% principally as a result of the additional two weeks in the reporting period, the increase in our active customer base from 546,000 in P5 2016 to 595,000 in P5 2017 (an increase of 49,000 or 9.0%) and an increase in the average number of orders per week from 222,000 in P5 2016 to 258,000 in P5 2017. The 16.2% increase in the average number of orders per week was due to an improved customer proposition, as well as a focus on increasing order frequency.

The average order size was £108.81 in P5 2017, a decrease of 1.6% compared to £110.60 in P5 2016. The change was due to a reduction in number of items per order due to increased customer order frequency and a reduced number of multi-buy promotions, partly offset by an increase in average price per item.  Our arrangement with Morrisons contributed £45.7 million of revenue in P5 2017, reflecting growth of £9.4 million, or 25.9% from £36.3 million in P5 2016. The growth was mainly driven by increased revenue from recharges for services provided to support the expansion of the Morrisons.com business and increased fee income under the arrangement, which amounted to £8.5 million in P5 2017, an increase from £7.4 million in P5 2016 due to higher charges for management services due to increased volumes.

Gross profit

Cost of sales increased from £317.6 million in P5 2016 to £391.5 million in P5 2017, an increase of £73.9 million, or 23.3%. Gross profit increased from £164.1 million in P5 2016 to £209.0 million in P5 2017, an increase of £44.9 million, or 27.4%. Gross profit (Retail) was £163.3 million in P5 2017 compared to £127.8 million in P5 2016, an increase of 27.8% which is above the rate of revenue growth due to a reduced number of promotions and a return to limited selling price inflation in some product categories. Gross profit attributable to Morrisons recharges was £37.2 million in P5 2017 (P5 2016: £28.9 million) and for Morrisons fees it was £8.5 million in P5 2017 (P5 2016 £7.4 million).

Other income

Other income increased from £18.4 million in P5 2016 to £20.8 million in P5 2017, an increase of £2.4 million or 13.0%. Supplier income amounted to 2.9% of Revenue (Retail) in P5 2017 (P5 2016: 2.9%). Supplier income maintained its growth year-on-year as we engage our suppliers in media opportunities on our customer interfaces (including website, mobile apps and mobile websites). Other income also included £1.1 million (P5 2016: £1.0 million) of rental income in P5 2017, relating to the lease of Dordon CFC and £3.6 million (P5 2016: £4.6 million) of income in P5 2017 arising from the leasing arrangements with Morrisons for MHE assets. This income, for the MHE assets, is generated from charging MHE lease costs to Morrisons and equates to the additional depreciation and lease interest costs that we incur for the share of the MHE assets. 

Distribution costs

Distribution costs increased from £136.9 million in P5 2016 to £175.0 million in P5 2017, an increase of £38.1 million, or 27.8%. Excluding costs recharged to Morrisons and depreciation and amortisation, underlying distribution costs increased by 29.3% to P5 2017.

 

The following table sets out our distribution costs for P5 2016 and P5 2017:

 

	For the 22 weeks ended 30 April 2017	For the 20 weeks ended 17 April 2016	Change
	(£ million)		%
Reported distribution costs	175.0	136.9	27.8
Costs recharged to Morrisons	(35.6)	(27.8)	(28.1)
Depreciation and amortisation	(19.0)	(16.0)	(18.8)
Underlying distribution costs	120.4	93.1	29.3

 

The increase in underlying distribution costs was principally due to the increased number of employees in the CFC and delivery operations and increased vehicle operating costs as a result of the increased volume of orders. These were offset by the impact of operational efficiencies achieved such as continued development of our route optimisation.

Depreciation of property, plant and equipment increased from £16.0 million in P5 2016 to £19.0 million in P5 2017, an increase of £3.0 million, or 18.8%. The increase was principally due the commencement of operations at Andover and increased investments in vehicles.

Overall mature CFC UPH (for Hatfield CFC and Dordon CFC combined) was 164 in P5 2017 compared with 158 in P5 2016. Deliveries per van per week have improved by 2.9% from 173 in P5 2016 to 178 in P5 2017 as customer density improved and we increased Sunday delivery slots.

Administrative expenses

Administrative expenses increased from £38.0 million in P5 2016 to £45.1 million in P5 2017, an increase of £7.1 million, or 18.7%.  Excluding costs recharged to Morrisons and depreciation and amortisation, underlying administrative expenses increased by 17.8% in P5 2017 compared to P5 2016.

The following table sets out our administrative expenses for P5 2016 and P5 2017:

	For the 22 weeks ended 30 April 2017	For the 20 weeks ended 17 April 2016	Change
	(£ million)		%
Reported administrative expenses	45.1	38.0	18.7
Costs recharged to Morrisons	(1.7)	(1.1)	54.5
Depreciation and amortisation	(8.3)	(7.1)	16.9
Underlying administrative expenses	35.1	29.8	17.8

 

The increase in underlying administrative expenses was principally due to continued investment in our strategic initiatives to support future growth, including a new head office. The rate of growth compared to the prior period is below sales growth partly due to the timing of specific projects during the year.

Exceptional Items

Exceptional items increased from nil in P5 2016 to £0.1 million in P5 2017.

Net finance costs

Net finance costs amounted to £3.5 million in P5 2017 and £3.6 million P5 2016, principally reflecting obligations under finance leases. Finance income amounted to £0.1 million in P5 2016 and £0.2 million in P5 2017, each arising from interest on cash balances.

Capital Expenditure

The table below sets out our capital expenditures of the Group for P5 2017 and P5 2016.

	For the 22 weeks ended 30 April 2017	For the 20 weeks ended 17 April 2016
	(£ million)
Mature CFCs	0.5	0.7
New CFCs	26.3	13.2
Delivery	10.0	12.6
Technology	16.6	11.0
Fulfilment development	6.3	3.5
Other	2.9	0.6
Total capital expenditure(1)(2) (excluding share of MHE JVCo)	62.6	41.6
Total capital expenditure(3) (including share of MHE JVCo)	63.2	42.7

(1)    Capital expenditure includes investments in tangible and intangible assets.

(2)   Capital expenditure excludes assets leased from MHE JVCo under finance lease arrangements.

(3)   Capital expenditure includes Ocado share of the MHE JVCo of ₤0.6 million in P5 2017, ₤1.1 million in P5 2016 .

Total investment in Mature CFCs was £0.5 million in P5 2017, excluding capital expenditure relating to MHE JVCo of £0.6 million, which related to a number of small projects to improve the capacity and resiliency of these sites. We incurred £26.3 million of costs in P5 2017 for the build and installation of our proprietary infrastructure at our new CFCs.  Andover commenced operations at the end of 2016 and has steadily increased volumes during 2017, requiring the purchase of additional robots.  The fitout of the next CFC located in Erith, South East London continued according to plan and this site is expected to open in 2018.

Delivery capital expenditure amounted to £10.0 million in P5 2017 compared to £12.6 million in P5 2016. This included investment in new trailers and vans of £6.1 million (P5 2016: £9.3 million) to support our business growth and replace vehicles at the end of their useful lives. These assets are typically on five year financing contracts.

We continued to develop our own proprietary software and incurred £16.6 million (P5 2016: £11.0 million) of internal development costs in P5 2017 which were capitalised as intangible assets in the period. The main areas of investment were the re-platforming of our technology and migration of most of our systems to run in the public or private cloud, improvements in the efficiency of our routing systems, enhancements to our customer proposition, developing a storepick solution for implementation by Morrisons and support for the ramp-up of Andover.

Fulfilment development capital expenditure of £6.3 million (P5 2016: £3.5 million) was incurred to further develop our next generation fulfilment solution which is being used in our new CFCs.

Other capital expenditure amounted to £2.9 million in P5 2017, which included £1.6 million in our general merchandise business to support growth in capacity in our existing general merchandise facility.

We expect capital expenditure in 2017 to be approximately £175 million which mainly comprises the continuing investment in our infrastructure and technology solutions, roll out of our new CFCs and additional investment in new vehicles to support business growth and the replacement of vehicles coming to the end of their five year financing contracts.

Cash Flow Analysis

The following table sets out our selected cash flow information for P5 2017 and P5 2016:

	For the 22 weeks ended 30 April 2017	For the 20 weeks ended 17 April 2016
	(£ million)
Net cash inflow from operating activities	37.5	49.2
Net cash used in investing activities	(75.1)	(37.7)
Net cash from/(used in) financing activities	28.6	4.2
Net (decrease)/increase in cash and cash equivalents	(9.0)	15.7

 

Operating activities

	For the 22 weeks ended 30 April 2017	For the 20 weeks ended 17 April 2016
	(£ million)
Profit before tax	6.7	4.6
Adjustments for:
... Depreciation, amortisation and impairment losses	27.4	23.0
... Movement in provisions	(1.0)	0.6
... Share of profit in joint venture	(0.6)	(0.6)
... Share-based payments charge	2.7	3.0
... Net finance costs	3.5	3.7
Changes in working capital:
... Movement in inventories	5.6	1.0
... Movement in trade and other receivables	(13.3)	(7.9)
... Movement in trade and other payables	10.2	25.5
Cash generated from operations	41.2	52.9
Interest paid	(3.7)	(3.7)
Net cash inflow from operating activities	37.5	49.2

 

Net cash flow from operating activities was an inflow of £37.5 million in P5 2017 compared to an inflow of £49.2 million in P5 2016. The reduction in cash inflow was primarily due to a reduction in changes to working capital, which comprise movements in inventories, trade and other receivables, and trade and other payables, and is principally due to the impact of the change in the comparable period end dates. Trade and other receivables comprise mainly monies due from suppliers in relation to media and other commercial income made up of media and supplier rebate income receivables. Trade receivables in respect of consumer sales are typically low due to the nature of our business. Trade and other payables includes balances due to suppliers on products sold by us, balances due to non-trading creditors (such as fuel, insurance and marketing costs) and other accruals, including CFC costs.  The negative working capital movement included a £10.2 million increase in trade payables principally due to increased trade accruals and trade payables attributable to inventory.  The increase in trade and other receivables of £13.3 million in P5 2017 principally reflected an increase in receivables from Morrisons and MHE JVCo.

Investing activities

	For the 22 weeks ended 30 April 2017	For the 20 weeks ended 17 April 2016
	(£ million)
Purchase of property, plant and equipment.	(53.7)	(26.3)
Purchase of intangible assets	(21.4)	(11.4)
Dividend received from joint venture	-	-
Interest received	-	-
Net cash flows from investing activities	(75.1)	(37.7)

 

Net cash outflows from investing activities increased from £37.7 million in P5 2016 to £75.1 million in P5 2017, principally due to increased capital expenditure on property, plant and equipment and increased expenditure on intangible assets.

The difference between the reported capital expenditure and cash used in investing activities set out in the table above is due to the accounting treatment of assets being financed by financing leases and the timing of the payment of invoices received but unpaid at the end of the financial year. Net cash used for investing activities is a cash flow measure and excludes any assets which are lease financed in the relevant financial year or invoices related to capital expenditure which are unpaid at the end of the financial year.

Financing activities

	For the 22 weeks ended 30 April 2017	For the 20 weeks ended 17 April 2016
	(£ million)
Proceeds from the issue of ordinary share capital net of transaction costs	0.4	0.5
Proceeds from borrowings	57.5	10.0
Repayment of borrowings	(22.5)	-
Repayment of obligations under finance leases	(6.4)	(5.8)
Payment of financing fees	(0.4)	(0.5)
Settlement of cash flow hedges	-	-
Net cash from/(used in) financing activities	28.6	4.2

 

Net cash from financing activities moved from an inflow of £4.2 million in P5 2016 to an inflow of £28.6 million in P5 2017. The movement is principally a result of an increase in new borrowings, including a net drawdown of ₤35.0 million on our Revolving Credit Facility in the period, offset by the repayment of obligations under other borrowings.

Revolving Credit Facility

On 1 July 2014, we entered into a senior revolving credit facility, amended and restated on 29 June 2015, to provide a total capacity of £210 million with a termination date of 1 July 2019.

As at 30 April 2017 drawdowns on the facility totalled £87.5 million. We expect that all amounts outstanding under this facility will be repaid in full using the proceeds of the Offering. This facility has been amended and restated in connection with the Financing Transactions. A summary of the amended terms we have agreed with our Revolving Credit Facility lenders is included in the Offering Memorandum as are the principal terms of an Intercreditor Agreement that certain Ocado companies and certain of their creditors would be party to. The amended terms of the Revolving Credit Facility and the Intercreditor Agreement will only come into effect if the Offering is completed.

Change of External Auditors

A resolution to approve the appointment of Deloitte LLP as U.K. statutory auditor was put forth by the Board and approved by shareholder vote at the Company's annual general meeting on 3 May 2017. Deloitte LLP was engaged as principal accountants from 3 May 2017.

 

Important Information

NOT FOR PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA.

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, Ocado does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

These materials are not an offer of securities for sale in the United States. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States. Any securities sold in the United States will be sold only to qualified institutional buyers (as defined in Rule 144A under the Securities Act) pursuant to Rule 144A. Any decision to invest in the notes offered in the Offering must be made solely based on the information in the Offering Memorandum.

This announcement is for informational purposes only and is directed only at persons who are: (a) persons in member states of the European Economic Area (the "EEA") who are qualified investors (as defined in EU Prospectus Directive 2003/71/EC (as amended, including by EU Directive 2010/73/EU to the extent implemented in the relevant member state)); (b) persons in the United Kingdom who are qualified investors and who are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) persons falling within Article 49(2) (a) to (d) of the Order ("high net worth companies, unincorporated associations, etc."); or (iii) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any senior secured notes may otherwise be lawfully communicated or cause to be communicated (all such persons in (a) and (b) together being referred to as "relevant persons"). This announcement must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

In connection with the offer of the above securities, the Stabilising Managers may over-allot the securities or effect transactions with a view to supporting the market price of the securities at a level higher than that which might otherwise prevail. However, there can be no assurance that the Stabilising Managers will take any stabilisation action, and any stabilisation action, if begun, may be ended at any time.  Any stabilisation action or over-allotment shall be conducted in accordance with all applicable laws and rules.

Unaudited Consolidated Financial Statements for P5 2017/P5 2016 and the Notes to the Unaudited Consolidated Financial Statements

Consolidated income statement

for the 22 weeks ended 30 April 2017

 

		22 weeks ended 30 April 2017		20 weeks ended  17 April 2016		52 weeks ended 27 November 2016
	Notes	£m		£m		£m
		(unaudited)		(unaudited)		(audited)
Revenue	5	600.5		481.7		1,271.0
Cost of sales		(391.5)		(317.6)		(835.7)
Gross profit		209.0		164.1		435.3
Other income		20.8		18.4		52.9
Distribution costs		(175.0)		(136.9)		(365.7)
Administrative expenses		(45.1)		(38.0)		(100.6)
Operating profit before share of result from joint venture		9.7		7.6		21.9
Share of result from joint venture		0.6		0.6		2.1
Exceptional items		(0.1)		-		(2.4)
Operating profit		10.2		8.2		21.6
Finance income	7	0.2		0.1		0.2
Finance costs	7	(3.7)		(3.7)		(9.7)
Profit before tax		6.7		4.6		12.1
Taxation		-		0.2		(0.1)
Profit for the period		6.7		4.8		12.0
Earnings per share		Pence		Pence		Pence
Basic	10	1.13		0.81		2.02
Diluted	10	1.10		0.78		1.96

 

Consolidated statement of comprehensive income

for the 22 weeks ended 30 April 2017

 

 

 

		22 weeks ended 30 April 2017		20 weeks ended  17 April 2016		52 weeks ended 27 November 2016
		£m		£m		£m
		(unaudited)		(unaudited)		(audited)
Profit for the period		6.7		4.8		12.0
Other comprehensive (expense) / income:
Items that may be subsequently reclassified to profit or loss Cash flow hedges
- Gains arising on forward contracts		-		-		0.1
- Gains arising on commodity swaps		-		0.3		0.8
- Losses arising on commodity swaps		(0.4)		-		(0.2)
Translation of foreign subsidiary		0.1		0.1		0.3
Other comprehensive (expense) / income for the period, net of tax		(0.3)		0.4		1.0
Total comprehensive income for the period		6.4		5.2		13.0

 

 

Consolidated balance sheet

as at 30 April 2017

 

 

		30 April 2017		17 April 2016		27 November 2016
	Notes	£m		£m		£m
		(unaudited)		(unaudited)		(audited)
Non-current assets
Intangible assets		93.4		58.7		79.7
Property, plant and equipment		418.2		343.6		397.3
Deferred tax asset		14.3		10.1		14.2
Financial assets		0.4		1.4		2.6
Investment in Joint Venture		57.7		62.8		57.1
		584.0		476.6		550.9
Current assets
Inventories		33.5		28.9		39.1
Trade and other receivables		73.8		69.6		59.4
Derivative financial instruments		-		-		0.3
Cash and cash equivalents		41.9		61.5		50.9
		149.2		160.0		149.7
Total assets		733.2		636.6		700.6
Current liabilities
Trade and other payables		(196.9)		(184.7)		(205.6)
Borrowings	9	(86.5)		(11.4)		(52.9)
Obligations under finance leases	9	(35.8)		(32.2)		(29.8)
Derivative financial instruments		(0.5)		(0.5)		(0.2)
Provisions		(0.3)		(0.7)		(2.4)
		(320.0)		(229.5)		(290.9)
Net current liabilities		(170.8)		(69.5)		(141.2)
Non-current liabilities
Borrowings	9	(5.6)		(6.9)		(6.1)
Obligations under finance leases	9	(120.8)		(138.5)		(127.0)
Provisions		(8.5)		(8.9)		(7.3)
Deferred tax liability		(6.8)		(2.6)		(6.9)
		(141.7)		(156.9)		(147.3)
Net assets		271.5		250.2		262.4
Equity
Share capital		12.6		12.6		12.6
Share premium		257.2		259.1		256.9
Treasury shares reserve		(48.0)		(51.0)		(48.0)
Reverse acquisition reserve		(116.2)		(116.2)		(116.2)
Other reserves		(0.1)		(0.4)		0.2
Retained earnings		166.0		146.1		156.9
Total equity		271.5		250 .2		262.4

 

Consolidated statement of cash flows

for the 22 weeks ended 30 April 2017

 

 

 

		22 weeks ended 30 April 2017		20 weeks ended  17 April 2016		52 weeks ended 27 November 2016
	Notes	£m		£m		£m
		(unaudited)		(unaudited)		(audited)
Cash flow from operating activities
Profit before tax		6.7		4.6		12.1
Adjustments for:
- Depreciation, amortisation and impairment losses		27.4		23.0		61.0
- Movement in provisions		(1.0)		0.6		0.6
- Share of profit in joint venture		(0.6)		(0.6)		(2.1)
- Share-based payments charge		2.7		3.0		6.4
- Net finance costs	7	3.5		3.7		9.5
Changes in working capital:
- Movement in inventories		5.6		1.0		(9.2)
- Movement in trade and other receivables		(13.3)		(7.9)		2.5
- Movement in trade and other payables		10.2		25.5		25.2
Cash generated from operations		41.2		52.9		106.0
Interest paid		(3.7)		(3.7)		(9.1)
Net cash flows from operating activities		37.5		49.2		96.9
Cash flows from investing activities
Purchase of property, plant and equipment		(53.7)		(26.3)		(85.3)
Purchase of intangible assets		(21.4)		(11.4)		(38.6)
Dividend received from joint venture		-		-		8.4
Interest received		-		-		0.2
Net cash flows used in investing activities		(75.1)		(37.7)		(115.3)
Cash flows from financing activities
Proceeds from the issue of ordinary share capital net of transactions costs		0.4		0.5		1.1
Proceeds from borrowings		57.5		10.0		61.3
Repayments of borrowings		(22.5)		-		(11.5)
Repayments of obligations under finance leases		(6.4)		(5.8)		(26.4)
Payment of financing fees		(0.4)		(0.5)		(1.2)
Settlement of cash flow hedges		-		-		0.2
Net cash flows from / (used in) financing activities		28.6		4.2		(23.5)
Net (decrease) / increase in cash and cash equivalents		(9.0)		15.7		5.1
Cash and cash equivalents at the beginning of the period		50.9		45.8		45.8
Cash and cash equivalents at the end of the period		41.9		61.5		50.9