24/10/2014 12:10:47 Free Membership Login

Preliminary Results

Date : 07/22/2009 @ 2:00AM
Source : UK Regulatory (RNS & others)
Stock : Zetar (ZTR)
Quote : 294.0  0.0 (0.00%) @ 12:00AM
Zetar share price Chart

Preliminary Results


 

TIDMZTR 
 
RNS Number : 0589W 
Zetar PLC 
22 July 2009 
 

22nd July 2009 
 
 
Zetar Plc ("Zetar", "the Company" or the "Group") 
 
 
Preliminary Results for the year ended 30 April 2009 
 
 
Zetar Plc, the AIM listed confectionery and snack foods group, announces its 
audited results for the year ended 30 April 2009. 
 
 
Financial Highlights 
  *  Revenue from continuing activities up 8.6% to GBP118.6m (2008: GBP109.2m), 
  against background of global economic turmoil 
  *  Adjusted operating profit* from continuing activities of GBP6.1m (2008: GBP8.7m) 
  *  EBITDA** from continuing activities of GBP8.4m (2008: GBP10.7m) 
  *  Adjusted basic earnings per share* from continuing activities of 28.0p (2008: 
  46.2p) 
  *  Reported loss for the year of GBP5.1m after loss from discontinued operations of 
  GBP5.8m 
  *  Strict cash management resulted in total net debt lower than market expected at 
  30 April 2009 of GBP15.4m (30 April 2008: GBP14.6m) 
  *  Successful placing in February 2009, at a premium to the then market price to 
  raise approximately GBP2m (net of expenses) 
  *  Sales in the first eleven weeks of current year up 10% at GBP14.6m 
  (2008: GBP13.3m) 
 
 
 
*Adjusted operating profit and adjusted earnings per share are from continuing 
activities before one-off items, amortisation of intangible assets and 
share-based payments. 
 
 
**EBITDA is as * above before depreciation. 
 
 
Operational Highlights 
  *  Group structure simplified to focus on profitable and growing core divisions 
  *  Significant investment in factories in recent years supports flexible product 
  strategy 
  *  Board confident of recovery in earnings on basis of: 
    *  Further product launches and business wins in both divisions; 
    *  Margin improvement and overhead reduction; and 
    *  Good start to the current year 
 
 
 
 
Ian Blackburn, Chief Executive of Zetar said: 
 
 
"We are pleased that despite the challenges that the Group faced during the 
year, our focus on innovation and more value driven products resulted in 
turnover growing by more than 8%. 
 
 
"The sale of Baked Snacks at the year end has enabled us to focus on the many 
new business opportunities that are presenting themselves. 
 
 
"Our priority in the year ahead is to secure a recovery in earnings. Despite the 
markets remaining challenging, we have had a good start to the year and are 
confident of growth as a result of the action that has been taken." 
 
 
Enquiries: 
+-----------------------------------------+-----------------------------------------+ 
| Zetar Plc                               | Tel: 020 7284 9509                      | 
+-----------------------------------------+-----------------------------------------+ 
| Ian Blackburn (Chief Executive)         |                                         | 
+-----------------------------------------+-----------------------------------------+ 
|                                         |                                         | 
+-----------------------------------------+-----------------------------------------+ 
| Altium Capital Limited                  | Tel: 020 7484 4040                      | 
+-----------------------------------------+-----------------------------------------+ 
| Tim Richardson/ Sam Fuller              |                                         | 
+-----------------------------------------+-----------------------------------------+ 
|                                         |                                         | 
+-----------------------------------------+-----------------------------------------+ 
| Financial Dynamics                      | Tel: 020 7831 3113                      | 
+-----------------------------------------+-----------------------------------------+ 
| Jonathon Brill / Caroline Stewart       |                                         | 
+-----------------------------------------+-----------------------------------------+ 
  Chairman's Statement 
 
 
The trading environment and financial markets in general during the year ended 
30 April 2009 proved more challenging than originally anticipated. Furthermore, 
results were impacted by a number of Group specific issues, most notably the 
continuing losses of Baked Snacks, the loss through closure of a major 
Confectionery division customer, Woolworths, and the rapid increase in commodity 
costs exacerbated by the significant fall in the value of sterling against other 
currencies. 
 
 
However, I am pleased to report that these issues have been addressed or are in 
the past. The Confectionery division began to offset the lost Woolworths sales 
in the second half of the year, due to a better than expected Easter, and 
margins of the Natural and Premium Snacks division started to recover prior to 
the year end. 
 
 
In addition, we disposed of the loss making Baked Snacks business at the year 
end. We are reporting a loss of GBP5.8 million from discontinued operations for 
the year ended 30 April 2009 and drawing a line under this investment. This loss 
may be reduced if we receive the outstanding deferred consideration of up to 
GBP2.1 million due pursuant to the disposal arrangements. The burden of Baked 
Snacks on the Group's funding resources has been removed and, importantly, 
management is now able to focus its full attention on the Group's two core 
profitable divisions, Confectionery and Natural & Premium Snacks. 
 
 
Sales and adjusted operating profit of the Group's continuing activities for the 
year ended 30 April 2009 were GBP118.6 million (2008: GBP109.2 million) and 
GBP6.1 million (2008: GBP8.7 million) respectively. EBITDA from continuing 
operations amounted to GBP8.4 million (2008: GBP10.7 million). However, as a 
consequence of the loss from discontinued activities and other non-recurring 
one-off costs, the Group is reporting an overall loss of GBP5.1 million for the 
year (2008: profit of GBP3.2 million). 
 
 
The Group is renowned in the industry for its high levels of innovation and 
creativity to deliver solutions for end customer needs. The Group's ability to 
be adaptable and flexible to shifting customer demand has been proven during 
this tough economic climate. In response to consumers' increasing desire for 
enhanced value for money products, we successfully redirected our product 
development more towards economy ranges and have been prepared to support 
customers' promotional programmes. A number of these initiatives have commenced 
since Christmas, contributing to the healthy 8.6% increase in sales we are 
reporting, and more are due to launch in the current year. We have also 
continued to serve those consumers looking for something different and during 
the year launched many new innovative products including "Marmite Nuts", our 
first licensed snack for another manufacturer. 
 
 
During the year we fully integrated two subsidiaries in order to increase 
efficiencies and reduce the Group's cost base. We also undertook two major 
capital projects in the Confectionery division which have significantly 
increased the production capacity of the York and Navan (Ireland) factories. 
These investments have enabled us to both enter the "sugar coated" chocolate 
sector and widen our range of chocolate truffles. 
 
 
Total capital expenditure in the year was GBP3.8 million (2008: GBP4.6 million). 
In the current year the capital budget is significantly lower as there are no 
scheduled major factory expansions or upgrades. 
 
 
A share placing with existing shareholders raised approximately GBP2 million to 
help fund this year's planned increase in sales. Together with the proceeds from 
the disposal of Baked Snacks and tight cash management, which enabled almost 
GBP5 million cash to be generated from operations, total net debt at the year 
end was restricted to lower than the market expected at GBP15.4 million (30 
April 2008: GBP14.6 million). Another relatively late Easter in the current 
financial year, together with a reduction in the Group's potential outstanding 
deferred consideration for acquisitions made to date, is expected to further 
lower borrowings. 
 
 
Dale Mullins, the Group Finance Director, left by mutual consent in March 2009 
and I thank him for his support during his two years with the Group. Ian 
Blackburn, who combined the roles of Chief Executive and Finance Director for 
Zetar's initial two years, has assumed the duties of Finance Director as well as 
those of Chief Executive whilst we conclude our current search for a permanent 
replacement. We will update the market on this appointment as soon as is 
practicable. 
 
 
It has been a challenging year for all our employees. Their commitment and hard 
work has helped see the Group through this period. I would like to thank every 
member of staff within the Group for their continued efforts and shareholders 
for their continued support. 
 
 
Despite market conditions remaining difficult and volatile, the decline in 
sterling is expected to assist our export business and more immediately it makes 
European suppliers into the UK market less price competitive. As a result both 
of our core divisions have won new all year round business which is due to 
commence this summer. This combined with strong Christmas order 
indications means that we are currently on course to attain our internal sales 
growth targets for this year. 
 
 
The decisive actions taken by management in the second half of the year have 
significantly strengthened the Group's financial position and its ability to 
gain further market share. We are confident that with continued focus on 
innovation, flexibility and tight cash control, the Group is well positioned to 
continue to build on this success in the year ahead. 
 
 
 
 
David Williams 
Non-executive Chairman 
  Operational Review 
 
 
+--------------------------------------------------+--------+---------+ 
| Continuing activities                                               | 
+---------------------------------------------------------------------+ 
|                                                  |  Year ended 30   | 
|                                                  |      April       | 
+--------------------------------------------------+------------------+ 
| GBPm's                                           |   2009 |    2008 | 
+--------------------------------------------------+--------+---------+ 
|                                                  |        |         | 
+--------------------------------------------------+--------+---------+ 
| Sales                                            |  118.6 |   109.2 | 
+--------------------------------------------------+--------+---------+ 
|                                                  |        |         | 
+--------------------------------------------------+--------+---------+ 
| Adjusted operating profit                        |    6.1 |     8.7 | 
+--------------------------------------------------+--------+---------+ 
 
 
Overview 
 
 
There is no doubt that 2008/9 was the Group's most challenging year. 
Nevertheless, turnover from continuing operations increased 8.6% to GBP118.6 
million (2008: GBP109.2 million). This robust performance reflects the Group's 
continued focus on innovation and our ability to adapt quickly to changes in 
consumer demand, notably the increase in value for money offering for customers. 
Once again, the success of new product launches in the year was key to our 
increase in sales. 
 
 
We made a good start to the year, trading close to budgeted profit throughout 
the summer. Thereafter, trading conditions became increasingly difficult with 
the weakening of sterling impacting on already high input costs, and the 
deterioration in the financial markets and the economy having a resultant change 
in both customer attitudes and consumer buying habits. It became clear that our 
turnaround plans for Baked Snacks would not be achievable in the medium term and 
we also had to contend with the closure of Woolworths, an important customer for 
the Confectionery division. 
 
 
By the year end external market conditions had stabilised, including consumer 
and customer behaviour, and a partial recovery of sterling benefited raw 
material costs. Baked Snacks was sold by the year end, which removed its losses 
from the Group and freed up management and other resources to focus on our core 
Confectionery and Natural & Premium Snacks divisions. 
 
 
The Group's current bank facilities were revised in September 2008 to support 
the Group's growth. In February 2009 shareholders supported a GBP2 million 
placing of new shares, at a 25% premium to the then share price, to help fund 
the working capital of new business opportunities for the current year. 
 
 
Financial performance 
 
 
Sales and adjusted operating profit from continuing activities increased to 
GBP118.6 million (2008: GBP109.2 million) and declined to GBP6.1 million (2008: 
GBP8.7 million) respectively, due to a reduction in margins as explained in more 
detail in the divisional reviews. 
 
 
The Group's overall reported loss for the year is as a result of the 
discontinued operations and certain one-off items. 
 
 
The Baked Snacks business would have required material additional investment to 
realise its potential and the Board took the decision to dispose of the business 
to enable management to focus on its profitable core divisions. Following a 
managed sale process the business was sold to its management for an initial cash 
consideration of GBP0.6 million (comprising initial consideration and the 
repayment of inter company loan) and GBP2.1 million of additional consideration, 
which was deferred  to provide the acquirer more time to raise funds. The GBP5.8 
million loss on discontinued activities is stated after incorporating this 
potential deferred consideration at nil fair value and compares with the GBP3.7 
million included in the interim report. 
 
 
One-off items include exceptional bad debts of GBP1.1 million primarily in 
respect of the closure of Woolworths and GBP0.4 million costs incurred from 
implementing a reorganisation at head office and the Confectionery division 
before the year end to reduce headcount and improve future performance. 
 
 
We are pleased that, despite a later Easter which contributed to a GBP4.5 
million increase in receivables due from customers compared to the previous year 
end and a further investment of GBP3.8 million in facilities and equipment in 
the year, tight control and cash management resulted in lower than expected 
total net borrowings of GBP15.4 million at 30 April 2009. 
 
 
Current year objectives 
 
 
Our immediate objective is to secure a recovery in Group earnings. We are 
confident that this can be achieved through a combination of new products, a 
strengthened cost-efficient structure and more focused customer relationships. 
We will continue to focus on further increasing scale and efficiency as well as 
seeking to develop cross border trading opportunities. 
 
 
In the current year we will concentrate on optimising the financial performance 
by focusing on the following priorities: 
  *  successfully launching the new business already won and funded from the proceeds 
  of the placing; 
  *  driving the sales growth in our healthier fruit snacks by at least 25%; 
  *  becoming more proactive in marketing our brands and adding further snack 
  licences; and 
  *  increasing cash generated from operations. 
 
 
 
Current trading and outlook 
 
 
Group sales for the eleven weeks ended 18 July 2009 increased by 10% to GBP14.6 
million (2008: GBP13.3 million). 
 
 
The Board's immediate focus is on delivering organic sales and profit growth and 
a stronger balance sheet to our shareholders. We are confident that, despite the 
challenging trading environment, the Group will make good progress in the 
current year. 
 
 
Confectionery division 
 
 
+-------------------------------------------+-------------+-------------+ 
|                                                                       | 
+-----------------------------------------------------------------------+ 
| GBPm's                                    |    Year ended 30 April    | 
+-------------------------------------------+---------------------------+ 
|                                           |    2009     |    2008     | 
+-------------------------------------------+-------------+-------------+ 
| Sales                                     |    75.1     |    68.5     | 
+-------------------------------------------+-------------+-------------+ 
|                                           |             |             | 
+-------------------------------------------+-------------+-------------+ 
| Adjusted operating profit                 |    4.4      |    5.6      | 
+-------------------------------------------+-------------+-------------+ 
 
 
In the year ended 30 April 2009, the Confectionery division contributed sales of 
GBP75.1 million (2008: GBP68.5 million) and adjusted operating profit of GBP4.4 
million (2008: GBP5.6 million). 
 
 
Lir contributed sales of GBP10.1 million in its first full year compared to 
GBP3.2 million in the previous year. Divisional like for like sales grew by 5%, 
despite the absence of Woolworths Easter sales, which resulted in lost sales of 
between GBP1.5 million and GBP2.0 million. 
 
 
The division remains committed to generating revenue from a balance of branded, 
private label and third party contract sales to reduce the risk of 
underperformance in a specific sub-sector of the chocolate market in any one 
year. Two thirds of the division's sales are seasonal but we continue to make 
progress in driving our all year round business. A substantial part of this 
year's investment will contribute towards this strategic goal. 
 
 
Whilst consumers continue to purchase indulgent products in recessionary times, 
value for money proposals increasingly become their top priority. The division 
responded quickly to this shift in consumer demand by engaging in more 
promotional activity and developing high volume lower margin products, whilst 
still maintaining a balance with our more indulgent products. 
 
 
Generally the division has experienced some weakness in margins due to the high 
cost of raw materials, primarily chocolate, packaging and other hardware 
imported from China which is particularly influenced by the current weakness of 
sterling. However, we have also carried a high level of start up costs relating 
to overheads and factory commissioning costs. These are in association firstly 
with the new HHF factory where production output has been increased from 1,200 
tons last year to a budgeted 3,500 tons in the current year, and secondly at 
Lir, which has also undergone a major production capacity expansion. Lir has 
inevitably suffered a reduction in its profit margin as a result of the weakness 
of sterling given that 70% of its sales are into the UK, whilst most of its 
input costs are in Euros. The sterling/euro exchange rate has moved from 1.34 at 
the date of acquisition to 1.12 at the year end. 
 
 
The Kinnerton brand licensed character range performed particularly well at 
Christmas and Easter. This year we became the UK's market leader in advent 
calendars and the fourth largest Easter Egg supplier. Notably, this Easter we 
were one of only four manufacturers to record growth, achieving 20% year on year 
growth, in a market that declined overall by 1.2%, as a result of heavy 
promotional activity. This year, in addition to the ongoing strong performance 
of established licences such as the Simpsons, High School Musical and Thomas the 
Tank Engine, the introduction of BEN 10 and Top Gear added to the range and grew 
sales. A weak character licence portfolio in Australia saw sales fall by a third 
in this market but we expect this to recover in the current year on the back of 
recently signing elements of the Disney licence for this market. The Kinnerton 
"nut promise" remains an important and socially responsible factor for the 
division for those children with a nut allergy. 
 
 
Retailers adopted a cautious approach in ordering private label seasonal 
products at both Christmas and Easter due to the downturn in the market last 
Autumn and the heavily discounted and supported programmes by the major branded 
confectionery players. However, whilst this was reflected in a reduction of some 
lines compared to last year, we gained significant new business with UK 
supermarkets for box chocolates from our Lir factory. We won several contracts 
to supply high volume but lower margin chocolate coated peanuts and raisins 
alongside our existing more premium products, such as white chocolate covered 
strawberries and Belgian chocolate covered caramelised nuts. The new "sugar 
panning" department at Horsley, Hick & Flower ("HHF") was opened in time to 
supply a line at Christmas followed by a larger volume item at Easter. It is now 
almost fully commissioned and working to our anticipated volume expectations. 
 
 
The extended Baileys product range performed well, particularly the seasonal 
products where Baileys Easter eggs sales increased by over 30% to represent 7.5% 
of the total premium egg category. Baileys chocolates are now sold in Russia and 
other European countries. 
 
 
Significant growth from two third party customers provides a wider and better 
balanced customer base for this part of our business. The largest chocolate 
companies are seeking strategic partnerships to supplement their own production 
where volumes are small or seasonal. Our more flexible production/packaging 
facilities and capability to meet demanding production standards often enable us 
to offer a cost competitive solution. 
 
 
The operations of the division continue to be streamlined wherever possible 
whilst at the same time retaining the identity and entrepreneurial spirit behind 
the original businesses. To facilitate this process Kinnerton has upgraded its 
IT infrastructure to enable the introduction of common financial, production and 
operating information systems. Following the end of its earn out, HHF was fully 
integrated on 30 April 2009 with its assets and business transferred to 
Kinnerton, but it is intended that HHF will continue to retain both its identity 
within Kinnerton and its founders (Joe Horsley and Mike Flower). It is 
anticipated that HHF will build upon its heritage for high quality premium 
products, as well as recently developed economy products and sugar panning. 
 
 
In Ireland, the Lir board initiated a number of cost reduction initiatives to 
mitigate the impact on their margins from the weakness of sterling. Going 
forward raw materials, particularly chocolate purchases which are coordinated by 
Kinnerton, as well as a number of services have been transferred to suppliers 
who can invoice in sterling, in order to provide a partial currency hedge 
between receipts and payments. 
 
 
A business reorganisation towards the year end has reduced the division's 
headcount by more than 20 people. This reorganisation generated a non-recurring 
cost of approximately GBP311,000 but is expected to deliver an equal amount of 
annual savings. 
 
 
During the year major projects were undertaken to expand the HHF factory, near 
York, and the Lir factory, north of Dublin, at a combined cost of GBP2.5 
million. HHF has significantly increased its capacity with the installation of 
an automated chocolate centre making line, in house bagging and the addition of 
a "sugar panning" department. In Lir we have extended the production space, 
added a 500 pallet warehouse and installed a major new moulding line which 
increases capacity and efficiency of both existing truffle production and new 
products. Packaging options have been increased with the installation of 
flexible bar wrapping and twist wrap machines as well as other ancillary 
equipment. 
 
 
Natural & Premium Snacks division 
 
 
+---------------------------+---------------------+--------------------+ 
|                                                                      | 
+----------------------------------------------------------------------+ 
|                           |           Year ended 30 April            | 
+---------------------------+------------------------------------------+ 
| GBPm's                    |        2009         |        2008        | 
+---------------------------+---------------------+--------------------+ 
|                           |                     |                    | 
+---------------------------+---------------------+--------------------+ 
| Sales                     |        43.5         |        40.7        | 
+---------------------------+---------------------+--------------------+ 
|                           |                     |                    | 
+---------------------------+---------------------+--------------------+ 
| Adjusted operating profit |        1.7          |        3.1         | 
+---------------------------+---------------------+--------------------+ 
 
 
In the year ended 30 April 2009, the Natural & Premium Snacks division 
contributed sales of GBP43.5 million (2008:GBP40.7 million) and adjusted 
operating profit of GBP1.7 million (2008:GBP3.1 million). The division's overall 
operating profit margin was 3.9% (2008: 7.6%) the margin in the first half fell 
to as low as 3% before recovering to 4.8% in the second half. 
 
 
The integration process was completed during the year and on 30 April 2009 the 
assets and business of Readifoods were transferred into Humdinger so that the 
division is now one legal entity, with a single management and sales account 
team representing three production units. Product is being transferred between 
the facilities in order to create a dedicated nut free site for the processing 
of dried fruit and fruit snacks and a peanut free nut packing unit. 
 
 
Fruit and nut snacking has become a key constituent of many snack companies 
strategic focus in recent years, driving the demand for and cost of raw material 
to unprecedented levels. In the UK, this was further exacerbated during the 
summer by the weakness of sterling, particularly against the US dollar. A 
fundamental shift in consumer purchasing patterns and the usual customer 
resistance to price increases resulted in very difficult trading conditions and, 
as a consequence the division suffered as evidenced by the fall in margins. 
 
 
We responded with a vigorous focus on value and a review of existing products, 
both private label and our own brands, to re-engineering them where possible to 
take out cost. Where the margin could not be recovered to an acceptable level we 
negotiated appropriate price increases or discontinued supply. The focus on 
value and margin recovery contributed to improving results in the last quarter 
of the year and will also have an increasing impact in the current year. 
 
 
Good sales progress was made in the division's three largest retail customers in 
terms of both value and volume. We have started new business in the produce 
departments of the retailers and are also making progress with export sales of 
organic product into Scandinavia and fruit snacks into the United States. 
 
 
Whilst adapting our strategy to gain volume from supplying more value for money 
ranges, we are also continuing to look to add further value and differentiate 
our core nut and fruit ranges. We have developed a wide range of air-roasted and 
flavoured nuts and in February 2009, launched the first of these, "Marmite 
cashew nuts" for a third party customer. We are currently working to 
differentiate more of our products to give us a marketing edge. 
 
 
Fruit snacking remains a key driver and the division's range is sold as either 
private label or under the Humzinger and Fruit Factory brands. In addition to 
introducing a "smoothie" version of our Humzinger fruit bars we have diversified 
the range with the addition of fruit flakes and fruit strings, which have been 
particularly successful. The Fruit Factory brand will be extended this summer 
with the addition of new products. 
 
 
 
 
+-----------------------------------------+-----------------------------------------+ 
| Ian Blackburn                           | Clive Beecham                           | 
+-----------------------------------------+-----------------------------------------+ 
| Chief Executive                         | Managing Director                       | 
+-----------------------------------------+-----------------------------------------+ 
 
 
  Financial Review 
 
 
On 30 April 2009 The Baked Snacks Company ("Baked Snacks") was sold and its 
results are classified as discontinued operations. Unless specifically referred 
to otherwise, all figures and references below relate to continuing operations. 
In order to provide a clear overview of the underlying results of the Group's 
ongoing activities we therefore review the performance of those activities 
before analysing the results of discontinued operations and non-recurring 
one-off items in the year. 
 
 
Continuing activities 
Total turnover increased to GBP118.6 million (2008: GBP109.2 million); adjusted 
operating profit and profit before tax was GBP6.1 million (2008: GBP8.7 million) 
and GBP4.6 million (2008: GBP7.1 million) respectively. Adjusted operating 
profit, profit before tax and diluted earnings per share (below) exclude 
intangible asset amortisation, share based payment charges and one-off items. 
 
 
Net finance costs in the year amounted to GBP1.5 million (2008: GBP1.6 million) 
despite a significant reduction in interest rates, as a result of a three year 
fixed interest rate swap entered into in February 2008. The swap effectively 
locked an average of GBP10.4 million of the Group's LIBOR borrowings to a rate 
of 5.02% and an average of GBP2.4 million of the Group's base rate borrowings to 
a rate of 4.75%. The swap effectively increased finance costs by GBP0.3 million 
in the year. At the year end the fair value of the swap was a liability of 
GBP0.6 million. Net interest was covered 4 times by adjusted operating profits 
(2008: 5.4 times) and 5.6 times by EBITDA (2008: 6.6 times). 
 
 
Adjusting items in respect of one-off items comprised bad debts of GBP1.1 
million and restructuring charges of GBP0.4 million. Amortisation of intangible 
assets and share based payments amounted to GBP0.3 million (2008: GBP1.1 
million). The bad debts primarily arose from the failure of Woolworths and the 
restructuring costs were in connection with redundancies aimed at improving 
future financial performance. IFRS adjustments in respect of market value 
assessment of financial instruments amounted to a charge of GBP0.68 million 
(2008: GBP0.14 million). 
 
 
Discontinued activities 
Discontinued operations contributed a loss of GBP5.8 million, including 
operating losses in the year and the loss on sale of the business. The loss 
assumes that none of the deferred consideration of up to GBP2.1 million will be 
received given its uncertainty of receipt. In the interim accounts at 31 October 
2008 we recognised losses on discontinued operations of GBP3.7 million. 
 
 
Earnings per share 
The Group's adjusted basic and diluted earnings per share were 28.0p (2008: 
46.2p) and 27.8p (2008: 40.5p) respectively. Basic loss/earnings per share, 
reflecting the losses of discontinued operations and one-off items, were (42.9p) 
(2008: 29.5p). 
 
 
Taxation 
The tax charge for the year was GBP1.2 million at an effective tax rate of 27.1% 
(2008: 28.7%) on profit before tax. Tax credits in respect of adjusting items 
were off-set primarily, as reported in the interim accounts, by a GBP0.52 
million exceptional deferred tax charge in connection with the phased abolition 
of Industrial Buildings Allowance. The net deferred taxation liability at 30 
April 2009 was GBP1.4 million (2008: GBP1.3 million). 
 
 
Contingent consideration 
During the year deferred consideration of GBP879,000 was paid and on 1 June 2009 
a final payment of GBP220,000 was paid to the vendors of HHF.  Whilst Lir's 
profits are significantly higher than last year, they are not sufficient to earn 
the deferred consideration in respect of the year ended 30 April 2009. The fall 
in sterling/euro exchange rates was a contributory factor to this and will 
continue to play a part in determining whether future deferred consideration 
will be paid to the vendors of Lir. For future tranches of deferred 
consideration to become payable, profitability at Lir will need to materially 
exceed those reported in the year under review The Lir accrual has been reduced 
to GBP300,000, reflecting the best current estimate of future payments. 
 
 
Equity funding 
In February 2009, 1,725,800 new shares were issued and placed with directors and 
other shareholders at GBP1.20 per share, a premium over the share price at that 
date of 95p, to raise GBP2.07 million (GBP1.98 million net of expenses) to fund 
the working capital requirements for identified new sales opportunities in the 
current year. At 30 April 2009 there were 13,231,193 ordinary shares in issue. 
 
Cash flow 
Despite a challenging year, the Group generated GBP4.8 million (2008: GBP8.4 
million) cash from operations. Despite a GBP4.5 million increase in trade 
receivables, the net working capital increase was restricted to GBP2.5 million 
for the year. 
 
 
Net interest and similar charges paid in the year amounted to GBP1.5 million 
(2008: GBP1.6 million). 
 
 
Payments of corporation tax during the year of GBP0.8 million (2008: GBP1.7 
million) are lower than last year, reflecting the lower levels of profit and 
Group relief available from Baked Snacks loss making operations. 
 
 
Capital expenditure during the year amounted to GBP3.8 million (2008: GBP3.7 
million) including major extensions and new equipment at the Group's 
confectionery factories near York and Dublin. Further details are provided in 
the Operational Review. 
 
 
Borrowings and facilities 
The Group's total net debt at 30 April 2009 amounted to GBP15.4 million (2008: 
GBP14.6 million), comprising net bank and other asset finance indebtedness. It 
should be noted that the structure of the revised bank facilities means that 
approximately GBP10 million debt classified as short term borrowings are part of 
the rolling asset based lending facility which matures in September 2012. 
 
 
The Board reviews the Group's forward cash flow projections on a regular basis 
and with a view to ensuring that it has adequate bank facilities to cover its 
borrowing requirements for the foreseeable future. The cash flow projections 
take account of the Group's seasonal working capital peak, investment plans, and 
potential contingent consideration payments. Prudent assumptions are used in the 
preparation of the projections and the Board seeks to ensure that the bank 
facilities provide an appropriate level of headroom to allow for unforeseen 
circumstances. 
 
 
In September 2008 the Group revised its bank facilities with its principal 
lender in order to provide funding for the increase in its activities in recent 
years. The new facilities have been structured to take account of the seasonal 
nature of the Group's confectionery division. At 30 April 2009 the Group's total 
facilities and utilisation comprised: 
 
 
+--------------------+--------------------+--------------------+--------------------+ 
| Facility           | Borrowed/available | Maturity/repayment |  Drawn/outstanding | 
|                    |             GBPm's |               Date |      30 April 2009 | 
|                    |                    |                    |             GBPm's | 
+--------------------+--------------------+--------------------+--------------------+ 
| Asset based        |               19.0 |     September 2012 |               10.3 | 
| lending            |                    |                    |                    | 
+--------------------+--------------------+--------------------+--------------------+ 
| Revolving credit*  |           0 - 11.0 |      December 2010 |                3.2 | 
+--------------------+--------------------+--------------------+--------------------+ 
| Amortising term    |                4.6 | May 2010 to August |                6.9 | 
| loans              |                    |               2012 |                    | 
+--------------------+--------------------+--------------------+--------------------+ 
| Asset finance      |                2.4 |         April 2012 |                0.4 | 
| loans/HP           |                    |                    |                    | 
+--------------------+--------------------+--------------------+--------------------+ 
 
 
*The Revolving Credit Facilities fluctuate on a monthly basis in accordance with 
the seasonal working capital requirements of the Group from nil in April to 
GBP11 million between July and October of each year. 
 
 
The principal facilities have been provided by Barclays Bank PLC at rates 
between 1.15% and 2.00% above Base Rate or LIBOR. As yet unamortised costs at 30 
April 2009 amounting to GBP163,000 (2008: GBP167,000), associated with raising 
these facilities, are being written off over their remaining life. 
 
 
In February 2008 the Group fixed an average of GBP10.4 million of its LIBOR 
borrowings at 5.01% and an average of GBP2.4 million of its Base Rate borrowings 
at 4.76% until February 2011. At 30 April 2009 this interest swap had a mark to 
market valuation adjustment of GBP576,000. 
Review of assets and goodwill 
 
 
The board has reviewed the value of its assets and goodwill at 30 April 2009, in 
accordance with the assumptions and procedures set out in the financial 
statements. They have concluded that there is no impairment of goodwill at that 
date. 
 
 
The deferred consideration asset of GBP2.1 million arising from the sale of 
Baked Snacks has been included at nil fair value in view of the uncertainty of 
its receipt. 
 
 
 
 
Ian Blackburn 
Chief Executive 
 
 
 
CONSOLIDATED INCOME STATEMENT 
For the year ended 30 April 2009 
 
 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| GBP'000                     |Note  |     2009 |      2009 |     2009 |     2008 |      2008 |     2008 | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
|                             |      | Adjusted | Adjusting |    Total | Adjusted | Adjusting |    Total | 
|                             |      |  results |     items |          |  results |     items |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
|                             |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Continuing operations       |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Revenue                     |  2   |  118,602 |         - |  118,602 |  109,216 |         - |  109,216 | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
|                             |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Cost of sales               |      | (93,857) |         - | (93,857) | (83,938) |         - | (83,938) | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
|                             |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Gross profit                |      |   24,745 |         - |   24,745 |   25,278 |         - |   25,278 | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
|                             |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Distribution costs          |      |  (4,777) |         - |  (4,777) |  (5,013) |         - |  (5,013) | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Administrative expenses     |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| - Other administrative      |      | (13,917) |         - | (13,917) | (11,541) |         - | (11,541) | 
| expenses                    |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| - One-off items             |      |        - |    (1508) |  (1,508) |        - |         - |        - | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| - Amortisation of           |      |        - |     (456) |    (456) |        - |     (675) |    (675) | 
| intangible assets           |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| - Share based payments      |      |        - |       116 |      116 |          |     (377) |    (377) | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Operating profit            |      |    6,051 |   (1,848) |    4,203 |    8,724 |   (1,052) |    7,672 | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Interest income             |  3   |       47 |         - |       47 |      116 |         - |      116 | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Finance costs               |  3   |  (1,556) |     (680) |  (2,236) |  (1,733) |     (144) |  (1,877) | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Profit from continuing      |      |    4,542 |   (2,528) |    2,014 |    7,107 |   (1,196) |    5,911 | 
| operations before taxation  |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Tax on profit from          |  4   |  (1,241) |         - |  (1,241) |  (2,034) |       179 |  (1,855) | 
| continuing activities       |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Net result from continuing  |      |    3,301 |   (2,528) |      773 |    5,073 |   (1,017) |    4,056 | 
| operations                  |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
|                             |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Net result from             |      |          |   (5,836) |  (5,836) |          |     (811) |    (811) | 
| discontinued operations     |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
|                             |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Net result for the period   |      |    3,301 |   (8,364) |  (5,063) |    5,073 |   (1,828) |    3,245 | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
|                             |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Basic (losses) / earnings   |  5   |          |           |   (42.9) |          |           |     29.5 | 
| per share                   |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Diluted (losses) / earnings |  5   |          |           |   (42.6) |          |           |     25.9 | 
| per share                   |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Adjusted* basic earnings    |  5   |     28.0 |           |          |     46.2 |           |          | 
| per share                   |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
| Adjusted* diluted earnings  |  5   |     27.8 |           |          |     40.5 |           |          | 
| per share                   |      |          |           |          |          |           |          | 
+-----------------------------+------+----------+-----------+----------+----------+-----------+----------+ 
 
 
 
 
  CONSOLIDATED BALANCE SHEET 
As at 30 April 2009 
 
 
+--------------------------------------+----------+--------------+--------------+ 
| GBP'000                              |     Note |         2009 |         2008 | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Non-current assets                   |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Goodwill                             |        6 |       30,821 |       32,363 | 
+--------------------------------------+----------+--------------+--------------+ 
| Other intangible assets              |          |          623 |        1,002 | 
+--------------------------------------+----------+--------------+--------------+ 
| Property, plant and equipment        |          |       15,283 |       18,545 | 
+--------------------------------------+----------+--------------+--------------+ 
| Deferred tax asset                   |          |          198 |          167 | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |       46,925 |       52,077 | 
+--------------------------------------+----------+--------------+--------------+ 
| Current assets                       |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Inventories                          |          |       14,319 |       13,364 | 
+--------------------------------------+----------+--------------+--------------+ 
| Trade and other receivables          |          |       19,190 |       15,253 | 
+--------------------------------------+----------+--------------+--------------+ 
| Derivative financial asset           |          |            - |           72 | 
+--------------------------------------+----------+--------------+--------------+ 
| Cash at bank                         |          |        5,405 |        3,175 | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |       38,914 |       31,864 | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Total assets                         |          |       85,839 |       83,941 | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Current liabilities                  |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Trade and other payables             |          |     (23,763) |     (20,337) | 
+--------------------------------------+----------+--------------+--------------+ 
| Performance related contingent       |          |        (220) |        (876) | 
| consideration                        |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Current tax liabilities              |          |        (252) |        (687) | 
+--------------------------------------+----------+--------------+--------------+ 
| Obligations under finance leases     |        7 |        (214) |        (470) | 
+--------------------------------------+----------+--------------+--------------+ 
| Derivative financial instruments     |          |        (607) |            - | 
+--------------------------------------+----------+--------------+--------------+ 
| Borrowings and overdrafts            |        8 |     (15,712) |      (9,289) | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |     (40,768) |     (31,659) | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Net current (liabilities)/assets     |          |      (1,854) |          205 | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Non-current liabilities              |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Performance related contingent       |          |        (300) |      (2,555) | 
| consideration                        |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Deferred tax liabilities             |          |      (1,575) |      (1,448) | 
+--------------------------------------+----------+--------------+--------------+ 
| Obligations under finance leases     |        7 |        (167) |        (369) | 
+--------------------------------------+----------+--------------+--------------+ 
| Borrowings and overdrafts            |        8 |      (4,676) |      (7,609) | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |      (6,718) |     (11,981) | 
+--------------------------------------+----------+--------------+--------------+ 
| Total liabilities                    |          |     (47,486) |     (43,640) | 
+--------------------------------------+----------+--------------+--------------+ 
| Net assets                           |          |       38,353 |       40,301 | 
+--------------------------------------+----------+--------------+--------------+ 
|                                      |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Equity                               |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
| Share capital                        |        9 |        1,324 |        1,151 | 
+--------------------------------------+----------+--------------+--------------+ 
| Share premium account                |       10 |       28,252 |       26,449 | 
+--------------------------------------+----------+--------------+--------------+ 
| Merger reserve                       |          |        3,411 |        3,411 | 
+--------------------------------------+----------+--------------+--------------+ 
| Equity reserve                       |       11 |        2,719 |        1,431 | 
+--------------------------------------+----------+--------------+--------------+ 
| Retained earnings                    |       11 |        2,647 |        7,859 | 
+--------------------------------------+----------+--------------+--------------+ 
| Total equity attributable to equity  |          |       38,353 |       40,301 | 
| holders of the parent                |          |              |              | 
+--------------------------------------+----------+--------------+--------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  CONSOLIDATED CASH FLOW STATEMENT 
For the year ended 30 April 2009 
 
 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             GBP'000                          |             Note |              GBP'000 |             GBP'000 | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |                 2009 |                2008 | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cash flow from operating         |                  |                      |                     | 
|             activities                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Profit on ordinary activities    |                  |                2,014 |               5,911 | 
|             before taxation                  |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Finance costs                    |                  |                2,236 |               1,877 | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Interest income                  |                  |                 (47) |               (116) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Share based payments             |                  |                (116) |                 377 | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Depreciation (including          |                  |                2,346 |               1,989 | 
|             trademark amortisation)          |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Loss on sale of plant and        |                  |                   22 |                   6 | 
|             equipment                        |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Amortisation of intangible       |                  |                  457 |                 675 | 
|             assets                           |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             One-off items                    |                  |                1,388 |                   - | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Net movement in working capital  |                  |              (2,469) |             (1,011) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|              (Increase) in inventories       |                  |              (1,299) |             (2,646) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             ( Increase)/ decrease in         |                  |              (4,504) |               4,075 | 
|             receivables                      |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|              Decrease/ (increase) in         |                  |                3,334 |             (2,440) | 
|             payables                         |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cashflow from continuing         |                  |                5,831 |               9,708 | 
|             operations                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cashflow from discontinued       |                  |              (1,002) |             (1,260) | 
|             operations                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Total cashflow from operations   |                  |                4,829 |               8,448 | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Net interest paid                |                3 |              (1,510) |             (1,646) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Tax paid                         |                  |                (782) |             (1,682) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cash generated from activities   |                  |                3,539 |               6,380 | 
|             in continuing operations         |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cashflow from operating          |                  |              (1,002) |             (1,260) | 
|             activities in discontinued       |                  |                      |                     | 
|             operations                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Total cashflow from operating    |                  |                2,537 |               5,120 | 
|             activities                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cash flow from investing         |                  |                      |                     | 
|             activities                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Purchase of property, plant and  |                  |              (3,847) |             (3,722) | 
|             equipment                        |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Proceeds from sale of plant and  |                  |                   42 |                  26 | 
|             equipment                        |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Disposal of subsidiary           |                  |                (220) |                   - | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Settlement of deferred           |                  |                (879) |                     | 
|             consideration obligation         |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Total cash impact of             |                  |                    - |             (3,733) | 
|             acquisitions                     |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Acquisitions of businesses       |                  |                    - |             (2,814) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Net borrowings assumed on        |                  |                    - |               (919) | 
|             acquisition                      |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Net cash outflow from continuing |                  |              (4,904) |             (7,429) | 
|             investing activities             |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Net cash outflow from            |                  |                    - |             (5,244) | 
|             discontinued investing           |                  |                      |                     | 
|             activities                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Net cash outflow from investing  |                  |              (4,904) |            (12,673) | 
|             activities                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cash flows from financing        |                  |                      |                     | 
|             activities                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Net proceeds from issue of       |                  |                1,976 |               3,851 | 
|             ordinary share capital           |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Purchase of own shares           |                  |                (149) |               (300) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Proceeds from new borrowings     |                  |                    - |               5,000 | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Repayment of borrowings          |                  |              (3,536) |             (4,819) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Finance lease repayments         |                  |                (457) |               (472) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Minority interest dividends paid |                  |                      |                   - | 
|                                              |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Net cash flow from financing     |                  |              (2,166) |               3,260 | 
|             activities                       |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Net (decrease) in cash and cash  |                  |              (4,533) |             (4,293) | 
|             equivalents                      |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cash and cash equivalents at     |                  |              (3,331) |                 917 | 
|             beginning of the year            |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Effect of foreign exchange rate  |                  |                (263) |                  45 | 
|             movements                        |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cash and cash equivalents at end |                  |              (8,127) |             (3,331) | 
|             of the year                      |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cash and cash equivalents        |                  |                      |                     | 
|             comprise:                        |                  |                      |                     | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Cash at bank                     |               13 |                5,405 |               3,175 | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|             Bank overdraft                   |               13 |             (13,532) |             (6,506) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
|                                              |                  |              (8,127) |             (3,331) | 
+----------------------------------------------+------------------+----------------------+---------------------+ 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
For the year ended 30 April 2009 
 
 
+-----------------------------+---------+---------+---------+---------+------+---+---------+ 
|            Attributable to equity holders of the parent             | 
+---------------------------------------------------------------------+ 
| GBP'000                     |   Share |   Share |  Merger |  Equity | Retained |  Total  | 
|                             | capital | premium | reserve | reserve | earnings |         | 
|                             |         | account |         |         |          |         | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Balance at 1 May 2007       |   1,073 |  22,673 |   3,229 |     621 |    4,914 |  32,510 | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Profit for the year         |       - |       - |       - |       - |    3,245 |   3,245 | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Exchange gain on            |       - |       - |       - |     557 |        - |     557 | 
| translation of foreign      |         |         |         |         |          |         | 
| operation                   |         |         |         |         |          |         | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Issue of new ordinary       |      78 |   3,776 |     182 |       - |        - |   4,036 | 
| shares                      |         |         |         |         |          |         | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Purchase of own shares      |       - |       - |       - |       - |    (300) |   (300) | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Share-based payment charge  |       - |       - |       - |     377 |        - |     377 | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Deferred tax on share-based |       - |       - |       - |   (124) |        - |   (124) | 
| payments                    |         |         |         |         |          |         | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Balance at 30 April 2008    |   1,151 |  26,449 |   3,411 |   1,431 |    7,859 |  40,301 | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Profit for the year         |       - |       - |       - |       - |  (5,063) | (5,063) | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Exchange gain on            |       - |       - |       - |   1,404 |        - |   1,404 | 
| translation of foreign      |         |         |         |         |          |         | 
| operations                  |         |         |         |         |          |         | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Issue of new ordinary       |     173 |   1,803 |       - |       - |        - |   1,976 | 
| shares                      |         |         |         |         |          |         | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Purchase of own shares      |         |       - |       - |       - |    (149) |   (149) | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Prior year share-based      |       - |       - |       - |   (116) |        - |   (116) | 
| payment reversal            |         |         |         |         |          |         | 
+-----------------------------+---------+---------+---------+---------+----------+---------+ 
| Balance at 30 April 2009    |   1,324 |  28,252 |   3,411 |   2,719 |    2,647 |  38,353 | 
+-----------------------------+---------+---------+---------+---------+------+---+---------+ 
 
 
 
 
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 April 2009 
 
 
1. PREPARATION OF FINANCIAL STATEMENTS 
 
 
The financial information in this announcement does not constitute the Group's 
statutory accounts for the years ended 30 April 2009 or 2008. The preliminary 
results for the year ended 30 April 2009 have been extracted from audited 
consolidated financial statements which have not yet been delivered to the 
Registrar of Companies. The auditors have reported on the Group's statutory 
accounts for the year ended 30 April 2009. The report was unqualified and did 
not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. 
 
 
The preparation of financial statements in conformity with IFRS requires 
management to make estimates and assumptions that affect the reported amounts of 
assets and liabilities and disclosure of contingent assets and liabilities at 
the date of the financial statements and the reported amounts of revenue and 
expenses during the reporting period. Actual results could differ from those 
estimates. 
 
 
A key assumption used in the preparation of this year's financial statements 
relates to the assessment that the fair value of the deferred consideration 
arising on the sale of discontinued activities is negligible on the basis of 
uncertainty regarding its receipt. Should any of the deferred consideration be 
received it means that the carrying value of this asset has been understated in 
the balance sheet and the net loss from discontinued activities overstated in 
the year. 
 
 
The financial statements are presented in pounds sterling because that is the 
currency of the primary economic environment in which the Group operates. 
 
 
The Group financial statements consolidate those of the Company and its 
subsidiary undertakings drawn up to 30 April 2009. Subsidiaries are entities 
over which the Group has the power to control the financial and operating 
policies so as to obtain benefits from their activities. The Group obtains and 
exercises control through voting rights. All intra-group transactions, balances, 
income and expenses are eliminated on consolidation. Unrealised gains on 
transactions between the Group and its subsidiaries are eliminated. Unrealised 
losses are also eliminated unless the transaction provides evidence of the 
impairment of the asset transferred. Amounts reported in the financial 
statements of subsidiaries have been adjusted where necessary to ensure 
consistency with the accounting policies adopted by the Group. 
 
 
Acquisitions of subsidiaries are dealt with by the purchase method. The cost of 
the acquisition is measured as the aggregate of the fair values, at the date of 
exchange, of assets given up, liabilities incurred or assumed, and equity 
instruments issued by the group in exchange for control of the acquired company, 
plus any costs directly attributable to the business combination. The purchase 
method involves the recognition at fair value of all identifiable assets and 
liabilities, including contingent liabilities of the subsidiary at the 
acquisition date, regardless of whether or not they were recorded in the 
financial statements of the subsidiary prior to acquisition. On initial 
recognition, the assets and liabilities of the subsidiary are included in the 
consolidated balance sheet at their fair values, which are also used as the 
bases for subsequent measurement in accordance with Group accounting policies. 
Goodwill is stated after separating out identifiable intangible assets. Goodwill 
represents the excess of acquisition cost over the fair value of the Group's 
share of the identifiable net assets of the acquired subsidiary at the date of 
acquisition. 
 
 
The results of discontinued operations that have been sold in the year have been 
consolidated until the effective date of disposal, but shown separately together 
with the gain or loss on sale. The revenue, costs, gross profit and net profit 
or loss of continuing operations comprises the results of those subsidiary 
undertakings owned by the group at the end of the current year. 
 
 
 
2. SEGMENTAL INFORMATION 
 
 
For management purposes, the Group is organised into two divisions: 
Confectionery; and Natural & Premium Snacks. These divisions are continuing 
activities and include the following principal subsidiaries: 
 
 
Confectionery 
Kinnerton (Confectionery) Company Limited 
Horsley, Hick & Flower Limited (dormant 1 May 2009) 
Lir Chocolates Limited 
Natural & Premium Snacks 
Humdinger Limited 
Readifoods Limited (dormant 1 May 2009) 
 
 
In addition discontinued operations comprise: 
The Baked Snacks Company Limited (sold 30 April 2009) which was previously 
included within the Natural & Premium Snacks division. 
 
 
Segment revenue and results 
An analysis of the Group's continuing operations is as follows: 
 
 
+---------------+----------+----------+----------+----------+----------+----------+ 
|               |             Revenue |  Adjusted operating |        Total result | 
|               |                     |              profit |                     | 
+---------------+---------------------+---------------------+---------------------+ 
|               |     2009 |     2008 |     2009 |     2008 |     2009 |     2008 | 
+---------------+----------+----------+----------+----------+----------+----------+ 
|               |  GBP'000 |  GBP'000 |  GBP'000 |  GBP'000 |  GBP'000 |  GBP'000 | 
+---------------+----------+----------+----------+----------+----------+----------+ 
| Confectionery |   75,093 |   68,481 |    4,378 |    5,634 |    2,695 |    5,176 | 
+---------------+----------+----------+----------+----------+----------+----------+ 
| Natural       |   43,509 |   40,735 |    1,673 |    3,090 |    1,508 |    2,496 | 
| &             |          |          |          |          |          |          | 
| Premium       |          |          |          |          |          |          | 
| Snacks        |          |          |          |          |          |          | 
+---------------+----------+----------+----------+----------+----------+----------+ 
|               |  118,602 |  109,216 |          |          |          |          | 
+---------------+----------+----------+----------+----------+----------+----------+ 
| Operating     |          |          |    6,051 |    8,724 |    4,203 |    7,672 | 
| profit        |          |          |          |          |          |          | 
+---------------+----------+----------+----------+----------+----------+----------+ 
| Finance       |          |          |  (1,509) |  (1,617) |  (2,189) |  (1,761) | 
| costs         |          |          |          |          |          |          | 
| (net of       |          |          |          |          |          |          | 
| interest      |          |          |          |          |          |          | 
| income)       |          |          |          |          |          |          | 
+---------------+----------+----------+----------+----------+----------+----------+ 
| Profit        |          |          |    4,542 |    7,107 |   2,014) |    5,911 | 
| before        |          |          |          |          |          |          | 
| tax           |          |          |          |          |          |          | 
+---------------+----------+----------+----------+----------+----------+----------+ 
| Tax           |          |          |  (1,241) |  (2,034) |  (1,241) |  (1,964) | 
+---------------+----------+----------+----------+----------+----------+----------+ 
| Profit        |          |          |    3,301 |    5,073 |      773 |    3,947 | 
| for the       |          |          |          |          |          |          | 
| year          |          |          |          |          |          |          | 
+---------------+----------+----------+----------+----------+----------+----------+ 
 
 
Revenue reported represents sale of goods to external customers. Inter-segment 
sales made at market rates were GBP0.4 m (2008:GBP 0.3 m). 
 
 
 
 
+--------------------------+--------------+--------------+--------------+--------------+ 
| Other segment            |      Depreciation and       |      Capital additions      | 
| information              |        amortisation         |                             | 
+--------------------------+-----------------------------+-----------------------------+ 
|                          |    2009      |    2008      |    2009      |    2008      | 
+--------------------------+--------------+--------------+--------------+--------------+ 
|                          |   GBP'000    |   GBP'000    |   GBP'000    |   GBP'000    | 
+--------------------------+--------------+--------------+--------------+--------------+ 
| Confectionery            |    1,920     |    1,666     |    3,355     |    2,607     | 
+--------------------------+--------------+--------------+--------------+--------------+ 
| Natural & Premium Snacks |     883      |    1,280     |     494      |    1,950     | 
+--------------------------+--------------+--------------+--------------+--------------+ 
| Consolidated             |    2,803     |    2,946     |    3,849     |    4,557     | 
+--------------------------+--------------+--------------+--------------+--------------+ 
 
 
Geographical segments 
The Group operates in four geographical areas - the United Kingdom, Europe, 
Australasia and the Rest of the World. The Group's revenue from external 
customers and its segment assets by geographical location are detailed below. 
Revenue from external customers is segmented by the geographical destination of 
sales and assets are segmented by their location. 
 
+-------------------+------------+------------+------------+------------+------------+------------+------------+------------+ 
|                   | Revenue from external   | Segment assets          | Sale of segment assets* | Acquisition of segment  | 
|                   | customers               |                         |                         | assets*                 | 
+-------------------+-------------------------+-------------------------+-------------------------+-------------------------+ 
|                   | 2009       | 2008       | 2009       | 2008       | 2009       | 2008       | 2009       | 2008       | 
+-------------------+------------+------------+------------+------------+------------+------------+------------+------------+ 
|                   | GBP'000    | GBP'000    | GBP'000    | GBP'000    | GBP'000    | GBP'000    | GBP'000    | GBP'000    | 
+-------------------+------------+------------+------------+------------+------------+------------+------------+------------+ 
| United Kingdom    | 107,790    | 98,685     | 78,303     | 73,915     | 5,726      | -          | -          | 4,777      | 
+-------------------+------------+------------+------------+------------+------------+------------+------------+------------+ 
| Europe            | 5,089      | 3,265      | 6,359      | 9,025      | -          | -          |            | 4,808      | 
+-------------------+------------+------------+------------+------------+------------+------------+------------+------------+ 
| Australia         | 1,698      | 3,426      | 907        | 984        | -          | -          | -          | -          | 
+-------------------+------------+------------+------------+------------+------------+------------+------------+------------+ 
| Rest of the World | 4,025      | 3,840      | 7          | 17         | -          | -          | -          | -          | 
+-------------------+------------+------------+------------+------------+------------+------------+------------+------------+ 
|                   | 118,602    | 109,216    | 85,576     | 83,941     | -          | -          | -          | 9,585      | 
+-------------------+------------+------------+------------+------------+------------+------------+------------+------------+ 
 
* Acquisition and disposal of segment assets comprises the fair value of net 
assets acquired, including the value of goodwill and intangible assets, arising 
on acquisitions and disposals during the year. 
 
 
3. FINANCE COSTS AND INCOME 
 
 
+----------------------------------------+--------------------+---------------------+ 
|                                        |               2009 |                2008 | 
+----------------------------------------+--------------------+---------------------+ 
| Finance costs                          |            GBP'000 |             GBP'000 | 
+----------------------------------------+--------------------+---------------------+ 
| Interest payable on bank borrowings    |              1,515 |               1,666 | 
| (including amortisation of issue       |                    |                     | 
| costs)                                 |                    |                     | 
+----------------------------------------+--------------------+---------------------+ 
| Interest payable on obligations under  |                 41 |                  67 | 
| finance leases                         |                    |                     | 
+----------------------------------------+--------------------+---------------------+ 
| Total interest payable                 |              1,556 |               1,733 | 
+----------------------------------------+--------------------+---------------------+ 
| Unwinding of discount on provision for |                  - |                 166 | 
| contingent consideration               |                    |                     | 
+----------------------------------------+--------------------+---------------------+ 
| Change in fair value of financial      |                680 |                (22) | 
| assets/liabilities designated as at    |                    |                     | 
| fair value through profit or loss      |                    |                     | 
+----------------------------------------+--------------------+---------------------+ 
| Net finance costs for continuing       |              2,236 |               1,877 | 
| businesses                             |                    |                     | 
+----------------------------------------+--------------------+---------------------+ 
| Interest income                        |                    |                     | 
+----------------------------------------+--------------------+---------------------+ 
| Interest received on bank deposits     |               (47) |               (116) | 
+----------------------------------------+--------------------+---------------------+ 
 
 
  4. TAX 
The tax analysis for continuing operations is as follows: 
 
 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
|                       | Adjusted | Adjusting |    Total | Adjusted | Adjusting |    Total | 
|                       |  results |     items |          |  results |     items |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
|                       |     2009 |      2009 |     2009 |     2008 |      2008 |     2008 | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
|                       |  GBP'000 |   GBP'000 |  GBP'000 |  GBP'000 |   GBP'000 |  GBP'000 | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Current tax           |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| UK corporation tax on |    1,289 |     (389) |      900 |    1,804 |         - |    1,804 | 
| profits for the year  |          |           |          |          |           |          | 
| or on adjustments     |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Adjustments in        |       22 |         - |       22 |       59 |         - |       59 | 
| respect of prior      |          |           |          |          |           |          | 
| periods               |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Total current tax     |    1,311 |     (389) |      922 |    1,865 |         - |    1,863 | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Deferred tax          |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Origination and       |     (70) |       389 |      319 |      171 |     (179) |      (8) | 
| reversal of temporary |          |           |          |          |           |          | 
| differences           |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Tax on profit on      |    1,241 |         - |    1,241 |    2,036 |     (179) |    1,855 | 
| ordinary activities   |          |           |          |          |           |          | 
| or adjusting items    |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
|                       |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Reconciliation of tax |          |           |          |          |           |          | 
| charge                |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Profit before tax     |    4,542 |   (2,528) |    2,014 |    7,107 |   (1,196) |    5,911 | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Tax at the UK         |    1,272 |     (708) |      564 |    2,117 |     (356) |    1,761 | 
| corporation tax rate  |          |           |          |          |           |          | 
| of 28% (2008: 29.8%)  |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Adjustments in        |       22 |         - |       22 |       59 |         - |       59 | 
| respect of prior      |          |           |          |          |           |          | 
| periods               |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Other                 |     (12) |        40 |       28 |    (170) |        57 |    (113) | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Share based payments  |        - |       108 |      108 |        - |       120 |      120 | 
| adjustment            |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Abolition of          |        - |       527 |      527 |        - |         - |        - | 
| industrial buildings  |          |           |          |          |           |          | 
| allowance             |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Tax effect of         |       95 |        33 |      128 |       77 |         - |       77 | 
| expenses that are not |          |           |          |          |           |          | 
| deductible in         |          |           |          |          |           |          | 
| determining taxable   |          |           |          |          |           |          | 
| profit                |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Losses not recognised |    (136) |         1 |    (136) |     (47) |         - |     (47) | 
| for deferred tax      |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
| Tax expense for the   |    1,241 |         - |    1,241 |    2,036 |     (179) |    1,857 | 
| period                |          |           |          |          |           |          | 
+-----------------------+----------+-----------+----------+----------+-----------+----------+ 
 
 
The UK government's enactment of the abolition of Industrial Buildings 
Allowances, in a phased manner between the tax years 2008/9 and 2010/11, has 
resulted in a one-off charge of GBP527,000, as reflected in the interim accounts 
to 31 October 2008. 
 
 
 
5. EARNINGS PER SHARE 
The calculation of the basic and diluted earnings/(loss) per share is based on 
the following data: 
 
 
+----------------------+-------------+------------+------------+-------------+-------------+------------+ 
|                      |                                  2009 |                                   2008 | 
+----------------------+---------------------------------------+----------------------------------------+ 
|                      |    Earnings |   Weighted | Amount per |    Earnings |    Weighted |        Per | 
|                      |             |    average |      share |             |     average |      share | 
|                      |             |     no. of |            |             |             |            | 
|                      |             |     shares |            |             |             |            | 
+----------------------+             +            +            +             +-------------+------------+ 
|                      |             |            |            |             |      no. of |     amount | 
|                      |             |            |            |             |      shares |            | 
+----------------------+-------------+------------+------------+-------------+-------------+------------+ 
|                      |    GBP'000s |      000's |          p |    GBP'000s |       000's |          p | 
+----------------------+-------------+------------+------------+-------------+-------------+------------+ 
| Basic earnings /     |     (5,063) |     11,796 |     (42.9) |       3,245 |      10,984 |       29.5 | 
| (loss) per share     |             |            |            |             |             |            | 
+----------------------+-------------+------------+------------+-------------+-------------+------------+ 
| Diluted earnings     |     (5,063) |     11,887 |     (42.6) |       3,245 |      12,515 |       25.9 | 
| / (loss) per share   |             |            |            |             |             |            | 
+----------------------+-------------+------------+------------+-------------+-------------+------------+ 
| Adjusted* basic      |       3,301 |     11,796 |       28.0 |       5,073 |      10,984 |       46.2 | 
| earnings per share   |             |            |            |             |             |            | 
+----------------------+-------------+------------+------------+-------------+-------------+------------+ 
| Adjusted* diluted    |       3,301 |     11,887 |       27.8 |       5,073 |      12,515 |       40.5 | 
| earnings per share   |             |            |            |             |             |            | 
+----------------------+-------------+------------+------------+-------------+-------------+------------+ 
| Basic (loss) per     |     (5,836) |     11,796 |     (49.5) |       (811) |      10,984 |      (7.4) | 
| share on             |             |            |            |             |             |            | 
| discontinued         |             |            |            |             |             |            | 
| operations           |             |            |            |             |             |            | 
+----------------------+-------------+------------+------------+-------------+-------------+------------+ 
| Basic (loss) per     |     (5,836) |     11,887 |     (49.1) |       (811) |      12,515 |      (6.5) | 
| share on             |             |            |            |             |             |            | 
| discontinued         |             |            |            |             |             |            | 
| operations           |             |            |            |             |             |            | 
+----------------------+-------------+------------+------------+-------------+-------------+------------+ 
 
 
* Adjusted earnings per share relate to continuing activities as derived from 
the Consolidated Income Statement. 
 
 
Reconciliations between the various weighted average numbers of shares shown 
above are as follows: 
 
 
+--------------------------------------------+------------+------------+------------+------------+ 
|                                            |     Year-ended 30 April |     Year-ended 30 April | 
|                                            |                    2009 |                    2008 | 
+--------------------------------------------+-------------------------+-------------------------+ 
|                                            |      Basic |    Diluted |      Basic |    Diluted | 
|                                            |   earnings |   earnings |   earnings |   earnings | 
|                                            |        per |        per |  per share |  per share | 
|                                            |      share |      share |            |            | 
+--------------------------------------------+------------+------------+------------+------------+ 
| Weighted average number of shares          | 11,796,310 | 11,796,310 | 10,984,268 | 10,984,268 | 
+--------------------------------------------+------------+------------+------------+------------+ 
| Weighted average number of options         |          - |     55,398 |          - |  1,180,503 | 
| (vested)                                   |            |            |            |            | 
+--------------------------------------------+------------+------------+------------+------------+ 
| Weighted average number of options         |          - |        368 |          - |    310,422 | 
| (non-vested)                               |            |            |            |            | 
+--------------------------------------------+------------+------------+------------+------------+ 
| Weighted average number of shares held by  |            |     35,882 |            |     40,130 | 
| the Zetar Plc EBT                          |            |            |            |            | 
+--------------------------------------------+------------+------------+------------+------------+ 
| Weighted average number of shares used for | 11,796,310 | 11,887,958 | 10,984,268 | 12,515,323 | 
| earnings per share                         |            |            |            |            | 
+--------------------------------------------+------------+------------+------------+------------+ 
 
 
The calculation of basic earnings per share is based on reported profit after 
tax and the weighted average number of shares during each year. Diluted earnings 
per share is calculated by adjusting the weighted average number of shares 
outstanding to assume conversion of all potentially diluted ordinary shares in 
accordance with IAS 33. Potentially dilutive ordinary shares arise from share 
options and warrants. Adjusted basic and diluted earnings per share have also 
been calculated, as in the opinion of the Directors, this provides shareholders 
with further information regarding trends in the Group's results. 
 
 
Adjusted earnings used in the calculation of adjusted earnings per share have 
been calculated on continuing operations after taking into account the items 
listed below: 
 
+----------------------+------------+------------+ 
|                      |       2009 |       2008 | 
+----------------------+------------+------------+ 
|                      |    GBP'000 |    GBP'000 | 
+----------------------+------------+------------+ 
| One-off exceptionals |      1,508 |          - | 
+----------------------+------------+------------+ 
| Amortisation of      |        456 |        675 | 
| intangibles          |            |            | 
+----------------------+------------+------------+ 
| Share based payments |      (116) |        377 | 
+----------------------+------------+------------+ 
| Finance costs        |        680 |        144 | 
+----------------------+------------+------------+ 
|                      |      2,528 |      1,196 | 
+----------------------+------------+------------+ 
| Tax benefit          |          - |      (179) | 
+----------------------+------------+------------+ 
|                      |      2,528 |      1,017 | 
+----------------------+------------+------------+ 
 
 
The adjusted basic and diluted earnings per shares have been calculated using 
the net results for the appropriate years adjusted to remove the losses from the 
discontinued operations; one-off items and exceptional items. 
 
 
6.  GOODWILL 
 
 
+--------------------------------------------------------------+-------------------+ 
| Cost and carrying amount                                     |           GBP'000 | 
+--------------------------------------------------------------+-------------------+ 
| At 1 May 2007                                                |            28,120 | 
+--------------------------------------------------------------+-------------------+ 
| Recognised on acquisition of subsidiaries                    |             4,402 | 
+--------------------------------------------------------------+-------------------+ 
| Adjustment to contingent consideration payable               |             (500) | 
+--------------------------------------------------------------+-------------------+ 
| Exchange gain on translation of goodwill arising on          |               341 | 
| acquisition of Lir Chocolates                                |                   | 
+--------------------------------------------------------------+-------------------+ 
| At 30 April 2008                                             |            32,363 | 
+--------------------------------------------------------------+-------------------+ 
| Recognised on disposal of subsidiary                         |              (77) | 
+--------------------------------------------------------------+-------------------+ 
| Adjustment to contingent consideration payable               |           (2,035) | 
+--------------------------------------------------------------+-------------------+ 
| Exchange gain on translation of goodwill arising on          |               570 | 
| acquisition of Lir Chocolates                                |                   | 
+--------------------------------------------------------------+-------------------+ 
| At 30 April 2009                                             |            30,821 | 
+--------------------------------------------------------------+-------------------+ 
 
 
Adjustments to contingent consideration payable set out above reflect the 
re-assessment of the amounts that have been paid or will be paid in respect of 
performance related contingent consideration for the acquisition of subsidiaries 
in previous years. Goodwill acquired in a business combination is allocated, at 
acquisition, to the cash generating units (CGUs) that are expected to benefit 
from that business acquisition. 
 
 
 
 
+---------------------------------------------------+---------------+---------------+ 
| The carrying amount of goodwill by CGU is as      |          2009 |          2008 | 
| follows:                                          |               |               | 
+---------------------------------------------------+---------------+---------------+ 
| Kinnerton                                         |        14,795 |        14,795 | 
+---------------------------------------------------+---------------+---------------+ 
| Readifoods                                        |         3,361 |         3,361 | 
+---------------------------------------------------+---------------+---------------+ 
| Humdinger                                         |         7,608 |         7,608 | 
+---------------------------------------------------+---------------+---------------+ 
| Horsley Hick & Flower                             |         1,626 |         1,856 | 
+---------------------------------------------------+---------------+---------------+ 
| Baked Snacks                                      |             - |            77 | 
+---------------------------------------------------+---------------+---------------+ 
| Lir                                               |         3,431 |         4,666 | 
+---------------------------------------------------+---------------+---------------+ 
|                                                   |        30,821 |        32,363 | 
+---------------------------------------------------+---------------+---------------+ 
 
 
In future periods the goodwill relating to Horsley Hick and Flower will be 
aggregated with Kinnerton and the goodwill relating to Readifoods will be 
aggregated with Humdinger following the transfer of their respective business, 
assets and liabilities on 30 April 2009. The impairment review has been carried 
out on this basis. 
 
 
The Group tests goodwill annually for impairment, or more frequently if there 
are indications that the goodwill might be impaired.  The recoverable amounts of 
the cash generating units ("CGU's") to which goodwill has been allocated are 
determined based on value in use calculations which are the present value of 
future cash flows expected to be obtained from the CGU's. The key assumptions 
used in the assessment of value are those regarding the discount rates, long 
term growth rates and expected changes to the cash flows generated by the CGU 
during the period. Whilst the Group's weighted average cost of capital is 
normally below 10%, given the unusual prevailing financial market conditions, we 
have performed the calculations at 10% and above which demonstrate that discount 
rates in excess of 10% would need to apply before impairment would need to be 
considered. Changes to the cash flows are determined for each CGU and are based 
on management forecasts, past performance and the expected impact on future 
performance of recent investment and market strategies. 
 
 
The Group prepares profit and cash flow forecasts derived from the most recent 
financial budget and business plan which cover the period to 30 April 2012, 
approved by the Board of Directors, and extrapolated for a further seven years 
at relevant industry sector fixed growth rates. 
 
 
As a result of the review based on these assumptions, management believe that 
the carrying value of goodwill is reasonably expected to be exceeded by the 
recoverable cash flows. 
 
 
 
 
7. OBLIGATIONS UNDER FINANCE LEASES 
 
 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
|                                      |    Minimum lease      |   Present value of    | 
|                                      |       payments        |    minimum lease      | 
|                                      |                       |       payments        | 
+--------------------------------------+-----------------------+-----------------------+ 
|                                      |   2009    |   2008    |   2009    |   2008    | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
| Leases expiring:                     |  GBP'000  |  GBP'000  |  GBP'000  |  GBP'000  | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
| Within one year                      |    229    |    518    |    214    |    470    | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
| Between one and five years           |    176    |    454    |    167    |    369    | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
| After more than five years           |    -      |    -      |    -      |    -      | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
|                                      |    405    |    972    |    381    |    839    | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
| Less future finance costs            |   (24)    |  (133)    |           |           | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
| Present value of lease obligations   |    381    |    839    |           |           | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
| Amount due for settlement within     |    214    |    470    |           |           | 
| twelve months                        |           |           |           |           | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
| Amount due for settlement after      |    167    |    369    |           |           | 
| twelve months                        |           |           |           |           | 
+--------------------------------------+-----------+-----------+-----------+-----------+ 
 
 
The average lease term is 5 years (2008: 5 years). Interest rates are fixed at 
the contract date. All leases are on a fixed repayment basis and no arrangements 
have been entered into for contingent rental payments. All lease obligations are 
denominated in sterling (except for GBP90,803 (2008: GBP161,000, denominated in 
Euros). The carrying amount of the Group's finance lease liabilities 
approximates to their fair value. The Group's obligations under finance leases 
are secured by the lessors' charges over the assets concerned. The average 
effective interest rate on finance leases was 5.4% (2007: 5.4%). 
 
 
 
 
8. BORROWINGS AND OVERDRAFTS 
 
 
+--------------------------------------------+----------------+----------------+ 
|                                            |           2009 |           2008 | 
+--------------------------------------------+----------------+----------------+ 
|                                            |        GBP'000 |        GBP'000 | 
+--------------------------------------------+----------------+----------------+ 
| Bank loans and overdraft                   |         20,388 |         16,898 | 
+--------------------------------------------+----------------+----------------+ 
| The borrowings are repayable as follows :  |                |                | 
+--------------------------------------------+----------------+----------------+ 
| On demand or within one year               |         15,712 |          9,289 | 
+--------------------------------------------+----------------+----------------+ 
| Amounts due for settlement within 12       |         15,712 |          9,289 | 
| months                                     |                |                | 
+--------------------------------------------+----------------+----------------+ 
| Amounts due for settlement after more than |                |                | 
| 12 months:                                 |                |                | 
+--------------------------------------------+----------------+----------------+ 
| Between one and two years                  |          3,980 |          2,782 | 
+--------------------------------------------+----------------+----------------+ 
| Between two and five years                 |            696 |          4,827 | 
+--------------------------------------------+----------------+----------------+ 
|                                            |          4,676 |          7,609 | 
+--------------------------------------------+----------------+----------------+ 
 
 
The bank loans and overdrafts comprise amounts drawn down under bank overdraft / 
revolving credit and asset based lending facilities of GBP13,532,000 million 
(2008: GBP6,506,000) and amortising bank loans and asset finance of GBP6,856,000 
(2008: GBP10,392,000).These borrowings are secured on the assets of the Group. 
The directors consider that the carrying amount of bank loans and overdrafts and 
loan notes approximate to their fair value at the year-end. Bank loans and 
overdrafts and loan notes are denominated in sterling. 
 
 
 
 
9.  SHARE CAPITAL 
 
 
+------------------------------------------------+----------------+-----------------+ 
|                                                |           2009 |            2008 | 
+------------------------------------------------+----------------+-----------------+ 
|                                                |        GBP'000 |         GBP'000 | 
+------------------------------------------------+----------------+-----------------+ 
| Authorised                                     |                |                 | 
+------------------------------------------------+----------------+-----------------+ 
| 20,000,000 (2007: 20,000,000) ordinary shares  |          2,000 |           2,000 | 
| of GBP0.10 each                                |                |                 | 
+------------------------------------------------+----------------+-----------------+ 
| Issued and fully paid                          |                |                 | 
+------------------------------------------------+----------------+-----------------+ 
| 13,231,193 (2008: 11,505,393) ordinary shares  |          1,324 |           1,151 | 
| of GBP0.10 each                                |                |                 | 
+------------------------------------------------+----------------+-----------------+ 
 
 
The movement in issued share capital during the period was as follows: 
 
 
+----------------------+---------------+---------------+---------------+---------------+ 
|                      |        Shares | Share capital |   Issue price |   Gross issue | 
+----------------------+---------------+---------------+---------------+---------------+ 
|                      |          000s |       GBP'000 |           GBP |       GBP'000 | 
+----------------------+---------------+---------------+---------------+---------------+ 
| At start of the year |        11,505 |         1,151 |               |         4,232 | 
+----------------------+---------------+---------------+---------------+---------------+ 
|                      |               |               |               |               | 
+----------------------+---------------+---------------+---------------+---------------+ 
| Issued during the    |         1,726 |           173 |          1.20 |         2,071 | 
| year                 |               |               |               |               | 
+----------------------+---------------+---------------+---------------+---------------+ 
| At end of the period |        13,231 |         1,324 |               |               | 
+----------------------+---------------+---------------+---------------+---------------+ 
 
 
During the year the group issued and allotted 1,725,800 ordinary shares to 
existing shareholders at GBP1.20 per share. 
 
 
 
 
10.SHARE PREMIUM ACCOUNT 
 
 
+--------------------------+---------------+ 
|                          |       GBP'000 | 
+--------------------------+---------------+ 
| At 1 May 2007            |        22,673 | 
+--------------------------+---------------+ 
| Shares issued            |         3,972 | 
+--------------------------+---------------+ 
| Costs of issue           |         (196) | 
+--------------------------+---------------+ 
| At 1 May 2008            |        26,449 | 
+--------------------------+---------------+ 
| Shares issued            |         1,898 | 
+--------------------------+---------------+ 
| Costs of issue           |          (95) | 
+--------------------------+---------------+ 
| At 30 April 2009         |        28,252 | 
+--------------------------+---------------+ 
 
 
 
11. EQUITY RESERVES 
 
 
+--------------------------+------------------+----------------+----------+-------------+ 
|                          |                Equity reserve                |             | 
+--------------------------+----------------------------------------------+-------------+ 
|                          | Foreign currency |    Share-based |    Total |    Retained | 
|                          |      translation |        payment |          |    earnings | 
|                          |          reserve |                |          |             | 
+--------------------------+------------------+----------------+----------+-------------+ 
|                          |          GBP'000 |        GBP'000 |  GBP'000 |     GBP'000 | 
+--------------------------+------------------+----------------+----------+-------------+ 
| At 1 May 2007            |                - |            621 |      621 |       4,914 | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Shared based payments    |                - |            377 |      377 |           - | 
| charged to income        |                  |                |          |             | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Deferred tax asset       |                - |          (124) |    (124) |           - | 
| arising on share options |                  |                |          |             | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Exchange gains /         |              557 |              - |      557 |           - | 
| (losses) on translation  |                  |                |          |             | 
| of foreign operations    |                  |                |          |             | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Purchase of own shares   |                - |              - |        - |       (300) | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Profit for the year      |                - |              - |        - |       3,245 | 
+--------------------------+------------------+----------------+----------+-------------+ 
| At 30 April 2008         |              557 |            874 |    1,431 |       7,859 | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Prior year share based   |                  |          (116) |    (116) |           - | 
| payment reversal         |                  |                |          |             | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Deferred tax asset       |                - |              - |        - |           - | 
| arising on share options |                  |                |          |             | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Exchange gains /         |            1,404 |              - |    1,404 |           - | 
| (losses) on translation  |                  |                |          |             | 
| of foreign operations    |                  |                |          |             | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Purchase of own shares   |                - |              - |        - |       (149) | 
+--------------------------+------------------+----------------+----------+-------------+ 
| Loss for the year        |                - |              - |        - |     (5,063) | 
+--------------------------+------------------+----------------+----------+-------------+ 
| At 30 April 2009         |            1,961 |            758 |    2,719 |       2,647 | 
+--------------------------+------------------+----------------+----------+-------------+ 
 
 
The equity reserve comprises: (i) the exchange gain/loss arising on translation 
of the net assets of overseas operations Kinnerton (Confectionery) Australia Pty 
Limited and Lir Chocolates Limited into sterling at the balance sheet date(s); 
and (ii) share based payments charged to the income statement as well as the 
deferred tax effects arising on the recognition of deferred tax assets in 
respect of temporary differences related to all share based incentives. 
 
 
The premium on shares issued to the vendors of Kinnerton (prior to 1 May 2006), 
of Humdinger (in the year ended 30 April 2007) and of Lir in the year ended 30 
April 2008, has been accounted for in the merger reserve. 
 
 
There has been no reinstatement of GBP805,000 of cumulative goodwill 
amortisation that had been deducted from retained earnings prior to the 
transition to IFRS. 
 
 
12. RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET DEBT 
 
 
+---------------------------------------+-------------+----------------+ 
|                                       |        2009 |           2008 | 
+---------------------------------------+-------------+----------------+ 
|                                       |     GBP'000 |        GBP'000 | 
+---------------------------------------+-------------+----------------+ 
| Decrease in cash and cash equivalents |     (4,533) |        (4,293) | 
+---------------------------------------+-------------+----------------+ 
| Cash outflow from movement in debt    |       3,536 |          (181) | 
| financing                             |             |                | 
+---------------------------------------+-------------+----------------+ 
| Cash outflow from movement in lease   |         457 |            472 | 
| financing                             |             |                | 
+---------------------------------------+-------------+----------------+ 
| Movement in net debt arising from     |       (540) |        (4,002) | 
| cash flows                            |             |                | 
+---------------------------------------+-------------+----------------+ 
| Other non-cash changes                |       (262) |          (246) | 
+---------------------------------------+-------------+----------------+ 
| Debt acquired with subsidiary         |           - |          (498) | 
+---------------------------------------+-------------+----------------+ 
| Net debt at the start of the year     |    (14,562) |        (9,816) | 
+---------------------------------------+-------------+----------------+ 
| Net debt at 30 April                  |    (15,364) |       (14,562) | 
+---------------------------------------+-------------+----------------+ 
 
 
Other non-cash changes in the current financial year are GBPNIL and in the 
previous financial year were in respect of new finance leases for plant and 
machinery 
 
 
  13. ANALYSIS OF NET DEBT 
 
 
+---------------------------------------+-------------+----------------+ 
|                                       |        2009 |           2008 | 
+---------------------------------------+-------------+----------------+ 
|                                       |     GBP'000 |        GBP'000 | 
+---------------------------------------+-------------+----------------+ 
| Cash at bank                          |       5,405 |          3,175 | 
+---------------------------------------+-------------+----------------+ 
| Bank overdraft                        |    (13,532) |        (6,506) | 
+---------------------------------------+-------------+----------------+ 
|                                       |     (8,127) |        (3,331) | 
+---------------------------------------+-------------+----------------+ 
| Debt due within one year              |     (2,180) |        (2,783) | 
+---------------------------------------+-------------+----------------+ 
| Debt due after one year               |     (4,676) |        (7,609) | 
+---------------------------------------+-------------+----------------+ 
| Finance leases                        |       (381) |          (839) | 
+---------------------------------------+-------------+----------------+ 
| Net debt at 30 April                  |    (15,364) |       (14,562) | 
+---------------------------------------+-------------+----------------+ 
 
 
 
 
14. ANNUAL GENERAL MEETING 
 
 
Notice is hereby given that the Annual General Meeting of Zetar Plc ("Company") 
will be held at the offices of DLA Piper UK LLP, 3 Noble Street, London EC2V 7EE 
at 10.00 on Thursday 1 October 2009. 
 
 
 
 
-ENDS- 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 FR PUUBGMUPBPWG 
 

Zetar (LSE:ZTR)
Historical Stock Chart

1 Year : From Oct 2013 to Oct 2014

Click Here for more Zetar Charts.

Zetar (LSE:ZTR)
Intraday Stock Chart

Today : Friday 24 October 2014

Click Here for more Zetar Charts.


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE and AMEX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

1 site:2 us 141024 12:10