Interim Results

RNS Number : 9096F

Greggs PLC

02 August 2016

 

 

2 August 2016

INTERIM RESULTS FOR THE 26 WEEKS ENDED 2 JULY 2016

Greggs is the leading bakery food-on-the-go retailer in the UK,

with over 1,700 retail outlets throughout the country

A GOOD FIRST HALF PERFORMANCE

Financial highlights

·     Total sales up 6.0% to £422m

·     Company-managed shop like-for-like sales up 3.8%

·     Operating profit excluding property gains and exceptional charge* up 6.7% to £27.2m (2015: £25.5m)

·     Property disposal gains of £2.2m (2015: £0.1m)

·     Diluted earnings per share excluding exceptional charge* 22.3p (2015: 19.5p)

·     Pre-tax profit including property profits and exceptional charges £25.4m

·     Continued strong cash generation: £44.7m net inflow from operating activities

·     Ordinary interim dividend per share of 9.5p (2015: 7.4p)

*before exceptional pre-tax charge of £4.0m (2015: £ nil) in relation to previously announced restructuring

Operational highlights

·     Good results from sales initiatives:

-  strengthening of 'Balanced Choice' range

-  further development of breakfast and hot drinks offer

-  successful launch of improved Greggs Rewards app

·     Shop refurbishment programme progressing well:

-  86 shop refurbishments completed year-to-date, planning 200 for the year

·     68 new shops opened, 36 closures; expect around 70 net new shops in the year

·     1,730 shops trading as at 2 July 2016

"In the first half of 2016 we delivered good like-for-like growth by reinforcing the freshness and value of our offer in line with changing trends in the food-on-the-go market.  We added to our "Balanced Choice" range with sales growing strongly as more and more of our customers recognise the quality, range and value we offer in these healthier food choices.

"We have made an encouraging start to the second half of the year and are alert to any change in consumer demand that may result from the current economic uncertainty.  Overall, we expect to deliver full-year growth in line with our previous expectations as well as further progress against our strategic plan." 

-     Roger Whiteside, Chief Executive

ENQUIRIES: Greggs plc Roger Whiteside, Chief Executive Richard Hutton, Finance Director Tel: [phone] on 2 August only        0191 281 7721 thereafter

Hudson Sandler Wendy Baker / Alex Brennan Tel: [phone]

An audio webcast of the analysts' presentation will be available to download later today at http://corporate.greggs.co.uk/results-centre

High resolution images are available for the media to view and download from https://corporate.greggs.co.uk/media-centre/image-and-video-library

 

CHIEF EXECUTIVE'S REPORT

The business has traded well, and in line with our plans, during the first half of the year.  Total sales for the 26 weeks to 2 July 2016 grew by 6.0 per cent to £422 million, with like-for-like sales in company-managed shops up by 3.8 per cent.  Operating profit before property gains and exceptional items grew by 6.7 per cent to £27.2 million (2015: £25.5 million).

Operational review

In the first half of 2016 we delivered good like-for-like growth by reinforcing the freshness and value of our offer in line with changing trends in the food-on-the-go market.  We added to our 'Balanced Choice' range with sales growing strongly as more and more of our customers recognise the quality, range and value we offer in these healthier food choices.  As an example our new Chargrill Chicken Salad is freshly prepared in our shops and contains just 200 calories.  Breakfast remains our fastest-growing part of the day and we have successfully broadened our coffee range and invested in improved service levels to meet growing demand.

We re-launched the Greggs Rewards app in the period, introducing a simplified registration process and improved payment compatibility.  Membership has grown quickly since launch of the improved app and this will help us to understand consumer needs better whilst rewarding loyal customers.

We continue to invest in the transformation of our shop estate and in the period we completed 86 shop refurbishments to our latest 'bakery food-on-the-go' format; we have continued to see the expected positive impact from this programme.  Over the year as a whole we plan to update around 200 shops.  In the first half of 2016 we also opened 68 new shops (including 31 franchise units) and closed 36 shops, giving a total of 1,730 shops (of which 136 are franchise units) trading at 2 July 2016.  We have a strong pipeline of openings, weighted towards the end of the second half, and now expect to open around 70 net new shops over the year as a whole.

Our plans to invest in the transformation and development of our supply chain are progressing well.  We expect that our new distribution facility in Enfield will be operational in October allowing us to complete the closure of our existing Twickenham bakery in the fourth quarter as planned.  In addition, planning permission has been secured for the extension of our Clydesmill bakery in Glasgow which will enable us to close our Edinburgh bakery during the second quarter of 2017, as previously announced.  We are now planning the next phase of investment in our remaining sites, which will increase logistics capacity and consolidate manufacturing, with benefits in product quality, consistency and efficiency.

In April this year we went live with the implementation of SAP to handle our core finance processes.  The migration has gone well and will provide the platform on which we will build a suite of new capabilities across logistics, procurement, product lifecycle management and centralised ranging, forecasting and replenishment.  We are on track to trial improved processes around shop stock replenishment in the second half of the year.

 

Financial performance

Food and packaging input costs continued to be deflationary in the first half, however we are now seeing the expected increased inflationary pressure in wage costs as the 'national living wage' increases take effect.  Indirect currency impacts are likely to affect input costs towards the end of 2016 but we have forward cover for most of the second half.

Freehold property disposals realised profits of £2.2 million in the period (2015: £0.1 million) and we incurred a net exceptional charge of £4.0 million (2015: £nil) as described below.  Pre-tax profit including property profits and exceptional charges was £25.4 million (2015: £25.6 million).  Excluding the exceptional charge diluted earnings per share were 22.3 pence (2015: 19.5 pence), with reported diluted earnings per share (including exceptional items) of 19.3 pence (2015: 19.5 pence).

Exceptional items

At the time of our preliminary results announcement in March of this year we outlined plans to invest substantially in our manufacturing and distribution operations to reshape them for future growth.  The initial phase of this plan involves the closure of three bakery manufacturing sites with associated one-off costs expected to be £7.6 million.  £4.8 million of this cost has been recognised in the first half of the year and this, combined with a £0.8 million exceptional credit related to the release of historical shop closure provisions, resulted in a net exceptional charge of £4.0 million in the period.  The overall cost and exceptional charges expected to arise from the plan remain in line with previous guidance.

Dividend

In setting the interim ordinary dividend the Board intends, going forward, to apply a formula so that the interim payment is the equivalent of approximately one third of the total ordinary dividend for the previous year.  On this basis the Board has declared an interim dividend of 9.5 pence per share (2015: 7.4 pence).  The overall ordinary dividend for the year will be declared in line with our progressive dividend policy, which targets a full year ordinary dividend that is two times covered by underlying earnings.  The interim dividend will be paid on 7 October 2016 to those shareholders on the register at the close of business on 9 September 2016.

Financial position

Capital expenditure during the first half was £31.2 million (2015: £31.3 million).  We continue to see a strong return on investment in our shop estate and are progressing well with the transformation of our systems platform.  The conversion of our new distribution facility in Enfield is under way and we continue to expect total capital expenditure in 2016 to be approximately £85 million (2015: £71.7 million).

The Group continues to generate strong cash flows and remains in a robust financial position.  Net cash inflow from operating activities in the period was £44.7 million (2015: £34.6 million) and we ended the period with a cash balance of £35.0 million (4 July 2015: £41.4 million).

 

Outlook

We have made an encouraging start to the second half of the year and are alert to any change in consumer demand that may result from the current economic uncertainty.  We remain confident in the quality and value of the Greggs brand and will continue with our long-term strategic investment programme to transform the business from traditional bakery to a growing food-on-the-go brand.

We continue to manage a significant change agenda that will benefit the capacity and cost structure of the business in the longer term.  Overall, we expect to deliver full-year growth in line with our previous expectations as well as further progress against our strategic plan.

                                                                                                                         Roger Whiteside

Chief Executive

                                                                                                                             2 August 2016

 

Greggs plc

Consolidated income statement

For the 26 weeks ended 2 July 2016

	26 weeks ended 2 July 2016			26 weeks ended 4 July 2015	52 weeks ended  2 January 2016
	Excluding  exceptional   items	Exceptional   items   (see note 5)	Total	Total  As restated  (see note 2)	Total
	£'000	£'000	£'000	£'000	£'000
Revenue	422,129	-	422,129	398,403	835,749
Cost of sales	(155,349)	(2,933)	(158,282)	(148,346)	(305,116)
Gross profit	266,780	(2,933)	263,847	250,057	530,633
Distribution and selling costs	(212,808)	(695)	(213,503)	(201,793)	(412,426)
Administrative expenses	(24,586)	(400)	(24,986)	(22,677)	(45,094)
Operating profit	29,386	(4,028)	25,358	25,587	73,113
Finance income / (expense)	16	-	16	(6)	(85)
Profit before tax	29,402	(4,028)	25,374	25,581	73,028
Income tax	(6,497)	915	(5,582)	(5,501)	(15,428)
Profit for the period attributable to equity holders of the parent	22,905	(3,113)	19,792	20,080	57,600
Basic earnings per share	22.8p	(3.1p)	19.7p	20.0p	57.3p
Diluted earnings per share	22.3p	(3.0p)	19.3p	19.5p	55.8p

 

Greggs plc

Consolidated statement of comprehensive income

For the 26 weeks ended 2 July 2016

	26 weeks ended   2 July 2016	26 weeks ended   4 July 2015	52 weeks ended   2 January 2016
	£'000	£'000	£'000
Profit for the period	19,792	20,080	57,600
Other comprehensive income
Items that will not be recycled to profit or loss:
Re-measurements on defined benefit pension plans	(13,667)	3,417	4,915
Tax on items taken directly to equity	2,460	(684)	(885)
Other comprehensive income for the period, net of income tax	(11,207)	2,733	4,030
Total comprehensive income for the period	8,585	22,813	61,630

 

Greggs plc

Consolidated balance sheet

as at 2 July 2016

	2 July 2016	4 July 2015	2 January 2016  As restated  (see note 2)
	£'000	£'000	£'000
ASSETS
Non-current assets
Intangible assets	13,139	6,838	10,248
Property, plant and equipment	287,912	270,271	284,163
Deferred tax asset	4,036	1,621	3,830
	305,087	278,730	298,241
Current assets
Inventories	15,924	16,033	15,444
Trade and other receivables	32,147	26,443	27,647
Asset held for sale	-	6,500	-
Cash and cash equivalents	35,034	41,361	42,915
	83,105	90,337	86,006
Total assets	388,192	369,067	384,247
LIABILITIES
Current liabilities
Trade and other payables	(99,734)	(85,714)	(92,780)
Current tax liabilities	(7,511)	(6,544)	(9,580)
Dividends payable	-	(20,161)	-
Provisions	(5,482)	(5,063)	(4,265)
	(112,727)	(117,482)	(106,625)
Non-current liabilities
Other payables	(5,834)	(6,321)	(6,071)
Defined benefit pension liability	(17,652)	(5,254)	(3,910)
Long-term provisions	(4,762)	(1,483)	(2,972)
	(28,248)	(13,058)	(12,953)
Total liabilities	(140,975)	(130,540)	(119,578)
Net assets	247,217	238,527	264,669
EQUITY
Capital and reserves
Issued capital	2,023	2,023	2,023
Share premium account	13,533	13,533	13,533
Capital redemption reserve	416	416	416
Retained earnings	231,245	222,555	248,697
Total equity attributable to equity holders of the parent	247,217	238,527	264,669

 

Greggs plc

Consolidated statement of changes in equity

For the 26 weeks ended 2 July 2016

26 weeks ended 4 July 2015

	Issued capital	Share  premium	Capital  redemption  reserve	Retained  earnings	Total
	£'000	£'000	£'000	£'000	£'000
Balance at 4 January 2015	2,023	13,533	416	230,731	246,703
Profit for the period	-	-	-	20,080	20,080
Other comprehensive income	-	-	-	2,733	2,733
Total comprehensive income for the period	-	-	-	22,813	22,813
Transactions with owners, recorded directly in equity
Sale of own shares	-	-	-	3,648	3,648
Purchase of own shares	-	-	-	(4,078)	(4,078)
Share-based payments	-	-	-	1,218	1,218
Dividends to equity holders	-	-	-	(36,251)	(36,251)
Tax items taken directly to reserves	-	-	-	4,474	4,474
Total transactions with owners	-	-	-	(30,989)	(30,989)
Balance at 4 July 2015	2,023	13,533	416	222,555	238,527

52 weeks ended 2 January 2016

	Issued capital	Share  premium	Capital  redemption  reserve	Retained  earnings  As restated  (see note 2)	Total  As restated  (see note 2)
	£'000	£'000	£'000	£'000	£'000
Balance at 4 January 2015	2,023	13,533	416	230,731	246,703
Profit for the financial year	-	-	-	57,600	57,600
Other comprehensive income	-	-	-	4,030	4,030
Total comprehensive income for the year	-	-	-	61,630	61,630
Transactions with owners, recorded directly in equity
Sale of own shares	-	-	-	3,876	3,876
Purchase of own shares	-	-	-	(11,125)	(11,125)
Share-based payments	-	-	-	2,057	2,057
Dividends to equity holders	-	-	-	(43,714)	(43,714)
Tax items taken directly to reserves	-	-	-	5,242	5,242
Total transactions with owners	-	-	-	(43,664)	(43,664)
Balance at 2 January 2016	2,023	13,533	416	248,697	264,669

26 weeks ended 2 July 2016

	Issued capital	Share  premium	Capital  redemption  reserve	Retained  earnings	Total
	£'000	£'000	£'000	£'000	£'000
Balance at 3 January 2016	2,023	13,533	416	248,697	264,669
Profit for the period	-	-	-	19,792	19,792
Other comprehensive income	-	-	-	(11,207)	(11,207)
Total comprehensive income for the period	-	-	-	8,585	8,585
Transactions with owners, recorded directly in equity
Sale of own shares	-	-	-	3,799	3,799
Purchase of own shares	-	-	-	(7,868)	(7,868)
Share-based payments	-	-	-	1,370	1,370
Dividends to equity holders	-	-	-	(21,326)	(21,326)
Tax items taken directly to reserves	-	-	-	(2,012)	(2,012)
Total transactions with owners	-	-	-	(26,037)	(26,037)
Balance at 2 July 2016	2,023	13,533	416	231,245	247,217

 

Greggs plc

Consolidated statement of cash flows

For the 26 weeks ended 2 July 2016

	26 weeks ended   2 July 2016	26 weeks ended  4 July 2015	52 weeks ended  2 January 2016
	£'000	£'000	£'000
Operating activities
Cash generated from operating activities (see below)	52,148	41,968	119,637
Income tax paid	(7,408)	(7,383)	(15,916)
Net cash inflow from operating activities	44,740	34,585	103,721
Cash flows from investing activities
Acquisition of property, plant and equipment	(27,903)	(27,847)	(65,785)
Acquisition of intangible assets	(3,302)	(2,882)	(5,981)
Proceeds from sale of property, plant and equipment	3,888	263	8,086
Interest received	91	147	222
Redemption of other investments	-	10,000	10,000
Net cash outflow from investing activities	(27,226)	(20,319)	(53,458)
Cash flows from financing activities
Sale of own shares	3,799	3,648	3,876
Purchase of own shares	(7,868)	(4,078)	(11,125)
Dividends paid	(21,326)	(16,090)	(43,714)
Net cash outflow from financing activities	(25,395)	(16,520)	(50,963)
Net decrease in cash and cash equivalents	(7,881)	(2,254)	(700)
Cash and cash equivalents at the start of the period	42,915	43,615	43,615
Cash and cash equivalents at the end of the period	35,034	41,361	42,915

 

Greggs plc

Consolidated statement of cash flows (continued)

For the 26 weeks ended 2 July 2016

Cash flow statement - cash generated from operations
	26 weeks ended   2 July 2016	26 weeks ended  4 July 2015	52 weeks ended  2 January 2016
	£'000	£'000	£'000
Profit for the period	19,792	20,080	57,600
Amortisation	411	208	454
Depreciation	20,504	19,265	39,687
Impairment	62	(112)	66
(Profit) / loss on sale of property, plant and equipment	(300)	2,054	2,952
Release of government grants	(236)	(234)	(484)
Share-based payment expenses	1,370	1,218	3,662
Finance (income) / expense	(16)	6	85
Income tax expense	5,582	5,501	15,428
Increase in inventories	(480)	(743)	(154)
Increase in debtors	(4,500)	(352)	(1,555)
Increase / (decrease) in creditors	6,952	(4,858)	2,875
Increase / (decrease) in provisions	3,007	(65)	(979)
Cash generated from operating activities	52,148	41,968	119,637

 

Notes

1.             Basis of preparation and accounting policies

The condensed accounts have been prepared for the 26 weeks ended 2 July 2016.  Comparative figures are presented for the 26 weeks ended 4 July 2015. These condensed accounts have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.  They do not include all the information required for full annual accounts, and should be read in conjunction with the Group accounts for the 52 weeks ended 2 January 2016.

These condensed accounts are unaudited and were approved by the Board of Directors on 2 August 2016.

The comparative figures for the 52 weeks ended 2 January 2016 are not the Company's statutory accounts for that financial year.  Those accounts have been reported on by the Company's auditor and delivered to the Registrar of Companies.  The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report; and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The Group continues to have strong operational cash flows and the Directors are of the view that the Group has sufficient funds available to meet its foreseeable working capital requirements.  The Directors have concluded therefore that the going concern basis remains appropriate.

The accounting policies applied by the Group in these condensed accounts are the same as those applied by the Group in its consolidated accounts for the 52 weeks ended 2 January 2016 other than those disclosed in note 2. 

2.             Changes in accounting policies

Accounting policies

From 3 January 2016 the following standards, amendments and interpretations were adopted by the Group:

·      Clarification of Acceptable Methods of Depreciation and Amortisation - Amendments to IAS 16 and IAS 38

·      Equity Method in Separate Financial Statements - Amendments to IAS 27

·      Annual Improvements to IFRSs - 2012-2014 Cycle

·      Disclosure Initiative - Amendments to IAS 1

The adoption of the above has not had a significant impact on the Group's profit for the period or equity.

Restatement of comparatives

During 2015 a charge was recognised for the future employers' national insurance costs on share-settled option schemes where there is no requirement for the employee to reimburse these costs. The charge was included within the share-based payments charge within the income statement with the credit being taken directly to reserves in line with the rest of the charge.  It has been determined that the element of the charge relating to future employers' national insurance costs should have been accounted for as a provision rather than directly to reserves. The impact of this for the 52 weeks ended 2 January 2016 is that the closing retained earnings reserve has been reduced by £1,605,000, current liability provisions have increased by £590,000 and long-term provisions have increased by £1,015,000.  There is no impact on profit or cash flows or on the reported results for the 26 weeks ended 4 July 2015.

In addition, during the second half of 2015 a review of income statement categorisations was carried out which identified two re-categorisations. Firstly it was determined that it was more appropriate for all wage costs associated with bakery and distribution centre despatch activities to be included in distribution and selling costs, rather than some being included in cost of sales. The net impact of this for the 26 weeks ended 4 July 2015 has been a decrease in cost of sales and a corresponding increase in distribution and selling costs of £4,023,000.  Secondly, early settlement discounts should have been included in administrative costs rather than cost of sales.  The net impact for the 26 weeks ended 4 July 2015 has been an increase in cost of sales and a decrease in administrative costs of £39,000.  There is no impact on profit, balance sheet or cash flows arising from these changes in categorisation.  The figures for the 52 weeks ended 2 January 2016 were correctly stated in the financial statements for that period.

3.             Principal risks and uncertainties

The Directors consider that the principal risks and uncertainties which could have a material impact on the Group's performance in the remaining 26 weeks of the financial year remain substantially the same as those stated on pages 24 and 25 of our Annual Report and Accounts for the 52 weeks ended 2 January 2016, which is available on our website corporate.greggs.co.uk.  Following the referendum in June 2016 regarding the UK's future in Europe there is considerable economic and political uncertainly within the country. However, the Directors consider that the business's exposure to this risk is no different to that faced by other operators in the food-on-the-go sector.

4.             Operating segment
 

The Board has considered the requirements of IFRS 8: Operating Segments, and concluded that as there is still only one reportable segment whose revenue, profits, assets and liabilities are measured and reported on a consistent basis with the Group accounts, no additional numerical disclosures are necessary.

5.             Exceptional items

		26 weeks ended   2 July 2016	26 weeks ended  4 July 2015	52 weeks ended  2 January 2016
		£'000	£'000	£'000
Cost of sales
Supply chain restructuring	- redundancy costs	2,780	-	-
	- asset-related costs	694	-	-
	- other contractual obligations	16	-	-
Prior year costs	- dilapidations	(557)	-	-
		________	________	________
		2,933	-	-
Distribution and selling
Supply chain restructuring	- redundancy costs	966	-	-
Prior year costs	- property provision	(271)	-	-
		________	________	________
		695	-	-
Administrative expenses
Restructuring of support functions		400	-	-
		________	________	________
Total exceptional items		4,028	-	-
		=======	=======	=======

Supply chain restructuring

This charge arises from the decision, announced in March 2016, to invest in and reshape the Company's supply chain in order to support future growth. The costs relate to the closure of three bakery sites and include redundancy and other employment-related costs, costs related to redundant assets, and other contractual obligations that arise as a result of the closure of the sites.

Restructuring of support functions

This charge relates to redundancy costs arising from the restructuring of bakery administration and payroll functions.

Prior year costs

These relate to costs treated as exceptional in prior years and arise from the settlement of various property transactions.

6.             Defined benefit pension scheme

The valuation of the defined benefit pension scheme for the purposes of IAS 19 (Revised) as at 2 January 2016 has been updated as at 2 July 2016 and the movements have been reflected in these condensed accounts.

 

7.             Taxation

The taxation charge for the 26 weeks ended 2 July 2016 and 4 July 2015 is calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period.

8.             Earnings per share

	26 weeks ended 2 July 2016			26 weeks ended 4 July 2015	52 weeks ended 2 January 2016
	Excluding  exceptional   items	Exceptional   items   (see note 5)	Total	Total	Total
	£'000	£'000	£'000	£'000	£'000
Profit for the period attributable to equity holders of the parent	22,905	(3,113)	19,792	20,080	57,600
Basic earnings per share	22.8p	(3.1p)	19.7p	20.0p	57.3p
Diluted earnings per share	22.3p	(3.0p)	19.3p	19.5p	55.8p

Weighted average number of ordinary shares

	26 weeks ended  2 July 2016	26 weeks ended  4 July 2015	52 weeks ended  2 July 2016
	Number	Number	Number
Issued ordinary shares at start of period	101,155,901	101,155,901	101,155,901
Effect of own shares held	(753,909)	(622,625)	(551,314)
Weighted average number of ordinary shares during the period	100,401,992	100,533,276	100,604,587
Effect of share options on issue	2,225,050	2,681,435	2,616,364
Weighted average number of ordinary shares (diluted) during the period	102,627,042	103,214,711	103,220,951
Issued ordinary shares at end of period	101,155,901	101,155,901	101,155,901

 

9.             Dividends

The following tables analyse dividends when paid and the year to which they relate:

Dividend declared	26 weeks ended  2 July 2016	26 weeks ended  4 July 2015	52 weeks ended  2 January 2016
	Pence per share	Pence per share	Pence per share
2014 final dividend	-	16.0p	16.0p
2015 interim dividend	-	-	7.4p
2015 special dividend	-	20.0p	20.0p
2015 final dividend	21.2p	-	-
	21.2p	36.0p	43.4p

	26 weeks ended  2 July 2016	26 weeks ended  4 July 2015	52 weeks ended  2 January 2016
	£'000	£'000	£'000
Total dividend payable
2014 final dividend	-	16,090	16,090
2015 interim dividend	-	-	7,463
2015 special dividend	-	20,161	20,161
2015 final dividend	21,326	-	-
Total dividend paid in period	21,326	36,251	43,714
Dividend proposed at period end and not included as a liability in the accounts
2015 interim dividend (7.4p per share)	-	7,462	-
2015 final dividend (21.2 p per share)	-	-	21,264
2016 interim dividend (9.5p per share)	9,553	-	-
	9,553	7,462	21,264

10.          Related party transactions

There have been no related party transactions in the first 26 weeks of the current financial year which have materially affected the financial position or performance of the Group.

Related parties are consistent with those disclosed in the Group's Annual Report and Accounts for the 52 weeks ended 2 January 2016.

11.          Half year report

The condensed accounts were approved by the Board of Directors on 2 August 2016.  They will be available on the Company's website, corporate.greggs.co.uk

 

12.          Statement of Directors' responsibilities

The Directors named below confirm on behalf of the Board of Directors that to the best of their knowledge:

·      the condensed set of accounts has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

·      the interim management report includes a fair review of the information required by:

(a)   DTR4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first 26 weeks of the financial year and their impact on the condensed set of accounts; and a description of the principal risks and uncertainties for the remaining 26 weeks of the year; and

(b)   DTR4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first 26 weeks of the financial year and that have materially affected the financial position or performance of the Group during the period; and any changes in the related party transactions described in the last annual report that could do so.

The Directors of Greggs plc are listed in the Annual Report and Accounts for the 52 weeks ended 2 January 2016.  There have been no changes since the approval of the Annual Report and Accounts:

For and on behalf of the Board of Directors

Roger Whiteside                                 Richard Hutton

 

END

 

 

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