About the authors
Stuart Warner Bsc (Hons) FCA is the author of four books on finance, an international speaker, a teacher and a non-executive adviser. His goal is to help businesses increase productivity and profits through innovative and engaging finance training. He delivers finance based training programmes around the world across multiple sectors. Over his career, Stuart has trained over ten thousand people. He has taught accounting trainees for professional qualifications, and has delivered CPD courses for qualified accountants and interactive courses for non-finance professionals from graduate to board level. Stuart studied management sciences at UMIST and became a Chartered Accountant whilst working at PwC.
Stuart loves the fresh air and peace of the countryside, especially the scenic hills of North Wales, so he decided to live in London for ample doses of air pollution, loud noises and views of tall concrete buildings. In his spare time he can be found falling off his mountain bike or falling off walls whilst indoor rock climbing.
Saieem (Si) Hussain BSc (Hons) FCA is a chartered accountant. He trained at KPMG and qualified in 1990. Si has spent 25+ years delivering financial and business training programmes to thousands of professionals. He has held senior positions in several listed companies, including Chief Executive of BPP Professional Education.
Si runs an independent consultancy delivering financial and business training, including coaching to senior executives. He provides strategic and business advice to organisations across the training and education sectors.
Despite being vegetarian, tee-total and a fan of country and folk music, Si describes himself as an easy-to-please and entertaining dinner guest. He is a Londoner born and bred and in his spare time can be seen walking the streets of London, re-tracing the steps of Pepys, Dickens, Johnson and others.
Acknowledgements
We are grateful to Greggs plc for the use of material from Greggs plcs Annual Report and Accounts 2015, which is used with permission.
Our thanks to Nick Weller for his technical check of this book. His attention to detail and thought-provoking comments added both value and rigour to the writing process.
Dedications
Stuart Warner: To all the people I have ever taught. Thank you for your attentiveness, willingness to learn, challenging questions and occasionally laughing in the right places. You have helped me to develop, refine and fine tune my own understanding of finance, as well as my questionable sense of humour. Your contribution enabled me to write this book.
Si Hussain: To Myra, Janita, Liyana and Eliza. Your enthusiasm has been the one constant throughout. I am forever indebted.
Appendix: Greggs 2015 Financial Accounts and supporting notes
The following accounts are extracted with permission from Greggs Annual Report and Accounts 2015. They represent pages 70 to 99 of the original document. Please see https://corporate.greggs.co.uk/sites/default/files/GREGGS_23781_AR_2015_web.pdf for the full original.
Consolidated income statement
for the 52 weeks ended 2 January 2016 (2014: 53 weeks ended 3 January 2015)
| Note | 2015 Total 000 | 2014 Excluding exceptional items (Restated) 000 | 2014 Exceptional items (see Note 4) 000 | 2014 Total (Restated) 000 |
---|
Revenue | 1 | 835,749 | 806,096 | 806,096 |
Cost of sales | (305,116) | (304,786) | (5,932) | (310,718) |
Gross profit | 530,633 | 501,310 | (5,932) | 495,378 |
Distribution and selling costs | (412,426) | (403,003) | (282) | (403,285) |
Administrative expenses | (45,094) | (40,223) | (2,302) | (42,525) |
Operating profit | 73,113 | 58,084 | (8,516) | 49,568 |
Finance (expense)/income | 6 | (85) | 175 | 175 |
Profit before tax | 36 | 73,028 | 58,259 | (8,516) | 49,743 |
Income tax | 8 | (15,428) | (13,997) | 1,810 | (12,187) |
Profit for the financial year attributable to equity holders of the Parent | 57,600 | 44,262 | (6,706) | 37,556 |
Basic earnings per share | 9 | 57.3p | 44.0p | (6.6p) | 37.4p |
Diluted earnings per share | 9 | 55.8p | 43.4p | (6.6p) | 36.8p |
Consolidated statement of comprehensive income
for the 52 weeks ended 2 January 2016 (2014: 53 weeks ended 3 January 2015)
| Note | 2015 000 | 2014 000 |
---|
Profit for the financial year | 57,600 | 37,556 |
Other comprehensive income |
Items that will not be recycled to profit and loss: |
Re-measurements on defined benefit pension plans | 21 | 4,915 | (8,575) |
Tax on re-measurements on defined benefit pension plans | 8 | (885) | 1,715 |
Other comprehensive income for the financial year, net of income tax | 4,030 | (6,860) |
Total comprehensive income for the financial year | 61,630 | 30,696 |
Balance sheets
at 2 January 2016 (2014: 3 January 2015)
| | Group | Parent Company |
---|
| Note | 2015 000 | 2014 000 | 2015 000 | 2014 000 |
---|
ASSETS |
Non-current assets |
Intangible assets | 10 | 10,248 | 04,721 | 10,248 | 4,721 |
Property, plant and equipment | 11 | 284,163 | 262,719 | 284,756 | 263,312 |
Investments | 12 | 4,987 | 4,987 |
Deferred tax asset | 13 | 3,830 | 4,305 |
298,241 | 267,440 | 304,296 | 273,020 |
Current assets |
Inventories | 14 | 15,444 | 15,290 | 15,444 | 15,290 |
Trade and other receivables | 15 | 27,647 | 26,091 | 27,647 | 26,091 |
Assets held for sale | 16 | 6,500 | 6,500 |
Cash and cash equivalents | 17 | 42,915 | 43,615 | 42,915 | 43,615 |
Other investments | 12 | 10,000 | 10,000 |
86,006 | 101,496 | 86,006 | 101,496 |
Total assets | 384,247 | 368,936 | 390,302 | 374,516 |
LIABILITIES |
Current liabilities |
---|
Trade and other payables | 18 | (92,780) | (89,954) | (100,587) | (97,761) |
Current tax liability | 19 | (9,580) |