First half financial highlights
· Total sales up 7.3% to £453m
· Company-managed shop like-for-like sales* up 3.4%
· Operating profit excluding property gains** and exceptional charge*** up 1.8% to £27.6m
· Exceptional costs of £8.3m relating to previously announced restructuring
· Pre-tax profit including property profits and exceptional charges £19.4m
· Continued strong cash generation: £34.0m net inflow from operating activities
· Ordinary interim dividend per share up 8.4% to 10.3p
Operational highlights
· Continued like-for-like sales growth from:
– Coffee and breakfast
– 'Balanced Choice' range including new salads and drinks
– Hot food choices
– Traditional savoury favourites
· Shop opening programme progressing well:
– 61 new shops opened, 19 closures; expect around 100 net new shops for the year as a whole
– 1,806 shops trading as at 1 July 2017
· Roll out of new central forecasting and replenishment system successfully completed ahead of plan
· Supply chain investment programme on track
Outlook
We have made a good start to the second half of the year and are confident that the strategic investments we are making will enable the business to continue delivering further profitable growth. In the short term we remain alert to pressures building on consumers' disposable income and the continuing economic uncertainty. Over the year as a whole we expect to deliver results in line with our previous expectations as well as further progress against our strategic plan.