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BAKKAVOR ANNUAL REPORT AND ACCOUNTS 2012
notes to the consolidated financial statements
continued
30Issued and fully paid:
55,258 (2011: 53,258) Ordinary shares of £1 each 0.1 0.1
SHARE CAPITAL AND RESERVES
Share capital
29 December 31 December
£m 2012 2011
Shares issued in the period:
2,000 (2011: 53,258) Ordinary shares of £1 each – –
During the period, the Company has issued £2,000 of share capital. The share issues were made in September and December 2012, each amounting
to £1,000. The proceeds from the share issue have been used to repay bank borrowings during the period.
Share premium
As a result of the share issue, £4,605,427 and £8,201,142 of share premium was created in September and December 2012 respectively. The
proceeds from the share issue have been used to repay bank borrowings during the period. In the prior period, £302.4 million of share premium was
created of which £96.6 million was in relation to the acquisition of Bakkavor Finance (3) Limited and £205.8 million a related party loan, which was
capitalised.
Merger reserve
The incorporation of Bakkavor Finance (2) plc as an intermediate holding Company of the Group in 2011 was accounted for using the principles of
merger accounting.
Capital reserve
The capital reserve of £4.0 million arose in 2009 following the capitalisation of an inter-Company balance between Bakkavor London Limited and
Bakkavor Group ehf.
Translation reserve
The translation reserve represents foreign exchange rate differences arising on the consolidation of the Group’s foreign operations. The assets and
liabilities of the Group’s foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are
translated at the average exchange rates for the period. Exchange differences arising, if any, are recognised in the translation reserve.
31
DISPOSAL OF SUBSIDIARIES
In February 2012, the Group received a final payment of £0.1 million relating to the disposal of Bakkavor Traiteur SAS on 7 September 2011.
In March 2012, Creative Foods a 100% owned subsidiary of Bakkavor Finance (2) plc based in China, disposed of its 80% interest in Yantai
Longshun Foods for a cash consideration of RMB 16.0 million (£1.5 million), of which RMB 1.0 million (£0.1 million) is outstanding at 29 December
2012. This transaction resulted in a profit on disposal of £0.3 million being recorded in the income statement. Cash of £0.1 million was disposed of
with the business.
2011
On 7 September 2011 the Group disposed of its interest in Bakkavor Traiteur SAS for a cash consideration of €1.9 million (£1.6 million), resulting in a
loss on disposal of £1.0 million, net of £0.1 million of disposal costs. The loss on disposal includes £0.4 million of foreign currency translation gains
recycled from the translation reserve to the income statement on disposal.
The net effect of the disposal was as follows:
£m
Net assets 2.9
Disposal costs 0.1
Recycle net foreign exchange gains (0.4)
Loss on disposal (1.0)
Total consideration 1.6
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