Glossary
| Adjusted earnings per share | Adjusted earnings per share is defined as Adjusted Profit before tax less a notional tax rate for the Group divided by the weighted average number of shares in issue during the period |
| Adjusted Profit before tax | Trading profit less net regular interest payable |
| AGM | Annual General Meeting |
| Amortisation | An annual charge made in a company’s profit and loss account to reduce the value of an intangible asset to its residual value over its useful economic life |
Bps | Basis point - a unit that is equal to 1/100th of 1%. |
| BRC | The British Retail Consortium |
| Called-up share capital | Ordinary shares, issued and fully paid |
| CGU | Cash-generating unit — the smallest identifiable group of assets that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets |
| CIP | Premier Foods plc Co-Investment Plan |
| Combined Code | The 2008 Combined Code on Corporate Governance published by the Financial Reporting Council |
| Code | The 2010 UK Corporate Governance Code published by the Financial Reporting Council |
| Company (the) | Premier Foods plc |
| DSB | Premier Foods plc new Deferred Share Bonus |
| EBITDA | Earnings before interest, tax, depreciation and amortisation. |
| EBT | Employee Benefit Trust |
| EPS | Earnings Per Share — calculated as total earnings divided by the weighted average number of shares in issue during the period |
| ESOS | Premier Foods plc Executive Share Option Scheme |
| EU | European Union |
| Fair value | The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction |
| FDF | The Food and Drink Federation |
| Finance lease | A lease that transfers substantially all the risks and rewards incidental to ownership of an asset. |
| FRC | Financial Reporting Council |
| Free Cash Flow | The amount of money that a business has at its disposal at any given time after paying out operating costs, interest payments on bank loans and bonds, salaries, research and development and other fixed costs. |
| FSA | Depending on the context either the Food Standards Agency or the Financial Services Authority |
| FTSE 250 (index) | Index comprising of the 250 largest companies listed on the London Stock Exchange in terms of their market capitalisation |
| GDAs | Guidance Daily Amounts |
| Group (the) | The Company and its subsidiaries |
| HACCP | Hazard Analysis Critical Control Point |
| Higgs Report | Report in the UK by Derek Higgs on the role and effectiveness of non- executive directors |
| HMRC | Her Majesty’s Revenue and Customs |
| IAS | International Accounting Standards |
| IFRIC | International Financial Reporting Interpretations Committee |
| IFRS | International Financial Reporting Standards |
| Intangible assets | An identifiable non-monetary asset without physical substance e.g. patents, goodwill, trademarks and copyrights |
| Interest rate hedging | Entering into a financial derivative to protect against unfavourable changes in interest rates |
| Interest rate swaps | An agreement between two parties that allows either party to modify the interest cost without changing the characteristics of the underlying debt |
| KPI | Key Performance Indicator |
| LIBOR | The London inter-bank offered rate |
| LTIP | Premier Foods plc Long-Term Incentive Plan |
| Mark to market | The recording of a financial asset or liability to reflect its fair value rather than its book value |
| NED | Non-executive director |
| Net regular interest payable | The net interest after excluding noncash items, namely exceptional writeoff of financing costs, accelerated amortisation of debt issuance costs, fair value adjustments on interest rate financial instruments and the unwind of the discount on provisions |
| Non branded | Non branded products comprise retailer brand and business to business sales |
| Non-recourse securitisation | The sale of selected accounts receivable on a non recourse basis where legal title and non-payment risk is transferred to a third party |
| Operating lease | A lease that is not a Finance lease |
| Operating Profit | A company's profit after deducting its operating costs from gross profit. |
| pp | Percentage points |
| Pro forma | Pro forma comparisons are calculated as follows: current year actual results (which include acquisitions and/or disposals from the relevant date of completion) are compared with prior year actual results, adjusted to include the results of acquisitions and/or disposals for the commensurate period in the prior year. |
| RIDDOR | Reporting of Injuries, Diseases and Dangerous Occurrences Regulations |
| Retailer branded | Also known as “private label” or “own label” products |
| SAP | SAP is the market leader in the supply of enterprise resources planning (ERP). SAP is also the name of the software and is an acronym for Systems, Applications and Products. |
| SAYE | Save As You Earn Scheme |
| Share Capital | Ordinary shares issued and fully paid |
| Share premium account | Additional paid-in capital or paid-in surplus (not distributable) |
| SKU (Stock Keeping Unit) | Each specific product item which is identifiable as separate from any other due to brand, size, flavour, etc |
| Term and revolving credit facility | The amounts of money borrowed or available for borrowing where the repayment of teh debt is predetermined by a contract |
| Trading Profit | Operating profit before exceptional items, amortisation of intangible assets, the revaluation of foreign exchange and other derivative contracts under IAS39 and pension credits or charges in relation to the difference between the expected return on pension assets, administration costs and interest costs on pension liabilities |
| Treasury Shares | Shares as defined by the Companies Acquisitions of Own Shares (Treasury Shares) Regulations 2003 |
| TSR | Total Shareholder Return – the growth in value of a shareholding over a specified period assuming that dividends are reinvested to purchase additional shares |
| Turnbull Report | Guidance issued by the Institute of Chartered Accountants in England & Wales on the implementation of the internal control requirements of the Combined Code on Corporate Governance at the request of the London Stock Exchange |
| UK GAAP | UK Generally Accepted Accounting Principles |
| WACC | Weighted average cost of capital |
| YOY | Year on year |
