Premier Foods

The Best in British Food

Glossary

Adjusted earnings per shareAdjusted 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 taxTrading profit less net regular interest payable
AGMAnnual General Meeting
AmortisationAn 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%.
BRCThe British Retail Consortium
Called-up share capitalOrdinary shares, issued and fully paid 
CGUCash-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
CIPPremier Foods plc Co-Investment Plan
Combined CodeThe 2008 Combined Code on Corporate Governance published by the Financial Reporting Council
CodeThe 2010 UK Corporate Governance Code published by the Financial Reporting Council
Company (the)Premier Foods plc
DSBPremier Foods plc new Deferred Share Bonus
EBITDAEarnings before interest, tax, depreciation and amortisation.
EBTEmployee Benefit Trust
EPSEarnings Per Share — calculated as total earnings divided by the weighted average number of shares in issue during the period
ESOSPremier Foods plc Executive Share Option Scheme
EU

European Union

Fair valueThe amount for which an asset could be exchanged, or a liability settled,
between knowledgeable, willing parties in an arm’s length transaction
FDFThe Food and Drink Federation
Finance leaseA lease that transfers substantially all the risks and rewards incidental to ownership of an asset.
FRCFinancial Reporting Council
Free Cash FlowThe 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.
FSADepending 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
GDAsGuidance Daily Amounts
Group (the)The Company and its subsidiaries
HACCPHazard Analysis Critical Control Point
Higgs ReportReport in the UK by Derek Higgs on the role and effectiveness of non- executive directors
HMRCHer Majesty’s Revenue and Customs
IASInternational Accounting Standards
IFRICInternational Financial Reporting Interpretations Committee
IFRSInternational Financial Reporting Standards
Intangible assetsAn 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 swapsAn agreement between two parties that allows either party to modify the interest cost without changing the characteristics of the underlying debt
KPIKey Performance Indicator
LIBORThe London inter-bank offered rate
LTIPPremier Foods plc Long-Term Incentive Plan
Mark to marketThe recording of a financial asset or liability to reflect its fair value rather than its book value
NEDNon-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 brandedNon 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 leaseA lease that is not a Finance lease
Operating ProfitA company's profit after deducting its operating costs from gross profit.
ppPercentage points
Pro formaPro 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.
RIDDORReporting of Injuries, Diseases and Dangerous Occurrences Regulations
Retailer brandedAlso known as “private label” or “own label” products
SAPSAP 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.
SAYESave As You Earn Scheme
Share CapitalOrdinary shares issued and fully paid
Share premium accountAdditional 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 ProfitOperating 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
TSRTotal Shareholder Return – the growth in value of a shareholding over a specified period assuming that dividends are reinvested to purchase additional shares
Turnbull ReportGuidance 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 GAAPUK Generally Accepted Accounting Principles
WACCWeighted average cost of capital
YOYYear on year