Interim Results for the 28 weeks to 7 March 2015

PUNCH TAVERNS PLC

("Punch" or "the Group")

Interim Results for the 28 weeks to 7 March 2015

Performance in line with expectations:

· EBITDA* of £105 million (2014: £108 million); reiterated full year underlying EBITDA guidance of between £193 million and £200 million

· Core estate accounted for 90% of outlet EBITDA

· Core estate like-for-like net income growth of 0.5%**

· Disposal programme ahead of target with £57 million of proceeds; full year guidance revised up to £80 million

Capital restructuring successfully completed:

· £0.6 billion reduction in net debt; leverage*** reduced to 7.3 times (August 2014: 9.5 times)

· £1.5 billion of securitised debt, secured against largely freehold pub estate valued during August 2014 at £2.1 billion

Further debt reduction:

· Net debt reduced by £53 million since the 8 October capital restructuring

· On track to meet £200 million deleveraging target over next three years

Outlook:

· On-track to meet full year profit and cash guidance

· Actions have already begun to provide a more flexible business model in light of the anticipated introduction of the Market Rent Only option (MRO) in 2016

· CEO appointed and will join the business in June

Stephen Billingham, Executive Chairman of Punch Taverns plc, commented:

"We have delivered profits for the half year in line with our expectations and are on track to meet full year underlying EBITDA guidance of between £193 million and £200 million.

Group debt has materially reduced following the completion of the capital restructuring on 8 October 2014 and we have delivered strong cash flow generation during the first half. All of our debt is long-term securitised debt with no short-term bank debt and we have a clear path to further debt reduction.

I am delighted that Duncan Garrood will be joining Punch as Chief Executive Officer in June. Duncan is joining an experienced management team and Duncan's retail and franchise background will be of great value to Punch's future development."

22 April 2015

* before non-underlying items

** net income represents revenue less cost of drink sales (gross profit)

*** leverage defined as the ratio of nominal value of net debt to 52 week underlying EBITDA

Enquiries:

A presentation for equity and debt analysts on the interim results will be held today at 9.00am at The Lincoln Centre, 18 Lincoln's Inn Fields, London, WC2A 3ED.

The interim results presentation will be available on the Punch website www.punchtavernsplc.com from 9.00am. An audio cast of the presentation will also be available.

Forward-looking statements

This report contains certain statements about the future outlook for Punch. Although we believe our expectations are based on reasonable assumptions, any statements about future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

EXECUTIVE CHAIRMAN'S REVIEW

MARKET POSITIONING

Punch is a leading operator of leased and tenanted pubs in the United Kingdom. As at 7 March 2015, the Punch estate comprised 3,653 pubs located across the UK, 96% of which were held on a freehold or long leasehold basis. In addition, Punch owns 50% of Matthew Clark (Holdings) Limited, the holding company of the Matthew Clark business, a leading drinks wholesaler and distributor.

Punch's core estate represents a higher quality, geographically well-located portfolio of 2,894 pubs at 7 March 2015. The core estate aims to drive sustainable growth by making each pub the best of its type in its marketplace. The focus is on recruiting the best partners, investment to optimise sales, and the provision of field support to our partners.

The focus for the non-core estate (which comprised 759 pubs as at 7 March 2015) is on maximising short-term returns prior to disposal. These pubs are predominantly small, wet led and have a much lower average net income per pub. Given the limited scope for investment, these pubs are more likely to be impacted by the long-term decline in drinking out and as a result are expected in time to generate more value through disposal than retention. All non-core pubs have access to the same operational support infrastructure as our core pubs, to assist in driving operational performance until the decision is made to dispose of them.

BUSINESS REVIEW

We have delivered profits for the interim period in line with our expectations and are on track to meet full year underlying EBITDA guidance of between £193 million and £200 million.

In the 28 weeks ended 7 March 2015, Punch generated EBITDA of £105 million (excluding non-underlying items):

Core estate:

The core estate accounted for 90% of Punch outlet EBITDA with an average net income per pub of approximately £74,000 p.a. Trading has been in line with our expectations with like-for-like net income growth of 0.5% for the interim period. Like-for-like growth has now been delivered for seven consecutive quarters.

The aim of the core division is to make each pub the best of its type in its marketplace. The focus is on attracting the right partners through flexible agreements, to attractive well-located pubs that have had the appropriate level of investment. We then support those partners with training and dedicated field support, backed up by further specialist support teams and access to the Punch Buying Club.

(i) Recruiting the best partners:

The tenanted and leased pub model offers an attractive low cost method of entry into the pub trade for entrepreneurs and new partner enquiries remain buoyant having experienced a 24% increase in new partner enquiries in the period. We have a dedicated recruitment team who ensure that the best possible partners are recruited from the high level of applications that we receive and are matched to the appropriate pub opportunity.

(ii) Pub investment:

We completed 122 investments in the first half of this year at an average spend of £106,000 per pub, transforming the customer offering in these pubs. The investments we have completed to date are performing well and in line with our expectations.

Total capital investment spend across the Group at £22 million in the interim period is 23% below last year's level and slightly below our target spend reflecting the uncertainty created by the MRO provisions of the Small Business, Enterprise and Employment Act. While we have a strong pipeline of potential investments, new investments with a payback in excess of five years have been put on hold pending finalisation of the Secondary Legislation expected in 2016.

(iii) Partner support and development:

We want to offer the best level of partner support in the sector and have invested heavily in this area in supporting the development of our partners in developing their businesses.

The New Business Development team, a specialist team put in place to support all new partners with their initial investment, the launch of their pub and throughout their first six months of trading, recently won The Best Operations Team 2015 at the Publican Awards 2015.

We ensure that new partners are set up for success with our Foundation Week, a comprehensive training programme which provides all the skills needed to run a successful pub business. During the interim period, 98% of new partners attended the Punch Training Programme. Thereafter partners have access to a variety of workshops and e-learning materials covering areas such as marketing and merchandising, finance and social media. These workshops are also available to existing partners, all of which are free of charge.

Non-core estate:

The non-core estate accounts for around 10% of Punch outlet EBITDA and represents 21% of the Group estate by pub number.

(i) Maximising short-term returns:

While non-core pubs remain in our portfolio, we are committed to driving operating performance and maximising the profits from these outlets. During the interim period, 71 pubs transferred to the core estate following improvement in performance and 65 pubs transferred from the core to non-core estate to focus on maximising short-term returns.

Pubs remaining in the non-core estate are managed under the three categories of (i) protect (344 pubs), (ii) sell-later (205 pubs) and (iii) sell-now (210 pubs), with the pubs in the sell-now category being marketed for sale.

(ii) Maximising value on disposal:  

During the year we sold 151 pubs (including 37 pubs from the core estate for £31 million at a disposal multiple of 26 times LTM EBITDA), together with other assets for proceeds of £57 million, £12 million ahead of historic book value and £9 million ahead of the August 2014 property valuation.

The disposal programme to deliver £60 million of proceeds for the full year is ahead of target. Consequently, full year guidance has been revised up to £80 million.

Matthew Clark joint venture

Matthew Clark, our 50% joint venture with Accolade, performed strongly in the period delivering a post-tax contribution to Punch of £3.9 million for the half year (March 2014: £2.7 million). Punch received a dividend of £6.0 million in the period from Matthew Clark.

REGULATORY CHANGES

The Small Business, Enterprise and Employment Act 2015 (the 'Act') which includes the provision of a Statutory Code, independent adjudicator and a Market Rent Only option (MRO), received Royal Assent on 26 March 2015.

After the General Election (7 May 2015) there will be another period of consultation in order for the Government to prepare Secondary Legislation setting out the detail of how the Act will be implemented, including in relation to the anticipated introduction of the Market Rent Only option. It is anticipated that it may be another year before the statutory consultation process is completed and the Secondary Legislation is finalised.

While we will continue to work with Government in finalising the Secondary Legislation, we remain concerned about the unintended consequences of the Act. The Government's own research, conducted by London Economics, forecasts the potential closure of around 1,600 pubs with the loss of thousands of jobs. Also at risk is c.£200 million of sector capital investment per annum in improving pubs to keep them competitive in an ever changing market.

Punch's view is that the proposed legislation is contrary to existing legal contracts and property rights and runs contrary to the OFT's findings when it considered a super-complaint from CAMRA in 2010.

We have already begun to take a number of operational actions to address the potential implications on Punch on implementation of the Act, including:

· Review of new managed and franchised pub operating formats on a select number of sites

· Modernisation of our pub tenancy and lease agreements

· New commercial free-of-tie lease agreement and operating model

· Deferral of some capital investment projects

An update on progress on the above measures will be provided later in the year.

BOARD CHANGES

On 3 March 2015 the Board announced that Duncan Garrood will join Punch as Chief Executive Officer on, or before, 15 June 2015. Duncan has a strong retail and franchise background which will be of great value to Punch's development. The Board also announced that when Duncan joins Punch, Executive Chairman, Stephen Billingham, will revert to the role of Non-executive Chairman.

OUR CORPORATE SOCIAL RESPONSIBILITY

Our CSR strategy seeks to involve employees, and partners in making our business and in turn, their businesses more ethical and environmentally friendly. We are committed to supporting local communities, promoting responsible retailing, protecting the environment and building a high calibre team.

In recognition of the commitment and work undertaken in this area, we recently won the Responsible Retailer of the Year at the Publican Awards 2015.

FINANCIAL REVIEW

Non-underlying items:

A number of non-underlying items, the vast majority of which are non-cash, were recognised during the period, resulting in a net non-underlying profit after tax of £327 million. The principal items are set out below:

· £18 million charge for capital restructuring costs;

· £12 million profit on disposal of properties;

· £9 million charge for write-downs of properties;

· £6 million goodwill charge on the transfer and disposal of core pubs;

· £375 million profit on capital restructuring; and

· £37 million charge for the mark-to-market movement in value of interest rate swaps;

The tax effect of all of these items, together with the resolution of prior year tax matters, gave rise to a tax credit of £9 million.

Net finance costs:

Net underlying finance costs increased by £17 million (32%) resulting from a £30 million profit attributable to junior note purchases in the prior period. There is no corresponding profit in the current period. Excluding junior note purchases, net finance costs have decreased £13 million, driven by the capital restructuring which took place on 8 October 2014 and decreased net debt by £0.6 billion. Following the restructuring, gross securitised debt had an initial effective interest rate of 7.7%.

Taxation:

The underlying taxation charge is based on an estimated full year effective tax rate of 21.1% before post-tax earnings from joint ventures. This compares with the UK corporation taxation rate of 20.6% for the financial year ending August 2015.

The availability of sizeable capital allowance pools amounting to £230 million (generated from our investment programme in community pubs) at the half year is expected to result in no corporation tax payments being due for the current year.

Share capital and earnings per share:

Punch's issued share capital at the start of the year, 24 August 2014, amounted to 665.8 million shares. Punch issued 3,771.2 million new ordinary shares on 8 October 2014 under the terms of the capital restructuring. On 13 October 2014 Punch effected a share consolidation on the basis of 1 consolidated ordinary share for every 20 existing ordinary shares.

Following the share consolidation and as at the interims date, the issued share capital amounted to 221.9 million ordinary shares.

For the purpose of calculating the earnings per share measure, the ordinary shares outstanding during the year (and the prior year) have been adjusted for the share consolidation. The basic weighted average number of shares applied to the earnings per share calculation is 177.6 million for current year (prior year: 33.3 million).

Adjusted basic earnings per share, which excludes the effect of non-underlying items was 14.0 pence per share.

Cash flow:

Cash flow from operating activities amounted to £81 million compared to an EBITDA of £88 million (net of £18 million of non-underlying costs). Due to the timing of the half year date, there is historically a working capital outflow in the first half of the year, with a working capital inflow expected in the second half of the year. After £22 million of capital expenditure and £57 million of disposal proceeds, free cash flow before financing activities amounted to £118 million.

Cash balances ended the period at £122 million, down from £316 million at the August 2014 year end following the repayment of certain borrowings on the completion of the capital restructuring.

Pensions:

Punch maintains a defined contribution scheme which is open to all employees. The Group has one defined benefit scheme (the Pubmaster pension scheme) which is closed to new entrants. Under IAS 19 the net pension liability was £4 million at both 7 March 2015 and 23 August 2014.

Capital structure

On 8 October 2014 the Group announced the successful completion of its capital restructuring. The nominal value of net debt immediately following the restructuring had decreased by £576 million compared to the August 2014 year end (including the mark-to-market on interest rate swaps on exchanged notes).

The Group is financed solely by long-term securitised debt and has no short-term bank borrowings. Proforma net debt on completion of the capital restructuring of £1,508 million is secured against a largely freehold pub estate which was independently valued during August 2014 at £2,133 million (after adjusting for £32 million of pub disposals between August 2014 and completion of the restructuring).

The restructured debt has a materially lower contractual amortisation requirement with scheduled contractual amortisation of just £205 million over the next five years following the refinancing, with no term repayments until 2021.

Net debt has been further reduced following the restructuring on 8 October 2014, and at the interim date, 7 March 2015, the nominal value of net debt amounted to £1,455 million, giving a net debt to LTM EBITDA ratio of 7.3 times. The Group generates significant levels of cash flow and the strong level of cash generation is expected to lead to further debt reduction in the coming years, with £200 million of debt reduction targeted over the three years following the restructuring.

For further information on the capital restructuring, please refer to the Punch Taverns website: www.punchtavernsplc.com

Property valuation:

An independent property valuation of the pub estate was commissioned during August 2014 to support the capital restructuring exercise. We expect to update this valuation with a further valuation of the pub estate ahead of the August 2015 year end and will consider moving to accounting for our properties at a market valuation.

Current trading and outlook:

The second half of 2015 is up against strong comparatives from the favourable weather and the Football World Cup in 2014. We therefore expect this to adversely impact like-for-like comparisons in the second half of the year.

Trading in the first six weeks since the half year date has been in line with our expectations and we are on track to meet full year underlying EBITDA guidance of between £193 million and £200 million.

Over the last few years we have improved the fundamentals of our business and this will allow us to both drive forward the existing business model but also provide the building blocks to respond to the challenge presented by changes in the regulatory environment.

CONSOLIDATED CONDENSED INCOME STATEMENT

for the 28 weeks ended 7 March 2015

1 EBITDA represents earnings before depreciation and amortisation, profit on sale of property, plant and equipment and non-current assets classified as held for sale, impairment, goodwill charge, finance income, finance costs, movement in fair value of interest rate swaps and tax of the Group.

CONSOLIDATED CONDENSED INCOME STATEMENT continued

for the 28 weeks ended 7 March 2015

1 EBITDA represents earnings before depreciation and amortisation, profit on sale of property, plant and equipment and non-current assets classified as held for sale, impairment, goodwill charge, finance income, finance costs, movement in fair value of interest rate swaps and tax of the Group.CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

for the 28 weeks ended 7 March 2015

CONSOLIDATED CONDENSED BALANCE SHEET

at 7 March 2015

CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY

for the 28 weeks ended 7 March 2015

CONSOLIDATED CONDENSED CASH FLOW STATEMENT

NOTES TO THE FINANCIAL STATEMENTS

for the 28 weeks ended 7 March 2015

1. ACCOUNTING POLICIES

Basis of preparation

This condensed set of interim financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU. The Group's Annual Report and Financial Statements are prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU. As required by the Disclosure and Transparency rules of the Financial Conduct Authority, this condensed set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's Annual Report and Financial Statements 2014.

This condensed consolidated interim financial statements have been prepared on a going concern basis. In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future. The Directors are of the opinion that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future, and feel it appropriate to adopt the going concern basis in preparing these condensed consolidated interim financial statements.

The comparative figures for the 53 weeks to 23 August 2014 presented in these interim financial statements are not the Group's statutory accounts for that financial period. Those accounts have been reported on by the Company's auditor and delivered to the Registrar of Companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain statements under section 498(2) or (3) Companies Act 2006.

The following standards, interpretations and amendments are effective for the Group for the financial year beginning 24 August 2014:

· IFRS 10 'Consolidated Financial Statements' - effective from 1 January 2014

· IFRS 11 'Joint Arrangements' - effective from 1 January 2014

· IFRS 12 'Disclosure of Interests in Other Entities' - effective from 1 January 2014

· IAS 28 'Investments in Associates and Joint Ventures' - effective from 1 January 2014

· Amendments to IAS 36 'Recoverable Amount Disclosures for Non-Financial Assets' - effective from 1 January 2014

· Amendments to IAS 19 'Defined Benefit Plans: Employee Contributions' - effective from 1 July 2014

The above amendments to the published standards have had no material impact on the results or the financial position of the Group for the 28 weeks to 7 March 2015.

NOTES TO THE FINANCIAL STATEMENTS continued

for the 28 weeks ended 7 March 2015

2. SEGMENTAL ANALYSIS

1 Unallocated underlying operating costs represent corporate overheads that are not allocated down to the divisional performance.

NOTES TO THE FINANCIAL STATEMENTS continued

for the 28 weeks ended 7 March 2015

There are no sales between the segments. Segment assets include property, plant and equipment, operating leases, non-current assets held for sale and goodwill and exclude other intangible assets, receivables, cash, taxation, investments in joint venture and other investments, whilst all liabilities are unallocated.

During the interim period, 71 pubs with a book value of £23.4m were transferred from the non-core estate to the core estate and 65 pubs with a book value of £35.5m were transferred from the core estate to the non-core estate.

At the start of the prior financial period, 116 pubs with a book value of £43.9m were transferred from the non-core estate to the core estate.

NOTES TO THE FINANCIAL STATEMENTS continued

for the 28 weeks ended 7 March 2015

3. NON-UNDERLYING ITEMS

In order to provide a trend measure of underlying performance, profit is presented excluding items which management consider will distort comparability, either due to their significant non-recurring nature or as a result of specific accounting treatments. Included in the income statement are the following non-underlying items:

1 Represents the goodwill relating to those core pubs disposed of, or transferred to non-core, in the period.

2 Represents movement in fair value of shares held to settle future share schemes and release of provision for share schemes.

3 Represents the recycling of the hedge reserve relating to the Punch A B3, D1 and M2(N) loan notes following the reclassification of the associated interest rate swap as ineffective during the previous financial period.

4 Represents the movement in the fair value of interest rate swaps which do not qualify for hedge accounting.

NOTES TO THE FINANCIAL STATEMENTS continued

for the 28 weeks ended 7 March 2015

4. Capital Restructuring

Completion of restructuring

On 8 October 2014 Punch Taverns plc announced the successful completion of restructuring proposals for the Punch A and Punch B securitisations. The impact of the restructuring reduced total net debt (including mark-to-market on interest rate swaps) by £0.6 billion. The Group also issued a total of 3,771,151,200 new ordinary shares in connection with the restructuring proposals, of which 1,273,005,000 was a firm placing at 3.93 pence per share.

On 13 October 2014 Punch Taverns plc announced the consolidation of its ordinary shares, as described in the combined circular and prospectus dated 18 August 2014, had become effective. As a result of the share consolidation, the existing ordinary shares in Punch Taverns plc have been consolidated into consolidated ordinary shares on the basis of one consolidated ordinary share for every 20 existing ordinary shares.

Punch A debt structure

Immediately following completion of the restructuring, the revised debt structure of the Punch A securitisation is set out below:

1 An interest rate swap is in place to swap the Libor interest rate on the Class M3 floating rate note to a fixed rate of 5.954%

Punch B debt structure

Immediately following completion of the restructuring, the revised debt structure of the Punch B securitisation is set out below:

The profit on capital restructuring is included in Note 3. Further details of the debt structure of the Punch A and Punch B securitisations following completion of the restructuring can be found on the Punch Taverns website www.punchtavernsplc.com.

NOTES TO THE FINANCIAL STATEMENTS continued

for the 28 weeks ended 7 March 2015

5. IMPAIRMENT LOSSES

Property, plant and equipment and operating leases

When any indicators of impairment are identified, including the difference between market capitalisation and net assets of the business, property, plant and equipment and operating leases are reviewed for impairment based on each cash-generating unit (CGU). The CGUs are individual pubs. The carrying values of these individual pubs are compared to the recoverable amount of the CGUs, which is the higher of value in use (VIU) and fair value less costs to sell (FVLCS). Cash flows used in the VIU calculation were based on earnings before interest and taxation, and used the forecasted cash flows included within the Group business plan for the first five years, and then the cash flows were extrapolated for a further 45 years, applying a multiple of ten as the terminal value (which is broadly in line with the most recent property valuation of the estate). The pre-tax risk adjusted discount rate applied to cash flow projections was 8%, being the Group's adjusted weighted average cost of capital. The growth rate applied to cash flows over the 45 year period was 2% based on an extrapolation of the final 2 years of the business plan.

In the 28 week period to 7 March 2015, the FVLCS of those assets now classified as held for sale, and the assets transferred from the core estate to the non-core estate, were reviewed and an impairment of £9.0m was identified. During the 53 week period to 23 August 2014, the FVLCS of the non-current assets classified as held for sale, and the remaining assets in the wider non-core estate, were reviewed, and an impairment of £50.8m was identified, of which £9.1m had been recognised during the 28 week period to 1 March 2014.

The impairments recognised in the current and prior periods are as follows:

Included within the above are reversals of impairment losses of property, plant and equipment of £10.7m

(August 2014: £nil). The impairment reversals were due to the transfer of pubs from the non-core estate to the core estate where their expected future cash flows have risen to a level such that their VIU is now above carrying value.

Goodwill

Goodwill represents the synergistic benefits of operating a large pub estate and is allocated to groups of CGUs. The estate is organised in separate core and non-core property structures. No goodwill is allocated to the non-core estate due to the low value of the properties in the estate and the low level of synergistic benefits.

During the year ended 23 August 2014, a review for impairment was carried out on the remaining goodwill allocated to pubs in the core estate. This review compared the carrying amount of the goodwill to the net realisable value. Cash flows used in the VIU calculation were on the same basis as cash flows used in the VIU calculation for property, plant and equipment and operating leases as mentioned above. Based on this review, no impairment of goodwill on the core estate was identified.

During the current period, a review completed using the same criteria as the previous period on the remaining goodwill allocated to pubs in the core estate also concluded that no impairment was required.

Whilst considered unlikely, when tested independently, neither a 2% decrease in the key growth rate assumption, nor a 1% increase in the key discount rate assumption would have led to impairment in either the current or prior period.

NOTES TO THE FINANCIAL STATEMENTS continued

for the 28 weeks ended 7 March 2015

6. FINANCE INCOME AND COSTS

7. TAXATION

The effective taxation charge before non-underlying items and share of post-tax profit from the joint venture is 21.1%. The effective rate of taxation for the comparative period was 9.4% (reflecting the impact of the profits attributable to bond purchases).

The total tax credit of £3.4m (March 2014: credit of £55.2m; August 2014: credit of £65.1m) includes a non-underlying tax credit of £9.0m (March 2014: credit of £59.6m; August 2014: credit of £73.3m).

NOTES TO THE FINANCIAL STATEMENTS continued

for the 28 weeks ended 7 March 2015

8. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year, excluding those held in the employee share trust, which are treated as cancelled.

Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year (adjusted for the effects of dilutive options).

The ordinary shares outstanding during the prior year has been adjusted for the impact of the consolidation of ordinary shares as announced on 13 October 2014 following successful completion of restructuring proposals. The existing ordinary shares in Punch Taverns plc have been consolidated into consolidated ordinary shares on the basis of one consolidated ordinary share for every 20 existing ordinary shares.

As part of the restructuring proposals the Group issued 3,771,151,200 new ordinary shares on 8 October 2014, prior to the share consolidation, which has not been adjusted for in the prior periods as per IAS 33: Earnings per share.

The adjustment to ordinary shares outstanding impacts the current and prior period.

Reconciliations of the earnings used in the calculations are set out below:

The impact of dilutive ordinary shares is to increase weighted average shares by nil (March 2014: nil; August 2014: nil) for employee share options.

NOTES TO THE FINANCIAL STATEMENTS continued

for the 28 weeks ended 7 March 2015

9. PROPERTY, PLANT AND EQUIPMENT

10. NET DEBT

(a) Analysis of net debt