Greggs plc Annual Report 2001

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FY2001 Annual Report · Greggs plc

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food for thought

annual report and accounts 2001

COVER STORY: The Greggs Breakfast Club aims to get children off to a better

start by providing them with free breakfasts, for which we provide all the food. Clubs

currently operate in over 20 primary schools in the North and Midlands, and we hope

to start 30 more this year. This is just one example of Greggs’ long-standing

commitment to putting something back into the communities where we operate.

OUR BUSINESS Greggs plc is the UK’s leading retailer specialising in sandwiches, savouries and

other bakery-related products, with a particular focus on takeaway food and catering. We continue to

show significant growth and now have over 1,100 retail outlets, trading under the Greggs and Bakers

Oven brands.

OUR VISION We intend to be Europe’s finest bakery-related retailer, achieving our ambitious growth targets

by attaining world-class standards in everything we do. Our purpose is the growth and development of a

thriving business for the benefit and enjoyment of employees, customers and shareholders alike. We aim to

achieve a turnover of £1billion by 2010.

OUR VALUES Greggs is a customer-focused business, seeking to provide excellent products and services

that deliver enjoyment and value for money. We are committed to people development, within a considerate

culture that combines autonomy and accountability, and maintains a strong focus on profitability. In all our

activities, we aim to achieve excellence through continuous improvement.

financial review

EPS

DIVIDEND

Pence
190

180

170

160

150

140

130

120

110

100

C O N T E N T S

Financial review

Chairman’s statement

Managing Director’s report

Directors’ report

Statement of directors’
responsibilities

Report of the auditors

Group profit & loss account

Group balance sheet

Parent company balance sheet

Group cash flow statement

Accounting policies

Notes to the accounts

Corporate governance

Corporate social responsibility

Directors’ remuneration

Ten year history

Directors & advisers

Shop allocation

1985

1986

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

F I N A N C I A L C A L E N D A R

F I N A N C I A L H I G H L I G H T S

Announcement of results

and dividends

Half year

Full year

Dividends

Interim

Final

Early August

Early March

Mid October

Late May

Annual report

to shareholders

Early April

Annual General Meeting 10 May 2002

2001

2000*

£’m

Turnover

377.6

339.0

Pre-tax profits

Post-tax profits

32.7

22.8

Shareholders’ funds

103.6

Capital expenditure

27.4

26.4

19.4

88.2

21.4

Pence

Earnings per share

190.2

162.3

Dividend

*As restated following adoption of FRS 19.

per ordinary share

65.0

55.0

GREGGS plc: annual report and accounts 2001

IAN GREGG:Chairman This has been another year of excellent progress for Greggs. We

have achieved our tenth consecutive year of profit and earnings growth, with pre-tax profits

rising by 24.2 per cent, following a 22.5 per cent increase in 2000. This has been based on

our well-established strategy of investing to develop our products, shops, brands and people,

so as to maximise the opportunities created by the strong growth of the takeaway food market.

In 2001 Greggs sold 74 million
sandwiches and filled rolls-quite a bite
out of this fast-growing market

CHAIRMAN’S STATEMENT This has been another year of excellent

following our early adoption of the FRS19 accounting standard in

progress for Greggs. We have achieved our tenth consecutive year of

respect of deferred tax.

profit and earnings growth, with pre-tax profits rising by 24.2 per cent,

DIVIDEND The Board recommends a final dividend of 44.0 pence per

following a 22.5 per cent increase in 2000. This has been based on our

share (2000: 39.0 pence), an increase of 12.8 per cent. The interim

well-established strategy of investing to develop our products, shops,

dividend, paid in October 2001, was increased by 31.3 per cent to 21.0

brands and people, so as to maximise the opportunities created by the

pence, partly to improve the balance between the interim and final

strong growth of the takeaway food market.

payments, so that the total dividend for the year will be 65.0 pence

RESULTS Sales for the year grew by 11.4 per cent to £377.6 million,

(2000: 55.0 pence), an increase of 18.2 per cent. This is in line with our

including our best ever like-for-like sales increase of 8.4 per cent.

long-established progressive dividend policy, which seeks to provide

Consumers responded favourably to the roll-out of our new format

shareholders with increases in their income broadly in line with the

shops and the continuous improvement of our product range. We also

underlying growth of earnings per share over the medium term.

benefited from strong underlying demand for takeaway food, aided by

Subject to the approval of the Annual General Meeting, the final

favourable weather throughout the year and high levels of customer

dividend will be paid on 24 May 2002 to shareholders on the register at

traffic on the high street.

19 April 2002.

Operating profit increased by 21.3 per cent to £31.6 million. After interest

BUSINESS HIGHLIGHTS Core volumes advanced strongly throughout

receivable of £1.1 million (2000: £0.3 million) reflecting our increasing

the year. The Greggs brand continued to perform exceptionally well,

net cash balances, pre-tax profit grew by 24.2 per cent to £32.7 million.

with our newer divisions in the south of England again making very

Earnings per share grew by 17.2 per cent to 190.2 pence, compared

pleasing progress. The Managing Director comments on trading and

with a prior year base of 162.3 pence which has been restated

business development in more detail in his report on pages 6 to 11.

GREGGS plc: annual report and accounts 2001

We will continue the progressive roll-out of the new Greggs shop format, and intend to

achieve a further increase in the pace of shop opening, with a net addition of around

50 units planned in the UK. We also expect to open a pilot shop in mainland Europe.

We are well positioned in a growing market place and despite continuing cost

pressures I expect the group to achieve satisfactory progress in the current year.

00million sausage rolls

Our quest to create the ultimate
sausage roll has resulted in strong and
continuous growth

THE BOARD I announced last year that I intended to retire, and that

need to increase the pace in expansion of our manufacturing capacity

we had begun work to identify a suitable successor. We have been

in order to be able to meet the demands of future growth. Total capital

fortunate to secure the services of Derek Netherton, who has had a

expenditure is expected to be a record £38 million, with much of this

distinguished career in investment banking and is a non-executive

investment designed to deliver its full benefits in the longer term.

director of a number of listed companies including Next and Hiscox.

We have achieved further strong sales progress since the start of the

He joined the Board as a non-executive director and Chairman

new year, with like for like sales in the first nine weeks up by 9.7 per

Designate on 1 March 2002, and I intend to work with him closely to

cent. Results to date are in line with our budgets, and ahead of the

ensure a smooth hand-over of my responsibilities, prior to my planned

comparable period last year. We are well positioned in a growing

retirement in about 12 months’ time.

market place and despite continuing cost pressures, notably on flour

STAFF The continued strong growth of the business has been made

and insurance, I expect the group to achieve satisfactory progress in

possible only by the commitment of our staff to meeting our customers’

the current year.

expectations. Once again I would like to record the thanks of the Board

for their hard work in delivering the products and service on which our

reputation depends.

PROSPECTS We will continue the progressive roll-out of the new

Greggs shop format, and intend to achieve a further increase in the

pace of shop opening, with a net addition of around 50 units planned

Ian Gregg,

in the UK. We also expect to open a pilot shop in mainland Europe.

Chairman

Due to our success in strongly growing volumes in recent years, we

8th March 2002

GREGGS plc: annual report and accounts 2001

MIKE DARRINGTON:Managing Director Growing sales and profits are the result of our

drive towards even better products and ever-higher standards across the group, aided by

past investment in facilities such as our group technical centre. We remain committed to

this successful strategy and are providing additional resources to raise standards even

further and so drive continued growth for the benefit of employees and shareholders alike.

15,64employees

Greggs plc is committed to building
a culture in which our people can be both
happy and successful

MANAGING DIRECTOR’S REPORT Growing sales and profits are the

Customer recognition of the high quality and consistency of our

result of our drive towards even better products and ever-higher

savouries has again helped to drive sales in this product category,

standards across the group, aided by past investment in facilities such

underlining the benefits of our investment in the group’s central

as our group technical centre. We remain committed to this successful

savouries unit, also at Balliol Park. During the year we undertook further

strategy and are providing additional resources to raise standards even

capital expenditure on equipment, effectively doubling the capacity of

further and so drive continued growth for the benefit of employees and

the unit, to keep pace with rapidly increasing demand.

shareholders alike.

Retail environment. The new Greggs format has been extended

STRATEGIC DEVELOPMENT Our successful development has been

to 168 locations through new store openings and the progressive

based on our strategic focus on continuous improvement in five

refurbishment of existing shops as part our normal refit cycle.

key areas: products, service, retail environment, brands and people.

Consumers have responded well to the new design, which stands out

Product and service excellence. The introduction of new and

on the high street, enhances the display and accessibility of our key

improved products has made a major contribution to our strong volume

takeaway food ranges, and optimises the speed of service. The roll-out

growth. This continuing process has been greatly assisted by the

of the Greggs touch-screen electronic point of sale system has also

research, development and testing facilities provided at our group

continued, providing us with even better management information on

technical centre in Balliol Park, Newcastle upon Tyne, which opened in

both sales trends and profitability.

April 2000. The work undertaken here is also helping us to extend best

Since the catering market has been considerably less buoyant than the

practice, including the harmonisation of key products across our

takeaway sector on which Greggs focuses, the emphasis in Bakers

regional divisions, and to ensure the highest standards of food safety

Oven has been on improving the performance of its existing portfolio of

throughout the group.

seated catering outlets, rather than on further expansion of the format.

GREGGS plc: annual report and accounts 2001

Our focus has always been on achieving long-term growth by making our business

progressively better. This will remain so as we continue to develop returns from our

investment in even more enjoyable products, more attractive shops and better service,

and increasingly concentrate our resources behind the harmonisation and promotion of

strong national brands.

We deliver fast, efficient and friendly
service to satisfy the needs of 236 million
customers every year.

Brand awareness. During 2002 we will convert our 50 Birketts shops

TRADING PERFORMANCE We made strong sales progress throughout

in Cumbria, Lancashire and southern Scotland to the Greggs fascia,

the year, with the second half proving even stronger than the first.

completing the process of nationwide brand harmonisation which

Like-for-like sales grew by 6.9 per cent in the first half (24 weeks) and

began with the successful conversion of our Midlands and Yorkshire

by 9.6 per cent in the second half, giving us an 8.4 per cent uplift for

divisions in 1999. We believe that significant long term benefits will

the year as a whole. Within this, core volumes advanced by 4.3 per

accrue as we progressively simplify the business, ensure more

cent in the first half and 6.7 per cent in the second, making an annual

nationally consistent products, harmonise advertising and point of sale

increase of 5.7 per cent. Implied inflation of 2.7 per cent over the year

material, and concentrate on building consumer awareness of Greggs

remained primarily a function of product upgrades, though we also

as the leading brand in bakery-related takeaway food across the UK.

recovered some substantial increases in ingredient costs, most notably

This will be complemented by Bakers Oven, positioned as a premium

of flour in the second half.

brand and distinguished from Greggs by the role in its concept of

Including the benefit of new selling space, total sales grew by 9.1 per cent

seated catering and instore baking. The baking of products instore

in the first half and 13.1 per cent in the second, making 11.4 per cent for

enables us to extend our coverage to regions which could not be

the year as a whole.

supported by deliveries of fresh products from central bakeries.

As the Chairman has noted, the weather was favourable for our business

People. We have continued to benefit from progressive strengthening

throughout the year, with relatively few instances of the extreme conditions

of our management team both in the centre and in each of our

that tend to deter daily purchasers of our products. Strong retail

divisions, and by the increasing sophistication that this brings to our

demand overall also ensured high levels of activity on the high streets

work in understanding consumers’ changing needs and tastes, and

where we operate, with a late surge of Christmas shoppers contributing

ensuring that we respond to these effectively.

to a stronger than expected performance in the final weeks of the year.

GREGGS plc: annual report and accounts 2001

Underlying these external factors is the steadily increasing strength of

3.8 per cent increase over the year. Core volume performance

our brands and proposition as we have continued to improve our products,

improved in the latter part of the year but remained disappointing

shops and service, reflected in growing consumer awareness of the

overall at –0.1 per cent, comprising a 1.1 per cent decline in the first

quality and value that we offer. These are the key drivers of the sustained

half and a 0.6 per cent increase in the second half.

real sales growth we have achieved over the last nine years, with

The weaker performance of Bakers Oven compared with Greggs can

like-for-like sales increasing by 15.8 per cent over the last two years

be partly explained by its exposure to the catering market and its

alone. This strong sales growth has enabled us to increase pre-tax

correspondingly smaller involvement in the buoyant takeaway market.

profits by a very satisfactory 24.2 per cent to £32.7 million.

There remain significant regional variations in performance, however,

This has been achieved despite significant increases in our cost base

with the Midlands division making solid progress and the South improving,

as we have invested in people and facilities to enable us to drive the

while Scotland and the North have continued to underperform. We have

business even more strongly in the future.

made management changes designed to address these issues.

Greggs. Like-for-like sales in the nine Greggs divisions, including

Overall profits showed a small improvement over the previous year

Birketts, grew by 8.5 per cent in the first half and 11.3 per cent in the

despite the loss of Bakers Oven’s largest and most profitable unit with

second, making a 10.1 per cent increase for the year. Within this, core

the closure of the Millennium Dome.

volumes advanced by 6.3 per cent in the first half and 8.9 per cent in

PRODUCT PROFILE Continuing a long established pattern, the major

the second, to give an annual increase of 7.8 per cent.

takeaway food categories of sandwiches and savouries continued to show

All divisions made progress, with Greggs of Twickenham continuing to

the strongest growth, along with associated product areas such as soft

perform exceptionally well and Greggs of Enfield also making strong

drinks. Cakes and confectionery products, many of which are purchased

progress. During 2002 we plan to integrate these two businesses into a

to complement a savoury takeaway snack, remained fairly stable as a

single South East division, which will enable us to develop our operations

proportion of our trade, while bread and rolls continued their long decline.

in southern England even more effectively in the future. The Midlands and

RETAIL PROFILE We opened 67 new shops during the year and closed

Gosforth divisions again made pleasing progress, while our operations

28, giving us a net increase of 39 to 1,144 outlets by 29 December 2001,

in the North West achieved a very good result after a somewhat

slightly ahead of our target. There were 905 Greggs and 239 Bakers

disappointing year in 2000. Scotland remained our most profitable

Oven shops at the year end, compared with 858 and 247 respectively

division. The performance of this business has been transformed over

twelve months earlier. We completed 64 comprehensive shop

the last 20 years under the leadership of its Managing Director, Ken

refurbishments and 31 minor refits during the year.

Middleton, who retired from this role at the end of 2001, and I would like

CAPITAL INVESTMENT Capital expenditure of £27.4 million was £6

to record our appreciation of his outstanding contribution to Greggs.

million higher than in the previous year but below our original £30

Bakers Oven. Like-for-like sales in the four Bakers Oven divisions grew

million budget. The bulk of investment continued to be directed to

by 2.6 per cent in the first half and 4.7 per cent in the second, making a

the expansion and improvement of our retail estate, though we

naturally require further investment in our production facilities to

donations of £327,000 this year, the bulk of which is directed through

keep pace with the strength of volume growth. These will result in a

the Greggs Trust, dedicated to alleviating the effects of poverty and

further planned increase in capital expenditure to some £38 million in

social deprivation within our trading areas. In addition to our central

the current year, during which we intend to open some 50 new

contributions, our divisions are active in support of good causes within

stores, net of closures.

their trading areas, such as the major annual fun run sponsored

CASH FLOW AND BALANCE SHEET The group remains strongly cash

by Greggs of Gosforth in aid of children’s cancer research which has

generative and we ended the year with a substantially increased net

raised well over £2 million since its inception in 1983.

cash position of £30.0 million, compared with £18.9 million in 2000.

OUTLOOK We are the largest specialist operator in the UK addressing

This was despite a £1.5 million increase in dividend payments as well

the fast-growing market for bakery-related takeaway food. We have

as higher capital expenditure. We remain strongly placed to fund all our

significant scope for further expansion within our home market, with a

future investment plans from our own resources.

target of reaching over 1,700 units by the end of the present decade,

EMPLOYEES One of the most striking characteristics of our staff is their

and ultimate scope for at least 2,000 UK shops. In addition,

unfailing cheerfulness – an attitude they have maintained despite the

we continue to research the potential for our brands within mainland

significant increases in sales per shop that we have achieved over the

Europe, and expect a pilot shop to be trading there later this year.

last few years. I am particularly grateful for their proven ability to deal

Our focus has always been on achieving long-term growth by making

with ever-increasing customer numbers without compromising our

our business progressively better. This will remain so as we continue to

standards, whether in service across the counter or in food handling

develop returns from our investment in even more enjoyable products,

and preparation. We remain absolutely committed to promoting a caring

more attractive shops and better service, and increasingly concentrate

and considerate culture in which people are treated properly, can enjoy

our resources behind the harmonisation and promotion of strong

their work, and are given the greatest possible opportunity to realise

national brands.

their potential through skills training and internal promotion.

GREGGS IN THE COMMUNITY The Greggs Breakfast Clubs which

feature on the front cover of this report are a growing phenomenon, currently

operating in over 20 selected primary schools in the North and Midlands.

They are designed to get children off to a better start by providing them

with free breakfasts for which we provide all the food, including fresh

bread from our shops, together with the necessary equipment.

This initiative is just one example of our long-standing commitment

Mike Darrington,

to putting something back into the communities where we operate.

Managing Director

The group is a member of the ‘Per Cent’ Club and made charitable

8th March 2002

GREGGS plc: annual report and accounts 2001

directors’ report

The directors have pleasure in presenting their annual report and the

details of directors’ share options are set out in note 6 to the accounts.

audited accounts for the 52 weeks ended 29 December 2001.

Trustee holdings of ordinary shares with no beneficial interest include

The comparative period is the 52 weeks ended 30 December 2000.

214,655 shares held by the Greggs Employee Benefit Trust to which

PRINCIPAL ACTIVITIES

certain directors are trustees. Mr. C.S. Gregg resigned from the Board

The principal activity of the group is the retailing of sandwiches,

on 9 May 2001. On 1 March 2002 Mr. D.N.D. Netherton was appointed

savouries and other bakery related products with a particular focus on

a non-executive director. In accordance with the Company's Articles of

takeaway food and catering. The majority of products sold are

Association, Mr. M.J. Darrington, Mr. S.W. Curran, Mrs. S. Johnson OBE

manufactured in house.

and Mr. D.N.D. Netherton retire from the Board, and being eligible, offer

RESULTS AND DIVIDENDS

themselves for re-election.

Sales for the financial year excluding VAT were £377,556,000, an increase

Mr. M.J. Darrington has a service agreement determinable by not less

of £38,548,000 or 11.4% over the previous financial year. Group profit

than two years’ notice from the Company, or not less than six months’

before taxation amounted to £32,742,000, an increase of 24.2% over the

notice from Mr. M.J. Darrington. Mr. S.W. Curran, Mrs. S. Johnson OBE

previous financial year. An interim dividend of 21.0p per ordinary share

and Mr. D.N.D. Netherton do not have service agreements (in common

was paid on 5 October 2001 and the directors propose a final dividend of

with the other non-executive directors).

44.0p payable on 24 May 2002 leaving profit for the financial year to be

CORPORATE GOVERNANCE

retained of £15,146,000 (2000: £12,970,000 as restated).

A separate report on corporate governance is set out on pages 36 to 37.

BUSINESS REVIEW

SUBSTANTIAL SHAREHOLDINGS

A review of the business during the year and an outline of future

At 8 March 2002 the only notified interests of substantial shareholdings

developments are given in the Chairman's statement and Managing

in the issued share capital of the Company, other than directors referred

Director's report on pages 2 to 11.

to in note 6, were:

FIXED ASSETS

Percentage of issued share capital, %

In the opinion of the directors the market value of all of the Group's

CGNU plc

properties is not significantly different from their historical net book amount.

DIRECTORS AND THEIR INTERESTS

A.J. Davison (as trustee of various settlements)

Prudential plc

J.A. Wardropper (as trustee of

The names of the directors in office during the year together with their

various settlements jointly with A.J. Davison)

relevant interests in the share capital of the Company (as defined in the

Mrs G.V. Richardson and family

Companies Act 1985) at 29 December 2001 and 30 December 2000 and

Standard Life

8.90

9.16

4.81

5.44

4.45

3.96

EMPLOYMENT POLICIES

CHARITABLE CONTRIBUTIONS

We are committed to promoting policies which ensure that employees and

The Group is a member of the ‘Per Cent’ Club. Charitable donations of

those who seek to work for us are treated equally regardless of sex, marital

£327,000 were made by the Group during the year including £218,000 to

status, creed, colour, race or ethnic origin.

Greggs Trust . The Trust also received donations from employees under

It is our policy to give full and fair consideration to applications for

Give As You Earn of £45,000, from major shareholders of £129,000 and

employment by people who are disabled, to continue wherever possible

income from investments of £163,000. These funds were used by the

the employment of staff who become disabled and to provide equal

Trust in pursuance of its main objective to alleviate the effects of poverty

opportunities for the career development of disabled employees.

and social deprivation in the areas where the Company trades.

The number and dispersion of the Group's operating locations make it

AUDITORS

difficult, but essential, to communicate effectively with employees.

In accordance with Section 384 of the Companies Act 1985, a resolution

Communication with our shop staff is principally through the operational

for the re-appointment of KPMG Audit Plc as auditors of the Company

structure of shop area and divisional management. We communicate

will be proposed at the forthcoming Annual General Meeting.

with our bakery staff by regular briefings and letters to employees.

All staff receive a copy of divisional and Group gazettes. The Group

operates Profit Sharing and Savings Related Share Option Schemes

to encourage its employees to identify with its corporate objectives.

PAYMENTS TO SUPPLIERS

Supplier credit is an extremely important factor in the success of the

By order of the Board

Group. Whilst the Group does not follow any code or standard on

ANDREW DAVISON

payment practice, payments to suppliers are made in accordance

Secretary

with the Group’s normal terms and conditions of business except

Greggs plc (CRN 502851)

where varied terms and conditions are agreed with individual

Fernwood House

suppliers in which case these prevail. Where disputes arise we

Clayton Road

attempt to resolve them promptly and amicably to ensure delays in

Jesmond

payment are kept to a minimum.

Newcastle upon Tyne

The average creditor payment period for the Company and the Group

NE2 1TL

at 29 December 2001 was 51 days (2000: 47 days).

8 March 2002

GREGGS plc: annual report and accounts 2001

statement of directors’ responsibilities

in respect of the preparation of accounts

The directors are required by company law to prepare accounts for

The directors have responsibility for ensuring that the Company keeps

each financial year which give a true and fair view of the state of affairs

accounting records which disclose with reasonable accuracy at any

of the Company and the Group at the end of the financial year and of

time the financial position of the Company and which enable them to

the results for that period.

ensure that the accounts comply with the Companies Act 1985.

The directors consider that in preparing the accounts on pages 16 to 35,

The directors have general responsibility for taking such steps as are

the Company has used appropriate accounting policies, consistently

reasonably open to them to safeguard the assets of the Group and to

applied and supported by reasonable and prudent judgements and

prevent and detect fraud and other irregularities.

estimates, and that all accounting standards which they consider to

be applicable have been followed. The accounts have been prepared

on a going concern basis on the presumption that the Group will

continue in business.

report of the independent auditors

to the members of Greggs plc

We have audited the accounts on pages 16 to 35.

BASIS OF AUDIT OPINION

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

We conducted our audit in accordance with Auditing Standards issued

The directors are responsible for preparing the Annual Report. As described

by the Auditing Practices Board. An audit includes examination, on a

on page 14 this includes responsibility for preparing the accounts in

test basis, of evidence relevant to the amounts and disclosures in the

accordance with applicable United Kingdom law and accounting standards.

accounts. It also includes an assessment of the significant estimates

Our responsibilities, as independent auditors, are established in the United

and judgements made by the directors in the preparation of the

Kingdom by statute, the Auditing Practices Board, the Listing Rules of

accounts, and of whether the accounting policies are appropriate to the

the Financial Services Authority and by our profession’s ethical guidance.

Group's circumstances, consistently applied and adequately disclosed.

We report to you our opinion as to whether the accounts give a true and

We planned and performed our audit so as to obtain all the information

fair view and are properly prepared in accordance with the Companies

and explanations which we considered necessary in order to provide us

Act 1985. We also report to you if, in our opinion, the directors’ report

with sufficient evidence to give reasonable assurance that the accounts

is not consistent with the accounts, if the Company has not kept proper

are free from material misstatement, whether caused by fraud or other

accounting records, if we have not received all the information and

irregularity or error. In forming our opinion we also evaluated the overall

explanations we require for our audit, or if information specified by law

adequacy of the presentation of information in the accounts.

or the Listing Rules regarding directors’ remuneration and transactions

OPINION

with the Group is not disclosed.

In our opinion the accounts give a true and fair view of the state of

We review whether the statement on page 36 reflects the Company’s

affairs of the Company and the Group as at 29 December 2001 and

compliance with the seven provisions of the Combined Code specified for

of the profit of the Group for the 52 weeks then ended and have been

our review by the Listing Rules and we report if it does not. We are not

properly prepared in accordance with the Companies Act 1985.

required to consider whether the Board’s statements on internal control

cover all risks and controls, or form an opinion on the effectiveness of the

Group’s corporate governance procedures or its risk and control procedures.

We read the other information contained in the Annual Report, including

KPMG Audit Plc

the corporate governance statement and consider whether it is

Chartered Accountants

consistent with the audited accounts. We consider the implications for

Registered Auditor

our report if we become aware of any apparent misstatements or material

Newcastle upon Tyne

inconsistencies with the accounts.

8 March 2002

GREGGS plc: annual report and accounts 2001

group profit and loss account

for the 52 weeks ended 29 December 2001

Turnover

Cost of Sales

Gross profit

Distribution and selling costs

Administrative expenses

Operating profit

Net interest receivable and other income

Profit on ordinary activities before taxation

Taxation on profit on ordinary activities

Profit on ordinary activities after taxation

Dividends paid and proposed

Retained profit for the financial year

Basic earnings per share

Diluted earnings per share

Note

2001

£’000

377,556

(147,468)

230,088

(172,711)

(25,780)

31,597

1,145

32,742

(9,933)

22,809

(7,663)

15,146

190.2p

187.7p

2000

£’000

As restated*

339,008

(131,197)

207,811

(158,327)

(23,440)

26,044

312

26,356

(6,964)

19,392

(6,422)

12,970

162.3p

161.0p

* FRS 19 ‘Deferred tax’ has been adopted for the first time resulting in a restatement of the 2000 accounts. This is discussed in further detail in
the accounting policies section on page 20.

The Group’s operating profit for both the current and preceding financial period derives from continuing operations. There are no recognised
gains or losses during the current and previous period other than the profit for the period.

RECONCILIATION OF MOVEMENT IN CONSOLIDATED SHAREHOLDERS’ FUNDS

Profit for the financial year
- as previously stated

- prior year adjustment (see accounting policies)

Dividends

Retained profit for the financial year

New share capital
- nominal value

- share premium

Net addition to shareholders’ funds

Opening shareholders’ funds
- as previously stated

- prior year adjustment (see accounting policies)

Closing shareholders’ funds

2001

£’000

22,809

2000

£’000

As restated
22,131

2000

£’000

As restated

(2,739)

22,809

(7,663)

15,146

236

15,385

88,169

103,554

80,896

(6,113)

19,392

(6,422)

12,970

407

13,386

74,783

88,169

group balance sheet

at 29 December 2001

29 December

2001

Note

£’000

Fixed assets

Tangible assets

Investments

Current assets

Stocks

Debtors

Cash at bank and in hand

6,275

12,406

30,027

48,708

Creditors: amounts falling due within one year

(60,762)

Net current liabilities

Total assets less current liabilities

Creditors: amounts falling due after more than one year

Provisions for liabilities and charges

Deferred tax

Capital and reserves

Called up share capital

Share premium account

Profit and loss account

Equity shareholders’ funds

5,636

11,893

20,015

37,544

(55,227)

124,123

3,563

127,686

(12,054)

115,632

(109)

(11,969)

103,554

2,400

9,794

91,360

103,554

The accounts on pages 16 to 35 were approved by the Board of directors on 8 March 2002 and were signed on its behalf by

M.J. Darrington}Directors

M. Simpson

30 December
2000
As restated
£’000

113,285

3,563

116,848

(17,683)

99,165

(133)

(10,863)

88,169

2,397

9,558

76,214

88,169

GREGGS plc: annual report and accounts 2001

parent company balance sheet

at 29 December 2001

29 December

2001

30 December

2000

As restated

Note

£’000

Fixed assets

Tangible assets

Investments

Current assets

Stocks

Debtors

Cash at bank and in hand

6,275

30,737

29,872

66,884

Creditors: amounts falling due within one year

(60,556)

Net current assets

Total assets less current liabilities

Creditors: amounts falling due after more than one year

Provisions for liabilities and charges

Deferred tax

Capital and reserves

Called up share capital

Share premium account

Profit and loss account

Equity shareholders’ funds

102,739

8,753

111,492

86,641

8,753

95,394

5,268

32,362

19,289

56,919

(51,557)

6,328

117,820

(109)

(9,250)

108,461

2,400

9,794

96,267

108,461

5,362

100,756

(133)

(7,272)

93,351

2,397

9,558

81,396

93,351

The accounts on pages 16 to 35 were approved by the Board of directors on 8 March 2002 and were signed on its behalf by

M.J. Darrington}Directors

M. Simpson

group cash flow statement

for the 52 weeks ended 29 December 2001

Reconciliation of operating profit to net cash inflow from operating activities

Operating profit

Depreciation charges

(Profit) / loss on disposal of fixed assets

Release of government grants

(Increase) / decrease in stocks

Increase in debtors

Increase in creditors

Net increase in working capital

Net cash inflow from continuing operating activities

CASH FLOW STATEMENT

Net cash inflow from continuing operating activities

Returns on investments and servicing of finance

Interest received

Interest paid

Interest element of finance lease payments

Net cash inflow from returns on investments and servicing of finance

Taxation paid

Capital expenditure and financial investments

Purchase of tangible fixed assets

Disposal of tangible fixed assets

Purchase of investments

Net cash outflow for capital expenditure and financial investments

Equity dividends paid

Financing

Issue of ordinary share capital

Redemption of loan notes

Capital element of finance lease payments

Loan repayments

Government grants received

Net cash outflow from financing

Net increase in cash in the period

Further details regarding cash flows are given in note 27 to the accounts

£’000

2001

£’000

2000

£’000

31,597

14,907

(248)

(24)

4,186

50,418

26,044

14,162

222

(46)

3,049

43,431

347

(2,142)

4,844

622

(301)

(9)

1,145

(6,005)

312

(5,604)

(21,397)

2,514

(2,133)

(25,497)

(7,067)

(21,016)

(5,593)

416

(32)

(40)

(1,913)

(1,842)

11,152

(1,547)

9,983

(639)

(513)

5,338

1,354

(209)

(27,385)

1,888

239

(42)

(2,039)

GREGGS plc: annual report and accounts 2001

accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Group’s accounts.

(a) Basis of accounting

The accounts are prepared under the historical cost accounting rules and in accordance with applicable accounting standards. The
requirements of all new accounting standards and pronouncements adopted during the past year have been implemented where relevant, in
particular FRS 19 ‘Deferred tax’.

(b) Consolidation

The consolidated accounts include the results of Greggs plc and its subsidiary undertakings for the period of 52 weeks ended 29 December
2001. The comparative period is the 52 weeks ended 30 December 2000.

Depreciation is provided on the cost of tangible fixed assets before deducting government capital grants and after taking the estimated residual
value into consideration. Freehold and long leasehold properties are depreciated by equal instalments over a period of 40 years. No
depreciation is provided on freehold land. Depreciation of other tangible fixed assets is provided on a straight line basis as follows:

Short leasehold properties
Plant:
General
Computers
Motor vehicles
Delivery trays
Shop fixtures and fittings:
General
Electronic equipment

10%

10%
20% - 331/3%
20% - 25%
331/3%

10%
20%

(d) Government grants

Grants received in respect of specific capital items are credited to deferred income and transferred to the profit and loss account in equal
instalments over the estimated average life of the relevant fixed assets. Grants which are related to the fulfilment of certain conditions or to the
expiry of a period of time are also credited to deferred income and are transferred to the profit and loss account in equal instalments over a
period from the commencement of the project until these conditions are met.

(e) Stocks

Stocks are stated at the lower of cost and net realisable value.

(f) Taxation and prior year adjustment

The charge for taxation is based on the profit for the year and takes into account taxation deferred or accelerated because of timing differences
between the treatment of certain items for taxation and accounting purposes.

Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation purposes
and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19.

Financial Reporting Standard 19 has been adopted for the first time and accordingly a further £8,852,000 has been included as a provision at 30
December 2000 and a charge of £2,739,000 has been included within the tax charge for that year. The movement in the current year of
£1,106,000 has been charged to results for the year and included within the current tax charge.

(g) Goodwill
Purchased goodwill arising in respect of acquisitions before 1 January 1998, when FRS 10: “Goodwill and Intangible Assets” was adopted was
written off to reserves in the year of acquisition. When a subsequent disposal occurs any related goodwill previously written off to reserves is
written back through the profit and loss account as part of the profit or loss on disposal.

Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired)
arising in respect of acquisitions since 1 January 1998 is capitalised. Positive goodwill is amortised to nil by equal annual instalments over its
estimated useful life.

Negative goodwill arising in respect of acquisitions since 1 January 1998 is included within fixed assets and released to the profit and loss
account in the periods in which the fair values of the non-monetary assets purchased on the same acquisition are recovered whether through
depreciation or sale.

(h) Leased assets

Assets acquired under finance leases are capitalised and depreciated over their estimated useful lives in accordance with Group policy for
owned assets. The obligation to repay the capital element of the lease is included in creditors. Finance interest is charged to the profit and loss
account over the period of the lease to reflect the outstanding capital commitment.

The rental costs of properties and other assets acquired under operating leases are charged to the profit and loss account on a straight line
basis over the term of the lease.

(i) Pension costs

The Group operates defined benefit and defined contribution schemes for its employees. The assets of these funds are held by the Trustees of
the schemes and are entirely separate from those of the Group.

The amount charged to the profit and loss account is based on actuarial estimates and is calculated to spread the cost of pensions over
employees’ working lives with the Group.

(j) Financial assets and liabilities

Changes in the value of financial instruments are disclosed in the notes to the accounts but are not reflected in the profit and loss account or the
balance sheet.

(k) Cash and liquid resources

Cash, for the purposes of the cash flow statement, comprises cash in hand and deposits repayable on demand, less overdrafts repayable on demand.

Liquid resources are current asset investments which are disposable without curtailing or disrupting the business and are either readily convertible
into known amounts of cash at or close to their carrying values or traded in an active market. Liquid resources comprise term deposits of less
than one year (other than cash), government securities and investments in money market managed funds.

GREGGS plc: annual report and accounts 2001

notes to the accounts

1. Turnover

Turnover represents sales to customers less value added tax. The turnover arises from the Group's principal activity and relates wholly to sales
within the United Kingdom.

2. Employee profit sharing scheme

The total amount paid out under the Group’s employee profit sharing scheme is contained within the main cost categories as follows:

Cost of sales

Distribution and selling costs

Administrative expenses

3. Net interest receivable /(payable) and other income / (similar charges)

Interest receivable

Interest payable on bank loans

Interest payable on finance leases

4. Profit on ordinary activities before taxation

This is stated after charging / (crediting):

Depreciation on tangible fixed assets:

owned

held under finance leases

(Profit) / loss on disposal of fixed assets

Release of government grants

Auditors’ remuneration:

audit services

non-audit fees paid to the auditor and its associates:

- corporation tax compliance (2001: including £42,000 in respect of dealing with earlier years’ computations)

- other taxation services

- pension schemes audit

- IT consultancy

2001

£’000

1,212

2,362

504

4,078

2001

£’000

1,354

(209)

1,145

2000

£’000

922

1,942

374

3,238

2000

£’000

622

(301)

(9)

312

2001

£’000

2000

£’000

14,907

14,111

(248)

(24)

222

(46)

Payments under operating leases – property rents

25,226

23,780

5. Directors’ emoluments

(a) Directors’ remuneration excluding pensions

Salary and

Benefits

Annual

fees

bonus and

profit share

Total

2001

Total

2000

Executives

M J Darrington

M Simpson

Non-executives

I D Gregg OBE

S W Curran

S I L Elkin OBE

C S Gregg

S Johnson OBE

267,000

178,000

10,798

11,503

82,049

359,847

340,315

54,699

244,202

231,451

71,500

20,250

21,250

7,180

20,250

71,500

20,250

21,250

7,180

20,250

68,000

19,250

20,250

19,250

16,042

585,430

22,301

136,748

744,479

714,558

Further details of directors’ remuneration are shown on page 39.

Details of directors’ share options are shown in note 6.

(b) Directors’ pension information

(i) Defined benefit scheme

Accrued
annual
pension
entitlement
at age 65 as
at 29
December
2001
£

Accrued
annual
pension
entitlement
at age 65 as
at 30
December
2000
£

Date of
birth

Date
service
commenced

8/3/42

15/8/83

15/10/41

24/4/73

82,379

82,766

72,763

74,412

Increase in
accrued
pension
entitlement
for the year
£

7,215

5,898

Transfer
values of
increase in
entitlement
for the year
£

84,151

68,529

Executive

M J Darrington

M Simpson

Note 1
The pension entitlement shown is that which would be paid annually on retirement based on service to the end of the year, but excluding any
statutory increases which would be due after the year end.

Note 2
The increase in accrued pension during the year excludes any increases for inflation. The inflation rate used is that published by the Secretary of State
for Social Security in accordance with Schedule 3 of the Pension Schemes Act 1993. The inflation rate for the year to 29 December 2001 was 3.3%.

(ii) Defined contribution schemes

During the year contributions were made to defined contribution schemes in respect of M.J. Darrington of £67,800 (2000: £66,390) and M. Simpson
of £8,900 (2000: £8,350).

GREGGS plc: annual report and accounts 2001

notes to the accounts

(continued)

6. Directors’ share interests

The directors who served during the year and who were still in office at the end of the year and their interests in the share capital of the company
are as follows:

Ordinary shares of 20p

(Trustee holding with

(Beneficial interest)

no beneficial interest)

2001

2000

2001

2000

I D Gregg OBE (non-executive)

240,500

257,500

214,655

429,655

M J Darrington

M Simpson

S W Curran (non-executive)

S I L Elkin OBE (non-executive)

S Johnson OBE (non-executive)

70,640

80,723

3,700

900

70,397

214,655

77,309

243,256

3,700

900

C S Gregg resigned as a director on 9 May 2001.

D N D Netherton was appointed a non-executive director on 1 March 2002.

The executive directors have a potential beneficial interest in the Greggs Employee Benefit Trust (note 16).

The directors held options as follows:

M.J. Darrington

M. Simpson

Number of options

during year

Market

price

Exercise

at date of

Gain

Date

from

which

At 30/12/00

Granted

Exercised At 29/12/01

price

exercise

exercisable

Expiry

date

5,000

18,000

199

27,900

3,500

12,000

199

18,600

5,000

13.55

18,000

26.875

199

20.98

27,900

17.015

3,500

13.55

12,000

26.875

199

20.98

18,600

17.015

Sep-99

Aug-03

Mar-02

Mar-06

Jun-04

Dec-04

Mar-03

Mar-07

Sep-99

Aug-03

Mar-02

Mar-06

Jun-04

Dec-04

Mar-03

Mar-07

In 2000 the aggregate gains on exercise of share options were £141,737, including £83,375 in respect of the highest paid director.

As at 8 March 2002 there had been no changes since 29 December 2001 in the directors’ interests noted above.

The mid-market price of a Greggs plc ordinary share on 29 December 2001 was £30.625. The mid-market high and low price during the year
was £34.85 and £24.00 respectively.

7. Share options

Contingent rights to the allotment of Ordinary Shares in the Company at future dates exist under the terms of the Company's Savings Related
Share Option Scheme and its Executive Share Option Schemes.

Details of these options at 29 December 2001 are as follows:

Date of grant

Price

2001

2000

exercisable

Options outstanding at

the end of the year

Dates

September 1993

700p

11,900

17,600

September 1996

1355p

36,812

52,500

March 1999

26871/2p

93,350

100,250

April 1999

2098p

185,128

229,153

March 2000

17011/2p

144,400

150,200

Three to ten years
after September 1993

Three to ten years
after September 1996

Three to seven years
after March 1999

June 2004 to
December 2004

Three to seven years
after March 2000

Executive Share
Option Scheme 4

Executive Share
Option Scheme 5

Executive Share
Option Scheme 6

Savings Related Share Option
Scheme 4

Executive Share
Option Scheme 7

8. Employees

The average number of persons employed by the group (including directors) during the year was as follows:

Management

Administration

Production

Shop

The aggregate payroll costs of these persons were as follows:

Wages and salaries

Social security costs

Other pension costs

2001

No’s

585

290

2,529

12,237

15,641

2000

No’s

576

259

2,433

11,447

14,715

2001

£’000

2000

£’000

142,530

125,347

9,135

2,691

8,414

1,785

154,356

135,546

GREGGS plc: annual report and accounts 2001

notes to the accounts

(continued)

9. Pensions

(a) Defined benefit scheme

The company operates a defined benefit pension scheme, the Greggs plc 1978 Retirement and Death Benefit Scheme. The scheme funds are
administered by trustees and are independent of the company’s finances. Contributions are paid to the scheme in accordance with the
recommendations of an independent actuarial advisor.

The pension cost relating to the scheme is assessed in accordance with the advice of an independent qualified actuary using the attained age
method. Actuarial valuations are carried out triennially and the latest actuarial assessment of this scheme was at 6 April 1999. The assumptions
which have the most significant effect on the results of the valuation are those relating to the rate of return on investments and the rate of
increase in salaries. It was assumed that the investment return would exceed salary increases by 2.0% per annum.

At the date of the latest actuarial valuation, the market value of the scheme’s assets was £26,344,300. The actuarial value of the scheme’s
assets represented 109% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The total
pension cost to the group of this scheme was £1,798,000 for the year (2000: £1,248,000).

Whilst the Group continues to account for pension costs in accordance with Statement of Standard Accounting Practice 24 ‘Accounting for
Pension Costs’, under FRS 17 ‘Retirement Benefits’ the following transitional disclosures are required:

The actuarial valuation was updated to 29 December 2001, by an independent qualified actuary in accordance with the transitional
arrangements of FRS 17. As required by FRS 17, the defined benefit liabilities have been measured using the projected unit method.

The major assumptions used in this valuation were:

Inflation
Pension increases (LPI)
Salary growth
Discount rate

2.5% pa
2.5% pa
4.0% pa
5.8% pa

The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions, which, due to the
timescale covered, may not necessarily be borne out in practice.

Scheme assets

The fair value of the scheme’s assets, which are not intended to be realised in the short term and may be subject to significant change before
they are realised, and the present value of the scheme’s liabilities, which are derived from cash flow projections over long periods and thus
inherently uncertain, were:

Fair value of assets

Composed of :

Present value of liabilities

Gross pension liability
Related deferred tax asset

Net pension liability

Equities
Bonds
Other

8.0% pa
4.8% pa
5.3% pa

£’000

20,908
7,125
6,034

£’000

34,067
(36,114)

(2,047)
614

(1,433)

Over the year to 29 December 2001, contributions by the company of £1,852,000 were made to the scheme. It has been agreed with the
trustees that employer’s contributions for the period between 1 March 2000 and 28 February 2005 will be at the level of 7.6% of annual
pensionable salary plus the cost of insuring death in service benefits and the cost of administration expenses. The scheme is now closed to new
entrants and, under the method used to calculate pension costs in accordance with FRS 17, the cost as a percentage of covered pensionable
payroll will tend to increase as the average age of the membership increases.

The Group’s net assets, including the disclosed FRS 17 balance sheet item above, would be £102,121,000 at 29 December 2001.

(b) Defined contribution schemes

The company also operates defined contribution schemes for other eligible employees. The assets of the schemes are held separately from
those of the group. The pension cost represents contributions payable by the group and amounted to £893,000 in the year (2000: £537,000).
There were no material amounts outstanding to the schemes at the year end.

10. Taxation on profit on ordinary activities

(a) Analysis of charge in period at 30% (2000: 30%)

Current tax:

Corporation tax at 30.0% (2000 30.0%)

- current year

- previous years

Total current tax

Deferred tax

Origination and reversal of timing differences

- current year

- previous years

Total deferred tax

Tax on profit on ordinary activities

2001

£’000

2000

£’000

As restated

8,827

1,316

(210)

6,950

(2,725)

8,827

4,225

1,007

1,732

1,106

9,933

2,739

6,964

(b) Factors affecting current tax charge for period

The tax assessed for the period is lower than the standard rate of corporation tax in the UK (30%). The differences are explained below:

Profit on ordinary activities before tax

Tax on profit on ordinary activities at UK standard rate of tax of 30% (2000:30%)

Effects of:

Capital allowances for period in excess of depreciation

Expenses not deductible for tax purposes

Lease rentals

Chargeable gains rolled over

Non-qualifying depreciation

In respect of earlier years

Other

Current tax charge for period

2001

£’000

32,742

9,823

(1,316)

208

(660)

(273)

789

256

8,827

2000

£’000

26,356

7,907

(1,258)

(572)

(125)

716

(2,725)

190

4,225

GREGGS plc: annual report and accounts 2001

notes to the accounts

(continued)

11. Profit attributable to Greggs plc

Of the profit attributable to shareholders, £22,534,000 (2000: £18,561,000 as restated) is dealt with in the accounts of the parent company. The
company has taken advantage of the exemption permitted by section 230 of the Companies Act 1985 from presenting its own profit and loss account.

12. Dividends

On ordinary shares of 20p

Interim paid: 21.0p (2000:16.0p)

Final proposed: 44.0p (2000:39.0p)

Total dividends: 65.0p (2000: 55.0p)

13. Earnings per share

2001

£’000

2000

£’000

2,477

5,186

7,663

1,832

4,590

6,422

Basic earnings per share are calculated on earnings after taxation of £22,809,000 (2000: £19,392,000 as restated) divided by the weighted
average number of shares in issue for which consideration is receivable during the year 11,993,371 (2000:11,956,166).

Diluted earnings per share are calculated using the same earnings as those used for basic earnings per share, and a weighted average number
of shares 12,153,399 (2000: 12,044,814). This number includes 160,028 (2000: 88,648) shares being the dilutive effect of the share options in
place at the year end.

14. Group statement of tangible fixed assets

Cost

At 30 December 2000

Additions

Disposals

Reclassification

At 29 December 2001

Depreciation

At 30 December 2000

Charged in year

Disposals

At 29 December 2001

Net book amount
At 29 December 2001

At 30 December 2000

Plant and

Shop fixtures

Land and buildings

machinery

and fittings

£’000

Total

£’000

50,372

51,746

73,474

175,592

2,364

8,987

16,034

27,385

(666)

(2,403)

(7,458)

(10,527)

(451)

451

52,070

57,879

82,501

192,450

9,511

1,291

27,232

25,564

5,982

7,634

62,307

14,907

(128)

(2,183)

(6,576)

(8,887)

10,674

31,031

26,622

68,327

41,396

26,848

55,879

124,123

40,861

24,514

47,910

113,285

Included in land and buildings is an amount of £1,218,000 (2000: £1,218,000) in respect of freehold land which is not depreciated.

Included in plant and machinery is an amount of £nil (2000: £12,000) representing assets held under finance leases.

The net book amount of land and buildings comprises:

Freehold property

Long leasehold property

Short leasehold property

Shops

Bakeries

Other

Bakeries

Shops

2000

£’000

13,773

21,231

5,170

2001

£’000

15,242

20,578

4,965

£’000

40,785

149

462

41,396

£’000

40,174

158

529

40,861

GREGGS plc: annual report and accounts 2001

notes to the accounts

(continued)

15. Parent company statement of tangible fixed assets

Cost

At 30 December 2000

Additions

Intra group transfers

Disposals

Reclassification

At 29 December 2001

Depreciation

At 30 December 2000

Charged in year

Intra group transfers

Disposals

At 29 December 2001

Net book amount
At 29 December 2001

At 30 December 2000

Land and

buildings

£’000

Plant and

Shop fixtures

machinery

and fittings

£’000

Total

£’000

19,695

50,424

72,032

142,151

2,248

2,215

8,987

1,855

16,034

27,269

1,930

6,000

(137)

(2,403)

(7,458)

(9,998)

(451)

451

24,021

58,412

82,989

165,422

3,527

26,676

25,307

624

249

5,973

836

7,645

638

55,510

14,242

1,723

(32)

(2,183)

(6,577)

(8,792)

4,368

31,302

27,013

62,683

19,653

27,110

55,976

102,739

16,168

23,748

46,725

86,641

Included in plant and machinery is an amount of £nil (2000: £12,000) representing assets held under finance leases.

The net book amount of land and buildings comprises:

2001

£’000

7,838

6,146

5,058

£’000

19,042

149

462

19,653

2000

£’000

4,945

5,366

5,180

£’000

15,491

158

519

16,168

Freehold property

Long leasehold property

Short leasehold property

Shops

Bakeries

Other

Bakeries

Shops

16. Investments

Group

Investments relate to shares in Greggs plc held by the trustees of the Greggs Employee Benefit Trust. This trust was established during 1988 to
act as a repository of issued Company shares which can be purchased either on the exercise of an option by employees under the Greggs
Executive Share Option Schemes or by the trustees of the Greggs Employee Share Scheme.

The trust holds 214,655 shares in Greggs plc (2000: 214,655). These are shown in the accounts at cost of £3,563,000 (2000: £3,563,000) and
have a market value at 29 December 2001 of £6,574,000 (2000: £5,152,000).

The trust has registered a waiver in respect of dividends on these shares.

Parent Company

2001

£'000

2000

£'000

5,828

(638)

5,190

3,563

8,753

5,828

(638)

5,190

3,563

8,753

Interest in subsidiary undertakings

Shares at cost

Less: Amounts written off

Employee Benefit Trust

The Company's subsidiary undertakings, which are all wholly owned, are as follows:

Charles Bragg (Bakers) Limited

Non-trading

Greggs (Leasing) Limited

Thurston Parfitt Limited

Non-trading

Dormant

Greggs Properties Limited

Property holding

Olivers (UK) Limited

Olivers (UK) Development Limited *

Birketts Holdings Limited

J R Birkett & Sons Limited *

Greggs Trustees Limited

* held indirectly

Dormant

Non-trading

Trustee

GREGGS plc: annual report and accounts 2001

notes to the accounts

(continued)

17. Stocks

Raw materials and consumables

Work in progress

18. Debtors

Trade debtors

Amounts owed by subsidiary undertakings

Other debtors, including value added tax

Prepayments and accrued income

19. Creditors: amounts falling due within one year

Bank overdraft (unsecured)

Loan notes

Bank loan (see note 21)

Trade creditors

Corporation tax

Other taxes and social security costs

Other creditors

Accruals

Proposed final dividend

Deferred government grants

2001

£’000

4,865

1,410

6,275

2001

£’000

484

5,383

6,539

Group

2000

£’000

4,536

1,100

5,636

Group

2000

£’000

508

Parent company

2001

£’000

4,865

1,410

6,275

2000

£’000

4,291

977

5,268

Parent company

2001

£’000

484

2000

£’000

182

18,331

21,093

5,909

5,476

5,383

6,539

5,728

5,359

12,406

11,893

30,737

32,362

2001

£’000

Group

2000

£’000

1,140

2,039

Parent company

2001

£’000

2000

£’000

1,425

24,097

19,658

24,097

18,836

4,786

3,531

1,964

3,030

4,580

3,531

1,762

2,886

14,914

15,103

14,914

14,681

8,224

5,186

7,637

4,590

8,224

5,186

7,311

4,590

60,762

55,227

60,556

51,557

20. Creditors: amounts falling due after more than one year

Deferred government grants

21. Financial assets and liabilities

2001

£’000

109

Group

2000

£’000

133

Parent company

2001

£’000

109

2000

£’000

133

The Group’s activities are financed by cash at bank and short term investments which comprise cash placed on deposit. The Group’s
borrowings comprise a fixed rate, fixed term bank loan.

The Group’s treasury policy has as its principal objective the achievement of the maximum rate of return on cash balances whilst maintaining an
acceptable level of risk. Other than mentioned above there are no financial instruments, derivatives or commodity contracts used.

The Group considers that the interest rate risk is not significant.

For the purposes of the following disclosures, short-term debtors and creditors have been excluded, as permitted by FRS13.

The Group’s financial assets comprise cash at bank. At 29 December 2001 the average interest rate earned on the closing cash balance was
3.5% (2000: 5.7%).

At 29 December 2001 the Group had no financial liabilities (2000: a bank loan in the sum of £2,039,000). The Group has an overdraft facility of
£10,000,000 which was undrawn at 29 December 2001 (2000: £8,860,000 undrawn).

The maturity profile of the Group’s financial liabilities at 29 December 2001 was as follows:

In one year or less

The fair value of the Group’s other financial assets and liabilities is not materially different from their book values.

22. Provisions for liabilities and charges - deferred tax

2001

£’000

2000

£’000

2,039

The provision is in respect of:
Accelerated capital allowances

The movement in deferred tax is represented by the charge for the year.

2001

£’000

Group

2000

£’000

As restated

Parent company

2001

£’000

2000

£’000

As restated

11,969

10,863

9,250

7,272

GREGGS plc: annual report and accounts 2001

notes to the accounts

(continued)

23. Share capital

Authorised:
25,000,000 ordinary shares of 20p

Issued and fully paid:

Number of shares:

11,984,557

16,075

12,000,632

Details of outstanding share options are given in note 7.

24. Share premium account

At 30 December 2000
Premium arising on issue of shares in respect of share options

At 29 December 2001

25. Profit and loss account

At start of year – as originally stated

Prior year adjustment – see accounting policies

As restated

Retained profit for the year

At end of year

At 30 December 2000

Issued in respect of share options

At 29 December 2001

2001

£’000

2000

£’000

5,000

2,397

2,388

2,400

2,397

Group and
parent
company
£’000

9,558
236

9,794

2001

£’000

Group

2000

£’000

As restated

Parent company

2001

£’000

2000

£’000

As restated

85,066

69,357

87,011

72,133

(8,852)

(6,113)

(5,615)

(2,876)

76,214

15,146

91,360

63,244

12,970

76,214

81,396

14,871

96,267

69,257

12,139

81,396

Cumulative goodwill written off resulting from acquisitions made prior to 1 January 1998 amounts to £3,275,000 (2000: £3,275,000).

26. Commitments

a) Capital commitments

Outstanding commitments for capital expenditure at 29 December 2001 not provided for in the accounts are as follows:

Contracted for

b) Operating lease commitments

2001

£’000

Group

2000

£’000

Parent company

2001

£’000

2000

£’000

2,161

1,284

2,161

1,284

At 29 December 2001 the Group and Company had annual commitments under operating leases on land and buildings as set out below:

Operating leases which expire:
Within one year

In the second to fifth years inclusive

After more than five years

2001

£’000

2000

£’000

1,213

5,882

16,690

23,785

723

5,101

14,846

20,670

The Group’s business is carried on through retail outlets which are subject to operating leases which include clauses for periodic rent reviews.
The property commitments above are stated at current rents.

27. Notes to the group cash flow statement

(a) Reconciliation of net cash flow to movement in net funds

Increase in cash in the period

Cash outflow from decrease in debt and decrease in lease financing

Movement in net funds in the period

Net funds at 30 December 2000

Net funds at 29 December 2001

(b) Analysis of net funds

Cash in hand and at bank

Bank overdraft

Debt due within one year

Total

2001

£’000

11,152

2,039

13,191

16,836

30,027

At 30

December

2000

£’000

Cash flow Other changes

£’000

20,015

10,012

(1,140)

1,140

18,875

11,152

(2,039)

2,039

16,836

13,191

2000
£’000

9,983

1,953

11,936

4,900

16,836

At 29

December

2001

£’000

30,027

GREGGS plc: annual report and accounts 2001

corporate governance

In June 1998, the Stock Exchange published the Principles of Good
Governance and Code of Best Practice (“the Combined Code”) which
embraces the work of the Cadbury, Greenbury and Hampel
Committees.

The continuing role of the Board is regularly to review the key risks

inherent in the business, the operation of the system of control

necessary to manage such risks and its effectiveness and satisfy itself

that all reasonable steps are being taken in mitigation of these risks.

The Group is committed to high standards of corporate governance.
This statement describes how the relevant principles of governance
are applied to the Company.

The Board has complied throughout the year with the Combined
Code apart from the provisions relating to the length of executive
directors’ notice periods.

The Board has not set as an objective the reduction of directors’
service contract periods to one year or less. The Board does not wish
to reduce the service contract period below the current level of two
years as it feels this is the minimum appropriate to retain the services
of key executives in a competitive environment.

Risk Management. The Board is ultimately responsible for the
Group’s system of internal control and for reviewing its effectiveness.
However, any such system can only be designed to manage rather
than eliminate the risk of failure to achieve business objectives, and
can provide only reasonable and not absolute assurance against
material misstatement or loss.

Following publication of guidance for directors on internal control,
Internal Control: Guidance for Directors on the Combined Code (the
Turnbull guidance), in 2000 the Board initiated measures to
consolidate and develop the existing risk management, assurance
and compliance processes into a group wide system of internal
control which is an ongoing process for identifying, evaluating and
managing the significant risks faced by the Group. This process is
regularly reviewed by the Board and accords with the guidance.

The Board has reviewed the effectiveness of the system of internal
control. In particular, it has reviewed and updated the process for
identifying and evaluating the significant risks affecting the business
and the policies and procedures by which these risks are managed.

Management is responsible for the identification and evaluation of
significant risks applicable to their areas of business together with the
design and operation of suitable internal controls. These risks are
assessed on a continual basis covering all functional areas but in
particular the areas of Food Safety, Health and Safety, Information
flow, Asset protection and Regulatory Requirements. In addition
management is responsible for providing protection against these
significant risks by various techniques, including putting in place
adequate insurance cover. Management also reports to the Board on
significant changes in the business and external environment which
affect this risk profile.

The Board has set in place a system of regular hierarchical reporting
which provides for relevant details and assurances on the
assessment and control of risks to be given to it.

The following statements show how the Company has applied the

principles of the Combined Code:-

The Board and Directors

Whilst the executive responsibility for the running of the Company’s

business rests ultimately with the Managing Director, Mike Darrington,

the Board, under the non-executive Chairmanship of Ian Gregg,

meets regularly to discharge its duties. At these meetings, it reviews

Group strategy, performance and matters reserved for the Board.

The Board is supplied in a timely manner with information in a form

and of a quality appropriate to enable it to discharge its duties. Thus

the Board feels it has effectively led and controlled the Company. The

Board considers that with five non-executive and two executive

members the balance is suitable and complies with recommendations

regarding the level of non-executives.

The non-executive directors fulfil a vital role in corporate

accountability. They ensure that the strategies proposed by executive

directors are fully discussed and critically examined.

Directors’ C.V.s

Executive directors

Mike Darrington, 60, qualified as a Chartered Accountant and then

spent 17 years with United Biscuits, latterly in General Management.

During this time he attended the PMD course at Harvard Business

School. He joined Greggs in 1983 and was appointed Managing

Director in January 1984.

Malcolm Simpson, 60, qualified as a Chartered Accountant with what

is now KPMG and then worked for eight years within the finance

department of Procter and Gamble Limited. He joined the Company

in 1973 and was appointed Financial Director in 1975.

Non-executive directors

Ian Gregg OBE, 62, Chairman, qualified as a solicitor before joining

the Company as Executive Chairman and Managing Director on the

death of his father in 1964. He built the business up from a single-

shop operation to a multi-divisional specialist retailer with almost

300 shops by the time of its successful flotation in 1984. Following

the appointment of Mike Darrington in January 1984, Ian continued

in the role of Executive Chairman until July 1993. He was then

invited to become non-executive Chairman in order that the Board

could avail itself of his unequalled experience of both the industry

and the Company.

Stephen Curran, 58, joined the Board in 1981. He was appointed
Chairman of Candover Investments plc in May 1999, having
previously been Chief Executive of Candover since January 1991.
Prior to joining Candover in May 1981, he was a managing consultant
with Coopers & Lybrand Associates and then an investment manager
with what is now Cinven. He is a non-executive director of Jarvis
Hotels plc and a number of unquoted companies.

Sonia Elkin OBE, 69, is a former CBI Director, responsible for its
Regional organisation and policy in relation to Smaller Firms. She was
a Commissioner of the Manpower Services Commission and served
on a DTI committee on deregulation. She is a member of the Review
Committee of the Institute of Chartered Accountants. She joined the
Board in 1992, is Chairman of the Audit Committee and has been
appointed the senior independent non-executive.

Susan Johnson OBE, 44, was appointed to the Board in March 2000.
She obtained an MBA in 1993 after which she pursued a career in
sales and marketing before being appointed as Chief Executive of the
Northern Business Forum. She is now an Executive Director of
Yorkshire Forward.

Derek Netherton, 57, spent his career in investment banking and
retired in 1996 as joint head of corporate finance at J Henry Schroder
& Co. He is a non-executive director of Next plc, Hiscox plc, St
James’s Place Capital plc, Plantation and General Investments plc,
Schroder Property Investment Management Limited and Life
Assurance Holding & Corporation Limited.

After carefully considering the guidance in the Combined Code, all of
the non-executive directors are considered to be independent of
management and free from any business or other relationship which
would materially interfere with the exercise of their independent
judgement.

To facilitate the effective administration of the Group’s affairs, the
Board has established sub-committees as follows:

The Audit Committee consists of three non-executive directors (Miss
S.I.L. Elkin OBE – Chairman, Mrs. S. Johnson and Mr. S.W. Curran). It
meets twice a year and, as its main function, reviews the annual and
interim financial statements issued to shareholders, compliance with
financial reporting standards, internal financial controls, the scope of
the external audit and the report of the auditors.

The Remuneration Committee consists entirely of non-executive
directors (Mr. I.D. Gregg OBE – Chairman, Mr. S.W. Curran and Miss
S.I.L.Elkin OBE). Its main duties are to review and make
recommendations to the Board on the basic salary, benefits in kind,
terms and conditions of employment including performance-related
bonuses, share options and pension benefits of executive directors. In
order to assist with these duties the Committee has used the services
of a leading specialist consultancy.

The Board report on directors’ remuneration is included on page 39 of

this Annual Report. This provides an indication of how the principles of
the Combined Code have been applied.

The Nominations Committee comprises Mr. I.D. Gregg - Chairman,

Mr. M.J. Darrington - Managing Director and Miss S.I.L. Elkin OBE.
Its duty is to ensure that there is a formal and transparent procedure

for the appointment of new directors and the reappointment of
existing directors to the Board.

Going concern.

After making enquiries, the directors have a reasonable expectation

that the Group has adequate resources to continue in operational
existence for the foreseeable future. For this reason, they continue to

adopt the going concern basis in preparing the accounts.

Relations with shareholders.

There is regular dialogue with individual institutional shareholders as

well as general presentations after the interim and preliminary results.

The directors believe that the Annual General Meeting provides an

excellent forum for communication with investors with the Chairman of

the Board and its sub-committees available to answer any issues raised.

At the Annual General Meeting the balance of proxy votes cast for or

against each resolution are indicated after it has been dealt with on a

show of hands. All substantial issues including the adoption of the

annual report and accounts are proposed at the Annual General

Meeting as separate resolutions.

The Company intends to comply with the Combined Code and give

20 working days notice of the Annual General Meeting.

Accountability and audit.

The Board acknowledges its responsibility to present a balanced and

understandable assessment of the Company’s position and

prospects. This is fulfilled by the statements contained in the

Managing Director’s and Chairman’s statements which supplement

the statutory accounts themselves.

The procedures regarding internal controls and the operation of the

Audit Committee are outlined above.

The Company has now implemented a full time internal audit function

following its periodic review of the need for such a function during the

year. This is in order to further improve its monitoring of systems of

control and augment the examination carried out by external audit.

The Audit Committee is satisfied that the Company’s auditors, KPMG Audit

Plc continue to be objective and independent of the Company. KPMG

Audit Plc does perform non audit services for the Group but the Audit

Committee is satisfied that its objectivity is not impaired by such work.

A statement of directors’ responsibilities in respect of the preparation
of accounts is given on page 14.

GREGGS plc: annual report and accounts 2001

corporate social responsibility

Greggs’ culture and values are built upon a foundation of an awareness
of its social responsibility. It is committed to making a positive difference
for its customers, its employees and for the wider communities in which
it operates. Greggs plc has a set of aspirational values which are the
basis for everything from operational activity to policy production,
contained within the statement that:-

“We will be enthusiastic and supportive in all that we do, open,
honest and appreciative, treating everyone with fairness,
consideration and respect.”

Examples of how these values are put into practice outside the
company’s core business activities include:

• A group of dedicated staff work together for the benefit of the

community by organising the major annual fun run sponsored by
Greggs of Gosforth in aid of children’s cancer research. This has
raised well over £2 million since its inception in 1983.

• On a nationwide basis, Greggs is a member of the “Per Cent” Club
and made charitable donations of £327,000 in 2001, the bulk of
which was directed through the Greggs Trust.

• The Greggs Breakfast Club scheme is designed to get children in

selected primary schools off to a better start by providing them with
free breakfasts. Greggs funds all of the food, including providing
fresh bread from the local Greggs shop, together with the necessary
equipment. Under the now well established model, Greggs staff
work with school teachers to encourage parents, grandparents and
others to run the clubs, including serving the breakfasts, thereby
helping them to help others in their own communities. There are
already 20 Greggs Breakfast Clubs in the North and Midlands and it
is intended that this will increase over time. The concept has been
validated by external independent research, which has shown that
breakfast club attendance encourages children to get to school on
time and increases attentiveness in class.

• Many staff fund raising activities, such as Bakery open days, direct
the proceeds to the Greggs Trust. The main objective of Greggs Trust
(a registered charity, founded by Ian Gregg in 1987), is the alleviation
of the effects of poverty and social deprivation in the areas where
the Company trades. Its income in 2001 was £532,787, derived
partly from the Greggs plc donation, the staff fund-raising initiatives,
and donations received from employees under Give As You Earn
(the payroll giving scheme). The balance was from donations from
major shareholders and income from investments (including shares
in Greggs plc) held by the Trust. Funds are distributed by the
Trustees and via the 13 Charity Committees operating across the
country offering support to good causes within our trading areas.

• The Company’s investment of £500,000 in 2000 in the Newcastle
Employment Bond for a five year period, which is secured as to
repayment by Northern Rock plc. This investment is at zero rate of
interest. The purpose of the investment is for all the interest
foregone to be used to help tackle long term unemployment in the
Newcastle area.

Although Greggs provides funding and makes time available for its staff
to become engaged in these community activities, the real credit is
due to the staff themselves, at all levels, for their voluntary commitment
and for the inestimable benefit of what they achieve in Greggs’ name.

The community is not just the people that live in it, but also the
environment in which they live. Greggs believes that its operations should
have the minimum adverse impact on the environment consistent with
its long-term business objectives. This is endorsed by the Main and
Management Boards. To this end we have undertaken a review of our
position and are currently working on identifying and spreading Greggs’
best practice and setting targets for the reduction in adverse
environmental impact, including the levels of waste and energy usage.

report of the board on directors’
remuneration

Introduction

Long-Term Incentive Schemes

The Board is pleased to present this report to shareholders for the 52
week period ended 29 December 2001.

The remuneration packages of the executive directors are determined,
on behalf of the Board, by the Remuneration Committee, consisting of
three non-executive directors, Mr. S.W. Curran, Miss S.I.L. Elkin OBE
and myself as Chairman. None of the Committee members have a
personal financial interest, other than as shareholders, in the matters
to be decided. There are no conflicts of interest arising from cross-
directorships and no day-to-day involvement in the running of the
business.

The remuneration of the executive directors consists of a basic salary,
benefits in-kind, an annual performance-related bonus, profit share,
long-term incentive schemes and a contribution to Company pension
schemes. Details of the amounts of each element are set out in notes
5 and 6 to the accounts.

The Company operates both Inland Revenue approved and
unapproved long-term share incentive schemes to encourage the
executive directors and employees to hold shares in the Company
and to enhance share values.

In accordance with the Joint Statement from the Investment
Committees of the Association of British Insurers and the National
Association of Pension Funds, the total number of shares on which
the Company may grant options is limited and the directors have
chosen to allocate most of the number available to S.A.Y.E. schemes
open to all employees. This has restricted the number of shares
available to be allocated under the Senior Executive Share Option
Scheme. This has been in existence since 1987 and the last grant of
options was made in 1999. Options have been granted on a
discretionary basis to senior executives and managers, as well as to
executive directors. The Savings Related Share Option Schemes are
an all-employee arrangement, including executive directors.

The remuneration of the non-executive directors is determined by the
executive directors.

Pensions

Objectives

The aim of the Committee is to ensure that the Company has competitive
remuneration packages in place, in order best to serve the interests of
the Company, the shareholders and employees. In order to assist in
meeting this aim on an informed basis, the Committee commissioned
a report by an independent consultant in 1998.

Salaries

Base salary reflects job responsibilities, their market value and the level
of individual performance. The Company sets base salaries around the
upper quartile relative to comparator companies, reflecting the level of
its achievements over a sustained period and its desire to retain these
for the future.

Mr. M.J. Darrington and Mr. M. Simpson are members of the Greggs
1978 Retirement and Death Benefit Scheme and, in accordance with
the Combined Code recommendations, only their basic salary is
pensionable. The scheme, which requires a contribution of 5.7% of
pensionable salary from members, provides for up to two-thirds of
final pensionable salary, dependent on length of service.

Mr. M.J. Darrington is the sole member of the Greggs Bakeries (MJD)
Retirement Benefit Scheme which is a defined contribution scheme,
the cost of which is met by the Company.

Mr. M. Simpson is a member of the Greggs Senior Executive Pension
Scheme which is a defined contribution scheme. The Company
contributes 5% of basic salary to the Scheme and members may also
make contributions.

Benefits in Kind

Service contracts

These are the use of a company car, private medical cover and
permanent health insurance.

Annual Bonus

The annual bonus is directly determined by reference to the level of
achieved net profit before tax in relation to the budget approved by
the Board. The relationship between level of bonus and variance from
budget is set by the Remuneration Committee.

Mr M.J. Darrington and Mr. M. Simpson have service contracts which
are terminable by the Company on two years’ notice, this being the
minimum considered appropriate by the Board to retain the services
of key executives in a competitive environment, or by the individual on
not less than six months’ notice.

Profit Share

The executive directors participate in the overall Company Profit Share
Scheme, in which 10% of Company profits are distributed half-yearly
to all employees on a formula related to service and salary level. This
profit share can be taken in the form of shares in the Company
purchased by the Trustees of the Employee Share Scheme.

On behalf of the Board of Greggs plc

I.D. GREGG OBE

Chairman of the Board

8 March 2002

GREGGS plc: annual report and accounts 2001

10 year history

1992

1993

1994

1995

1996

1997

1998

1999

2000
(as restated)

2001

Turnover (£'000)

100,990

110,426

167,851 219,514

238,465

265,941

291,420

308,678

339,008

377,556

Profit on ordinary
activities before
taxation (£'000)

Shareholders' funds
(£'000)

Earnings per share
(pence)

Adjusted earnings per share
(pence)

Dividend per share
(pence)

Cash generated
by operations (£'000)
(before dividends, tax and
capital expenditure)

Capital expenditure
(£'000)

Acquisition of Baker's Oven
(£'000)

Number of shops in
operation at year end

6,967

9,019

12,017

13,056

15,673

18,035

20,214

21,520

26,356

32,742

26,314

30,475

36,591

41,219

48,107

58,384

69,585

80,896

88,169

103,554

40.6

53.0

71.0

79.0

95.8

121.1

122.8

135.1

162.3

190.2

40.6

53.0

71.0

79.0

95.8

111.2

122.8

135.1

162.3

190.2

15.0

18.0

23.0

26.0

32.0

37.0

41.0

45.0

55.0

65.0

11,466

14,670

25,251

20,838

24,955

30,408

34,902

34,526

43,431

50,418

5,046

5,643

15,008

11,931

15,669

24,364

26,204

22,403

21,397

27,385

19,547

485

499

930

967

1,032

1,057

1,072

1,084

1,105

1,144

DIRECTORS

Ian Gregg OBE (Non-executive chairman)†ø

Mike Darrington FCA (Managing)ø

Malcolm Simpson FCA (Financial)

Steven Curran FCCA (Non-executive)*†

Sonia Elkin OBE (Non-executive)*†ø

Susan Johnson OBE (Non-executive)*

Derek Netherton (Non-executive)

*Member of Audit Committee †Member of Remuneration Committee
øMember of Nominations Committee

SECRETARY AND REGISTERED OFFICE

Andrew John Davison, Solicitor

Fernwood House

Clayton Road

Jesmond

Newcastle upon Tyne

NE2 1TL

Bankers

Stockbrokers

National Westminster Bank Plc

Warburg Dillon Read

149 High Street

Gosforth

Newcastle upon Tyne

NE3 1HA

Merchant Bankers

SG Hambros

Corporate Finance Advisory

41 Tower Hill

London

EC3N 4SG

Auditors

KPMG Audit Plc

Quayside House

110 Quayside

1 Finsbury Avenue

London EC2M 2PA

Brewin Dolphin Securities Ltd

Commercial Union House

39 Pilgrim Street

Newcastle upon Tyne NE1 6RQ

Solicitors

Eversheds

Central Square South

Orchard Street

Newcastle upon Tyne NE1 3XX

Registrars

Capital IRG plc

Bourne House

Newcastle upon Tyne

34 Beckenham Road

NE1 3DX

Beckenham Kent BR3 4TU

nationwide coverage

BIRKETTS

G R E G G S

S H O P N U M B E R S
Scotland
Gosforth
Birketts
Yorkshire
North West
Midlands
Treforest
Enfield
Twickenham

TOTAL

2 0 0 1
118
112
50
102
120
119
81
95
108

905

2 0 0 0
115
109
51
98
115
109
73
88
100

858

B A K E R S O V E N

S H O P N U M B E R S
Scotland
North
Midlands
South

TOTAL

2 0 0 1
33
51
88
67

239

2 0 0 0
37
51
89
70

247

TOTAL GROUP

2 0 0 1

1,144

2 0 0 0

1,105

GREGGS plc: annual report and accounts 2001

Greggs plc,
Fernwood House, Clayton Road, Jesmond, Newcastle upon Tyne NE2 1TL.
www.greggs.co.uk