Richoux Group Regulatory News (RIC)

Richoux Group plc

Interim results for the 28 weeks ended 12 July 2015

Richoux Group plc (the "Group"), the owner and operator of Richoux, Dean's Diner and Villagio restaurants today announces its unaudited interim results for the 28 week period ending 12 July 2015.

Key points:

§ Turnover increased 0.3% to £6.70 million

(2014: £6.68 million).

· Adjusted* EBITDA increased 1.1% to £0.79 million

(2014: £0.78 million).

§ Profit after tax increased 101.3% to £0.32 million

(2014: £0.16 million).

§ Currently nineteen restaurants trading.

§ One new Dean's Diner and one new Richoux opened.

§ Cash of £4.40 million at period end.

(2014: £3.13 million).

 * Excluding pre opening costs and impairment.

Philip Shotter, Chairman of Richoux Group plc said:

"We are pleased to announce another solid set of results. Towards the end of the period we opened our seventh Dean's Diner site at Hempstead Valley in Kent which is trading well. An eighth Dean's Diner site in Orpington will be opened before the end of the financial year. Last month we also opened our fifth Richoux site in the Gloucester Arcade, Gloucester Road, London. This is the first Richoux opening for a number of years and we are delighted with the way that we have been able to capture the look and feel of the other Richoux restaurants in what is effectively a newly constructed unit. The early signs of trading from the restaurant are promising."

Results

Revenue for the 28 week period ended 12 July 2015 increased 0.3% on the 28 week period ended 13 July 2014 to £6.70 million (2014: £6.68 million, included revenue from two restaurants which were closed in the second half of 2014). Adjusted EBITDA before pre-opening costs and impairment increased 1.1% to £0.79 million (2014: £0.78 million). Adjusted operating profit before pre-opening costs and impairment increased 2.6% to £0.39 million (2014: £0.38 million). Pre-opening costs for the period were £0.08 million (2014: £0.04 million). The net profit for the period was £0.32 million (2014: £0.16 million).

The Directors are not recommending the payment of a dividend.

Operations

The Group currently has nineteen operating restaurants, which operate under the Richoux, Dean's Diner and Villagio brands. Further details on each of the brands are set out below.

Richoux

Richoux is an all day cafe and brasserie established in London in 1909.

The Group has five Richoux restaurants in Central London - the existing restaurants in Knightsbridge, Mayfair, Piccadilly and St John's Wood and a new restaurant in Gloucester Road which opened in August 2015.

Dean's Diner

Dean's Diner is a classic 1950s American Diner.

The Group has currently has seven Dean's Diner restaurants - the existing restaurants in Chatham, Port Solent , Braintree, Fareham, Bicester and Trowbridge and a new restaurant in Hempstead Valley which opened in July 2015. Agreements for lease have been exchanged for new Dean's Diners in Orpington which is due to open before the end of the year and Bromley and Yate which are due to open in 2016.

Villagio

Villagio is a modern local Italian family restaurant, delivering a good quality value family dining experience.

The Group currently has five Villagio restaurants in Andover, Basildon, Hammersmith, Chislehurst and Chatham. The Group plans to rebrand as a Villagio restaurant its property in High Wycombe which it has had to take a reassignment of under an authorised guarantee agreement. This restaurant is due to open before the end of the year.

The Group also has two Italian restaurants trading as Zippers Bar, Restaurant and Grill - one in Chatham and one in Port Solent.

Capital expenditure and cash flow

As at the end of the period under review the Group held cash of £4.40 million (December 2014: £3.13 million).

Capital expenditure of £0.75 million was incurred in the period; on the fit out of the new restaurants and some replacement equipment in the existing sites.

Outlook

We hope to build on the solid start to the year over the remainder of the year. We are continuing to expand the Dean's Diner portfolio and are actively looking to add to the two opening already secured for next year. The new Richoux site in Gloucester Road has also demonstrated that there is scope for further openings of this brand but only where the appropriate geographic locations and sites can be identified.

Philip Shotter

Chairman

22 September 2015

Richoux Group plc

Condensed consolidated statement of comprehensive income

for the 28 week period ended 12 July 2015

Richoux Group plc

Condensed consolidated statement of changes in equity

For the 28 week period ended 12 July 2015

Richoux Group plc

Condensed consolidated statement of financial position

at 12 July 2015

Richoux Group plc

Condensed consolidated statement of cash flows

for the 28 week period ended 12 July 2015

1. The consolidated financial statements have been prepared in compliance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and therefore the Group financial statements comply with Article 4 of the EU IAS Regulation. The financial statements have been prepared on the historical cost basis.

2. The condensed financial information for the 28 week period ended 12 July 2015 and the 28 week period ended 13 July 2014 has been prepared in accordance with IAS 34 "Interim financial reporting" and should be read in conjunction with the annual financial statements for the period ended 28 December 2014 which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The accounting policies used in preparing the condensed financial information are consistent with those of the annual financial statements for the period ended 28 December 2014. During the period various Standards and Interpretations were adopted in line with the effective dates as outlined in the annual financial statements for the period ended 28 December 2014. The condensed financial information for the 28 week period ended 12 July 2015 and the 28 week period ended 13 July 2014 has not been audited or reviewed and does not constitute full financial statements within the meaning of section 435 of the Companies Act 2006.

The financial information for the 52 week period ended 28 December 2014 does not constitute the Group's statutory accounts for that period but it is derived from those accounts. Statutory accounts for the 52 week period ended 28 December 2014 have been delivered to the Registrar of Companies. The auditors have reported on these accounts; their report was unqualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

3. Business segments

Based on the financial information which is monitored by the board, which comprises the chief operating decision maker as defined in IFRS 8, the group has three reportable business segments based around its core restaurant brands, Dean's Diner, Villagio and Richoux. All brands are engaged in the restaurant trade so derive their revenues and results from similar products and services.

For the 28 week period ended 12 July 2015

The unallocated segment loss includes the cost of the restaurant area management, and the unallocated administrative expenses include the costs of the Group's head office.

4. Profit per share

The calculation of the basic and diluted profit per share is based on the following data:

5. No dividend is proposed.

6. Intangible fixed assets

Impairment testing of goodwill and intangible fixed assets

Goodwill of £269,000 (2014: £269,000) relates to the acquisition of Richoux Limited in August 2000 and is allocated to the group of cash generating units (CGUs) that comprise the business acquired with each restaurant site being treated as a single CGU.

The Group tests annually for impairment or more frequently if there are indications that the goodwill and intangible assets may be impaired. The recoverable amounts of the restaurants are calculated from value in use calculations based on cash flow projections from forecasts to December 2020 based on a sales growth rate of 2 per cent for established sites. The discount rate applied to cash flow projections is 10 per cent.

No impairment provision is required (December 2014: £6,000).

7. Property, plant and equipment

Impairment testing of property, plant and equipment

The Group considers each trading restaurant to be a cash-generating unit (CGU) and each CGU is reviewed when there are indications of impairment.

The recoverable amounts of the restaurants are calculated from value in use calculations based on cash flow projections from forecasts to December 2020 based on a sales growth rate of 2 per cent for established sites. The discount rate applied to cash flow projections is 10 per cent.

No impairment provision is required (December 2014: £274,000).

8. Reconciliation of operating profit to operating cash flows

9. Related party transactions

During the period the Group paid professional fees for legal services in connection with properties of £32,000 (July 2014: £16,000, December 2014: £50,000) to Glovers Solicitors LLP of which Philip Shotter is a member. As at the end of the period £2,000 was outstanding (December 2014: £nil). This is in addition to fees included in Directors' emoluments.

The Group has a group VAT registration and the representative Company, Richoux Group plc, pays the net VAT for the Group.

The Group has a group insurance policy which is paid by Richoux Group plc

Transactions with directors:

Directors' emoluments

10. Report and accounts

Copies of the interim report and accounts will be posted to the shareholders shortly and will be available at www.richouxgroup.co.uk.

- ENDS -