Richoux Group Regulatory News (RIC)

28 Mar 2007 07:02

Gourmet Holdings PLC28 March 2007 Gourmet Holdings plc Interim results for the 28 weeks ended 7 January 2007 Gourmet Holdings plc, the owner and operator of two restaurant concepts, Richouxand Bel and the Dragon, today announces its interim results. 28 weeks ended 7 28 weeks ended 8 January 2007 January 2006 (restated) £m £m Turnover 5.97 5.60Gross profit 0.80 0.43Operating profit/(loss) (pre exceptionals) 0.35 (0.06)EBITDA (pre exceptionals) 0.66 0.20Loss before taxation (post exceptionals) 0.73 0.17Diluted EPS (pre exceptionals) 0.5p (0.8)pDiluted EPS (post exceptionals) (2.1)p (0.8)p Key points: • Richoux - Strong London economy and earlier refurbishments delivered double digit like for like sales growth. - Continued focus on operational efficiencies delivered excellent profit improvements. • Bel and the Dragon - Improved year on year sales and profits. - The sale process of the Bel and the Dragon pub restaurants is ongoing. • Unbranded pub restaurant business - Disposal of two unbranded pub restaurants. Richard Scott, Chairman of Gourmet Holdings plc said: "The Group now operates two successful and profitable restaurant concepts. TheBoard remains committed to the disposal of the remainder of its pub restaurantportfolio and negotiations to sell the Bel and the Dragon pub restaurants withinterested parties continue." EnquiriesGourmet Holdings plcAndrew Guy, Managing Director (020) 8394 5555 College HillMatthew Smallwood (020) 7457 2020Justine Warren Introduction The Group has recorded an operating profit before exceptional items for theperiod of £0.35 million compared to an operating loss before exceptional itemsof £0.06 million for the same period last year. Progress has been made incarrying out the strategy that was detailed in the 2006 Annual Report. Results Group turnover from our operations for the 28 week period ended 7 January 2007increased to £5.97 million (2006: £5.60 million). Gross profit from therestaurants was £0.80 million (2006: £0.43 million) reflecting the improvedperformance of Richoux. Administrative expenses of £0.37 million (2006 restated:£0.44 million) were in line with expectations following the Board's decision toreduce its administrative cost base. The trading exceptional items of £0.58 million are; £0.27 million impairmentprovision against the assets of a poorly performing site, £0.19 million FRS 12provision in respect of an onerous lease, and £0.12 million bad debts provisionin respect of the non-completion of a business transfer. The loss on disposal of fixed assets of £0.33 million has arisen on the disposalof two of the Group's unbranded pub restaurants in December 2006, in line withthe Group's reported strategy to dispose of its pub restaurants. At the end of the period the Group's net debt stood at £3.34 million. The Directors are not recommending the payment of a dividend. Operations Richoux The central London economy was strong throughout 2006 and the results at Richouxreflect this with the sales and profits, for the 28 week period to the 7 January2007, being the strongest first half-year that Richoux has had. This has beenadditionally aided by the earlier refurbishment of the three West Endrestaurants. The fourth restaurant, in St John's Wood, London, is currentlybeing refurbished. Since the end of the half-year, a new franchise has been signed to develop aRichoux restaurant in Egypt and we expect further developments in this area inthe future. The Group is currently evaluating a new prominent central London location for afuture Richoux restaurant development. Bel and the Dragon The results for the Bel and the Dragon pub restaurants were better than theprevious year, benefiting from the inclusion of the full half-year period forthe fourth pub restaurant in Reading, which was acquired at the end of 2005. The Board has commenced the process for the sale of the Bel and the Dragon pubrestaurants. Advanced negotiations with one party did not come to fruition andtherefore the anticipated sale of these pub restaurants is likely to take alittle longer than originally expected. Negotiations continue with a number ofparties. Unbranded Pub/Restaurants In September last year, the Board announced that, following a strategic review,it had put in place a sale process for the Group's entire pub restaurantoperation. As part of that process on 22 December 2006, the Group disposed ofits interests in The Talkhouse, Stanton St John, near Oxford and The Five Bellsin Stanbridge, Hertfordshire. Progress is being made towards the disposal of the final unbranded pubrestaurant, The Highwayman, Checkendon, Oxfordshire, which is now closed. Nominated Advisor and Broker The Board is pleased to announce the appointment of Arbuthnot Securities Limitedas its Nominated Advisor and Broker with immediate effect and would like tothank Teather & Greenwood Limited for their services in this capacity over thepast seven years. Outlook Following the strategic review the Company has identified and is acting on aseries of actions that will reposition the Group for the future. Our principal priorities are to dispose successfully of the Bel and the Dragonpub restaurants and to continue with the development of our successful Richouxbrand. Richard ScottChairman 28 March 2007 Gourmet Holdings plcConsolidated profit and loss accountfor the 28 week period ended 7 January 2007 28 week 28 week 52 week period period period ended ended ended 2 7 January 8 January 5 June 2007 2006 2006 (restated) (restated) Notes Total Continuing Discontinued Total Continuing Discontinued Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Turnover 5,973 5,278 326 5,604 9,887 353 10,240Cost of sales: (5,178) (4,853) (325) (5,178) (8,997) (351) (9,348)Gross profit 795 425 1 426 890 2 892Administrativeexpenses:Administrative expenses (374) (444) - (444) (842) - (842)Amortisation (63) (43) - (43) (97) - (97) (437) (487) - (487) (939) - (939)Other operating income 3 (5) 1 - 1 - - -Operating profit/ (loss) beforetrading exceptionalitems 353 (61) 1 (60) (49) 2 (47)Trading exceptionalitems 4 (579) - - - (1,169) - (1,169)Operating (loss)/profit aftertrading exceptionalitems (226) (61) 1 (60) (1,218) 2 (1,216)Net loss on disposal offixed assets 5 (329) (1) - (1) (3) (12) (15)(Loss)/profit on ordinaryactivitiesbefore interest (555) (62) 1 (61) (1,221) (10) (1,231)Interest receivable 51 26 73Interest payable and similarcharges (224) (138) (338)Loss on ordinary activitiesbefore taxation (728) (173) (1,496)Taxation on loss on ordinaryactivities - - -Loss for the financial period 8 (728) (173) (1,496)Loss per share 6,8 (2.1)p (0.8)p (5.4)p Diluted loss per share 6,8 (2.1)p (0.8)p (5.4)p Diluted earnings/(loss) pershare (pre exceptionalitems) 6 0.5p (0.8)p (1.1)p There are no differences between the historic cost loss and that recorded in theprofit and loss account (2006: £nil). The consolidated profit and loss account for the 28 week period ended 8 January2006 and the 52 week period ended 25 June 2006 have been restated to reflect theadoption of FRS20 'Share based payments'. Gourmet Holdings plcConsolidated balance sheetat 7 January 2007 Note 7 January 2007 8 January 2006 25 June 2006 £'000 £'000 £'000 £'000 £'000 £'000 Fixed assets Intangible assets 2,021 2,155 2,101Tangible assets 10,892 12,185 11,820 12,913 14,340 13,921Current assets Stocks 188 221 210Debtors 401 569 601Cash at bank and in hand 2,590 3,349 3,010 3,179 4,139 3,821Creditors: amounts fallingdue within one year (2,069) (2,135) (2,842) Net current assets 1,110 2,004 979 Total assets less currentliabilities 14,023 16,344 14,900 Creditors: amounts fallingdue after more than oneyear (5,645) (5,927) (5,789) Net assets 8,378 10,417 9,111 Capital and reserves Equity share capital 1,368 1,367 1,368Share premium account 8,763 8,757 8,763Warrants reserve 50 50 50Profit and loss account 8 (1,803) 243 (1,070) 8,378 10,417 9,111 Shareholders' funds Gourmet Holdings plcConsolidated cash flow statementfor the 28 week period ended 7 January 2007 28 week 28 week 52 week period period period ended ended ended 7 January 8 January 25 June Note 2007 2006 2006 (restated) (restated) £'000 £'000 £'000 Reconciliation of operating loss to operatingcash flowsOperating loss 8 (226) (60) (1,216)Depreciation charge 243 214 419Amortisation charge 63 43 97Impairment 271 - 450Decrease in stocks 22 11 22Decrease/(increase) in debtors 200 17 (15)(Decrease)/increase in creditors (772) (610) 128Equity settled share based payments expense 8 (5) 14 24 Net cash outflow from operating activities (204) (371) (91) Cash flow statementCash outflow from operating activities (204) (371) (91)Returns on investments and servicing of finance (161) (120) (289)Capital expenditure and financial investment 101 (213) (517)Acquisitions and disposals - (2,873) (2,874)Cash outflow before financing (264) (3,577) (3,771)Financing (156) 5,801 5,656 (Decrease)/increase in cash in the period (420) 2,224 1,885 Reconciliation of net cash flow to movement innet debt(Decrease)/increase in cash in the period (420) 2,224 1,885Cash outflow/(inflow) from changes in debt and 156 (1,551) (1,398)lease financingChange in net funds resulting from cash flows (264) 673 487Loans and finance leases acquired with - (750) (750)subsidiary undertakingsMovement in net debt in the period (264) (77) (263)Net debt at the start of the period (3,079) (2,816) (2,816) Net debt at the end of the period (3,343) (2,893) (3,079) The consolidated cash flow statements for the 28 week period ended 8 January2006 and the 52 week period ended 25 June 2006 have been restated to reflect theadoption of FRS20 'Share based payments'. Gourmet Holdings plcConsolidated statement of total recognised gains and lossesfor the 28 week period ended 7 January 2007 28 week 28 week 52 week period period period ended ended ended 7 January 8 January 25 June Note 2007 2006 2006 (restated) (restated) £'000 £'000 £'000 Loss for the financial period 8 (728) (173) (1,496) Gain on redemption of preference shares - 408 408 Reduction in share premium - 7,411 7,411 Total recognised gains and losses relating to the financial period (728) 7,646 6,323 The consolidated statements of total recognised gains and losses for the 28 weekperiod ended 8 January 2006 and the 52 week period ended 25 June 2006 have beenrestated to reflect the adoption of FRS20 'Share based payments'. Reconciliation of movement in shareholders' fundsfor the 28 week period ended 7 January 2007 28 week 28 week 52 week period period period ended ended ended 7 January 8 January 25 June Note 2007 2006 2006 (restated) (restated) £'000 £'000 £'000 Loss for the financial period 8 (728) (173) (1,496)New share capital subscribed (net of issue costs) - 4,931 4,938Redemption of preference shares - 408 408(Charge)/credit in respect of share options (5) 14 24Net (decrease)/increase in shareholder's funds (733) 5,180 3,874Opening shareholders' funds 9,111 5,237 5,237 Closing shareholder's funds 8,378 10,417 9,111 The reconciliations of movements in shareholders' funds for the 28 week periodended 8 January 2006 and the 52-week period ended 25 June 2006 have beenrestated to reflect the adoption of FRS20 'Share based payments'. Notes 1. The financial information for the 28 week period ended 7 January 2007has been prepared in accordance with the company's accounting policies asdisclosed in the financial statements for the period ended 25 June 2006, exceptfor the adoption of FRS20 'Share based payments', in line with that standard'seffective date. FRS20 requires a charge to be recognised in staff costs based onthe fair value of options granted to employees. This fair value is establishedat the date of grant and recognised over the option vesting period. Adjustmentis made to the charge recognised based on an assessment of whether non-marketvesting conditions will be met. The comparative figures have been restated toreflect this change in policy. The effect of the adoption of FRS20 is discussedin note 8. The financial information for the 28 week period ended 7 January 2007 and the 28week period ended 8 January 2006 have not been audited and do not constitutefull financial statements within the meaning of s240 of the Companies Act 1985. The financial information relating to the 52 week period ended 25 June 2006 doesnot constitute full financial statements within the meaning of s240 of theCompanies Act 1985, but it is an extract from the audited financial statementsfor that period on which the auditors gave an unqualified report (the FRS20restated figures are not yet audited). A copy of those financial statements hasbeen filed with the Registrar of Companies. 2. The consolidated financial statements include the financialstatements of the Company and its subsidiary undertakings made up to 7 January2007. The results of all subsidiary undertakings are consolidated. Intra-group salesare fully eliminated on consolidation. 3. Other operating income All other operating income represents franchise fees received net of allassociated costs and charges. 4. Trading exceptional items The trading exceptional charge of £579,000 comprises £271,000 impairmentprovision in respect of tangible fixed assets of a poorly performing site,£187,000 FRS12 provision for an onerous lease, and £121,000 bad debts provisionin respect of the non-completion of a business transfer. 5. Loss on disposal of fixed assets The loss on disposal of fixed assets has arisen on the disposal of the twounbranded pub restaurants in December 2006. 6. Earnings/(loss) per share The loss per share is calculated by reference to the profit or loss aftertaxation and the weighted average number of ordinary shares in issue during theperiod of 34,200,518 (2006: 22,273,599). The loss per share for both the basic and fully diluted loss per share iscalculated on the basis of a loss for the period of £728,000 (2006 restated:£173,000). The diluted loss per share is calculated by reference to the loss after taxationand the weighted average number of ordinary shares and share options in issueduring the period of 34,250,268 (2006: 22,412,341). Share options, warrants andthe conversion of preference shares not included in the diluted calculations asper the requirements of FRS14 (as they are anti-dilutive) totalled 805,125(2006: 687,633). The earnings/(loss) per share (pre exceptional items) is calculated on the basisof a profit for the period (before trading exceptional items and loss ondisposal of fixed assets) of £180,000 (2006 restated: loss £172,000). 7. No dividend is proposed. 8. Impact of FRS20 The adoption of FRS20 has no effect on net assets at any reporting date as thecredit/charge to the profit and loss account is offset by an equal and oppositecharge/credit recognised directly in reserves. The loss after taxation for the 28 week period ended 8 January 2006 wasincreased by £14,000 as a result of FRS20, leading to an increase in the lossper share of 0.1p. The loss for the 52 week period ended 25 June 2006 wasincreased by £24,000, increasing the loss per share by 0.1p. 9. Copies of the interim statement are being sent toshareholders and are also available from the Company's registered office at 165Queen Victoria Street, London, EC4V 4DD. This information is provided by RNS The company news service from the London Stock Exchange