Richoux Group Regulatory News (RIC)

10 Mar 2005 07:07

Gourmet Holdings PLC10 March 2005 Date 10 March 2005 Contacts Gareth Lloyd-Jones, Chief Executive Gourmet Holdings plc (020) 8394 5555 John Bick, Trevor Phillips Holborn (020) 7929 5599 Gourmet Holdings plc Interim Results for the 28-week period ended 9 January 2005 Gourmet Holdings plc owner of Richoux and Bel and the Dragon restaurant brands Results Highlights Group Turnover £5.35 million + 1.2 per centLike-for-Like sales from continuing operations + 7.3 per centGross Profit from restaurants £0.67 million +37.4 per centOperating profit £0.34 million +99.4 per centEBITDA £0.57 million +23.4 per cent Other Highlights • Good maiden contribution from the three Bel and the Dragon pub / restaurants, acquired in June 2004 • 3 additional pub / restaurants acquired during the period for conversion by the year end in so doing doubling the number of pub / restaurants • Exceptional profit of £0.10 million on the disposal of fixed assets (sale of discontinued operations) • Cash at bank and in hand of £2.29 million at period end Commenting, Chairman Nigel Whittaker, said: "I am pleased that we have delivered another set of good financial results whichnotably were driven from both the improvements of our continuing operations anda good maiden contribution from Bel and the Dragon. "The result supports our decision to focus on restaurants and the Board hasconfidence that there continues to be good growth prospects for the Group." Gourmet Holdings plc Interim Statement Results Turnover from our continuing operations for the 28 week period ended 9 January2005 increased by 7.3 per cent to £2.83 million and with turnover of £2.52million from Bel and the Dragon and new sites, total sales were £5.35 million(2004: £5.28 million). The Group gross profit is now stated net of all associated restaurant costs inline with other Companies in the sector, accordingly prior year comparablefigures have been re-stated. Gross profit from the restaurants increased by37.4 per cent to £0.67 million (2004: £0.49 million). Administrative expenses were £0.39 million (2004: £0.35 million) and we believethat we have the necessary infrastructure in place to continue to expand theGroup's operations without materially increasing this cost. Operating profit, including the proceeds from franchising, doubled to £0.34million (2004: £0.17 million). During the period the Group realised an exceptional profit of £0.10 million(2004: £0.87 million) in cash following the completion of an outstandingproperty transaction relating to the sale of the coffee business. Net interestpayable in the period was £0.12 million. The profit on ordinary activities before taxation was £0.31 million (2004: £1.07million). The Directors are not recommending a dividend in line with the Company's policyto invest in the continued development of the business. Operations Richoux improved its EBITDA trading performance by 25.8 per cent. Going forwardan important element of the refurbishment program will be to improve theutilisation of the existing space to create, where possible, additional covers. Bel and the Dragon made a good maiden contribution, trading in line with ourexpectations at the time of the acquisition. Finance Capital Expenditure of £0.46 million (2004: nil) for the period was incurred inthe acquisition of 3 new pub / restaurants and the refurbishment program forRichoux, resulting in the decrease in net cash for the period of £0.21 million. The new pub/ restaurants were each acquired on a leasehold basis. Under theterms of each of the leases, the Company has negotiated call options to purchasethe Freehold Reversion of the properties under an agreed formula which webelieve gives the Company greater control of both the future potential increasein value of each of the properties and the rent review process. Capital Expenditure is expected to increase in the second half of the year as weconvert the three new pub / restaurants into Bel and the Dragon format andcontinue the refurbishment program for Richoux. Additionally we anticipate paying out £0.25 million, which represents the finalearn-out payment element of the Bel and the Dragon acquisition. Current trading and prospects Since the period end we continue to trade in line with the management'sexpectations. We have accelerated the capital program to convert the three acquired sites intoBel and the Dragon formats and in addition we have continued the ongoingrefurbishments of Richoux and whilst this may interrupt short-term salespatterns we are confident that all the programs will be completed before thefinancial year-end. Nigel WhittakerChairman Gareth Lloyd-JonesChief Executive Gourmet Holdings plcConsolidated profit and loss accountfor the 28 week period ended 9 January 2005 There are no differences between the historic cost profit and that recorded in the profit and loss account (2004:£nil). 28 week 28 week 52 week period ended period ended period ended 9 January 11 January 27 June 2005 2004 2004 Acqui- Con- Discon- Con- Discon- Con- Notes sition tinuing Total tinued tinuing Total tinued tinuing Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Turnover 2,515 2,833 5,348 2,642 2,641 5,283 2,642 4,926 7,568 Cost of sales: Excluding pre-opening (2,078) (2,592) (4,670) (2,321) (2,476) (4,797) (2,321) (4,678) (6,999) costs Pre-opening 3 (10) - (10) - - - - - - costs (2,088) (2,592) (4,680) (2,321) (2,476) (4,797) (2,321) (4,678) (6,999) Gross profit 427 241 668 321 165 486 321 248 569 Administrative - (392) (392) - (346) (346) - (728) (728) expenses Other 4 - 61 61 - 29 29 - 30 30 operating income Operating profit/(loss) 427 (90) 337 321 (152) 169 321 (450) (129) Net profit on - 32 33 disposal of fixed assets Profit on sale of 100 871 871 discontinued operation Profit on ordinary 437 1,072 775 activities before interest Interest 44 10 44 receivable Interest (168) (12) (22) payable Profit on ordinary 313 1,070 797 activities before taxation Taxation on profit - - - on ordinary activities Profit for the 313 1,070 797 financial period Earnings 5 0.4p 2.0p 1.4p per share Diluted earnings 5 0.4p 2.0p 1.4p per share Gourmet Holdings plc Consolidated balance sheetat 9 January 2005 9 January 11 January 2004 27 June 2005 2004 £'000 £'000 £'000 Fixed assets Intangible assets 1,529 316 1,495 Tangible assets 8,097 1,894 7,835 9,626 2,210 9,330 Current assets Stocks 194 91 158 Debtors 437 697 756 Cash at bank and in hand 2,292 2,004 2,714 2,923 2,792 3,628 Creditors: amounts falling due within one year (2,318) (1,224) (2,975) Net current assets 605 1,568 653 Total assets less current liabilities 10,231 3,778 9,983 Creditors: amounts falling due after more than one year (3,873) (81) (3,938) Net assets 6,358 3,697 6,045 Capital and reserves Ordinary shares 789 548 789 Preference shares 1,088 1,088 1,088 Called up share capital 1,877 1,636 1,877 Share premium account 11,815 9,435 11,815 Warrants reserve 50 - 50 Merger reserves - - - Profit and loss account (7,384) (7,374) (7,697) Equity shareholders' funds 5,270 2,609 4,957 Non-equity shareholders' funds 1,088 1,088 1,088 Shareholders' funds 6,358 3,697 6,045 Gourmet Holdings plc Consolidated cash flow statementfor the 28 week period ended 9 January 2005 Note 28 week 28 week 52 week period period period ended ended ended 9 January 11 January 27 June 2005 2004 2004 £'000 £'000 £'000 Cash inflow from operating activities 7 285 293 924 Returns on investments and servicing of finance (61) 2 16 Capital expenditure and financial investment (461) 28 (27) Acquisitions and disposals 100 1,395 (2,960) Cash (outflow)/inflow before financing (137) 1,718 (2,047) Financing (70) (19) 4,241 (Decrease)/increase in cash in the period (207) 1,699 2,194 Notes 1. The financial information for the 28-week period ended 9 January 2005has been prepared in accordance with the company's accounting policies asdisclosed in the financial statements for the period ended 27 June 2004. The financial information for the 28 week period ended 9 January 2005 and the 28week period ended 11 January 2004 have not been audited and does not constitutefull financial statements within the meaning of s240 of the Companies Act 1985. The financial information relating to the 52 week period ended 27 June 2004 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. A copy ofthose financial statements has been filed with the Registrar of Companies. 2. The consolidated financial statements include the financial statementsof the Company and its subsidiary undertakings made up to 9 January 2005. The results of all subsidiary undertakings are consolidated. Intra-group salesare fully eliminated on consolidation. 3. Pre-opening costs Property rentals and related costs together with promotional and training costsincurred up to the date of the opening of a new or refurbished restaurant arewritten off to the profit and loss account in the year in which they areincurred. 4. Other operating income All other operating income represents franchise fees received net of allassociated costs and charges. 5. Earnings per share The earnings per share is calculated by reference to the profit after taxationand the weighted average number of ordinary shares in issue during the period of78,904,294 (2004: 54,772,660). The earnings per share is calculated on the basis of a profit for the period of£313,000 (2004: £1,070,000). The diluted earnings per share is calculated by reference to the profit aftertaxation and the weighted average number of ordinary shares and share options inissue during the period of 79,705,894 (2004: 54,772,660). Share options,warrants and the conversion of preference shares not included in the dilutedcalculations as per the requirements of FRS14 (as they are anti-dilutive)totalled 3,544,052 (2004: 1,515,201). 6. No dividend is proposed. 7. Reconciliation of operating profit/(loss) to operating cash flows 28 week 28 week 52 week period period period ended ended ended 9 January 2005 11 January 27 June £'000 2004 2004 £'000 £'000Operating profit/(loss) 337 169 (129)Depreciation charge 184 279 376Amortisation charge 44 10 19Increase in stocks (36) (28) (30)Decrease/(increase) in debtors 302 (48) 52(Decrease)/increase in creditors (546) (89) 636 Net cash inflow from operatingactivities 285 293 924 8. Reconciliation of net cash flow to movement in net debt 28 week 28 week 52 week period period period ended ended ended 9 January 11 January 27 June 2005 2004 2004 £'000 £'000 £'000(Decrease)/increase in cash in the period (207) 1,699 2,194Cash outflow/(inflow) from changes in debtand lease financing 70 19 (1,620)Change in net funds resulting from cashflows (137) 1,718 574 New finance leases (4) - (4)Finance leases sold with subsidiaryundertakings - 1 1Loans and finance leases acquired withsubsidiary undertakings - (2,342)Movement in net (debt)/funds in the period (141) 1,719 (1,771)Net (debt)/funds at the start of the period (1,605) 166 166Net (debt)/funds at the end of the period (1,746) 1,885 (1,605) 9. Copies of the interim statement are being sent to shareholders and arealso available from the company's registered office at 165 Queen VictoriaStreet, London, EC4V 4DD. - ENDS - This information is provided by RNS The company news service from the London Stock Exchange