Richoux Group Regulatory News (RIC)

14 Sep 2007 07:45

Gourmet Holdings PLC14 September 2007 Gourmet Holdings plcPreliminary results for the 52 weeks ended 24 June 2007 Gourmet Holdings plc, the owner and operator of Richoux restaurants todayannounces its 2007 preliminary results. 52 weeks ended 52 weeks ended 24 June 2007 25 June 2006 (restated) £m £m Turnover 10.02 10.24Gross profit 1.22 0.89Operating profit/(loss) before trading exceptional items 0.47 (0.05)Loss before taxation (2.85) (1.50) Key points: Strategic review • New board focussed on driving Richoux brand. • Aim to acquire/develop one or more complementary concepts in cafe/ patisserie space. • Focus on operational improvements to current business. Results • Increased turnover and operating profit at Richoux. • Disposal of all pub restaurants completed. • Cash of £5.53 million at year end. Neil Blows, Chairman of Gourmet Holdings plc said: "As a result of the business restructuring undertaken by the previous board, weare in a strong position to enhance the Richoux brand and acquire/develop one ormore complementary cafe/patisserie concepts in order to drive the businessforward." Enquiries Gourmet Holdings plcNeil Blows, Chairman (020) 7491 3791 College HillMatthew Smallwood (020) 7457 2020Justine Warren Arbuthnot Securities (020) 7012 2000 Nick MarshPaul Vanstone Introduction Following disappointing trade at the Bel and the Dragon sites and the Company'sother non-branded pub restaurants, the previous board of Gourmet took thedecision to dispose of these sites. This was in line with its strategic aim tosimplify the business and focus upon the existing Richoux offering, whichcontinues to deliver a strong, cash generative performance. The new board believes that further refinement to the existing Richoux brandalong with the acquisition/development of one or more cafe/patisserie conceptsin central London will create shareholder value and will be the principal focusof Gourmet. The new board intends to further streamline operational costs includingestablishing a central kitchen, which will produce cost effective synergies forRichoux and any new concept we introduce. Results Group turnover from our operations for the 52 week period ended 24 June 2007decreased to £10.02 million (2006: £10.24 million) reflecting the disposalsduring the period. Gross profit was £1.22 million (2006: £0.89 million).Administrative expenses (before amortisation and trading exceptional items) of£0.69 million (2006 restated: £0.84 million) were in line with expectationsfollowing the Board's decision to reduce its administrative cost base. The trading exceptional items of £0.71 million are; £0.30 million in respect ofan FRS12 onerous lease provision in respect of the Highwayman, £0.27 millionimpairment provision in respect of the tangible and intangible fixed assets ofthe Highwayman, which has now been disposed, £0.11 million of bad debts writtenoff in respect of the non-completion of a business transfer, and £0.03 millionof professional and other reorganisation costs. The net loss on disposal of fixed assets of £0.22 million are; £0.33 millionloss on the disposal of the Group's two unbranded pub restaurants in December2006, £0.15 million profit on the disposal of the rotunda at one of the Bel andthe Dragon pub restaurants, and £0.04 million loss on the disposal of othertangible fixed assets. The loss on disposal of discontinued operations of £2.10 million arose on thedisposal of BDC Holdings, which holds the Bel and the Dragon chain of fourrestaurants to Ultimate Leisure PLC on 15 June 2007. The Directors are not recommending the payment of a dividend. Operations Richoux Richoux had a successful year, and for the second year running has recorded anincrease in profit at the restaurant operating level. A committed and stablemanagement team continue to operate the Richoux restaurants. As announced in our interim statement in March 2007, a new franchise has beensigned to develop a Richoux restaurant in Egypt and we have received net otheroperating income of £0.06 million in respect of this. We aim to further enhance the Richoux brand through menu development andconcentrating on our core operational skills to improve performance. 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. I am pleased to announce that this process has now been completed, on22 December 2006 with the disposal of the two unbranded pub restaurants theTalkhouse in Stanton St John, near Oxford and the Five Bells in Stanbridge,Hertfordshire. Then on 15 June 2007 the disposal of the four Bel and the Dragonpub restaurants, and then on 10 September 2007 the disposal of the final pubrestaurant the Highwayman in Checkendon, Oxfordshire. Outlook Following the sale of all the Group's pub restaurants and the successfulrestructuring of the Company, our principal priorities are to concentrate on thecore business of Richoux restaurants, acquire/develop one or more complementarycafe/patisserie concepts and roll out units across central London. There is alsothe intention to appoint a Chief Operating Officer in due course. I would like to take this opportunity of thanking the outgoing board for theirefforts in successfully restructuring the business and for the service they gaveto the Company. I am delighted that Richard Scott is staying on with us on a consultancy basisuntil the end of December 2007. Neil BlowsChairman Gourmet Holdings plcConsolidated profit and loss accountfor the 52 week period ended 24 June 2007 52 week 52 week period ended period ended 24 June 25 June 2007 2006 (restated) Notes Continuing Discontinued Total Continuing Discontinued Total £'000 £'000 £'000 £'000 £'000 £'000 Turnover 4,739 5,284 10,023 4,467 5,773 10,240Cost of sales:Excluding pre-opening (4,006) (4,768) (8,774) (3,908) (5,440) (9,348)costsPre-opening costs 4 (28) - (28) - - - (4,034) (4,768) (8,802) (3,908) (5,440) (9,348)Gross profit 705 516 1,221 559 333 892Administrative expenses:Administrative expenses (693) - (693) (842) - (842)Amortisation (19) (98) (117) (19) (78) (97) (712) (98) (810) (861) (78) (939)Other operating income 5 58 - 58 - - -Operating profit/(loss) 51 418 469 (302) 255 (47)before tradingexceptional itemsTrading exceptional 6 (25) (688) (713) (339) (830) (1,169)itemsOperating profit/(loss) 26 (270) (244) (641) (575) (1,216)after tradingexceptional itemsNet loss on disposal of (31) (186) (217) - (15) (15)fixed assetsLoss on sale of 9 - (2,095) (2,095) - - -discontinued operationLoss on ordinary (5) (2,551) (2,556) (641) (590) (1,231)activities beforeinterestInterest receivable 110 73Interest payable and (406) (338)similar chargesLoss on ordinary (2,852) (1,496)activities beforetaxationTaxation on loss on (11) -ordinary activitiesLoss for the financial (2,863) (1,496)periodLoss per share 7 (8.4)p (5.4)p Diluted loss per share 7 (8.4)p (5.4)p There are no differences between the historic cost profit and that recorded inthe profit and loss account (2006: £nil). The consolidated profit and loss account for the 52 week period ended 25 June2006 has been restated to reflect the adoption of FRS20 "Share based payments". Gourmet Holdings plcConsolidated balance sheetat 24 June 2007 24 June 2007 25 June 2006 £'000 £'000 £'000 £'000 Fixed assets Intangible assets 251 2,101Tangible assets 1,991 11,820 2,242 13,921Current assets Stocks 69 210Debtors 482 601Cash at bank and in hand 5,534 3,010 6,085 3,821Creditors: amounts falling due within one year (2,068) (2,842)Net current assets 4,017 979 Total assets less current liabilities 6,259 14,900Creditors: amounts falling due after more thanone year - (5,789)Net assets 6,259 9,111 Capital and reserves Equity share capital 1,370 1,368Share premium account 8,769 8,763Warrants reserve 50 50Profit and loss account (3,930) (1,070)Shareholders' funds 6,259 9,111 Gourmet Holdings plcConsolidated cash flow statementfor the 52 week period ended 24 June 2007 Note 52 week 52 week period period ended ended 24 June 25 June 2007 2006 £'000 £'000Cash inflow/(outflow) from operating activities 11 826 (91)Returns on investments and servicing of finance (342) (289)Taxation (11) -Capital expenditure and financial investment (52) (517)Acquisitions and disposals 8,183 (2,874)Cash inflow/(outflow) before financing 8,604 (3,771)Financing (6,080) 5,656Increase in cash in the period 2,524 1,885 Reconciliation of net cash flow to movement in net fundsFor the 52 week period ended 24 June 2007 52 week 52 week period period ended ended 24 June 25 June 2007 2006 £'000 £'000Increase in cash in the period 2,524 1,885Cash outflow/(inflow) from changes in debt and lease financing 6,088 (1,398)Change in net funds resulting from cash flows 8,612 487Loans and finance leases acquired with subsidiary undertakings - (750)Movement in net funds/(debt) in the period 8,612 (263)Net debt at the start of the period (3,079) (2,816)Net funds/(debt) at the end of the period 5,533 (3,079) Gourmet Holdings plcConsolidated statement of total recognised gains and lossesfor the 52 week period ended 24 June 2007 52 week 52 week period period ended ended 24 June 25 June 2007 2006 (restated) £'000 £'000 Loss for the financial period (2,863) (1,496) Gain on redemption of preference shares - 408 Reduction in share premium - 7,411 Total recognised gains and losses relating to thefinancial period (2,863) 6,323 The consolidated statement of total recognised gains and losses for the 52 weekperiod ended 25 June 2006 has been restated to reflect the adoption of FRS20 "Share based payments". Reconciliation of movement in shareholders' fundsfor the 52 week period ended 24 June 2007 52 week 52 week period period ended ended 24 June 25 June 2007 2006 (restated) £'000 £'000 Loss for the financial period (2,863) (1,496) New share capital subscribed (net of issue costs) 8 4,938 Redemption of preference shares - 408 Credit in respect of share options 3 24 Net (reduction)/increase in shareholder's funds (2,852) 3,874 Opening shareholders' funds 9,111 5,237 Closing shareholders' funds 6,259 9,111 The reconciliation of movement in shareholders' funds for the 52 week periodended 25 June 2006 has been restated to reflect the adoption of FRS20 "Sharebased payments". Notes 1. The financial information for the 52 week period ended 24 June 2007 has been prepared in accordance with the company's accounting policies as disclosed in the financial statements for the period ended 25 June 2006, except for the adoption of FRS20 'Share based payments', in line with that standard's effective date. FRS20 requires a charge to be recognised in staff costs based on the fair value of options granted to employees. This fair value is established at the date of grant and recognised over the option vesting period. Adjustment is made to the charge recognised based on an assessment of whether non-market vesting conditions will be met. The comparative figures have been restated to reflect this change in policy. The effect of the adoption of FRS20 is discussed in note 10. 2. The financial information set out above does not constitute theCompany's statutory accounts for the years ended 25 June 2006 or 24 June 2007but it is derived from those accounts. Statutory accounts for 25 June 2006 havebeen delivered to the Registrar of Companies and those for 24 June 2007 will bedelivered following the Company's Annual General Meeting. The auditors havereported on those accounts; their reports were unqualified and did not containstatements under section 237(2) or (3) of the Companies Act 1985. 3. The consolidated financial statements include the financial statementsof the Company and its subsidiary undertakings made up to 24 June 2007. The results of all subsidiary undertakings are consolidated. Intra-group salesare fully eliminated on consolidation. 4. 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. 5. Other operating income Other operating income includes franchise fees, net of all associated costs andcharges, derived from the Middle East. Initial license fees are recognised atthe time the license is granted, ongoing income is recognised in line withperformance. 6. Trading exceptional items The trading exceptional charge of £713,000 comprises £303,000 FRS12 provisionfor an onerous lease for the Highwayman in Oxfordshire (the provision is basedon the surrender of the leasehold interest and the payment of a reverse premiumof £260,000 and costs of £43,000, this pub restaurant was disposed of on 10September 2007), £271,000 impairment provision in respect of the tangible andintangible fixed assets of the Highwayman in Oxfordshire, the impairmentprovision has been based on the net realisable value of the assets in question,£113,000 bad debts write off in respect of the non-completion of a businesstransfer, £26,000 for professional and other reorganisation costs. 7. Loss per share The loss per share is calculated by reference to the loss after taxation and theweighted average number of ordinary shares in issue during the period of34,209,687 (2006 restated: 27,784,505). 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 £2,863,000 (2006 restated:£1,496,000). 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 34,231,493 (2006: 27,889,358). Share options and warrantsnot included in the diluted calculations as per the requirements of FRS14 (asthey are anti-dilutive) totalled 494,319 (2006: 721,522). 8. No dividend is proposed. 9. Disposal of BDC Holdings Limited On the 15 June 2007 the Company disposed of the entire share capital of BDCHoldings Limited (and its subsidiary companies) and Bel and the Dragon (HamptonCourt) Limited (formerly Gourmet Trading Limited) for £8,750,000 (adjusted forthe repayment of an inter company loan of £2,408,000 and working capital of£124,000). The fair value of the consideration received for the share capital ofthe companies was: Book value at date of disposalGroup £'000 Intangible fixed assets 1,717Tangible fixed assets 8,985Stock 85Debtors 114Cash and overdrafts 3Liabilities (623)Net assets 10,281Costs of disposal 440Sale proceeds (8,626)Loss on disposal 2,095 10. 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 52 week period ended 25 June 2006 was increasedby £24,000 as a result of FRS20, leading to an increase in the loss per share of0.1p. 11. Reconciliation of operating loss to operating cash flows 52 week 52 week period period ended ended 24 June 25 June 2007 2006 £'000 £'000Operating loss (244) (1,216)Depreciation charge 423 419Amortisation charge 117 97Impairment of intangible fixed assets 5 -Impairment of tangible fixed assets 266 450Decrease in stocks 56 22Decrease/(increase) in debtors 5 (15)Increase in creditors 195 128Equity settled share based payments 3 24Net cash inflow/(outflow) from operating 826 (91)activities - ENDS - This information is provided by RNS The company news service from the London Stock Exchange