Interim Results - 6 Months to 26 December 1999

Belgo Group PLC 28 February 2000 Interim Results for the 26 weeks ended 26 December 1999 Belgo Group PLC, the leading restaurant group, announces its interim results for the 26 weeks ended 26 December 1999. Highlights * Sales up from £11.1 million to £17 million * Profit before taxation and goodwill amortisation of £2.0 million * Interim dividend of 0.01p * Basic earnings per share (excluding goodwill) of 0.147p * Continued expansion of Bierodrome brand with latest opening in Clapham performing ahead of expectations * Developed an additional roll out concept, 'Strada', with two units already opened * Strong performance from Caprice Holdings * The Group remains debt free and expansion continues Andy Bassadone, Chief Executive, commented: 'Trading across the group has shown a marked improvement since September. Le Caprice, the Ivy and J. Sheekey have all traded particularly strongly. The Bierodrome expansion continues with the latest opening in Clapham which is performing ahead of expectations.' 'Our two latest openings are a new concept, Strada. These have been well received and we believe this brand can be expanded alongside Belgo and Bierodrome from internal cash. We are actively seeking new sites and the Group's future prospects remain exciting.' For further information please contact: Andy Bassadone, Tel: 0171 209 9535 Chief Executive Belgo Group Simon Rigby/Kylie Child Tel: 0171 638 9571 Citigate Dewe Rogerson Chairman's Statement 26 Weeks ended 26 December 1999 During the period the Group has continued to expand with the opening of the second Bierodrome in Clapham, London and the development and opening of a new concept, 'Strada' in Battersea, London. Profit before taxation and goodwill amortisation was £2.0m on sales of £17m. Basic earnings per share, excluding goodwill amortisation, were 0.147p. The board is proposing a maintained interim dividend of 0.01p per share (1998 - 0.01p), which will be paid on 7 April 2000 to shareholders on the register on 10 March 2000. As outlined in the statement on 11 January, results in the first half were affected by the unsatisfactory performance of the overseas restaurants in Dublin and New York. In these new markets it has taken longer to establish the brand than originally anticipated. The board has taken steps to improve the performance of these restaurants and a strategic plan is in place for both operations. On 2 February the Group announced the departure of Tim Power, Operations Director. A senior executive who has been with Belgo since its inception has taken up this role. Review of operations The Group's trading has improved in recent months after a sector wide disappointing first quarter. The original Belgo restaurants, Belgo Noord and Belgo Centraal, continue to trade in line with expectations although Centraal was disrupted slightly due to a fire in the adjoining building which resulted in the restaurant being closed for some eight weeks. With the exception of Dublin and New York the remainder of the Belgo restaurants are performing in line with expectations. The Bierodrome concept has been well received and the second unit, which opened in Clapham in November 1999, is performing ahead of expectations. The original Signature restaurants, with the exception of the Collection, are generally performing in line with expectations. Daphne's is trading strongly and appears to have benefited from the publicity surrounding the publication of the Daphne's cookbook in September 1999. The Collection experienced a mixed first quarter. However, in recent months trade has started to recover and the restaurant is showing signs of matching previous sales levels. Caprice Holdings has performed well throughout the period with very strong like for like sales growth. J Sheekey is well established and is now enjoying a reputation similar to its sister restaurants, The Ivy and Le Caprice. During the period the Group opened a new concept, Strada, which offers affordable high quality wood burning oven pizzas and pasta in comfortable surroundings. The first Strada opened in November 1999 in Battersea Rise, London and the second in Parsons Green, London in February. Both have been well received. Although in its early stages, the Group believes that Strada will be a roll-out concept that can be expanded alongside the Belgo and Bierodrome brands. Prospects The Group came to the market in January 1998 with two restaurants, Belgo Centraal and Belgo Noord. It now has 18 restaurants, remains debt free and is well positioned to continue its organic expansion. The Group is actively seeking further sites for the development of Belgo and Bierodrome and the initial trading of the first two Stradas is encouraging. The board remains confident about the future prospects of the Group. Luke Johnson Chairman 28 February 2000 Consolidated Profit And Loss Account 26 weeks 26 weeks ended ended Notes 26 December 27 December 1999 1998 (unaudited) (unaudited) £'000 £'000 Turnover 1 Continuing 17,423 8,142 Acquisition - 2,993 Loss share of joint ventures (462) - _______ _______ Group turnover 16,961 11,135 Cost of sales (4,714) (3,123) _______ _______ Gross profit 12,247 8,012 Administrative expenses (10,053) (6,040) _______ _______ Trading profit 2,194 1,972 Amortisation of goodwill - acquisition 2 (367) (189) Operating profit - (after goodwill amortisation) Continuing 1,827 1,664 Acquisition - 119 1,827 1,783 Operating loss - joint ventures 3 (146) - _______ _______ 1,681 1,783 Net interest received 9 127 Share of joint venture interest payable (56) _______ _______ Profit on ordinary activities before taxation 1,634 1,910 Taxation 4 (499) (567) _______ _______ Profit on ordinary activities after taxation 1,135 1,343 Dividends - equity 5 (102) (102) _______ _______ Profit for the period 1,033 1,241 _______ _______ Earnings per ordinary share - basic 6 0.111p 0.141p - diluted 6 0.100p 0.122p Earning per ordinary share excluding goodwill - basic 6 0.147p 0.161p - diluted 6 0.133p 0.139p Consolidated Balance Sheet At 26 At 27 December December 1999 1998 (unaudited) (unaudited) £'000 £'000 Fixed Assets Intangible assets 2 13,762 14,741 Tangible assets 15,706 10,133 Investments 120 409 Joint ventures Share of gross assets 3 1,333 787 Share of gross liabilities 3 (1,571) (692) _______ _______ 29,350 25,378 Current Assets Stock 1,006 426 Debtors 1,872 1,386 Cash at bank and in hand 6,227 9,128 _______ _______ 9,105 10,940 Creditors: amounts falling due within one year (7,213) (5,911) _______ _______ Net current assets 1,892 5,029 _______ _______ Total assets less current liabilities 31,242 30,407 Creditors: falling due after more than one year (4,516) (6,003) Provision for liabilities and charges (288) (268) _______ _______ Net assets 26,438 24,136 _______ _______ Capital and Reserves Called up share capital 10,244 10,213 Reserves 16,194 13,923 _______ _______ 26,438 24,136 _______ _______ Analysis of shareholders' funds Equities 26,438 24,136 Non-equity - - _______ _______ 26,438 24,136 _______ _______ Notes forming part of the financial statements 1. Group turnover arises substantially in the United Kingdom. Turnover, results and net assets derive from the Group's ongoing principal activity of operating restaurants. The acquisition in the period ended 27 December 1998 related to Caprice Holdings Limited, the principal business of which is the operation of Le Caprice, The Ivy and J. Sheekey. The total cost of sales and administrative expenses relating to this acquisition amounted to £900,000 and £1,785,000 respectively. 2. Results are consolidated from the date of acquisition of subsidiary undertakings. In accordance with FRS 10, goodwill arising on the difference the fair value of the consideration paid and the fair value of the net assets acquired is capitalised and amortised over 20 years being the estimated useful economic life. 3. In accordance with FRS 9 joint ventures are accounted for using the gross equity method. Joint ventures preciously stated at cost, have been accounted for in accordance with FRS 9, and goodwill arising thereon has been charged against reserves. 4. The tax charge for the six months ended 26 December 1999 has been calculated based on the estimated effective tax rate for the full year. 5. Proposed interim dividend represents 0.01p per ordinary share (1998 interim - 0.01p). 6. The calculation of earnings per share is based on the weighted average number of issued ordinary shares during the period of 1,023,230,535 (1998 - 950,617,553) and earnings of £1,135,000 being the result after taxation (1998 - £1,343,000). Diluted earnings per share includes 107,043,860 (1998 - 154,084,869) shares in respect of options and warrants, giving a total number of shares of 1,130,274,395 (1998 - 1,104,702,422). Earnings per share excluding the amortisation of goodwill of £367,000 (1998 - £189,000) is based on adjusted earnings of £1,502,000 (1998 - £1,532,000). 7. These interim results are unaudited and unreviewed and have been prepared utilising the accounting policies adopted by the Group in the audited accounts for the period ended 27 June 1999. The statutory accounts for the period ended 27 June 1999 have been delivered to the Registrar of Companies and were unqualified and did not contain a statement under section 237 (2) or 237 (3) of the Companies Act 1985.

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