Interim Results
BGR PLC
30 August 2000
BGR plc
Interim Results for the Six Months to 30 April 2000
BGR plc, the operator of the 'Bank' and 'Fish!' restaurant
concepts today announces Interim results for the six months to 30
April 2000, together with a separate announcement detailing the
appointment of a new Operations Director.
* Group turnover increased by 13% to £10.5m (1999: £9.3m)
* Group profit before tax and exceptional items up 10% to £ 1.1m
000000(1999: £1.0m)
* Continued expansion of Fish! concept with latest openings in
Battersea and Canary Wharf performing in line with and ahead of
expectations respectively and County Hall opened 29th August
2000.
* 2 new Fish! operations on course to open at Birmingham and
Guildford shortly and the majority of 2001 development sites
identified
* 'Bank' in Aldwych continues to deliver a consistent performance
and Bank Birmingham and Zander show strong early growth in
turnover
* The food preparation division continues to provide the necessary
infrastructure to underpin the roll out of Fish!
* The 100% demerger of its IT division in March 2000 resulted in
considerable latent value for shareholders.
* Appointment of Paul Gilligan as Operations Director, who joins
from PizzaExpress
Tony Allan, Chairman, commented:
'Fish! continues to build as a brand with the accelerated roll out
progressing as planned. The second half of 2000 will begin to see
the financial benefits of the expansion of Fish! BGR has
performed well, is delivering on what it has promised and is
focused on the future.'
30 August 2000
ENQUIRIES:
BGR plc Tel:020 7234 3300
Tony Allan, Chairman
Jeremy Ormerod, Chief Executive
College Hill Tel:020 7457 2020
Justine Warren
Matthew Smallwood
BGR plc
Interim Results for the Six Months to 30 April 2000
Chairman's Statement
I am pleased to report an encouraging start to the year in which
we have met our trading expectations and continued to put in place
the necessary infrastructure to underpin the Group's growth going
forward.
Trading during the period under review has been dominated by the
Group's new openings. This set of results includes initial
contributions from the two new signature restaurants which opened
in the first half, Bank Birmingham and Zander in Westminster,
together with two further Fish! restaurants which opened in
Battersea and Canary Wharf during the period.
Earlier this year, the Group demerged its IT division, a
restaurant reservations and EPOS systems provider trading as Bank
Solutions, into QuadraNet plc which subsequently listed on AIM on
7 April 2000. The 4 for 1 share offer generated considerable
latent value for BGR shareholders.
Financial Performance
As a result of the demerger of the IT Division, the Group's
figures have been restated to show the effect of discontinued
activities. Group turnover grew by 13 per cent. to £10.5m
(1999 restated: £9.3m). Profit before tax and exceptional items
for the six months to 30 April 2000 was £1.1m, an increase of 10
per cent on last year (1999 restated: £1.0m). Earnings per share
were 3.1p, (1999 restated: 4.7p). The reduction in earnings per share
arises from exceptional costs associated with the demerger of the IT division.
Dividends
In view of the cash required for the expansion programme, the rate
of the return on capital expected from the new restaurants and the
Company's continued intention to maximise its growth, the Board
currently intends to recommend the payment of a final dividend for
the year ending 31 October 2000 after a further six months
trading.
The dividend shown in the financial statement relates to demerger
of the Group's IT division as described above.
BGR plc
Interim Results for the Six Months to 30 April 2000
Chairman's Statement (Cont'd)
Restaurant Division
The Restaurant Division benefited in part from the four new
openings which took place during the period under review. Bank
Birmingham commenced trading in December 1999 and Zander opened in
Westminster (London) in March 2000. In addition, two new Fish!
operations opened in December 1999 (Battersea) and April 2000
(Canary Riverside).
Within the Restaurant Division, turnover increased by 60 per cent.
to £5.6m (1999: £3.5m) and profit before tax increased by 22 per
cent. to £1.1m (1999: £ 0.9m).
The Group's strategic focus continues to concentrate on the
expansion of Fish! both in London and throughout the UK. Fish! in
Borough Market has now traded for a full year and continues to
perform well ahead of last year. The buoyant level of trading at
this operation, where revenues have continued to build,
demonstrates the strength of this concept.
The two new Fish! restaurants made a small contribution to this
interim period due to their respective openings primarily
affecting the latter part of the first half. Both Battersea and
Canary Wharf have had an encouraging start to trading and to date,
Battersea has achieved our performance model of a 40% return on
capital with Canary Riverside exceeding this expectation. The
development of new potential Fish! sites has also been very
encouraging with the opening at County Hall, London on 29 August
2000 and additional Fish! operations on course to open in
Birmingham and Guildford shortly and we have secured sites for
much of our current 2001 development programme.
The second half will benefit from the increase in trading
resulting from these first half period additional restaurants and
from the three further new openings which will take place during
this latter period.
Otherwise across the Restaurant Division, Bank in Aldwych
continues to deliver a consistent performance and trading was in
line with Group expectations, both in terms of turnover and profit
in spite of increasing competition in the vicinity. Bank
Birmingham and Zander have shown strong turnover growth since
opening with profit contributions being achieved since the half
year end.
Earlier this month, the Group confirmed that it is in discussions
with a consortium which has expressed an interest in purchasing
its Signature restaurants, comprising Bank (Aldwych), Bank
Birmingham and Zander. Discussions are still proceeding and a
further announcement will be made in due course.
BGR plc
Interim Results for the Six Months to 30 April 2000
Chairman's Statement (Cont'd)
Specialist Food Preparation Division
The Specialist Food Division continues to provide supply stability
for the Group's new openings and expansion of the Restaurant
Division. Turnover reduced by 15 per cent. to £5.1m (1999:
£6.04m), mainly as a result of the closure of our wholesaling
operation at Billingsgate in October 1999 and operating profits
reduced by 40 per cent. to £0.3m (1999: £0.5m).
To prepare the Specialist Food Division for the acceleration of
the Fish! roll out, it has undergone considerable rationalisation
at its fish and meat operations during the period, which were
completed in March 2000. The benefits of this rationalisation
process and subsequent cost reductions that have materialised as a
result, are already in evidence. Furthermore, West Coast
Shellfish in Argyll, Scotland was affected by a Government fishing
restriction which prevented sales of scallops for the period being
reported. This restriction has subsequently been lifted with no
resultant cost implication and sales have now resumed.
Board Changes
The success of Fish! has demonstrated that it has significant
potential to be replicated nationwide and it is in response to the
Group's rapid growth that the Directors have decided to strengthen
the management team with the appointment of an Operations
Director. Paul Gilligan joins the Group from PizzaExpress, where
he was formerly Property Director, and his previous experience in
our sector will be of enormous value. He will have direct
responsibility for new restaurant site development. It is the
Directors' intention that this new role will ensure the focus
required to maintain the continued growth momentum of the Group.
Current Trading
Since the half year end, trading has maintained turnover levels
with last year at Bank London and has shown continued growth at
Bank Birmingham and Zander. At Fish! at Borough Market, where
there are comparisons available, we have seen continued strong
growth on an existing exceptional performing restaurant. The new
sites, whilst still young, have achieved profitability which bodes
well for our remaining new openings in this year.
The Specialist Food Preparation Division has significantly
improved its turnover and profit contribution to the Group and
there are no further material cost implications to support a
substantial increase in the number of Fish! sites.
BGR plc
Interim Results for the Six Months to 30 April 2000
Chairman's Statement (Cont'd)
Future Prospects
BGR has had an excellent start to the year. The success of the
latest Fish! openings has further demonstrated the scope for this
concept to be replicated in a variety of locations and it now
undoubtedly has national brand potential. The strengthening of the
management team confirms the Directors' commitment to the ongoing
expansion of this brand.
I look forward to reporting the Group's continued success at the
year end.
Tony Allan
Chairman
30 August 2000
BGR plc
Interim Results for the Six Months to 30 April 2000
Group Profit and Loss Account
Restated
Unaudited Unaudited Unaudited Audited
Six Six months Six Year
Dis- months ended months ended
Continuing continued ended 30 April ended 31
activities activities 30 April 1999 30 April October
2000 2000 1999
£'000 £'000 £'000 £'000 £'000 £'000
Turnover 10,536 376 10,912 9,281 9,441 19,053
Cost of
sales (4,132) (196) (4,328) (4,795) (4,788) (9,628)
Gross
profit 6,404 180 6,584 4,486 4,653 9,425
Administrative
expenses (5,316) (122) (5,438) (3,383) (3,440) (7,014)
Operating
profit 1,088 58 1,146 1,103 1,213 2,411
Exceptional
item(Note 3) - (386) (386) - - -
Interest
receivable 43 - 43 15 15 51
Interest
payable (43) (1) (44) (98) (100) (85)
Profit/(loss)
onordinary
activities
before
taxation 1,088 (329) 759 1,020 1,128 2,377
Tax on
profit
on ordinary (190) (282) (282) (625)
activities
Profit on
ordinary
activities
after
taxation 569 738 846 1,752
Dividends
(Note 4) (779) - - (164)
Retained(loss/
profit for
period (210) 738 846 1,588
Basic earnings
per share 3.1p 4.7p 5.4p 10.69p
(note 5)
Diluted 3.0p 4.4p 5.1p 10.22p
earnings
per share
BGR plc
Interim Results for the Six Months to 30 April 2000
Group Balance Sheet
Unaudited Unaudited Audited
As at As at As at
30 April 30 April 31 October
2000 1999 1999
£'000 £'000 £'000
Fixed assets
Intangible 43 656 1,325
Tangible 13,703 6,732 7,520
13,746 7,388 8,845
Current assets
Stock 1,686 903 1,283
Debtors 5,313 3,132 4,222
Investments - - 3,000
Cash at bank 247 397 1,605
7,246 4,432 10,110
Creditors: amounts falling due
within one year (7,963) (3,829) (5,306)
Net current
(liabilities)/assets (717) 603 4,804
Total assets less current 13,029 7,991 13,649
liabilities
Creditors: amounts falling due
after more
than one year (1,023) (2,145) (1,534)
Net assets 12,006 5,846 12,115
Capital and reserves
Share capital 1,824 1,582 1,819
Share premium account 7,822 2,436 7,726
Merger reserve (1,375) (1,375) (1,375)
Profit and loss account 3,735 3,203 3,945
Equity Shareholders' funds 12,006 5,846 12,115
BGR plc
Interim Results for the Six Months to 30 April 2000
Notes to Interim Report
1. Basis of preparation
The results for BGR plc for the six months ended 30 April 2000 and
the comparative figures for the six months ended 30 April 1999 are
unaudited. They have been prepared on accounting bases and
policies that are consistent with those used in the preparation of
the financial statements of the Group for the year ended 31
October 1999.
The results for the year ended 31 October 1999 are extracted from
the latest audited accounts approved by the Members at the Annual
General Meeting. These accounts, which received an unqualified
report, have been delivered to the Registrar of Companies.
The unaudited Profit and Loss Account and Balance Sheet for the
current and prior interim periods do not amount to statutory
accounts withing the meaning of section 240 of the Companies Act
1985 and have not been delivered to the Registrar of Companies.
2. Basis of consolidation
The consolidated unaudited accounts for BGR plc incorporate the
accounts of Cutty Catering Specialists Limited and Marchthistle
Limited using the merger accounting method. Other group
subsidiaries are accounted for using the acquisition accounting
methods.
3. Discontinued activities/Exceptional item
Crestport Limited, a subsidiary of BGR plc was demerged from the
Group, and transferred to QuadraNet plc on 6 April 2000, via a
distribution in specie. The shares of QuadraNet plc were issued
on a basis of four QuadraNet shares for one BGR plc share held at
the Record Date. The costs of the demerger amounting to £386,000
are shown as an exceptional item.
4. Dividend
The dividend in the Group's profit and loss account amounts to
£779,000, which reflects the net assets in Crestport Limited
transferred to QuadraNet plc.
5. Earnings per share
Basis earnings per share for the six months ended 30 April 2000
has been calculated based on the weighted average number of shares
in issue during the period of 18,196,047 and the earnings for the
period of £569,000.
Diluted earnings per share has been calculated based on the
weighted average number of shares of 19,040,000 which includes the
dilutive potential of shares under option.
BGR plc
Interim Results for the Six Months to 30 April 2000
6. Comparative Figures
The comparative figures for the six months ended 30 April 1999
have been restated to show the effect of discontinued activities.
7. Copies available
Copies of the Interim report will be sent to all shareholders and
are available to the public from the Company's registered office
at 56 Ayres Street, London SE1 1EU for a period of fourteen days
from 31 August 2000
Monday, 13th May 2024
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