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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