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Fulham Shore PLC (FUL)

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Friday 15 December, 2017

Fulham Shore PLC

Half-year Report

RNS Number : 4341Z
Fulham Shore PLC (The)
15 December 2017
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

 

 

The Fulham Shore PLC

Unaudited interim results for the six months ended 24 September 2017

 

Chairman's statement

 

Introduction

I am pleased to announce the unaudited interim results for the six months ended 24 September 2017 for The Fulham Shore PLC ("Fulham Shore" or the "Group"). It has been another busy six months for the Group, during which we have continued to make progress in delivering our growth strategy and we have produced a resilient set of financial results despite a challenging market backdrop.

 

Revenue grew to £27.5m from £19.5m for the same period last year while Headline EBITDA* increased to £4.5m (2016: £3.8m). Profit for the period was £0.6m (2016: £0.5m).

 

Strategic progress

The Group's growth has been driven primarily by new restaurant openings. During the six months ended 24 September 2017, the Group opened three The Real Greek restaurants, seven Franco Manca pizzerias in the UK and one Franco Manca franchise pizzeria in Salina, Italy. In line with the Group's expansion strategy, these openings included a number of locations outside London, including Bournemouth and Reading.

 

In September 2017, the Group announced in its AGM statement and trading update that it had taken the decision to simplify operations and focus on the Group's core brands by selling its business and property at D'Arblay Street, Soho. Discussions have commenced with suitable parties and as such we have, in the results, impaired the asset by some £0.3m and reflected the property as held for sale and a discontinued operation in the interim results.

 

We have continued to invest in our teams and infrastructure to support our long-term growth plans. During the six months ended 24 September 2017, and as previously indicated, we commenced investing in the central team of The Real Greek as this business begins its national expansion. We also continued to invest in the team we have in place to support the continued expansion of Franco Manca.

 

Cash flow

During the period ended 24 September 2017, the Group had lower net cash inflow from operating activities of £3.3m (2016: £6.4m) due primarily to the Group benefiting last year from an increase in trade and other payables. During the same period the Group invested £7.0m (2016: £6.0m), the majority of which was in new restaurant openings. Included in investing activities is a minority equity investment of £200,000 by Franco Manca in Made of Dough, a new pizza concept, as part of Franco Manca's pursuit of best in class pizza operations.

 

Overall there was a net cash inflow for the period of £0.8m (2016: £1.1m). At the beginning of the current financial year, the Group increased its facilities with HSBC Bank PLC from £6.5m to £15m. Net debt as at 24 September 2017 was £9.7m (2016: £3.0m).

 

Dividends

No dividend is being proposed by the Board. It remains the Board's policy that, subject to the availability of distributable reserves, dividends will be paid to shareholders when the Directors believe it is appropriate and prudent to do so.

 

Current trading and outlook

Since 24 September 2017 the Group has opened one The Real Greek restaurant in Bristol and two Franco Manca pizzerias in Kings Cross (London) and Bristol. This takes the number of restaurants operated today by the Group to a total of 58 in the UK, made up of 16 The Real Greek, 41 Franco Manca and one Bukowski Grill. We expect to open a further one or two new restaurants by the end of the current financial year to 25 March 2018.

 

Some of our planned openings this year have been delayed by as much as six months as we seek better deals from landlords thus protracting lease negotiations. These delays have had the beneficial side-effect of improving our cash position and lessening our peak borrowings. We will keep under review our opening programme for the rest of the current and following financial years. We intend that our new restaurants will be selected to give us an average return on capital at the higher end of the scale previously recorded. We will achieve this with more rigorous site selection and increased contributions from landlords thereby lowering our costs, in cash terms, for new sites while at the same time negotiating rents off the lower levels which are increasingly evident. We also intend to commit to sites which follow our returns requirement rather than to sign up purely to fill a formulaic pipeline.

 

As indicated in September 2017, the summer should have been one of the busiest periods of our financial year and the weak trading across the dining out market that we also experienced has impacted this year's overall performance. Some of our pre-2017 restaurants, particularly in the London suburbs, are still experiencing revenue below the equivalent period a year earlier with increased volatility and some expected cannibalisation from our new restaurants in nearby locations. However, revenue from these restaurants have seen slight improvements from the poor summer period of July to September.

 

Although we believe our half year figures to 24 September 2017 were satisfactory, our full year Headline EBITDA* to 25 March 2018 will depend on how our suburban estate performs in the second half of the year and also on the timing and performance of new openings.

 

The slowdown in the UK retail and restaurant sector has been noted by many commentators, and is, we believe, the result principally of rising inflation, poor consumer confidence and a weakening economy. These factors, together with a number of rising costs, means that our pre-2017 estate, while profitable, is contributing less, on an average site by site basis, than last year. We will respond to the economic climate in the next 24 months as we find it, as we believe these factors will continue to affect the restaurant sector in the coming years, limiting our visibility for the second half and beyond.

 

Despite this challenging backdrop I am confident that Fulham Shore is well placed; we have an experienced management team, who have navigated through several industry cycles, two strong brands that are renowned for their great quality, ambience and value, and a good site portfolio. We believe that our brands have significant customer appeal which is underpinned by the food quality and value of their offerings. As a result, and despite the challenging backdrop, we are confident that the Group will continue to grow over the coming years.

 

 

 

 

David Page

Chairman

 

15 December 2017

 

* Definition of Headline EBITDA can be found in note 3 to the unaudited interim financial information.

 

Contacts:

 

The Fulham Shore plc

www.fulhamshore.com

David Page

 

Tel: 07836 346 934

Allenby Capital Limited

Nick Naylor / Jeremy Porter / James Reeve

 

Tel: 020 3328 5656

 

Hudson Sandler - Financial PR

Alex Brennan / Lucy Wollam

[email protected]

Telephone: 020 7796 4133

 

 

 

 

 

Notes for editors

 

Information on The Fulham Shore plc

 

Fulham Shore was incorporated in March 2012. The Directors believed that there were attractive investment opportunities within the restaurant sector in the UK and that, given their collective experience in the restaurant sector, they could take advantage of the opportunities which existed.

 

The ordinary shares of the Company were admitted to trading on AIM in October 2014 in order to capitalise on such opportunities and to give the company employees, customers and public the ability to share in the enterprise.

 

Today, Fulham Shore owns and operates "The Real Greek" (www.therealgreek.com) and "Franco Manca" (www.francomanca.co.uk) restaurants.

 

The Real Greek

 

Since its foundation in London in 1999, The Real Greek group has grown steadily, now offering modern Greek cuisine in 16 restaurants across London and Southern England.

 

The company is an ambassador of Greek food and Greek hospitality in the UK. The Real Greek food centres on the delicious, healthy diet of the Eastern Mediterranean, staying true to the Greek ethos of food, family and friends. Dishes are created using premium ingredients sourced from Greece and Cyprus whenever possible, and developed by Tonia Buxton, the face of Greek food in the UK.

 

The Real Greek's menu and atmosphere retain the spirit of eating in Greece, encouraging diners to take their time eating amongst friends and family, be it a relaxed dinner, family get-together, or a fully catered party.

 

Franco Manca

 

Franco Manca opened its first restaurant in 2008 and now has 41 restaurants, primarily in London, but with recent openings in Bournemouth, Reading, Oxford and Bristol. Other locations outside London are in the opening pipeline for the next 12 months. Franco Manca also has a franchised pizzeria on the island of Salina in Italy.

 

Franco Manca's pizza is made from slow-rising sourdough and is baked in an oven that produces heat of about 500°c (930°F). The slow levitation and blast cooking process lock in the flour's natural aroma and moisture, giving a soft and easily digestible crust. Where possible, locally sourced and organic ingredients are used. Pizza prices start from £4.95.

 

Winner of the R200 Best Value Restaurant Operator- Over 20 Sites Award 2017

 

Winner of the CGA Peach Hero and Icon Awards Best Concept award 2016

 

"Franco Manca is quite possibly the best pizza restaurant to ever exist in London." - Metro (2016)

 

 

 

The Fulham Shore PLC

Unaudited Consolidated Statement of Comprehensive Income

for the six months ended 24 September 2017

 

 

 

Six months 

ended 

24 September 

2017 

Six months 

ended 

25 September 

2016 

Year 

ended 

26 March 

2017 

 

Notes

Unaudited 

£'000 

Unaudited 

£'000 

Audited 

£'000 

 

 

 

 

 

Revenue

 

27,533 

19,546 

40,441 

 

 

 

 

 

Cost of sales

 

(15,760)

(10,650)

(22,553)

 

 

             

             

             

Gross profit

 

11,773 

8,896 

17,888 

 

 

 

 

 

Administrative expenses

 

(8,991)

(6,324)

(12,989)

 

 

             

             

             

Headline operating profit

 

2,782 

2,572 

4,899 

Share based payments

 

(345)

(297)

(631)

Pre-opening costs

 

(819)

(855)

(1,914)

Amortisation of brand

 

(411)

(411)

(821)

Exceptional costs - cost of acquisition

 

(26)

(26)

 

 

             

             

             

Operating profit

 

1,207 

983 

1,507 

 

 

 

 

 

Finance income

 

Finance costs

 

(112)

(52)

(135)

 

 

             

             

             

Profit before taxation

 

1,095 

932 

1,373 

 

 

 

 

 

Income tax expense

4

(25)

(276)

(164)

 

 

             

             

             

Profit for the period from continuing operations

 

1,070 

656 

1,209 

 

 

 

 

 

Loss for the period from discontinued operations

9

(475)

(130)

(240)

 

 

             

             

             

Profit for the period

 

595 

526 

969 

 

 

             

             

             

 

 

 

 

 

Profit for the period attributable to:

 

 

 

 

Owners of the company

 

580  

510  

947 

Non-controlling interests

 

15  

16  

22 

 

 

             

             

             

 

 

595 

526 

969 

 

 

             

             

             

Earnings per share

 

 

 

 

 

 

 

 

 

Continuing and discontinued operations:

 

 

 

 

Basic

5

0.1p 

0.1p 

0.2p 

Diluted

5

0.1p 

0.1p 

0.2p 

 

 

 

 

 

Continuing operations:

 

 

 

 

Basic

5

0.2p 

0.1p 

0.2p 

Diluted

5

0.2p 

0.1p 

0.2p 

 

 

 

 

 

Headline Basic

5

0.4p 

0.4p 

0.7p 

Headline Diluted

5

0.4p 

0.4p 

0.7p 

 

There were no other comprehensive income items.

 

The Fulham Shore PLC

Unaudited Consolidated Balance Sheet

as at 24 September 2017

 

 

 

 

 

 

Notes

As at 

24 September 

2017 

Unaudited 

£'000 

As at 

25 September 

2016 

Unaudited 

£'000 

As at 

26 March 

2017 

Audited 

£'000 

Non-current assets

 

 

 

 

Intangible assets

 

26,952 

27,507 

27,374 

Property, plant and equipment

 

31,424 

21,598 

27,306 

Investments

6

200 

Trade and other receivables

 

1,071 

974 

947 

Deferred tax assets

 

1,419 

1,192 

1,406 

 

 

             

             

             

 

 

61,066 

51,271 

57,033 

Current assets

 

 

 

 

Inventories

 

1,341 

837 

1,052 

Trade and other receivables

 

3,169 

2,497 

2,602 

Cash and cash equivalents

7

1,374 

748 

271 

Assets classified as held for sale

9

213 

- 

 

 

             

             

             

 

 

6,097 

4,082 

3,925 

 

 

             

             

             

Total assets

 

67,163 

55,353 

60,958 

 

 

             

             

             

Current liabilities

 

 

 

 

Trade and other payables

 

(13,677)

(10,827)

(13,332)

Income tax payables

 

(917)

(1,030)

(533)

Borrowings

 

(513)

(180)

 

 

             

             

             

 

 

(15,107)

(11,857)

(14,045)

 

 

             

             

             

Net current liabilities

 

(9,010)

(7,775)

(10,120)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

 

(10,550)

(3,710)

(6,000)

Deferred tax liabilities

 

(2,161)

(1,954)

(2,265)

 

 

             

             

             

 

 

(12,711)

(5,664)

(8,265)

 

 

             

             

             

Total liabilities

 

(27,818)

(17,521)

(22,310)

 

 

             

             

             

Net assets

 

39,345 

37,832 

38,648 

 

 

             

             

             

Equity

 

 

 

 

Share capital

 

5,714 

5,703 

5,714 

Share premium account

 

6,889 

6,878 

6,889 

Merger relief reserve

 

30,459 

30,459 

30,459 

Reverse acquisition reserve

 

(9,469)

(9,469)

(9,469)

Retained earnings

 

5,645 

4,175 

4,963 

 

 

             

             

             

Total equity attributable to owners of the company

 

39,238 

37,746 

38,556 

Non-controlling interest

 

107 

86 

92 

 

 

             

             

             

Total equity

 

39,345

37,832

38,648 

 

 

             

             

             

 

The Fulham Shore PLC

Unaudited Consolidated Statement of Changes in Equity

for the six months ended 24 September 2017

 

Six months ended 24 September 2017

 

 

Attributable to owners of the Company 

 

 

 

 

 

Share 

capital 

£'000 

 

 

Share 

premium 

£'000 

 

Merger 

Relief 

Reserve 

£'000 

Reverse 

Acq-uisition 

Reserve 

£'000 

 

 

Retained 

earnings 

£'000 

Equity 

Share-

holders '

Funds 

£'000 

Non- 

Control-ling 

Interests 

£'000 

 

 

Total 

equity 

£'000 

 

 

 

 

 

 

 

 

 

At 26 March 2017

5,714 

6,889 

30,459 

(9,469)

4,963 

38,556 

92 

38,648 

 

 

 

 

 

 

 

 

 

Profit for the period

580 

580 

15 

595 

 

             

             

             

             

             

             

             

             

Total comprehensive income for the period

 

 

 

 

 

580 

 

580 

 

15 

 

595 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

  Share based payments

 

 

 

 

 

345 

 

345 

 

 

345 

  Deferred tax on share based payments

 

 

 

 

 

 

 

 

 

 

(243)

 

 

(243)

 

 

 

 

(243)

 

             

             

             

             

             

             

             

             

Total transactions with owners

 

 

 

 

 

102 

 

102 

 

 

102 

 

             

             

             

             

             

             

             

             

At 24 September 2017

5,714 

6,889 

30,459 

(9,469)

5,645

39,238

107 

39,345 

 

             

             

             

             

             

             

             

             

 

 

 

Six months ended 25 September 2016

 

 

Attributable to owners of the Company 

 

 

 

 

 

Share 

capital 

£'000 

 

 

Share 

premium 

£'000 

 

Merger 

Relief 

Reserve 

£'000 

Reverse 

Acq-uisition 

Reserve 

£'000 

 

 

Retained 

earnings 

£'000 

Equity 

Share-

holders '

Funds 

£'000 

Non- 

Control-ling 

Interests 

£'000 

 

 

Total 

equity 

£'000 

 

 

 

 

 

 

 

 

 

At 27 March 2016

5,692 

6,866 

30,459 

(9,469)

3,078 

36,626 

70 

36,696 

 

 

 

 

 

 

 

 

 

Profit for the period

510 

510 

16 

526 

 

             

             

             

             

             

             

             

             

Total comprehensive income for the period

 

 

 

 

 

510 

 

510 

 

16 

 

526 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

  Ordinary shares issued (net of expenses)

 

 

11 

 

 

12 

 

 

 

 

 

 

 

 

23 

 

 

 

 

23 

  Share based payments

 

 

 

 

 

297 

 

297 

 

 

297 

  Deferred tax on share based payments

 

 

 

 

 

 

 

 

 

 

290 

 

 

290 

 

 

 

 

290 

 

             

             

             

             

             

             

             

             

Total transactions with owners

 

11 

 

12

 

 

 

587 

 

610 

 

 

610 

 

             

             

             

             

             

             

             

             

At 25 September 2016

 

5,703 

 

6,878 

 

30,459 

 

(9,469)

 

4,175

 

37,746

 

86 

 

37,832 

 

             

             

             

             

             

             

             

             

 

 

 

Year ended 26 March 2017

 

 

Attributable to owners of the Company

 

 

 

 

 

Share 

Capital 

£'000 

 

 

Share 

Premium 

£'000 

 

Merger 

Relief 

Reserve 

£'000 

Reverse 

Acq- 

uisition 

Reserve 

£'000 

 

 

Retained 

Earnings 

£'000 

Equity 

Share-

holders '

Funds 

£'000 

Non- 

Control- 

ling 

Interests 

£'000

 

 

Total 

Equity 

£'000 

 

 

 

 

 

 

 

 

 

At 27 March 2016

5,692 

6,866 

30,459 

(9,469)

3,078 

36,626 

70 

36,696 

 

 

 

 

 

 

 

 

 

Profit for the period

947 

947 

22 

969 

 

             

             

             

             

             

             

             

             

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

947 

 

 

947 

 

 

22 

 

 

969 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

Ordinary shares issued (net of expenses)

 

 

22 

 

 

23 

 

 

 

 

 

 

 

 

45 

 

 

 

 

45 

Share based payments

 

 

 

 

 

631 

 

631 

 

 

631 

Deferred tax on share based payments

 

 

 

 

 

307 

 

307 

 

 

307 

 

             

             

             

             

             

             

             

             

Total transactions with owners

 

22 

 

23 

 

 

 

938 

 

983 

 

 

983 

 

 

 

 

 

 

 

 

 

 

             

             

             

             

             

             

             

             

At 26 March 2017

5,714 

6,889 

30,459 

(9,469)

4,963 

38,556 

92 

38,648 

 

             

             

             

             

             

             

             

             

 

 

The Fulham Shore PLC

Unaudited Consolidated Cash Flow Statement

for the six months ended 24 September 2017

 

 

 

 

 

 

 

Notes

Six months 

ended 

24 September 

2017 

Unaudited 

£'000 

Six months 

ended 

25 September 

2016 

Unaudited 

£'000 

Year 

ended 

26 March 

2017 

Audited 

£'000 

 

 

 

 

 

Net cash from operating activities

8

3,327 

6,391 

10,273 

 

 

 

 

 

Investing activities

 

 

 

 

Acquisition of property, plant and equipment

 

(6,791)

(5,664)

(12,358)

Acquisition of intangible assets

 

(4)

(76)

Acquisition of investments

6

(200)

 

 

Cash flow from acquisition of subsidiaries

 

(376)

(376)

 

 

             

             

             

Net cash flow used in investing activities

 

(6,995)

(6,040)

(12,810)

 

 

             

             

             

Financing activities

 

 

 

 

Proceeds from issuance of new ordinary shares (net of expenses)

 

 

 

23 

 

45 

Capital received from bank borrowings

 

4,550 

800 

3,090 

Interest received

 

Interest paid

 

(112)

(54)

(135)

 

 

             

             

             

Net cash from financing activities

 

4,438 

770 

3,001 

 

 

             

             

             

Net increase in cash and cash equivalents

 

770 

1,121 

464 

 

 

 

 

 

Cash and cash equivalents at beginning of the period

 

91 

(373)

(373)

 

 

             

             

             

Cash and cash equivalents at end of period

7

861 

748 

91 

 

 

             

             

             

 

 

The Fulham Shore PLC

Notes to the Unaudited Interim Financial Information

for the six months ended 24 September 2017

 

1.             General information

 

The Fulham Shore PLC is a public limited company incorporated and domiciled in England and Wales. The address of the registered office is 1st Floor, 50-51 Berwick Street, London, W1F 8SJ, United Kingdom. Copies of this Interim Statement may be obtained from the above address or the investor section of the Group's website at http://www.fulhamshore.com.

 

2.             Basis of preparation

 

The unaudited interim financial information for the six months ended 24 September 2017 has been prepared under the recognition and measurement principles of International Financial Reporting Standards as adopted by the EU ("IFRS") based on the accounting policies consistent with those used in the financial statements for the period ended 26 March 2017, and those to be applied for the year ending 25 March 2018.

 

The unaudited interim financial information was approved and authorised for issue by the Board on 15 December 2017.

 

The unaudited interim financial information for the six months ended 24 September 2017 does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and should be read in conjunction with the statutory accounts for the period ended 26 March 2017. Statutory accounts for the period ended 26 March 2017 have been delivered to the Registrar of Companies. The audit report on these statutory accounts was unqualified, did not contain an emphasis of matter paragraph, and did not contain a statement either under section 498(2)-(3) of the Companies Act 2006.

 

The interim financial statements are presented in Pounds Sterling because that is the currency of the primary economic environment in which the company operates. All values are rounded to the nearest one thousand Pounds (£'000) except when otherwise indicated.

 

 

3.             Segment information

 

For management purposes, the Group was organised into two operating divisions during the 6 months ended 24 September 2017. These divisions, The Real Greek and Franco Manca, are the basis on which the Group reports its primary segment information. All other segments include the Fulham Shore head office.

 

For the six months ended 24 September 2017 (Unaudited)

 

 

The Real 

Greek 

£'000 

Franco 

Manca 

£'000 

All other 

Segments 

£'000 

 

Total  

£'000 

 

 

 

 

 

External revenue

9,596 

17,937 

27,533 

 

 

 

 

 

Headline EBITDA

1,840 

3,008 

(348)

4,500 

Depreciation and amortisation

(422)

(1,280)

(16)

(1,718)

 

             

             

             

             

Headline operating profit/(loss)

1,418 

1,728 

(364)

2,782 

 

 

 

 

 

Operating profit/(loss)

1,059 

599 

(451)

1,207 

 

 

 

 

 

Finance costs

(112)

(112)

 

             

             

             

             

Segment profit/(loss) before taxation

1,059 

599 

(563)

1,095 

Income tax expense

 

 

 

(25)

 

 

 

 

             

Profit for the period from continuing operations

 

 

 

 

1,070 

 

 

 

 

             

 

 

 

 

 

Assets

10,306 

52,633 

4,011 

66,950 

Assets held for sale

213 

213 

Liabilities

(5,176)

(10,412)

(12,230)

(27,818)

 

             

             

             

             

Net assets

5,130 

42,221 

(8,006)

39,345 

 

             

             

             

             

 

 

 

 

 

Capital expenditure

2,072 

4,295 

20 

6,387 

 

             

             

             

             

 

 

 

 

For the six months ended 25 September 2016 (Unaudited)

 

 

The Real 

Greek 

£'000 

Franco 

Manca 

£'000 

All other 

Segments 

£'000 

 

Total 

£'000 

 

 

 

 

 

External revenue

6,951 

12,595 

19,546 

 

 

 

 

 

Headline EBITDA

1,464 

2,627 

(284)

3,807 

Depreciation and amortisation

(274)

(955)

(6)

(1,235)

 

             

             

             

             

Headline operating profit/(loss)

1,190 

1,672 

(290)

2,572 

 

 

 

 

 

Operating profit/(loss)

964 

409 

(390)

983 

Finance income

Finance costs

(52)

(52)

 

             

             

             

             

Segment profit/(loss) before taxation

965 

409 

(442)

932 

Income tax expense

 

 

 

(276)

 

 

 

 

             

Profit for the period from continuing operations

 

 

 

 

656 

 

 

 

 

             

 

 

 

 

 

Assets

7,307 

44,788 

3,258 

55,353 

Liabilities

(3,784)

(9,000)

(4,737)

(17,521)

 

             

             

             

             

Net assets

3,523 

35,788 

(1,479)

37,832 

 

             

             

             

             

 

 

 

 

 

Capital expenditure

513 

5,277 

121 

5,911 

 

             

             

             

             

 

 

 

For the year ended 26 March 2017 (Audited)

 

 

The Real 

Greek 

£'000 

Franco 

Manca 

£'000 

All other 

Segments 

£'000 

 

Total 

£'000 

 

 

 

 

 

External revenue

13,675 

26,766 

40,441 

 

 

 

 

 

Headline EBITDA

2,284 

5,415 

(425)

7,274 

Depreciation and amortisation

(649)

(1,707)

(19)

(2,375)

 

             

             

             

             

Headline operating profit/(loss)

1,635 

3,708 

(444)

4,899 

 

 

 

 

 

Operating profit/(loss)

1,049 

1,100 

(612)

1,507 

Finance income

Finance costs

(1)

(134)

(135)

 

             

             

             

             

Segment profit/(loss) before taxation

1,050 

1,099 

(775)

1,373 

Income tax expense

 

 

 

(164)

 

 

 

 

             

Profit for the year from continuing operations

 

 

 

 

1,209 

 

 

 

 

             

 

 

 

 

 

Assets

7,979 

48,914 

4,065 

60,958 

Liabilities

(4,073)

(10,872)

(7,365)

(22,310)

 

             

             

             

             

Net assets

3,906 

38,042 

(3,300)

38,648 

 

             

             

             

             

 

 

 

 

 

Capital expenditure

2,185 

10,716 

246 

13,147 

 

             

             

             

             

 

Headline EBITDA is defined as EBITDA before amortisation of brand, impairment of property, plant and equipment, impairment of goodwill and intangible assets, onerous lease costs, restructuring costs, costs of reverse acquisition, cost of acquisition, share based payments, loss on disposal of property, plant and equipment and pre-opening costs.

 

 

Six months 

ended 

24 September 

2017 

Six months 

ended 

25 September 

2016 

Year 

ended 

26 March 

2017 

 

Unaudited 

£'000 

Unaudited 

£'000 

Audited 

£'000 

 

 

 

 

Operating profit from continuing activities

1,207 

983 

1,507 

Share based payments

345 

297 

631 

Pre-opening costs

819 

855 

1,914 

Amortisation of brand

411 

411 

821 

Exceptional costs - cost of acquisition

26 

26 

Depreciation and amortisation

1,718 

1,235 

2,375 

 

             

             

             

Headline EBITDA

4,500 

3,807 

7,274 

 

             

             

             

 

 

 

4.             Income Tax Expense

 

 

Six months 

ended 

24 September 

2017 

Unaudited 

£'000 

Six months 

ended 

25 September 

2016 

Unaudited 

£'000 

Year 

ended 

26 March 

2017 

Audited 

£'000 

 

 

 

 

Based on the result for the period:

 

 

 

UK Corporation tax at 19% (2016: 20%)

384 

385 

463 

Adjustment in respect of prior periods

(302)

 

             

             

              

Total current tax

384 

385 

161 

 

 

 

 

Deferred taxation:

 

 

 

Origination and reversal of temporary differences

(359)

(109)

 

             

             

              

Total deferred tax

(359)

(109)

 

             

             

             

Total taxation charge

25 

276 

164 

 

             

             

             

 

 

 

 

5.             Earnings per share

 

 

Six months 

ended 

24 September 

2017 

Unaudited 

£'000 

Six months 

ended 

25 September 

2016 

Unaudited 

£'000 

Year 

ended 

26 March 

2017 

Audited 

£'000 

 

 

 

 

Profit for the purpose of basic and diluted earnings per share:

 

580 

 

510 

 

947 

Add back loss for the purposes of basic and diluted earnings per share (discontinued operations):

 

 

475 

 

 

130 

 

 

240 

 

             

             

             

Profit for the purposes of basic and diluted earnings per share (continuing operations):

 

1,055 

 

640 

 

1,187 

 

 

 

 

Share based payments

345 

297 

631 

Deferred tax on share based payments

(255)

(50)

(236)

Pre-opening costs

819 

855 

1,915 

Loss on disposal of property, plant and equipment

- 

Amortisation of brand

411 

411 

821 

Deferred tax on amortisation of brand

(68)

(68)

(137)

Exceptional costs - acquisition costs

26 

26 

 

             

             

             

Headline profit for the period for the purposes of Headline basic and diluted earnings per share

 

2,307 

 

2,112 

 

4,207 

 

             

             

             

 

 

Six months 

ended 

24 September 

2017 

Unaudited 

No. '000 

Six months 

ended 

25 September 

2016 

Unaudited 

No. '000 

Year 

ended 

26 March 

2017 

Audited 

No. '000 

 

 

 

 

Weighted average number of ordinary shares in issue for the purposes of basic earnings per share

 

571,385 

 

569,468 

 

570,371 

Effect of dilutive potential ordinary shares:

- Share options

 

29,467 

 

30,668 

 

30,855 

 

             

             

             

Weighted average number of shares for the purpose of diluted earnings per share

 

600,852 

 

600,136 

 

601,226 

 

             

             

             

 

 

 

 

 

Six months 

ended 

24 September 

2017 

Unaudited 

Six months 

ended 

25 September 

2016 

Unaudited 

Year 

ended 

26 March 

2017 

Audited 

Earnings per share:

 

 

 

 

 

 

 

Basic

 

 

 

From continuing operations

0.2p 

0.1p 

0.2p 

From discontinued operations

(0.1p)

 

             

             

             

Total basic earnings per share

0.1p 

0.1p 

0.2p 

 

             

             

             

Diluted

 

 

 

From continuing operations

0.2p 

0.1p 

0.2p 

From discontinued operations

(0.1p)

 

             

             

             

Total diluted earnings per share

0.1p 

0.1p 

0.2p 

 

             

             

             

 

 

 

 

Headline basic

0.4p 

0.4p 

0.7p 

Headline diluted

0.4p 

0.4p 

0.7p 

 

             

             

             

 

6.             Investments

 

 

As at 

24 September 

2017 

Unaudited 

£'000 

As at 

25 September 

2016 

Unaudited 

£'000 

As at 

26 March 

2017 

Audited 

£'000 

 

 

 

 

Unlisted equity securities

 

 

 

 

 

 

 

Cost and net book value

 

 

 

Opening position

Investment addition

200 

 

             

             

             

Closing position

200 

 

             

             

             

 

Unlisted equity investments are recorded at fair value where appropriate.

 

 

 

7.             Cash and cash equivalents

 

 

As at 

24 September 

2017 

Unaudited 

£'000 

As at 

25 September 

2016 

Unaudited 

£'000 

As at 

26 March 

2017 

Audited 

£'000 

 

 

 

 

Cash at bank and in hand

1,374 

748 

271 

 

             

             

             

Cash and cash equivalents as presented

in the balance sheet

 

1,374 

 

748 

 

271 

Bank overdraft

(513)

(180)

 

             

             

             

 

861 

748 

91 

 

             

             

             

 

Bank balances comprise cash held by the Group on a short term basis with maturity of three months or less. The carrying amount of these assets approximates their fair value.

 

8.             Reconciliation of net cash flows from operating activities

 

 

 

Six months 

ended 

24 September 

2017 

Unaudited 

£'000 

Six months 

ended 

25 September 

2016 

Unaudited 

£'000 

Year 

ended 

26 March 

2017 

Audited 

£'000 

 

 

 

 

Profit for the period

595 

526 

969 

 

 

 

 

Adjustments:

 

 

 

Income tax expense

29 

277 

175 

Finance income

(1)

(1)

Finance costs

112 

53 

135 

Depreciation and amortisation

2,169 

1,673 

3,269 

Loss on disposal of property, plant and equipment

Share based payments expense

345 

297 

631 

Impairment of property, plant and equipment

312 

Provision against inventory

19 

Cost of acquisition

26 

26 

 

             

             

             

Operating cash flows before movement in working capital

 

3,581 

 

2,852 

 

5,206 

Increase in inventories

(308)

(150)

(365)

Increase in trade and other receivables

(690)

(1,090)

(1,166)

Increase in trade and other payables

748 

4,765 

6,866 

 

             

             

             

Cash generated from operations

3,331 

6,377 

10,541 

Income taxes (paid)/received

(4)

14 

(268)

 

             

             

             

Net cash from operating activities

3,327 

6,391 

10,273 

 

             

             

             

 

 

 

 

9.             Discontinued operations

 

During the period, the Group committed to the disposal of the property and business of the Bukowski franchise at D'Arblay Street, Soho, London within the next 12 months. A search is underway for a buyer. An impairment loss was recognised on reclassification of the property, plant and equipment as held for sale.

 

 

 

Six months 

ended 

24 September 

2017 

Unaudited 

£'000 

Six months 

ended 

25 September 

2016 

Unaudited 

£'000 

Year 

ended 

26 March 

2017 

Audited 

£'000 

 

 

 

 

Revenue

342 

351 

833 

Expenses

(501)

(479)

(1,062)

 

             

             

             

Operating profit

(159)

(128)

(229)

Net finance costs

(1)

 

             

             

             

Loss before taxation

(159)

(129)

(229)

Income taxation expense

(4)

(1)

(11)

 

             

             

             

 

(163)

(130)

(240)

Impairment

(312)

 

             

             

             

Loss from discontinued operations

(475)

(130)

(240)

 

             

             

             

 

 

 

 

Cash flows from discontinued operations included in the consolidated cash flow statement are as follows:

 

 

 

Net cash used in operating activities

(114)

(136)

(163)

Net cash used in investing activities

(18)

(110)

(114)

Net cash used in financing activities

(1)

 

             

             

             

 

(132)

(247)

(277)

 

             

             

             

 

 

 

 

Property, plant and equipment held for sale

213 

 

             

             

             

 

The impairment charge above relates to the impairment of the property, plant and equipment for the D'Arblay Street restaurant business. The Group expect the fair value (estimated based on the recent market prices of similar properties in similar locations and initial offers from potential buyers) less costs to be approximately £213,000. There are no liabilities expected to be held for sale.

 


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