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Fulham Shore PLC (FUL)

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Friday 16 December, 2016

Fulham Shore PLC

Half-year Report

RNS Number : 0164S
Fulham Shore PLC (The)
16 December 2016
 

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").

 

 

16 December 2016

 

The Fulham Shore PLC

Unaudited interim results for the six months ended 25 September 2016

 

Chairman's Statement

 

I am pleased to announce the unaudited interim results for the 6 months ended 25 September 2016 for The Fulham Shore PLC ("Fulham Shore" or the "Group"). It has been a busy and successful 6 months for the Group.

 

We have increased turnover, profits and the number of restaurants we operate.

 

Our restaurants are popular and busy with customers who want to eat great food at affordable prices.

 

Our Franco Manca customers can have a fantastic vegan pizza plus a glass of water for less than £5 or really push the boat out with a Margherita Pizza accompanied by a glass of organic red wine for less than £10 while in The Real Greek customers can enjoy our amazing lunch offer at £8.95 for 3 meze plates.

 

We expect to end the current financial year in March 2017 with around 43 restaurants, dependent on how quickly our builders work in the spring. We are planning more Franco Manca and The Real Greek restaurants for 2017/2018.

 

Results

 

For the 6 months ended 25 September 2016, Fulham Shore generated revenue of £19.9m (2015: £13.9m). The Group achieved Headline EBITDA for the period of £3.7m (2015: £2.6m) and made headline operating profit for the period amounting to £2.4m (2015: £1.7m).

 

In the 6 months ended 25 September 2016, the Group opened 7 Franco Manca pizzeria in London, Brighton and Guildford. This took Fulham Shore's restaurant portfolio as at 25 September 2016 to 36 restaurants made up of 9 The Real Greek, 26 Franco Manca pizzeria and 1 Bukowski Grill.

 

Cash flow

 

During the period ended 25 September 2016, the Group had net cash inflow from operating activities of £6.4m (2015: £3.0m). During the same period the Group invested £5.7m (2015: £3.4m) on property, plant and equipment. Overall there was a net cash inflow for the period of £1.1m (2015: outflow of £1.8m) resulting in net debt as at 25 September 2016 of £3.0m (2015: £0.3m).

 

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 25 September 2016, the Group has opened 3 The Real Greek restaurants in Muswell Hill (London), Boxpark Croydon and Southampton and 3 Franco Manca restaurants in Westfield London, Westbourne Grove (London) and Southampton.

 

This takes the number of restaurants operated today by the Group to a total of 42, made up of 12 The Real Greek, 29 Franco Manca and 1 Bukowski Grill.

 

The Group is currently fitting out a further Franco Manca pizzeria in Nova Victoria (London), which is scheduled to open in February 2017.

 

Contracts have recently been exchanged on three sites in very different locations in and around London: Putney (near Putney Bridge), Russell Square and Richmond, Surrey, all expected to open in the Spring of 2017.

 

Great sites continue to be offered to us as we continue to open in London and now around the UK. However, we are determined that our customers and shareholders should be the beneficiaries of our expansion, not property owners or agents. Therefore, we will continue to take space that is just about big enough for us so that we are not paying for space we don't use and the rent roll is that much lower. This helps us to keep our menu prices below our competitors for the benefit of our customers.

 

Franco Manca is now occupying some spare window space at Debenhams in Westfield London. This has proved successful and we are now looking at building more relationships with retailers and licensed premises owners who have surplus space facing the high street which could be utilised by the Group.

 

We source our food directly from both Italy and Greece plus from some great local UK producers. We get closely involved with all our suppliers, visiting them regularly, checking consistency and working together to develop new ideas. The Brexit vote has had some of our suppliers in Europe nervously watching the UK. However, we are working with them to make sure any adjustment of our input prices is kept to a minimum. We are helped that much of our fresh produce is sourced locally in sterling in the UK.

 

The majority of our staff are shareholders in Fulham Shore. We value them as crucial to our success. We pay at least the National Living Wage, including under 25s, and we are always looking to include our staff in the success of the business.

 

The Franco Manca team has started to win the plaudits of their fellow professionals. 3 awards were picked up in November 2016: R200 Best Value Restaurant Operator - over 20 sites; CGA Peach Hero and Icon Awards Breakthrough Brand and CGA Peach Hero and Icon Awards Best Concept. This is just reward for the hard work the whole Franco Manca team has put in this year.

 

A key concern for us is maintaining the consistency and quality of our food and service offer. To this end, over the past 18 months, we have developed dedicated central teams running each part of the business.

 

Each restaurant brand has its own operational management and we have property, people, training, opening and financial systems in place. These support functions are essential when growing a restaurant business leaving the front of house teams free to concentrate on the food and the customers. As the number of restaurants we open per year grow, and the eventual number we can finally achieve in the UK also grows, we will continue to invest in our central functions to ensure we have adequate resources to deliver growth.

 

All this puts us in a sound position for our future expansion of the Group's excellent restaurant businesses. We have slowly increased the number of openings per year we can manage. Our progress so far was 9 for the year ended 27 March 2016 and 13 year to date for the year ending 26 March 2017. We expect to increase this number in London and across the country in the next financial year.

 

Sites are available, our restaurants are busy and popular, our prices are good value and our staff are well motivated.

 

We therefore look forward with confidence to the further expansion of our Franco Manca and The Real Greek businesses.

 

David Page

Chairman

 

16 December 2016

 

 

Contacts:

 

The Fulham Shore PLC                                                     www.fulhamshore.com

David Page                                                                            07836 346 934

 

Allenby Capital Limited

Nick Naylor / Jeremy Porter / James Reeve                      020 3328 5656

 



 

 

Notes for editors

 

Information on The Fulham Shore PLC

 

Fulham Shore was incorporated in March 2012. The Directors believe that there are attractive investment opportunities within the restaurant and food service sectors in the UK.

 

The Directors believe that, given their collective experience in the restaurant and food service sectors, they can take advantage of the opportunities which exist in these sectors.

 

The ordinary shares of the Company were admitted to trading on AIM in October 2014 in order to capitalise on such opportunities.

 

Today Fulham Shore currently operates "The Real Greek" (www.therealgreek.com) and "Franco Manca" (www.francomanca.co.uk) restaurants, as well as a Bukowski Grill restaurant.

 

The Real Greek

 

Since establishing in 1999, The Real Greek group has grown steadily, now offering modern Greek cuisine in 12 restaurants across London and the home counties.

 

Ambassadors 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 for food, family and life. 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.

 

Both The Real Greek's menu and atmosphere retains 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 fully catered party.

 

Franco Manca

 

Franco Manca opened its first restaurant in 2008 and now has 29 restaurants, primarily in London, but with recent openings in Brighton, Southampton and Guildford with other locations outside London in the pipeline.

 

Franco Manca's pizza is made from slow-rising sourdough and is baked in a wood-burning oven that produces a 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.

 

"If you only eat one pizza this year, make sure it's Franco Manca" - Tatler

 

Bukowski

 

Bukowski is a London-based charcoal-grill restaurant and bar, serving breakfasts, burgers and grills.  Bukowski has four restaurants in London, one of which Fulham Shore operates in Soho under a franchise agreement.

The Fulham Shore PLC

Unaudited Consolidated Statement of Comprehensive Income

for the six months ended 25 September 2016

 



Six months 

ended 

25 September 

2016 

Six months 

ended 

27 September 

2015 

Year 

ended 

27 March 

2016 


Notes

Unaudited 

£'000 

Unaudited 

£'000 

Audited 

£'000 






Revenue


19,897 

13,902 

29,251 






Cost of sales


(10,924)

(7,560)

(15,970)



             

             

             

Gross profit


8,973 

6,342 

13,281 






Administrative expenses


(6,529)

(4,632)

(10,001)



             

             

             

Headline operating profit


2,444 

1,710 

3,280 

Share based payments


(297)

(257)

(639)

Pre-opening costs


(855)

(476)

(908)

Amortisation of brand


(411)

(342)

(821)

Exceptional costs - cost of acquisition


(26)

(405)

(405)



             

             

             

Operating profit


855 

230 

507 






Finance income


Finance costs


(53)

(46)

(88)



             

             

             

Profit before taxation


803 

187 

423 






Income tax expense

4

(277)

(61)

(347)



             

             

             

Profit for the period


526 

126 

76 



             

             

             






Profit for the period attributable to:





Owners of the company


510  

112 

56 

Non-controlling interests


16  

14 

20 



             

             

             



526 

126 

76 



             

             

             






Earnings per share










Basic

5

0.1p 

0.0p 

0.0p 

Diluted

5

0.1p 

0.0p 

0.0p 






Headline Basic

5

0.3p 

0.3p 

0.5p 

Headline Diluted

5

0.3p 

0.3p 

0.4p 

 

There were no other comprehensive income items.

 

All operating gains and losses relate to continuing activities.



The Fulham Shore PLC

Unaudited Consolidated Balance Sheet

as at 25 September 2016

 


 

 

 

 

Notes

As at 

25 September 

2016 

Unaudited 

£'000 

As at 

27 September 

2015 

Unaudited 

£'000 

As at 

27 March 

2016 

Audited 

£'000 

Non-current assets





Intangible assets


27,507 

28,831 

28,135 

Property, plant and equipment


21,598 

13,793 

16,733 

Trade and other receivables


974 

715 

934 

Deferred tax assets


1,192 

427 

894 



             

             

             



51,271 

43,766 

46,696 

Current assets





Inventories


837 

523 

687 

Trade and other receivables


2,497 

1,727 

1,448 

Cash and cash equivalents

6

748 

2,083 

197 



             

             

             



4,082 

4,333 

2,332 



             

             

             

Total assets


55,353 

48,099 

49,028 



             

             

             

Current liabilities





Trade and other payables


(10,827)

(7,064)

(6,165)

Income tax payables


(1,030)

(622)

(630)

Borrowings


(250)

(570)



             

             

             



(11,857)

(7,936)

(7,365)



             

             

             

Net current liabilities


(7,775)

(3,603)

(5,033)






Non-current liabilities





Borrowings


(3,710)

(2,160)

(2,910)

Deferred tax liabilities


(1,954)

(2,008)

(2,057)



             

             

             



(5,664)

(4,168)

(4,967)



             

             

             

Total liabilities


(17,521)

(12,104)

(12,332)



             

             

             

Net assets


37,832 

35,995 

36,696 



             

             

             

Equity





Share capital


5,703 

5,692 

5,692 

Share premium account


6,878 

6,867 

6,866 

Merger relief reserve


30,459 

30,459 

30,459

Reverse acquisition reserve


(9,469)

(9,469)

(9,469)

Retained earnings


4,175 

2,383 

3,078 



             

             

             

Total equity attributable to owners of the company


37,746 

35,932 

36,626 

Non-controlling interest


86 

63 

70 



             

             

             

Total equity


37,832

35,995

36,696 



             

             

             



The Fulham Shore PLC

Unaudited Consolidated Statement of Changes in Equity

for the six months ended 25 September 2016

 

Six months ended 25 September 2016


 

Share 

capital 

£'000 

 

Share 

premium 

£'000 

Merger 

Relief 

Reserve 

£'000 

Reverse 

Acquisition 

Reserve 

£'000 

 

Retained 

earnings 

£'000 

Non- 

Controlling 

Interests 

£'000 

 

Total 

equity 

£'000 









At 27 March 2016

5,692 

6,866 

30,459 

(9,469)

3,078 

70 

36,696 









Profit for the period

510 

16 

526 


             

             

             

             

             

             

             

Total comprehensive income for the period

 

 

 

 

 

510 

 

16 

 

526 









Transactions with owners








  Ordinary shares issued (net of expenses)

 

 

11 

 

 

12 

 

 

 

 

 

 

 

 

 

 

23 

  Share based payments

297 

297 

  Deferred tax on share based payments

 

 

 

 

 

290 

 

 

290 


             

             

             

             

             

             

             

Total transactions with owners

 

11 

 

12

 

 

 

587 

 

 

610 


             

             

             

             

             

             

             

At 25 September 2016

5,703 

6,878 

30,459 

(9,469)

4,175

86 

37,832 


             

             

             

             

             

             

             

 



 

 

Six months ended 27 September 2015


 

Share 

capital 

£'000 

 

Share 

premium 

£'000 

Merger 

Relief 

Reserve 

£'000 

Reverse 

Acquisition 

Reserve 

£'000 

 

Retained 

earnings 

£'000 

Non- 

Controlling 

Interests 

£'000 

 

Total 

equity 

£'000 









At 29 March 2015

3,325 

2,650 

11,113 

(9,469)

1,840 

22 

9,481 









Profit for the period

112 

14 

126 


             

             

             

             

             

             

             

Total comprehensive income for the period

 

 

 

 

 

112 

 

14 

 

126 









Transactions with owners








  Ordinary shares issued (net of expenses)

 

2,367 

 

4,217 

 

19,346 

 

 

 

 

25,930 

  Share based payments

257 

257 

  Deferred tax on share based payments

 

 

 

 

 

174 

 

 

174 

  Non-controlling interests adjustment

 

 

 

 

 

 

27 

 

27 


             

             

             

             

             

             

             

Total transactions with owners

 

2,367 

 

4,217

 

19,346 

 

 

431 

 

27 

 

26,388 


             

             

             

             

             

             

             

At 27 September 2015

5,692 

6,867 

30,459 

(9,469)

2,383

63 

35,995 


             

             

             

             

             

             

             

 

Year ended 27 March 2016


 

Share 

capital 

£'000 

 

Share 

premium 

£'000 

Merger 

Relief 

Reserve 

£'000 

Reverse 

Acquisition 

Reserve 

£'000 

 

Retained 

earnings 

£'000 

Non- 

Controlling 

Interests 

£'000 

 

Total 

equity 

£'000 









At 29 March 2015

3,325 

2,650 

11,113 

(9,469)

1,840 

22 

9,481 









Profit for the period

56 

20 

76 


             

             

             

             

             

             

             

Total comprehensive income for the period

 

 

 

 

 

56 

 

20 

 

76 









Transactions with owners








  Ordinary shares issued (net of expenses)

 

2,367 

 

4,216 

 

19,346 

 

 

 

 

25,929 

  Share based payments

639 

639 

  Deferred tax on share based payments

 

 

 

 

 

543 

 

 

543 

Non-controlling interests adjustment

 

 

 

 

 

 

28 

 

28 


             

             

             

             

             

             

             

Total transactions with owners

 

2,367 

 

4,216 

 

19,346 

 

 

1,182 

 

28 

 

27,139 


             

             

             

             

             

             

             

At 27 March 2016

5,692 

6,866 

30,459 

(9,469)

3,078 

70 

36,696 


             

             

             

             

             

             

             

 

 



The Fulham Shore PLC

Unaudited Consolidated Cash Flow Statement

for the six months ended 25 September 2016

 


 

 

 

 

 

Notes

Six months 

ended 

25 September 

2016 

Unaudited 

£'000 

Six months 

ended 

27 September 

2015 

Unaudited 

£'000 

Year 

ended 

27 March 

2016 

Audited 

£'000 






Net cash from operating activities

7

6,391 

2,964 

3,718 






Investing activities





Acquisition of property, plant and equipment


(5,664)

(3,416)

(7,085)

Cash flow from acquisition of subsidiaries

8

(376)

(6,249)

(6,249)



             

             

             

Net cash flow used in investing activities


(6,040)

(9,665)

(13,334)



             

             

             

Financing activities





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


 

23 

 

4,648 

 

4,648 

Repayment of bank borrowings


(1,870)

(2,120)

Capital received from bank borrowings


800 

2,160 

2,910 

Interest received


Interest paid


(54)

(46)

(88)



             

             

             

Net cash from financing activities


770 

4,895 

5,354 



             

             

             

Net increase/(decrease) in cash and cash equivalents


1,121 

(1,806)

(4,262)






Cash and cash equivalents at beginning of the period


(373)

3,889 

3,889 



             

             

             

Cash and cash equivalents at end of period

6

748 

2,083 

(373)



             

             

             

 



The Fulham Shore PLC

Notes to the Unaudited Interim Financial Information

for the six months ended 25 September 2016

 

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 25 September 2016 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 27 March 2016, and those to be applied for the year ending 26 March 2017.

 

The unaudited interim financial information was approved by the Board on 16 December 2016.

 

The unaudited interim financial information for the six months ended 25 September 2016 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 27 March 2016. Statutory accounts for the period ended 27 March 2016 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 year ended 27 March 2016. 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 Bukowski Grill franchise and the Fulham Shore head office.

 

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 

351 

19,897 






Headline EBITDA

1,464 

2,627 

(385)

3,706 

Depreciation and amortisation

(274)

(955)

(33)

(1,262)


             

             

             

             

Headline operating profit

1,190 

1,672 

(418)

2,444 






Operating profit/(loss)

964 

409 

(518)

855 

Finance income

Finance costs

(53)

(53)


             

             

             

             

Segment profit/(loss) before taxation

965 

409 

(571)

803 

Income tax expense




(277)





             

Profit for the period




526 





             






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 


             

             

             

             

 

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.

 



 

For the six months ended 27 September 2015 (Unaudited)

 


The Real 

Greek 

£'000 

Franco 

Manca 

£'000 

All other 

Segments 

£'000 

Total  

 

£'000 






External revenue

6,255 

7,647 

13,902 






Headline EBITDA

1,175 

1,757 

(341)

2,591 

Depreciation and amortisation

(255)

(621)

(5)

(881)


             

             

             

             

Headline operating profit

920 

1,136 

(346)

1,710 






Operating profit

842 

68 

(680)

230 

Finance income

Finance costs

(2)

(8)

(36)

(46)


             

             

             

             

Segment profit/(loss) before taxation

842 

60 

(715)

187 

Income tax expense




(61)





             

Profit for the period




126 





             






Assets

7,183 

37,875 

3,041 

48,099 

Liabilities

(2,816)

(6,590)

(2,698)

(12,104)


             

             

             

             

Net assets

4,367 

31,285 

343 

35,995 


             

             

             

             






Capital expenditure

463 

2,938 

15 

3,416 


             

             

             

             

 



 

For the year ended 27 March 2016 (Audited)

 


The Real 

Greek 

£'000 

Franco 

Manca 

£'000 

All other 

Segments 

£'000 

Total  

£'000 






External revenue

11,699 

17,494 

58 

29,251 






Headline EBITDA

1,892 

4,014 

(674)

5,232 

Depreciation and amortisation

(521)

(1,414)

(17)

(1,952)


             

             

             

             

Headline operating profit

1,371 

2,600 

(691)

3,280 






Operating profit

1,082 

477 

(1,052)

507 

Finance income

Finance costs

(2)

(8)

(78)

(88)


             

             

             

             

Segment profit/(loss) before taxation

1,083 

469 

(1,129)

423 

Income tax expense




(347)





             

Profit for the year




76 





             






Assets

6,072 

39,616 

3,340 

49,028 

Liabilities

(2,241)

(5,806)

(4,286)

(12,332)


             

             

             

             

Net assets

3,831 

33,810 

(946)

36,696 


             

             

             

             






Capital expenditure

753 

5,978 

485 

7,216 


             

             

             

             

 



 

 

4.             Income Tax Expense

 


Six months 

ended 

25 September 

2016 

Unaudited 

£'000 

Six months 

ended 

27 September 

2015 

Unaudited 

£'000 

Year 

ended 

27 March 

2016 

Audited 

£'000 





Based on the result for the period:




UK Corporation tax at 20% (2015: 20%)

386 

221 

588 

Adjustment in respect of prior periods

(20)

(51)


             

             

             

Total current tax

386 

201 

537 





Deferred taxation:




Origination and reversal of temporary differences

(109)

(140)

(190)


             

             

             

Total deferred tax

(109)

(140)

(190)


             

             

             

Total taxation charge

277 

61 

347 


             

             

             

 



 

 

5.             Earnings per share

 


Six months 

ended 

25 September 

2016 

Unaudited 

£'000 

Six months 

ended 

27 September 

2015 

Unaudited 

£'000 

Year 

ended 

27 March 

2016 

Audited 

£'000 





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

 

510 

 

112 

 

56 





Share based payments

297 

257 

639 

Deferred tax on share based payments

(50)

(60)

(135)

Pre-opening costs

855 

476 

908 

Loss on disposal of property, plant and equipment

21 

Amortisation of brand

411 

342 

821 

Deferred tax on amortisation of brand

(68)

(57)

(137)

Exceptional costs - acquisition costs

26 

405 

405 


             

             

             

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

 

1,982 

 

1,496 

 

2,557 


             

             

             

 


Six months 

ended 

25 September 

2016 

Unaudited 

No. '000 

Six months 

ended 

27 September 

2015 

Unaudited 

No. '000 

Year 

ended 

27 March 

2016 

Audited 

No. '000 





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

 

569,468 

 

540,390 

 

554,811 

Effect of dilutive potential ordinary shares:

- Share options

 

30,668 

 

52,501 

 

29,553 


             

             

             

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

 

600,136 

 

592,891 

 

584,364 


             

             

             






Six months 

ended 

25 September 

2016 

Unaudited 

Six months 

ended 

27 September 

2015 

Unaudited 

Year 

ended 

27 March 

2016 

Audited 

Earnings per share:








Basic

0.1p 

0.0p 

0.0p 

Diluted

0.1p 

0.0p 

0.0p 





Headline basic

0.3p 

0.3p 

0.5p 

Headline diluted

0.3p 

0.3p 

0.4p 


             

             

             

 



 

6.             Cash and cash equivalents

 


As at 

25 September 

2016 

Unaudited 

£'000 

As at 

27 September 

2015 

Unaudited 

£'000 

As at 

27 March 

2016 

Audited 

£'000 





Cash at bank and in hand

748 

2,083 

197 


             

             

             

Cash and cash equivalents as presented

in the balance sheet

 

748 

 

2,083 

 

197 

Bank overdraft

(570)


             

             

             


748 

2,083 

(373)


             

             

             

 

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.

 

7.             Reconciliation of net cash flows from operating activities

 

 

 

Six months 

ended 

25 September 

2016 

Unaudited 

£'000 

Six months 

ended 

27 September 

2015 

Unaudited 

£'000 

Year 

ended 

27 March 

2016 

Audited 

£'000 





Profit before taxation

803 

187 

423 





Adjustments:




Finance income

(1)

(3)

(4)

Finance costs

53 

46 

88 

Depreciation and amortisation

1,673 

1,223 

2,772 

Loss on disposal of property, plant and equipment

21 

Share based payments expense

297 

257 

639 

Cost of acquisition

26 

405 

405 


             

             

             

Operating cash flows before movement in working capital

 

2,852 

 

2,136 

 

4,323 

Increase in inventories

(150)

(49)

(213)

(Increase)/decrease in trade and other receivables

(1,090)

70 

131 

Increase in trade and other payables

4,765 

1,029 

27 


             

             

             

Cash generated from operations

6,377 

3,186 

4,268 

Income taxes received/(paid)

14 

(222)

(550)


             

             

             

Net cash from operating activities

6,391 

2,964 

3,718 


             

             

             

 



 

 

8.             Acquisition of FM111 Limited

 

On 25 July 2016, the Group acquired the entire issued share capital of FM111 Limited for a consideration of £350,000 in cash.

 

The provisional fair values allocated to the assets and liabilities acquired are as follows:

 

 

 



25 July 

2016 

Unaudited 

£'000 





Property, plant and equipment



350 




             

Total identifiable net assets and total consideration



350 




             

 

The cost of acquiring FM111 Limited, totalling £26,000, has been recognised in the consolidated statement of comprehensive income.

 

No goodwill has been recognised on this transaction.

 

The above fair values are provisional pending a full fair value exercise which will be performed prior to the finalisation of financial statements for the full year.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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