Final Results

Richoux Group plc

Final results for the 53 weeks ended 30 December 2012

Richoux Group plc, the owner and operator of 14 restaurants under the Richoux, Zippers, Dean's Diner and Villagio brands, today announces its final results for the year ended 30 December 2012.

Key points:

§ Group makes a net profit of £0.88 million.

§ EBITDA of £1.36 million.

§ Turnover increased 9.4% year on year.

§ Currently fourteen restaurants trading.

§ Target of five new restaurants to be opened in 2013.

§ Cash of £4.06 million at year end.

Philip Shotter, Chairman of Richoux Group plc said:

"I am pleased to report the restructuring of the Group's property portfolio has now been completed and we now present financial results which represent the profitability of our existing restaurant estate. With a strong balance sheet in place, the Group is well placed to enter a growth phase with a number of new openings across all of our Villagio, Dean's Diner and Zippers brands planned in 2013."

26 April 2013

Results

Group turnover from continuing operations for the 53 week period ended 30 December 2012 increased to £9.85 million (2011: £9.01 million). Gross profit from continuing operations increased to £1.48 million (2011: £0.25 million). There was an increase in the total Group restaurants' gross profit before pre-opening costs percentage from 4.5 per cent to 15.5 per cent during the year. Administrative expenses for continuing operations (before impairment and profit on sale of assets held for sale) of £0.74 million (2011: £0.51 million) were in line with expectations.

In October 2012 the Group raised £2.00 million (£1.95 million net of expenses) through a successful subscription of new shares at 8 pence per share to fund the growth of the Group.

The Directors are not recommending the payment of a dividend.

Operations

The Group currently has fourteen restaurants which operate under the Richoux, Villagio, Dean's Diner and Zippers brands. Further details on each of the brands are set out below.

Richoux

Richoux restaurants, which has been trading since 1909, operate in prestigious areas of central London and offer breakfast, lunch, afternoon tea and dinner.

The Group currently has four Richoux restaurants. These restaurants continue to trade in line with expectations.

Villagio

Villagio is a modern local Italian family restaurant.

The Group now has six Villagio restaurants- the existing restaurants in Andover, Hammersmith, and Berkhamsted, the rebranded restaurant in Basildon, and new restaurants in Chislehurst, which opened in December 2012 and Chiswick, which opened in March 2013.

These restaurants continue to trade in line with expectations.

Dean's Diner

Dean's Diner is a 1950's classic American Diner.

The Group currently has three Dean's Diner restaurants in Chatham, Port Solent and Braintree following the rebranding, during the period of the Dean's Diner restaurant in Basildon as a Villagio restaurant. These restaurants continue to trade in line with expectations. A new Dean's Diner restaurant is due to open in May 2013 at Whiteley Village in Fareham.

Zippers

Zippers is a contemporary family restaurant with an extensive range of dishes to suit all tastes.

The Group has one Zippers site in Chatham which continues to trade in line with expectations.

Capital expenditure and cash flow

As at the end of the period under review the Group held cash of £4.06 million (2011: £1.04 million).

During the period the Group disposed of its underperforming restaurants in Barnet, High Wycombe, Slough and Basingstoke along with its freehold Central Kitchen property which gave rise to proceeds (after costs) of £0.92 million.

Capital expenditure of £0.88 million was incurred in the period predominantly on the fit out of the new Villagio restaurant in Chislehurst and the rebranded restaurant in Basildon.

Outlook

The restructuring of the Group's property portfolio has now been completed and we are now able to present financial results which represent the profitability of our existing restaurant estate. With a strong balance sheet in place, the Group is well placed to enter a growth phase with new openings across all of our Villagio, Dean's Diner and Zippers brands planned in 2013.

Philip Shotter

Chairman

26 April 2013

Richoux Group plc

Consolidated statement of comprehensive income

for the 53 week period ended 30 December 2012

Richoux Group plc

Consolidated statement of changes in equity

For the 53 week period ended 30 December 2012

Richoux Group plc

Consolidated statement of financial position

at 30 December 2012

Richoux Group plc

Consolidated statement of cash flows

for the 53 week period ended 30 December 2012

1. The consolidated financial statements have been prepared in compliance with International Financial Reporting Standards ("IFRS") as adopted by the European Union. The financial statements have been prepared on the historical cost basis.

2. The financial information set out above does not constitute the Company's statutory accounts for the periods ended 25 December 2011 or 30 December 2012 but it is derived from those accounts. Statutory accounts for 25 December 2011 have been delivered to the Registrar of Companies and those for 30 December 2012 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

3. Business segments

Based on the financial information which is monitored by the board, which comprises the chief operating decision maker as defined in IFRS 8, the Group has three reportable business segments based around its core restaurant brands, Richoux, Villagio, Zippers and Dean's Diner. The Zippers and Villagio brands are reported together and the rebranded restaurant in Basildon has been included under the Villagio brand for the whole period. All brands are engaged in the restaurant trade so derive their revenues from similar products and services. There are no geographical segments and there are no major customers.

For the 53 week period ended 30 December 2012

The unallocated segment loss includes the costs of the restaurant area management; unallocated administrative expenses include the costs of the Group's head office.

4. Profit/(loss) per share

The calculation of the basic and diluted profit/(loss) per share is based on the following data:

5. No dividend is proposed.

6. Intangible fixed assets

Impairment testing of goodwill and intangible fixed assets

Goodwill of £269,000 (2011: £269,000) relates to the acquisition of Richoux Limited in August 2000 and is allocated to the group of cash generating units (CGUs) that comprise the business acquired (as described in note 3) with each restaurant site being treated as a single CGU.

The Group tests annually for impairment or more frequently if there are indications that the goodwill and intangible assets may be impaired. The recoverable amounts of the restaurants are calculated from value in use calculations based on cash flow projections from formally approved budgets to December 2013, and forecasts to December 2017 based on a sales growth rate of 2 per cent for established sites. The discount rate applied to cash flow projections is 12 per cent.

No impairment provision is required (2011: £26,000). The value in use of the remaining restaurants is higher than the carrying value.

7. Property, plant and equipment

Impairment testing of property, plant and equipment

The Group considers each trading restaurant to be a cash-generating unit (CGU) and each CGU is reviewed when there are indications of impairment.

The recoverable amounts of the restaurants are calculated from value in use calculations based on cash flow projections from formally approved budgets to December 2013, and forecasts to December 2017 based on a sales growth rate of 2 per cent for established sites. The discount rate applied to cash flow projections is 12 per cent.

No impairment provision is required (2011: £2,444,000). The value in use of the remaining restaurants is higher than the carrying value.

8. Reconciliation of operating profit/(loss) to operating cash flows

9. Post balance sheet events

On the 25 January 2013 the Group entered into a new twenty year lease with Amberstar Limited, a Company in which Phillip Kaye is a shareholder, for a new restaurant in Chiswick, London at a rent of £116,000 per annum, and on the 15 March 2013 the Group took possession of a new restaurant in Fareham, Hampshire under and agreement for lease entered into on 4 December 2012 at a rent of £70,000 per annum.

10. Related party transactions

During the period the Group paid professional fees for legal services of £67,000 (2011: £83,000) to Glovers Solicitors LLP of which Philip Shotter is a member. As at the end of the period £6,000 (2011: £15,000) was outstanding. This is in addition to fees included as Director's emoluments.

The Group has a group VAT registration and the representative Company, Richoux Group plc, pays the net VAT for the Group.

The Group has a group insurance policy which is paid by Richoux Group plc.

Transactions with Directors

Directors' emoluments

During the period Salvatore Diliberto subscribed for 5,781,250 ordinary shares (2011: nil), The Hon. Robert A. Rayne subscribed for 5,781,250 ordinary shares (2011: nil), and Edward Standring subscribed for 1,875,000 ordinary shares (2011: nil) as part of the share placing that occurred during the period. The price paid per share was 8p.

Transactions with substantial shareholders

During the period Phillip Kaye subscribed for 5,781,250 ordinary shares (2011: nil) and Michinoko Limited subscribed for 5,781,250 ordinary shares (2011: nil) as part of the share placing that occurred during the period. The price paid per share was 8p.

During the previous period the Group entered into a new lease with Amberstar Limited, a Company in which Phillip Kaye is a shareholder.

On 22 January 2012 the Group disposed of its restaurant in Barnet to Prezzo plc, a Company in which Phillip Kaye is a shareholder.

During the period the Group paid £25,000 to Prezzo plc, a Company in which Phillip Kaye is a shareholder, for fixtures, fittings and equipment.

11. Report and accounts

Copies of the annual report and accounts will be posted to the shareholders shortly and will be available at www.richouxgroup.co.uk.

- ENDS -