5th Dec 2006 07:02
Carluccio's PLC05 December 2006 5th December 2006 Preliminary Results for 52 weeks ended 24th September 2006 Carluccio's performance ahead of Market expectations Carluccio's PLC (the Company), the leading UK group of authentic Italianrestaurants with integrated food shops, is pleased to announce its maiden set ofpreliminary results as a publicly quoted company. 52 weeks to 52 weeks to 24th September 25th September 2006 2005 % change ---------- --------- -------- Store Turnover (£m) 45.8 36.8 +24% Adjusted EBITDA (£m)* 5.6 4.5 +24% Profit before Tax (£m) 3.4 3.2 +6% Adjusted Profit before Tax (£m) * 4.3 3.5 +25% Adjusted Diluted Earnings per Share (pence) * 6.0 4.5 +33% Total Dividend (pence) 1.5 0.7 +231% * Adjusted to exclude non-recurring exceptional float costs of £0.9m (2005:£0.2m) Highlights •IPO target of 5 new stores achieved with openings in the year at Westbourne Corner, Oxford Castle, Brighton, Chiswick and Richmond •The Brunswick in Bloomsbury, opened in October 2006. 4 further sites secured: Spitalfields, Trafford Centre in Manchester, Walton-on-Thames and Covent Garden •Margins maintained despite significant cost pressures from higher business rates and higher utility costs •Cash generated from operating activities (pre-exceptional float costs) of £6.7m with a year end cash balance of £2.6m •Recommended dividend payment of 1.5p per Ordinary Share •Cash Return on Capital Invested (CROCI) in excess of 60% •New stores cash generative immediately •Continued record of no non-contributing stores and no store closures •Successful admission to Alternative Investment Market (AIM) on 14th December 2005 at 94.5p Stephen Gee, Executive Chairman, said: "I am delighted to report a fifth year ofuninterrupted, double digit growth in turnover, operating profit and earningsper share. We now have 28 stores all of which are profitable and have assembleda management team capable of building and running a business which issubstantially larger than it is today. "Trading since 24 September has been ahead of the previous year and in line withthe Board's expectations and I look forward to reporting continuing progressduring the course of 2007." For further information, please contact: Carluccio's PLC 020 7580 3050Simon Kossoff, Managing DirectorFrank Bandura, Finance Director Hogarth Partnership Limited 020 7357 9477Andrew JaquesFiona Noblet Photographs are available from Hogarth on request. There will be an analyst presentation today at Carluccio's 27 Spital Square,London E1 6DZ. Nearest tube Liverpool Street 9.15am for 9.30am start. CHAIRMAN'S STATEMENT I am delighted to report a fifth year of uninterrupted, double digit growth inturnover, operating profit and earnings per share. We now have 28 stores all of which are profitable and we have assembled amanagement team capable of building and running a business which issubstantially larger than it is today. TRADING RESULTS I am pleased that in our first year as a quoted company, our performanceexceeded Market expectations. Our turnover for the year ended 24 September 2006 was £45.8m (2005: £36.8m), anincrease of 24%. Profit before tax was £3.4m (2005: £3.2m), after charging £0.9m(2005: £0.2m) of non-recurring costs in obtaining a listing on AIM in December2005. Adjusting for the impact of these flotation costs, all of which have beentreated as exceptional expenses, profit before tax was £4.3m (2005: £3.5m), anincrease of 25%. Similarly, adjusted EBITDA, increased by 24% to £5.6m (2005:£4.5m). Adjusted diluted earnings per share was 6.0p (2005: 4.5p), an increaseof 33% which in part reflects a lower than normal, effective adjusted tax rateof 20% (2005: 29%). Our margins have remained steady despite substantial cost pressures in the formof higher utility and business rates. Our ability to generate industry leadingcash returns on cash invested, currently averaging in excess of 60% has not onlyallowed us to finance our IPO costs and our opening commitment of five newstores this financial year from internally generated cash flows but also meansthat we are in a position to pay a dividend in our first year as a publiccompany. The directors are therefore recommending the payment of a dividend of1.5p per share. The five new stores opened included two, Oxford and Brighton, which demonstrateour strategy of broadening our geographic base and our belief that Carluccio'shas the potential to become a nationwide brand. Nine locations, comprising athird of our store portfolio, are now outside London. AIM The first anniversary of our admission to AIM falls on 14 December 2006. Ourflotation price was 94.5p per share and I am pleased to report that on Friday 1December our share price was 167.5p per share, an increase of 77%. The continuedsuccess of the Company since its IPO was recently recognised when we were votedBest Newcomer at the annual AIM Awards. Flotation has not altered our focus on ensuring that our customers' experienceof Carluccio's is first class. We do this by concentrating on five key areas: •being determined to attract only the best quality management and staff throughout our business; •continuing our opening programme at a measured pace; •investing significantly in pre and post opening training; •purchasing the best quality ingredients; and •providing excellent value for money I believe this strategy has led to the Company's success to date and I remainconfident that it will continue to do so. This success continues to be reflected by press comments. The Observer Magazinesaid: "It may be a chain but Carluccio's caffes are a godsend for people wholike eating out with their children but don't like junk food". The quality ofour retail offering was recognised when Carluccio's was recently included in TheGrocer's Top 10 Worlds Finest Specialist Food Retailers. DEVELOPMENT The restaurant industry is often divided into different sectors for purposes ofanalysis; Carluccio's is considered to fall into the casual dining category. Wecontinue to believe that our business is unique in that it is able to offer morethan other casual dining groups due to its combination of an all day tradingpattern and the presence of a food shop in every store. There are, however,similarities with other operators in this category in terms of, inter alia,average customer spend and casual surroundings. According to Euromonitor, thiswill be the fastest growing sector of the eating out market over the next fewyears. We are well placed to benefit from this anticipated increase in peopleeating out both in our existing restaurants and through our new openingsprogramme. We have also been working on developing our internet capabilities to ensure thatwe are well positioned to benefit from the growing number of people who wish toorder packaged food via the Internet. Although the level of sales achievedthrough www.carluccios.com is relatively small, we are encouraged by itsperformance to date, particularly as we approach Christmas. Carluccios.comshould benefit from the widely forecast increase in transactions using theInternet in 2007. The new store opening programme has continued since the year end with theopening at The Brunswick Centre in Bloomsbury in October where we were againimmediately cash positive. In our pre-close trading update, we announced asecond site in Walton-on-Thames and I am pleased to announce three further sitessecured. These are in Spitalfields near Liverpool Street Station; The TraffordCentre, Manchester and Covent Garden, London. All of these sites will open inthe 2007 financial year which means we have secured the necessary sites toachieve our five store minimum opening target in this financial year. This level of openings can be financed without resort to borrowings which meanswe are fully cushioned against the impact of any further increase in interestrates. MANAGEMENT AND STAFF Our success over the last seven years has only been possible because ofin-depth, quality, management and enthusiastic, hard working staff. We haveassembled a management team under Simon Kossoff, our Managing Director, of whichthe shareholders can be justifiably proud. During the financial year, weinvested £400,000 in caffe, non-recurring, pre-opening training costs. We run 28different ongoing training courses which include our unique Chef School. CURRENT TRADING Trading since 24 September has been ahead of the previous year and in line withthe Board's expectations. Sales in our caffes outside normal meal times togetherwith our food shop sales continue to represent in the region of 50% of turnoverand as a result we make industry leading cash returns on cash invested which onaverage exceed 60%. These factors make Carluccio's a unique business and shouldensure that we continue to make excellent returns for our shareholders. I lookforward to reporting continuing progress during the course of 2007. PROFIT AND LOSS ACCOUNTFor the period ended 24 September 2006 2006 2005 Note £'000 £'000 TURNOVER 45,759 36,844 Cost of sales (36,810) (29,367) -------- --------GROSS PROFIT 8,949 7,477-------------------------------- ------ -------- --------Exceptional flotation expenses 3 (939) (236)Other administrative expenses (4,624) (3,977)-------------------------------- ------ -------- --------Administrative expenses (5,563) (4,213)-------------------------------- ------ -------- --------Operating Profit before Exceptional 4,325 3,500flotation expenses-------------------------------- ------ -------- --------OPERATING PROFIT 3,386 3,264 Net interest receivable/(payable) 21 (20) -------- -------- PROFIT ON ORDINARY ACTIVITIES BEFORE 3,407 3,244TAXATION Tax on profit on ordinary activities (868) (1,022) -------- --------PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 2,539 2,222 -------- --------Basic Earnings Per Share (Pence) 4 4.5 4.2Diluted Earnings Per Share (Pence) 4 4.4 4.0 There are no recognised gains or losses for the period other thanthose stated in the profit and loss account The Company's turnover and expenses all relate to continuing operations. BALANCE SHEET as at 24 September 2006 2006 2005 Notes £'000 £'000 FIXED ASSETSIntangible assets 22 24Tangible assets 16,010 12,543 -------- ------- 16,032 12,567 CURRENT ASSETSStocks 1,223 940Debtors 1,643 1,398Cash at Bank 2,642 2,038 -------- ------- 5,508 4,376 CREDITORS: AMOUNTS FALLING DUEWITHIN ONE YEAR (8,715) (7,319) -------- ------- NET CURRENT LIABILITIES (3,207) (2,943) -------- ------- TOTAL ASSETS LESS CURRENTLIABILITIES 12,825 9,624 -------- ------- PROVISIONS (1,362) (948) -------- ------- 11,463 8,676 -------- ------- CAPITAL AND RESERVESCalled up share capital 2,840 2,732Share premium account 8 1,684 1,544Profit and loss account 8 6,939 4,400 -------- -------SHAREHOLDERS' FUNDS 11,463 8,676 -------- ------- CASH FLOW STATEMENTFor the period ended 24 September 2006 2006 2005 Notes £'000 £'000 Net cash inflow from operating activities 6 5,720 5,663 -------- --------Returns on investments and servicing of financeInterest paid (18) (58)Interest received 39 38 -------- -------- 21 (20) Taxation (687) (897) Capital expenditurePayments to acquire tangible fixed assets (4,738) (3,779)Payments to acquire intangible fixed assets (1) (5)Receipts from sale of tangible fixed assets 41 11 -------- -------- (4,698) (3,773) Dividend Paid - (316) -------- -------- Cash inflow before use of liquid resourcesand financing 356 657 Management of Liquid resources (1,250) - Financing Issue of share capital 248 212Capital element of finance lease repaid - (171) -------- -------- 248 41 -------- -------- (Decrease)/Increase in cash (646) 698 -------- -------- RECONCILIATION OF NET CASH FLOW TOMOVEMENT IN NET FUNDS (Decrease)/Increase in cash in the period (646) 698 Cash outflows from movement in debt - 171 Cash outflow from changes in liquid resources 1,250 - -------- --------Change in net funds 604 869 Net funds at 25 September 2005 2,038 1,169 -------- -------- Net funds at 24 September 2006 7 2,642 2,038 -------- -------- NOTES TO THE FINANCIAL STATEMENTSFor the period ended 24 September 2006 1. Basis of Preparation The financial information for the 52 weeks ended 24th September 2006 and for the52 weeks ended 25th September 2005 contained in this statement does notconstitute statutory accounts within the meaning of section 240 of the CompaniesAct 1985. It is, however, derived from the statutory accounts for those years.The auditors' report on those accounts was unqualified and did not containstatements under section 235 or sections 237(2) or (3) of the Companies Act1985. Statutory accounts for the 52 weeks ended 25th September 2005 have beenapproved by members in General Meeting and delivered to the Registrar ofCompanies. 2. Accounting Policies The accounting policies used to prepare the financial information contained inthis statement are consistent with those set out in the statutory accounts forthe 52 weeks ended 25 September 2005 except for the adoption of FRS 21, "EventsAfter The Balance Sheet Date", the presentation requirements of FRS 25,"Financial Instruments: Disclosure and Presentation", and FRS 28, "CorrespondingAmounts". There has been no effect on the prior year figures from adopting thesefinancial reporting standards. 3. Exceptional Flotation Expenses Carluccio's PLC listed on the Alternative Investment Market (AIM) of the LondonStock Exchange (LSE) on 14 December 2005. All costs related to obtaining thelisting have been treated as exceptional. 4. Earnings Per Ordinary Share 2006 2005Numerator £'000 £'000 Profit for the Year 2,539 2,222Exceptional Expenses 939 236 -------- -------- Adjusted Profit for the Year 3,478 2,458 In calculating adjusted earnings per share, profit for the year has beenadjusted for exceptional expenses. These relate entirely to the cost of listingthe Company on the Alternative Investment Market in December 2005. These areconsidered non-recurring and are therefore adjusted to enable a clearer view ofCompany performance. Denominator Number ('000) Number ('000) Weighted Average Number of Ordinary Shares(Basic EPS) 56,300 52,409 Impact of Dilutive Share Options (000) 1,960 2,613 -------- -------- Diluted Number of Ordinary Shares (DilutedEPS) 58,260 55,022 The weighted average number of ordinary shares is adjusted to take into accountthe dilutive impact of share option awards made to employees Basic Earnings per Share (Pence) 4.5 4.2Diluted Earnings per Share (Pence) 4.4 4.0Adjusted Basic Earnings per Share (Pence) 6.2 4.7Adjusted Diluted Earnings per Share (Pence) 6.0 4.5 5. Dividend The Directors are recommending the payment of a final dividend equivalent to1.5p per Ordinary 5p share (2005: nil) subject to obtaining shareholder approvalat the forthcoming Annual General Meeting (AGM) to be held on 30th January 2007.The dividend will be payable to all shareholders on the register as at 29thDecember 2006. The total amount of the dividend is £852,000 (2005: nil). In accordance with FRS 21, this amount is not provided for in the 2006 financialstatements. No interim dividend has been paid during the year (2005: £316,000). 6. Reconciliation of operating profit to net cash inflow from operatingactivities 2006 2005 £'000 £'000Operating Profit 3,386 3,264Depreciation charges 1,236 973Amortisation of trade marks 3 3Increase in Stocks (283) (147)Increase in Debtors (245) (426)Increase in Creditors 1,629 2,005Elimination of Profit on Disposal (6) (9) -------- -------Net cash inflow from operatingactivities 5,720 5,663 7. Analysis of changes in net funds At Cash flows At 25 September 24 September 2005 2006 £'000 £'000 £'000 Cash at bank and in hand 2,038 (646) 1,392Other liquid resources - 1,250 1,250 ---------- --------- ---------Total 2,038 604 2,642 ---------- --------- --------- 8. Reserves Share premium Profit and loss Total account account £'000 £'000 £'000 At 25 September 2005 1,544 4,400 5,944 Retained profit forthe period - 2,539 2,539 Premium on Exerciseof Options 140 - 140 --------- --------- --------At 24 September 2006 1,684 6,939 8,623 --------- --------- -------- 9. Annual Report and Accounts The annual report and accounts for the 52 weeks ended 24th September 2006 willbe posted to shareholders shortly and will also be available from the CompanySecretary at the Company's registered office: Carluccio's PLC, 12 Great PortlandStreet, London, W1W 8QN. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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