Half Yearly Report

Richoux Group plc

Interim results for the 28 weeks ended 13 July 2014

Richoux Group plc (the "Group"), the owner and operator of Dean's Diner, Richoux, Villagio, and Zippers restaurants today announces its unaudited interim results for the 28 week period ending 13 July 2014.

Key points:

§ Turnover increased 14.4% to £6.68 million

(2013: £5.84 million).

· Adjusted* EBITDA decreased 2.7% to £0.78 million

(2013: £0.81 million).

§ Profit after tax of £0.16 million

(2013: £0.45 million).

§ Currently seventeen restaurants trading.

§ One new Dean's Diner opened, one exchanged and three in legals.

§ One new Richoux in legals.

§ Disposal of two Villagio restaurants.

§ Cash of £3.13 million at period end.

(2013: £4.07 million).

 * Excluding pre opening costs and impairment.

Philip Shotter, Chairman of Richoux Group plc said:

"We feel that there are grounds for optimism with the growth plans that the Board has for the Group's core "Richoux" and "Dean's Diner" concepts, notwithstanding the fact that first half year's figures are somewhat disappointing.

The usual strong performance of the Richoux restaurants has been affected by scaffolding at the flagship Piccadilly restaurant where turnover is down 14.8% on the comparable period last year. Trading here is, though, expected to recover to usual levels shortly. Also, in line with the Group's strategy to focus future growth on the Richoux and Dean's Diner trading formats, a decision has been taken to scale back "Villagio" and we have disposed of the two underperforming Villagio restaurants in Chiswick and Berkhamsted.

Otherwise, trading across the Richoux, Dean's Diner and retained Villagio portfolios has been positive and we are planning to build on this with our targeted programme of five openings for each of the next two years. We are, for the first time in recent years, developing a pipeline of property sites not only for Dean's Diner but also for Richoux. We have already exchanged on one new Dean's Diner site in Bromley and are in advanced negotiations on three further Dean's Diner sites. We are also in advanced negotiations on a Richoux site in Central London which is likely to open in 2015."

Results

Revenue for the 28 week period ended 13 July 2014 increased 14.4% on the 28 week period ended 14 July 2013 to £6.68 million (2013: £5.84 million). Adjusted EBITDA before pre-opening costs and impairment decreased 2.7% to £0.78 million (2013: £0.81 million). Adjusted operating profit before pre-opening costs and impairment decreased 23.1% to £0.38 million (2013: £0.49 million). Pre-opening costs for the period were £0.04 million (2013: £0.07 million). The net profit for the period was £0.16 million (2013: £0.45 million).

The Directors are not recommending the payment of a dividend.

Operations

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

Dean's Diner

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

The Group has currently has six Dean's Diner restaurants the existing restaurants in Chatham, Port Solent , Braintree, Fareham and Bicester and a new restaurant at Trowbridge which opened in July 2014. An agreement for lease on a new Dean's Diner in Bromley was exchanged on 10 July 2014 and this is due to open in 2015.

Richoux

Richoux is an all day cafe and brasserie established in London in 1909.

The Group has four Richoux restaurants in Central London.

Villagio

Villagio is a modern local Italian family restaurant, delivering a good quality value family dining experience.

The Group currently has five Villagio restaurants in Andover, Basildon, Hammersmith, Chislehurst and Chatham. The Group has sold two underperforming restaurants, one in Chiswick in August 2014 and one in Berkhamsted in September 2014 and an impairment provision of £0.19 million has been made against these two sites

Zippers

Zippers is an American style bar, restaurant and grill. It has a wide menu and, although food led, it also features a bar.

The Group has two Zippers restaurants, one in Chatham and one in Port Solent.

Capital expenditure and cash flow

As at the end of the period under review the Group held cash of £3.13 million (December 2013: £4.01 million).

Capital expenditure of £0.69 million was incurred in the period, predominantly on the fit out of the new Dean's Diner restaurant in Trowbridge.

Outlook

We consider that there are grounds for optimism for growth, having streamlined the Villagio portfolio and with our focus now on rolling out the Dean's Diner format and adding to the Richoux estate in a considered manner, as and when appropriate sites are found. The Group is endeavouring at the same to time to work on and further improve the Dean's Diner brand as we come to understand more the market in which that format is operating and its customers' requirements and expectations.

Philip Shotter

Chairman

26 September 2014

Richoux Group plc

Condensed consolidated statement of comprehensive income

for the 28 week period ended 13 July 2014

Richoux Group plc

Condensed consolidated statement of changes in equity

For the 28 week period ended 13 July 2014

Richoux Group plc

Condensed consolidated statement of financial position

at 13 July 2014

Richoux Group plc

Condensed consolidated statement of cash flows

for the 28 week period ended 13 July 2014

1. The consolidated financial statements have been prepared in compliance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and therefore the Group financial statements comply with Article 4 of the EU IAS Regulation. The financial statements have been prepared on the historical cost basis.

2. The condensed financial information for the 28 week period ended 13 July 2014 and the 28 week period ended 14 July 2013 has been prepared in accordance with IAS 34 "Interim financial reporting" and should be read in conjunction with the annual financial statements for the period ended 29 December 2013 which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The accounting policies used in preparing the condensed financial information are consistent with those of the annual financial statements for the period ended 29 December 2013. During the period various Standards and Interpretations were adopted in line with the effective dates as outlined in the annual financial statements for the period ended 29 December 2013. The condensed financial information for the 28 week period ended 13 July 2014 and the 28 week period ended 14 July 2013 has not been audited or reviewed and does not constitute full financial statements within the meaning of section 435 of the Companies Act 2006.

The financial information for the 52 week period ended 29 December 2013 does not constitute the Group's statutory accounts for that period but it is derived from those accounts. Statutory accounts for the 52 week period ended 29 December 2013 have been delivered to the Registrar of Companies. The auditors have reported on these accounts; their report was 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 four reportable business segments based around its core restaurant brands, Dean's Diner, Zippers, Villagio and Richoux. All brands are engaged in the restaurant trade so derive their revenues and results from similar products and services.

For the 28 week period ended 13 July 2014

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

4. Profit per share

The calculation of the basic and diluted profit 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 (2013: £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 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 forecasts to December 2019 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.

An impairment charge of £6,000 has been recognised in relation to the unrecoverable elements of the assets of two Villagio restaurants following the decision to dispose of these restaurants (December 2013: £nil).

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 forecasts to December 2019 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.

An impairment charge of £184,000 has been recognised in relation to the unrecoverable elements of the assets of two Villagio restaurants following the decision to dispose of these restaurants (December 2013: £32,000).

8. Reconciliation of operating profit to operating cash flows

9. Post balance sheet events

On 15 August 2014 the Group disposed of its Villagio restaurant in Chiswick and on 12 September 2014 the Group disposed of its Villagio restaurant in Berkhamsted.

10. Related party transactions

During the period the Group paid professional fees for legal services in connection with properties of £16,000 (July 2013: £36,000, December 2013: £62,000) to Glovers Solicitors LLP of which Philip Shotter is a member. As at the end of the period £1,000 was outstanding (December 2013: £7,000). This is in addition to fees included in Directors' 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

Transactions with substantial shareholders:

During the period the Group paid £nil (December 2013: £14,000) to Prezzo plc, a Company in which Phillip Kaye is a shareholder, for fixtures fittings and equipment.

11. Report and accounts

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

- ENDS -