Half Yearly Report

Richoux Group plc

Interim results for the 28 weeks ended 14 July 2013

Richoux Group plc (the "Group"), the owner and operator of Richoux, Zippers, Dean's Diner and Villagio restaurants today announces its unaudited interim results for the 28 week period ending 14 July 2013.

Key points:

§ EBITDA of £0.74 million.

§ Group makes a net profit of £0.45 million.

§ Turnover increased 13.5 percent.

§ Cash of £4.07 million at period end.

§ Currently sixteen restaurants trading.

§ Three restaurants opened and one under construction.

Philip Shotter, Chairman of Richoux Group plc said:

"The Group is pleased to report a solid set of results and our focus is on expanding the Dean's Diner and Zippers brands".

Results

Group turnover from our continuing operations for the 28 week period ended 14 July 2013 increased to £5.84 million (July 2012: £5.14 million). Gross profit from continuing operations was £0.80 million (July 2012: £0.62 million). The total Group restaurant's gross profit before pre-opening costs percentage has increased from 12.5 per cent to 14.7 per cent (December 2012: 15.5 per cent). Administrative expenses for continuing operations of £0.37 million (July 2012: £0.34 million) were in line with expectations.

The Directors are not recommending the payment of a dividend.

Operations

The Group currently has sixteen 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 four Dean's Diner restaurants the existing restaurants in Chatham, Port Solent and Braintree, and a new restaurant at Whiteley Village in Fareham which opened in May 2013. A further restaurant is due to open in Bicester in early November 2013. The restaurants are trading in line with board expectations.

Zippers Restaurant, Bar and Grill

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, the existing one in Chatham which continues to trade in line with board expectations and a second which opened in August 2013 in Port Solent.

Villagio

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

The Group has currently has six Villagio restaurants in Andover, Basildon, Hammersmith, Berkhamsted and Chislehurst and a new restaurant in Chiswick which opened in March 2013.

Richoux

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

The Group has four Richoux restaurants which continue to trade in line with board expectations.

Capital expenditure and cash flow

As at the end of the period under review the Group held cash of £4.07 million (December 2012: £4.06 million).

Capital expenditure of £0.96 million was incurred in the period, predominantly on the fit out of the new Villagio restaurant in Chiswick and the new Dean's Diner restaurant in Fareham.

Outlook

The Group will continue to acquire new sites, particularly focusing on its Dean's Diner and Zippers American Restaurant, Bar and Grill concepts as these are perceived to offer the greatest scope for development within what is a congested and evolving restaurant market. The Group will also consider further Villagio and Richoux openings if the right sites become available. The Group has funds for this next stage of openings due to existing cash reserves and the fact that the business is cash generative.

Philip Shotter

Chairman

26 September 2013

Richoux Group plc

Condensed consolidated statement of comprehensive income

for the 28 week period ended 14 July 2013

Richoux Group plc

Condensed consolidated statement of changes in equity

For the 28 week period ended 14 July 2013

Richoux Group plc

Condensed consolidated statement of financial position

at 14 July 2013

Richoux Group plc

Condensed consolidated statement of cash flows

for the 28 week period ended 14 July 2013

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 14 July 2013 and the 28 week period ended 8 July 2012 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 30 December 2012 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 30 December 2012. 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 30 December 2012. The condensed financial information for the 28 week period ended 14 July 2013 and the 28 week period ended 8 July 2012 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 53 week period ended 30 December 2012 does not constitute the Group's statutory accounts for that period but it is derived from those accounts. Statutory accounts for the 53 week period ended 30 December 2012 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 14 July 2013

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 (2012: £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 2018 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 (2012: £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 2018 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.

There is no impairment provision required (December 2012: £nil).

8. Reconciliation of operating profit to operating cash flows

9. Post balance sheet events

On 2 September 2013 the Group took occupation of a new restaurant in Bicester pursuant to the terms of an agreement for lease dated 8 August 2013 pursuant to which the Group entered into a new 25 year lease on 25 September 2013 at a rent of £50,000 per annum.

10. Related party transactions

During the period the Group paid professional fees for legal services in connection with properties of £36,000 (July 2012: £48,000, December 2012: £67,000) to Glovers Solicitors LLP of which Philip Shotter is a member. As at the end of the period £nil was outstanding (December 2012: £6,000). 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

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

Transactions with substantial shareholders:

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

During the period the Group paid £8,000 (December 2012: £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 interim report and accounts will be posted to the shareholders shortly and will be available at www.richouxgroup.co.uk.

- ENDS -