29th Sep 2008 07:00
Richoux Group plc
Interim results for the 28 weeks ended 13 July 2008
Richoux Group plc, the owner and operator of Richoux restaurants and Amato pasticceria today announces its July 2008 interim results.
|
28 weeks ended 13 July 2008 £m |
24 weeks ended 24 June 2007 £m |
27 weeks ended 30 December 2007 £m |
|
|
Turnover from continuing operations |
2.93 |
2.04 |
2.70 |
|
Gross profit from continuing operations |
0.14 |
0.23 |
0.33 |
|
Operating loss on continuing operations before impairment and reorganisation costs |
(0.23) |
(0.05) |
(0.00) |
|
Loss attributable to shareholders from continuing and discontinued operations |
(0.28) |
(2.18) |
(0.47) |
Key points:
Core business is profitable at restaurant level.
Operational improvements implemented.
Philip Shotter, Chairman of Richoux Group plc said:
"The Group has recently moved into its new head office and completed the purchase of a Central Kitchen which is expected to be operational by the end of November 2008. With cash of £4.2 million at the period end, the foundations and resources are in place for the Group to continue its expansion. Our performance to date has demonstrated that our brands are well positioned and that our ambitions are appropriate in these market conditions."
Enquiries:
|
Richoux Group plc |
|
|
Philip Shotter, Chairman |
(020) 7483 7000 |
|
|
|
|
College Hill |
|
|
Matthew Smallwood |
(020) 7457 2020 |
|
Justine Warren |
|
|
|
|
|
Evolution Securities |
(020) 7071 4300 |
|
Bobbie Hilliam |
Introduction
In line with the sector generally, trading conditions are tougher than in recent years. I am however pleased to report another satisfactory period for the Group with continued growth and development.
Results
Group turnover from our continuing operations for the 28 week period ended 13 July 2008 increased to £2.93 million (June 2007: £2.04 million). Gross profit from continuing operations was £0.14 million (June 2007: £0.23 million). Administrative expenses for continuing operations (before impairment and reorganisation costs) of £0.37 million (June 2007: £0.34 million) were in line with expectations.
The impairment provision of £0.20 million is in respect of property, plant and equipment of the Amato Piccolo café, which has underperformed.
The Directors are not recommending the payment of a dividend.
Operations
Richoux
Three of the four Richoux branded restaurants have now been refurbished and the property in Piccadilly as a result is benefiting from significantly increased trade. The Group is in the advanced stages of acquiring two additional sites this year, which will open in early 2009, and are actively seeking to acquire further sites for Richoux in 2009.
Amato
Following the Group's acquisition of Amato in 2007, two Amato units have opened in 2008, one under the Amato Piccolo concept, the other as an Amato cafe/restaurant. One further acquisition is anticipated for Amato in 2008 trading as a cafe/restaurant and this is expected to open in 2009. We continue to seek opportunities to extend the Amato concept, although we are currently considering options in respect of the Amato Piccolo café with a view potentially of concentrating on the Richoux and Amato café/restaurant formats.
Head Office
The Group's head office has now relocated to St John's Wood, London.
Capital expenditure and cash flow
The board continued to tightly manage the cash resources of the Group. As at the end of the period under review the Group held cash of £4.20 million (December 2007: £5.54 million), and generated cash from operating activities during the period.
Capital expenditure of £1.54 million (December 2007: £0.73 million) was incurred in the period, of which £0.85 million was for the acquisition of a freehold property in Park Royal, London that will be developed as a Central Kitchen to deliver high quality consistent products to our growing number of restaurants.
People
The Company was saddened to have to announce in April 2008 the sudden death of its Chairman, Neil Blows. I was appointed as Chairman of the Company in May 2008.
Outlook
In view of the challenging outlook for the UK consumer and the wider UK economy, the Group has in general made a satisfactory start to the year. The Group hopes to acquire three further sites this year, all of which should open in early 2009. The Group continues to seek other suitable sites for both Amato and Richoux as the Group develops both concepts for larger scale roll out in the years ahead.
Philip Shotter
Chairman
29 September 2008
Richoux Group plc
Consolidated income statement
for the 28 week period ended 13 July 2008
|
Notes |
28 week period ended 13 July 2008 |
24 week period ended 24 June 2007 |
27 week period ended 30 December 2007 |
|
|
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
Revenue |
|
2,928 |
2,036 |
2,701 |
|
Cost of sales: |
|
|
|
|
|
Excluding pre-opening costs |
|
(2,747) |
(1,780) |
(2,373) |
|
Pre-opening costs |
|
(40) |
(28) |
- |
|
Total cost of sales |
|
(2,787) |
(1,808) |
(2,373) |
|
|
|
|
|
|
|
Gross profit |
|
141 |
228 |
328 |
|
Administrative expenses |
|
(369) |
(344) |
(334) |
|
Other operating income |
|
(1) |
63 |
2 |
|
|
|
|
|
|
|
Operating loss before impairment and reorganisation costs |
|
(229) |
(53) |
(4) |
|
Impairment of property, plant and equipment |
|
(200) |
- |
(325) |
|
Reorganisation costs |
|
- |
(17) |
(288) |
|
|
|
|
|
|
|
Operating loss |
|
(429) |
(70) |
(617) |
|
Finance income |
|
152 |
58 |
145 |
|
Finance expense |
|
(1) |
(182) |
(2) |
|
|
|
|
|
|
|
Loss before taxation |
|
(278) |
(194) |
(474) |
|
Taxation |
|
- |
- |
- |
|
|
|
|
|
|
|
Loss for the period from continuing operations |
|
(278) |
(194) |
(474) |
|
|
|
|
|
|
|
(Loss)profit for the period from discontinued operations |
|
- |
(1,985) |
5 |
|
|
|
|
|
|
|
Loss for the period |
|
(278) |
(2,179) |
(469) |
|
|
|
|
|
|
|
Loss attributable to equity holders of the parent |
|
(278) |
(2,179) |
(469) |
|
|
|
|
|
|
|
Loss per share: |
|
|
|
|
|
From continuing operations: |
|
|
|
|
|
Loss per share |
3 |
(0.7)p |
(0.6)p |
(1.3)p |
|
Diluted loss per share |
3 |
(0.7)p |
(0.6)p |
(1.3)p |
|
|
|
|
|
|
|
From continuing and discontinued operations: |
|
|
|
|
|
Loss per share |
3 |
(0.7)p |
(6.4)p |
(1.3)p |
|
Diluted loss per share |
3 |
(0.7)p |
(6.4)p |
(1.3)p |
|
|
|
|
|
|
Richoux Group plc
Consolidated statement of recognised income and expense
For the 28 week period ended 13 July 2008
|
|
|
28 week period ended 13 July 2008 |
24 week period ended 24 June 2007 |
27 week period ended 30 December 2007 |
|
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
Loss for the financial period |
|
(278) |
(2,179) |
(469) |
|
|
|
|
|
|
|
Total recognised income and expense for the period |
|
(278) |
(2,179) |
(469) |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Equity holders of the parent Company |
|
(278) |
(2,179) |
(469) |
Richoux Group plc
Consolidated balance sheet
at 13 July 2008
|
|
|
13 July 2008 |
24 June 2007 |
30 December 2007 |
|
|
Note |
£000 |
£000 |
£000 |
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Goodwill |
|
325 |
269 |
325 |
|
Other intangible assets |
|
74 |
1 |
79 |
|
Property, plant and equipment |
5 |
3,345 |
1,991 |
2,221 |
|
Lease premiums |
5 |
44 |
- |
- |
|
|
|
|
|
|
|
Total non-current assets |
|
3,788 |
2,261 |
2,625 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Inventories |
|
85 |
69 |
88 |
|
Lease premiums |
5 |
5 |
- |
- |
|
Trade and other receivables |
|
471 |
458 |
427 |
|
Disposal group assets |
|
- |
24 |
- |
|
Cash and cash equivalents |
|
4,198 |
5,534 |
5,535 |
|
|
|
|
|
|
|
Total current assets |
|
4,759 |
6,085 |
6,050 |
|
|
|
|
|
|
|
Total assets |
|
8,547 |
8,346 |
8,675 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
(1,026) |
(1,145) |
(959) |
|
Disposal group liabilities |
|
- |
(923) |
- |
|
|
|
|
|
|
|
Total current liabilities |
|
(1,026) |
(2,068) |
(959) |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Trade and other payables |
|
(8) |
- |
- |
|
|
|
|
|
|
|
Total liabilities |
|
(1,034) |
(2,068) |
(959) |
|
|
|
|
|
|
|
Net assets |
|
7,513 |
6,278 |
7,716 |
|
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
Share capital |
|
1,681 |
1,370 |
1,681 |
|
Share premium account |
|
10,335 |
8,769 |
10,335 |
|
Warrants reserve |
|
- |
50 |
50 |
|
Retained earnings |
|
(4,503) |
(3,911) |
(4,350) |
|
|
|
|
|
|
|
Total equity |
|
7,513 |
6,278 |
7,716 |
|
|
|
|
|
|
Richoux Group plc
Consolidated cash flow statement
for the 28 week period ended 13 July 2008
|
|
Notes |
28 week period ended 13 July 2008 |
24 week period ended 24 June 2007 |
27 week period ended 30 December 2007 |
|
|
|
£000 |
£000 |
£000 |
|
Operating activities |
|
|
|
|
|
Cash generated from/(used in) operations |
6 |
53 |
1,030 |
(1,274) |
|
Taxation paid |
|
- |
(11) |
- |
|
Interest paid |
|
(1) |
(239) |
(2) |
|
|
|
|
|
|
|
Net cash from/(used in) operating activities |
|
52 |
780 |
(1,276) |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Purchase of property, plant and equipment |
|
(1,537) |
(310) |
(41) |
|
Acquisition of trade and assets |
|
- |
- |
(686) |
|
Purchase intangible assets |
|
(4) |
(1) |
(1) |
|
Proceeds from sale of property, plant and equipment |
|
- |
158 |
8 |
|
Interest received |
|
152 |
59 |
145 |
|
Disposal of subsidiary undertakings |
|
- |
8,186 |
- |
|
Net cash sold with subsidiary |
|
- |
(3) |
- |
|
|
|
|
|
|
|
Net cash (used in)/from investing activities |
|
(1,389) |
8,089 |
(575) |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Proceeds from issue of ordinary shares |
|
- |
8 |
2,000 |
|
Transaction costs |
|
- |
- |
(148) |
|
Repayment of borrowings |
|
- |
(5,932) |
- |
|
Interest element of finance lease rentals |
|
- |
(1) |
- |
|
|
|
|
|
|
|
Net cash (used in)/from financing activities |
|
- |
(5,925) |
1,852 |
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
|
(1,337) |
2,944 |
1 |
|
Cash and cash equivalents at the beginning of the period |
|
5,535 |
2,590 |
5,534 |
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
|
4,198 |
5,534 |
5,535 |
|
|
|
|
|
|
Notes
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 financial information for the 28 week period ended 13 July 2008 and the 24 week period
ended 24 June 2007 has been prepared in accordance with the Company's accounting policies
as disclosed in the financial statements for the period ended 30 December 2007. The financial
information for the 28 week period ended 13 July 2008 and the 24 week period ended 24 June
2007 has not been audited and does not constitute full financial statements within the
meaning of s240 of the Companies Act 1985.
The financial information for the 27 week period ended 30 December 2007 does not constitute
the Company's statutory accounts for that period but it is derived from those accounts.
Statutory accounts for the 27 week period ended 30 December 2007 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 237(2) or (3) of the Companies Act
1985.
Premiums payable to acquire leasehold interests in property are capitalised on the balance
sheet separately from property, plant and equipment and amortised over the course of the
lease on the property. The board considers these payments to be part of the total payment in
respect of property, plant and equipment and cash flows relating to these payments are part of
the total payment in respect of property, plant and equipment and cash flows relating to these
payments are analysed in the cash flow statement as part of cash flows associated with
investing activities.
3. Loss per share
The calculation of the basic and diluted loss per share is based on the following data:
|
|
13 July 2008 |
24 June 2007 |
30 December 2007 |
|
|
£000 |
£000 |
£000 |
|
Loss |
|
|
|
|
Loss from continuing operations for the purpose of basic loss per share excluding discontinued operations |
(278) |
(194) |
(474) |
|
(Loss)/profit from discontinued operations |
- |
(1,985) |
5 |
|
|
|
|
|
|
Loss for the purposes of basic loss per share being the net profit attributable to equity holders of the parent |
(278) |
(2,179) |
(469) |
|
|
|
|
|
|
Number of shares |
|
|
|
|
Weighted average number of ordinary shares for the purposes of the basic loss per share |
42,019,612 |
34,220,384 |
37,323,118 |
|
Effect of dilutive potential ordinary shares: |
|
|
|
|
Share options and warrants |
- |
24,676 |
9,171 |
|
|
|
|
|
|
Weighted average number of ordinary shares for the purposes of diluted loss per share |
42,019,612 |
34,245,060 |
37,332,289 |
|
|
|
|
|
|
Share options and warrants not included in the diluted calculations as per the requirements of IAS 33 (as they are anti-dilutive) |
2,112,840 |
491,449 |
2,532,669 |
|
|
|
|
|
4. No dividend is proposed.
5. Property, plant and equipment
|
|
Freehold land and buildings |
Short leasehold land and buildings |
Lease premiums |
Leasehold improve-ments |
Fixtures, fittings, and equip-ment |
Motor vehicles |
Total |
|
Cost |
|
|
|
|
|
|
|
|
At 30 December 2007 |
- |
2,903 |
- |
17 |
977 |
4 |
3,901 |
|
Additions |
850 |
290 |
50 |
- |
347 |
- |
1,537 |
|
|
|
|
|
|
|
|
|
|
At 13 July 2008 |
850 |
3,193 |
50 |
17 |
1,324 |
4 |
5,438 |
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment |
|
|
|
|
|
||
|
At 30 December 2007 |
- |
1,178 |
- |
16 |
486 |
- |
1,680 |
|
Charge for period |
- |
85 |
1 |
- |
78 |
- |
164 |
|
Impairment |
- |
135 |
- |
- |
65 |
- |
200 |
|
|
|
|
|
|
|
|
|
|
At 13 July 2008 |
- |
1,398 |
1 |
16 |
629 |
- |
2,044 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
|
|
|
|
|
|
|
At 13 July 2008 |
850 |
1,795 |
49 |
1 |
695 |
4 |
3,394 |
|
|
|
|
|
|
|
|
|
|
At 30 December 2007 |
- |
1,725 |
- |
1 |
491 |
4 |
2,221 |
|
|
|
|
|
|
|
|
|
In the period an impairment charge of £200,000 has been recognised relating to the
unrecoverable elements of the assets of one cash generating unit based on the forecast
recoverable amount should the decision be taken to dispose of this unit.
6. Reconciliation of operating loss to operating cash flows
|
|
28 week period ended 13 July 2008 |
24 week period ended 24 June 2007 |
27 week period ended 30 December 2007 |
|
|
£000 |
£000 |
£000 |
|
|
|
|
|
|
Operating (loss)/profit |
(429) |
148 |
(620) |
|
(Profit)/loss on disposal of property, plant and equipment |
- |
(112) |
3 |
|
Depreciation charge |
164 |
180 |
120 |
|
Amortisation charge |
9 |
- |
2 |
|
Impairment of property, plant and equipment |
200 |
- |
325 |
|
Decrease/(increase) in stocks |
3 |
34 |
(19) |
|
(Increase)/decrease in debtors |
(44) |
(195) |
65 |
|
Increase/(decrease) in creditors |
75 |
967 |
(1,119) |
|
Equity settled share based payments |
75 |
8 |
(31) |
|
|
|
|
|
|
Net cash inflow/(outflow) from operating activities |
53 |
1,030 |
(1,274) |
|
|
|
|
|
7. Related party transactions
During the year the Group companies entered into transactions in the ordinary course of
business. These transactions have been eliminated on consolidation.
Transactions with directors:
Directors emoluments
|
|
28 week period ended 13 July 2008 |
24 week period ended 24 June 2007 |
27 week period ended 30 December 2007 |
|
|
£000 |
£000 |
£000 |
|
Short term employee benefits |
107 |
131 |
218 |
|
Share based payments |
58 |
5 |
(20) |
|
|
|
|
|
|
|
165 |
136 |
198 |
|
|
|
|
|
8. 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 -
Related Shares:
Richoux Group