13th May 2008 06:00
13 May 2008
Interim Results for the 26 weeks ended 23 March 2008
Carluccio's, the leading UK group of authentic Italian restaurants with integrated food shops, is pleased to announce its interim results for the 26 weeks ended 23 March 2008.
|
26 weeks to 23 March 2008 |
26 weeks to 25 March 2007 |
% change |
|||
|
Turnover (£m) |
30.9 |
25.9 |
+19% |
||
|
EBITDA (£m)* |
3.6 |
3.0 |
+20% |
||
|
Cash flow from operations |
3.4 |
2.7 |
+26% |
||
|
Profit before tax (£m) |
2.8 |
2.3 |
+19% |
||
|
Basic earnings per share (pence) |
3.3 |
2.6 |
+27% |
||
|
Total dividend (pence) |
0.7 |
0.6 |
+17% |
All amounts stated under International Financial Reporting Standards (IFRS)
* Earnings Before Interest Tax Depreciation and Amortisation (EBITDA). See note 5 to the interim statement for details.
Highlights
Five new openings in the current financial year achieving the stated minimum opening commitment
Includes two openings in key travel hubs: Heathrow T5 and St. Pancras International train terminal
First franchise store opened in Dublin, Ireland (March 2008) with highly encouraging trading
Two sites secured for opening in the 2009 financial year (Bristol and Leicester)
Continued strong cash generation: £3.4m (2007: £2.7m)
Interim dividend increased to 0.7 pence per ordinary share to be paid in June 2008
Industry leading CROCI (cash return on cash invested) averaging in excess of 60%
Stephen Gee, Executive Chairman, said: "We are pleased to have made good progress during the period despite the widely publicised pressures on consumer spending. It is likely, however, that trading conditions will remain challenging. The Board believes that our multi-faceted business model will prove beneficial in such times and we look forward to the future with confidence.
For further information, please contact:
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Carluccio's PLC |
020 7580 3050 |
|
Simon Kossoff, Managing Director |
|
|
Frank Bandura, Finance Director |
|
|
Hogarth Partnership Limited |
020 7357 9477 |
|
Fiona Noblet |
|
|
Andrew Jaques |
|
|
Sarah Richardson |
Photographs are available from Hogarth on request.
There will be an analyst presentation today at Carluccio's Garrick Street, London WC2E 9EB.
Nearest tube stations: Leicester Square, Covent Garden, Charing Cross. 9.15am for 9.30am start.
Chairman's interim statement
I am delighted to report further progress in our first half despite the widely publicised pressures on the UK economy and consumer spending in general.
Trading results
Turnover for the 26 weeks was £30.9m (2007: £25.9m) an increase of 19%. Profit before tax also increased by 19% to £2.8m (2007: £2.3m). The Company is now required to prepare accounts under International Financial Reporting Standards (IFRS) and both this year's results and the prior year comparatives are stated on this basis. A statement explaining the changes from previously reported financial statements to IFRS was issued to the London Stock Exchange on 8 May 2008. Whilst the change has reduced reported profitability because of a different method of accounting for rent and lease incentives, it has had no impact on the cash flows generated by the business or on the success of the underlying business model. These successful results and our strong cash generation have allowed us to increase our interim dividend to 0.7 pence per ordinary share (2007: 0.6 pence) which will be paid on 13 June 2008 to shareholders on the register on 23 May 2008.
Expansion Programme
We have now opened four of our five planned new sites for this financial year: Stratford-upon-Avon; our second store in Manchester; Terminal 5 at Heathrow airport and St. Pancras International train terminal. Our fifth opening will be in Cambridge towards the end of May. These openings will increase our total locations to 37 and have continued our successful national expansion from our London base. At Terminal 5 and St. Pancras we have had the opportunity to demonstrate that our brand adapts well to an environment where customers require a more rapid service than at other locations. In addition, as previously reported, we have two sites in Leicester and Bristol secured for our 2009 financial year opening programme. We believe that in the current economic climate there may be more opportunities to increase our opening programme. We remain ungeared and our strong cash generation gives us the flexibility to acquire additional sites that meet our investment criteria.
Our first franchised store opened in Dublin, Ireland in March 2008. We have been very encouraged by early trading with turnover having been at the top end of our expectations. As a result of this success we are now in a position to consider extending our franchise activities to other territories.
Board of Directors
I am delighted to announce that Sarah Murray is joining the Board of Directors as Operations Director from June 2008. Sarah has been responsible for Group Operations since we opened our first store and brings to the Board extensive experience of the day to day management and operations of our caffes and food stores.
Trading Outlook
We are pleased to have made good progress during the period. However, with the widely publicised pressures on the UK economy and on consumer spending, it is likely that trading conditions will remain challenging. Our business model is multi-faceted and should prove beneficial in such times. We have created a unique offering in the casual dining sector by combining an affordable caffé where the average spend is £12 per head and a retail shop where the average spend is £8 per transaction. The caffés trade all day and the fact that 25 percent of our seats are outside can be a significant advantage during warmer weather. Early spring 2008 has not been as warm as 2007 but a normal summer will allow us to make full use of these outside seats. We continue to look to the future with confidence.
Stephen Gee
Chairman
13 May 2008
Income Statement
For the 26 weeks ended 23 March 2008
|
Unaudited |
Unaudited |
Unaudited |
||
|
26 weeks |
26 weeks |
52 weeks |
||
|
ended |
ended |
ended |
||
|
23 March 2008 |
25 March 2007 |
23 Sept 2007 |
||
|
Note |
£'000 |
£'000 |
£'000 |
|
|
Revenue |
30,901 |
25,880 |
53,979 |
|
|
Cost of sales |
(25,274) |
(20,767) |
(43,010) |
|
|
Gross profit |
5,627 |
5,113 |
10,969 |
|
|
Administrative expenses |
(2,908) |
(2,807) |
(6,101) |
|
|
Operating profit |
2,719 |
2,306 |
4,868 |
|
|
Finance income |
55 |
43 |
100 |
|
|
Finance expense |
(3) |
(12) |
(26) |
|
|
Profit before tax |
2,771 |
2,337 |
4,942 |
|
|
Tax expense |
(876) |
(855) |
(1,432) |
|
|
Profit after tax |
1,895 |
1,482 |
3,510 |
|
|
Basic earnings per share (pence) |
4 |
3.3 |
2.6 |
6.2 |
|
Diluted earnings per share (pence) |
4 |
3.2 |
2.5 |
5.9 |
Balance sheet as at 23 March 2008
|
Unaudited as at 23 March 2008 |
Unaudited as at 25 March 2007 |
Unaudited as at 23 Sept 2007 |
||
|
£'000 |
£'000 |
£'000 |
||
|
Non-current assets |
||||
|
Intangible assets |
162 |
115 |
90 |
|
|
Property, plant & equipment |
20,370 |
15,981 |
18,463 |
|
|
Prepaid operating lease charges |
1,438 |
1,538 |
1,451 |
|
|
21,970 |
17,634 |
20,004 |
||
|
Current assets |
||||
|
Inventories |
1,409 |
1,268 |
1,381 |
|
|
Trade & other receivables |
624 |
295 |
448 |
|
|
Prepayments and accrued income |
1,480 |
1,105 |
1,477 |
|
|
Prepaid operating lease charges |
50 |
43 |
87 |
|
|
Cash and cash equivalents |
3,621 |
1,997 |
3,145 |
|
|
7,184 |
4,708 |
6,538 |
||
|
Total assets |
29,154 |
22,342 |
26,542 |
|
|
Current Liabilities |
||||
|
Trade and other payables |
3,654 |
2,855 |
3,803 |
|
|
Other tax and social security |
1,591 |
1,232 |
1,535 |
|
|
Accruals |
3,505 |
3,095 |
3,752 |
|
|
Deferred income |
41 |
42 |
84 |
|
|
Corporation tax liabilities |
2,185 |
554 |
649 |
|
|
10,976 |
7,778 |
9,823 |
||
|
Non-current liabilities |
||||
|
Deferred income |
1,922 |
1,359 |
1,712 |
|
|
Deferred tax liabilities |
921 |
617 |
478 |
|
|
2,843 |
1,976 |
2,190 |
||
|
Total liabilities |
13,819 |
9,754 |
12,013 |
|
|
Net assets |
15,335 |
12,588 |
14,529 |
|
|
Shareholders' equity |
|
|||
|
Share capital |
2,849 |
2,849 |
2,849 |
|
|
Share premium account |
1,713 |
1,712 |
1,713 |
|
|
Retained Earnings |
10,773 |
8,027 |
9,967 |
|
|
Shareholders' equity |
15,335 |
12,588 |
14,529 |
Statement of changes in equity as at 23 March 2008
|
Share |
||||
|
Share |
premium |
Retained |
Total |
|
|
Capital |
account |
earnings |
equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Profit for the period |
- |
- |
1,895 |
1,895 |
|
Tax on share options taken directly to reserves |
- |
- |
(326) |
(326) |
|
Total recognised gains and losses in period |
- |
- |
1,569 |
1,569 |
|
Dividend paid |
- |
- |
(912) |
(912) |
|
Share based payment credited to reserves |
- |
- |
149 |
149 |
|
- |
- |
(763) |
(763) |
|
|
At 23 September 2007 |
2,849 |
1,713 |
9,967 |
14,529 |
|
At 23 March 2008 |
2,849 |
1,713 |
10,773 |
15,335 |
Statement of changes in equity as at 25 March 2007
|
Share |
||||
|
Share |
premium |
Retained |
Total |
|
|
Capital |
account |
earnings |
equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Profit for period to 25 March 2007 |
- |
- |
1,482 |
1,482 |
|
Tax on share options taken directly to reserves |
277 |
277 |
||
|
Total recognised gains and losses in period |
- |
- |
1,759 |
1,759 |
|
Dividends paid |
- |
- |
(852) |
(852) |
|
Issue of shares |
9 |
28 |
- |
37 |
|
Share based payment credited to reserves |
- |
- |
107 |
107 |
|
9 |
28 |
(745) |
(708) |
|
|
At 25 September 2006 |
2,840 |
1,684 |
7,013 |
11,537 |
|
At 25 March 2007 |
2,849 |
1,712 |
8,027 |
12,588 |
Cashflow Statement
For the 26 weeks ended 23 March 2008
|
Unaudited |
Unaudited |
Unaudited |
|
|
26 weeks |
26 weeks |
52 weeks |
|
|
ended |
ended |
ended |
|
|
23 March 2008 |
25 March 2007 |
23 Sept 2007 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Net cash inflow from operating activities |
|||
|
Profit before tax |
2,771 |
2,337 |
4,942 |
|
Amortisation and depreciation |
917 |
728 |
1,536 |
|
Share based payment charge |
149 |
107 |
332 |
|
Net interest received |
(52) |
(31) |
(74) |
|
(Increase)/decrease in inventory |
(28) |
(45) |
(158) |
|
(Increase)/decrease in debtors |
(179) |
242 |
(282) |
|
(Decrease)/increase in creditors |
(165) |
(607) |
1,690 |
|
(Profit)/loss on disposal of non-current asset |
(1) |
- |
16 |
|
Cash inflow from operating activities |
3,412 |
2,731 |
8,002 |
|
Corporation tax (paid)/repaid |
774 |
(214) |
(806) |
|
Net cash inflow from operating activities |
4,186 |
2,517 |
7,196 |
|
Cash outflow from investing activities |
|||
|
Interest received |
55 |
43 |
100 |
|
Purchase of non current assets |
(2,854) |
(2,379) |
(5,611) |
|
Receipts from sale of non current assets |
4 |
- |
- |
|
Net cash outflow from investing activities |
(2,795) |
(2,336) |
(5,511) |
|
Cash outflow from financing activities |
|||
|
Interest paid |
(3) |
(12) |
(26) |
|
Issue of share capital |
- |
38 |
38 |
|
Dividends paid |
(912) |
(852) |
(1,194) |
|
Net cash outflow from financing activities |
(915) |
(826) |
(1,182) |
|
Net increase/(decrease) in cash and cash equivalents |
476 |
(645) |
503 |
|
Cash and cash equivalents at beginning of period |
3,145 |
2,642 |
2,642 |
|
Cash and cash equivalents at end of period |
3,621 |
1,997 |
3,145 |
NOTES TO THE INTERIM REPORT
For the 26 weeks ended 23 March 2008
1. General information
Carluccio's PLC is a company incorporated in the United Kingdom under the Companies Act 1985 with registration number 02001576. The Company is domiciled in the United Kingdom and has its registered office at 35 Rose Street, Covent Garden, London WC2E 9EB. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange. Copies of the interim report will be sent to shareholders or can be obtained from the website at www.carluccios.com.
2. Basis of preparation
Carluccio's PLC has adopted International Financial Reporting Standards (IFRS) as adopted by the European Union with effect from 25 September 2006, the date of transition. The Company will apply IFRS in its financial statements for the period ending 28 September 2008. These interim statements are therefore produced in accordance with IFRS and International Financial Reporting interpretations (IFRIC) that are expected to be applicable at 28 September 2008. These standards remain subject to ongoing amendment and/or interpretation and are therefore still subject to change. Therefore the amounts included in these statements may change as a result of subsequent amendments to IFRS required for first time adoption or for new standards issued after the balance sheet date.
The basis of preparation and accounting policies followed in this interim statement are not the same as those used to prepare the Annual Report and Accounts for the 52 weeks ended 23 September 2007 which were prepared in accordance with United Kingdom Generally Accepted Accounting Principles (UK GAAP). As permitted this report has not been produced in accordance with IAS 34, Interim Financial Reporting.
A detailed explanation of the impact of the transition from UK GAAP to IFRS was provided on 8 May 2008 in a Statement of Conversion issued to the London Stock Exchange. The Statement restated the income statements for the 26 weeks ended 25 March 2007 and 52 weeks ended 23 September 2007. The Statement also restated the balance sheets at those dates and the balance sheet as at 24 September 2006. The cash flow statements were not restated as none of the accounting changes impacted the underlying cash generation of the business. Details of the significant accounting policies used in the preparation of the Company's reported results under IFRS and therefore applied in the preparation of this interim report were also included in the Statement of Conversion. Additional copies are available from the Company Secretary or from the Company Information section of the Company's website at www.carluccios.com.
The interim financial information contained in this report covers the 26 weeks from 24 September 2007 to 23 March 2008, is unaudited and does not constitute statutory financial statements as defined in Section 240 of the Companies Act 1985. The financial information for the 52 weeks ended 23 September 2007 has been extracted from the statutory accounts for that period as restated to reflect the transition to IFRS. These financial statements were prepared under UK GAAP. The auditors issued an unqualified opinion on those financial statements. Their report did not include references to any matter to which they drew attention by way of emphasis without qualifying their report. They did not include a statement under section 237(2) or (3) of the Companies Act 1985.
The financial statements are presented in Sterling and all values are rounded to the nearest thousand pounds (£'000) except where stated otherwise.
3. Proposed dividend
The directors are proposing the payment of an interim dividend of 0.7 pence per ordinary share (2007: 0.6 pence). The total dividend payable will be £399,000 (2007: £342,000) and will be paid to all shareholders on 13 June 2008 provided that they appear on the register as at 23 May 2008.
4. Earnings per ordinary share (EPS)
|
Unaudited |
Unaudited |
Unaudited |
|
|
26 weeks |
26 weeks |
52 weeks |
|
|
ended |
ended |
ended |
|
|
23 March 2008 |
25 March 2007 |
23 Sept 2007 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Numerator |
|||
|
Profit for the period (basic earnings |
|||
|
per share) |
1,895 |
1,482 |
3,510 |
|
IFRS 2 Share-based payment net of |
|||
|
deferred tax credit |
107 |
75 |
239 |
|
Pre-opening expenses net of tax |
385 |
448 |
843 |
|
Adjusted profit for the period (adjusted |
|||
|
earnings per share) |
2,387 |
2,005 |
4,592 |
In calculating adjusted earnings per share, profit for the period has been adjusted for two items to enable a clearer view of underlying Company performance:
IFRS 2 requires that entities calculate the cost of issuing employee share options. This is an exercise resulting in an accounting adjustment only. It is neither a cash expense nor a liability that will result in the outflow of cash in the future.
Pre-opening expenses are incurred in the marketing of new caffé and food shops prior to the opening of the caffé to the public and the commencement of revenue generating activities. These are considered one-off in nature and are therefore added back to provide a clearer picture of underlying company performance.
|
Unaudited |
Unaudited |
Unaudited |
|
|
26 weeks |
26 weeks |
52 weeks |
|
|
ended |
ended |
ended |
|
|
23 March 2008 |
25 March 2007 |
23 Sept 2007 |
|
|
Number |
Number |
Number |
|
|
('000) |
('000) |
('000) |
|
|
Denominator |
|||
|
Weighted average number of equity shares |
|||
|
(basic earnings per share) |
56,978 |
56,869 |
56,924 |
|
Impact of dilutive share options |
2,011 |
1,768 |
2,271 |
|
Diluted number of ordinary shares |
|||
|
(diluted earnings per share) |
58,989 |
58,637 |
59,195 |
The weighted average number of ordinary shares is adjusted to take into account the dilutive impact of share option awards made to employees.
|
Unaudited |
Unaudited |
Unaudited |
|
|
26 weeks |
26 weeks |
52 weeks |
|
|
ended |
ended |
ended |
|
|
23 March 2008 |
25 March 2007 |
23 Sept 2007 |
|
|
Pence |
Pence |
Pence |
|
|
Basic earnings per share |
3.3 |
2.6 |
6.2 |
|
Diluted earnings per share |
3.2 |
2.5 |
5.9 |
|
Adjusted basic earnings per share |
4.2 |
3.5 |
8.1 |
|
Adjusted diluted earnings per share |
4.0 |
3.4 |
7.8 |
5. Adjusted Earnings Before Interest Tax and Depreciation (EBITDA)
|
Unaudited |
Unaudited |
Unaudited |
|
|
26 weeks |
26 weeks |
52 weeks |
|
|
ended |
ended |
ended |
|
|
23 March 2008 |
25 March 2007 |
23 Sept 2007 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Operating Profit |
2,719 |
2,306 |
4,868 |
|
Depreciation and amortisation |
917 |
728 |
1,536 |
|
EBITDA |
3,636 |
3,034 |
6,404 |
|
IFRS 2 Share based payments |
149 |
107 |
332 |
|
Pre-opening expenses |
535 |
640 |
1,204 |
|
Adjusted EBITDA |
4,320 |
3,781 |
7,940 |
Related Shares:
Carluccios