15th May 2007 07:02
Carluccio's PLC15 May 2007 15th May 2007 Interim Results for the 26 weeks ended 25 March 2007 Continued strong growth at Carluccio's Carluccio's, the leading UK group of authentic Italian restaurants withintegrated food shops, is pleased to announce its interim results for the 26weeks ended 25 March 2007. ---------- --------- -------- 26 weeks to 26 weeks to 26 % change 25 March 2007 March 2006 ---------- --------- -------- Store Turnover (£m) 25.9 21.6 +20% Adjusted EBITDA (£m)* 3.2 2.6 +26% Profit before Tax (£m) 2.4 1.0 +148% Adjusted Profit beforeTax (£m) * 2.5 2.0 +28% Adjusted Diluted Earningsper Share (pence) * 2.8 2.5 +12% Total Dividend (pence) 0.6 nil * Adjusted to exclude the pre-tax FRS 20 impact of £0.1m (2006: £0.1m). 2006also adjusted to exclude non-recurring exceptional float and listing costs of£0.9m Highlights €6 new openings in the current financial year exceeding minimum opening commitment: €3 new stores already opened in the period: Bloomsbury (October 2006); Spitalfields (December 2006) and Trafford Centre, Manchester (March 2007) €3 further openings scheduled before the year end: Walton-on-Thames (May 2007), Bentalls, Kingston-upon-Thames (June 2007), King Street, Covent Garden (September 2007) €2 further pipeline sites secured: landside concession in Heathrow Terminal 5 (opening spring 2008) and Quakers Friars, Bristol (opening 2009 financial year) •Cash generated from operating activities of £2.7m (2006: £2.1m excluding exceptional float and listing costs of £0.9m) • Maiden interim dividend of 0.6p per Ordinary Share to be paid in June 2007 •Cash Return on Capital Invested (CROCI) consistently in excess of 60% with new stores cash generative immediately •Continued record of no non-contributing stores and no store closures Stephen Gee, Executive Chairman, said: "Trading since 25 March 2007 has beenahead of the previous year and in line with the Board's expectations. Inaddition, much progress has been made since the 2006 financial year: Turnoverand profit before taxation growth is in excess of 20%; this financial year'santicipated six new openings will exceed our minimum commitment of five and ourstrong cash generation has enabled us to announce a maiden interim dividend. Iam confident of reporting further good progress at the end 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 NobletSarah Richardson 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 that in our half year to 25 March 2007 we achieved allof our trading, site acquisition and opening programme objectives. Trading Results Turnover for the 26 weeks was £25.9m (2006: £21.6m), an increase of 20%. Profitbefore taxation increased by 148% to £2.4m (2006: £1.0m) although 2006 includes£0.9m of exceptional expenses incurred in obtaining a listing on AIM in December2005. The Company has adopted Financial Reporting Standard 20 (FRS 20) "Share-basedpayments" for the first time in accordance with the requirements of thatstandard. This has resulted in a charge, net of the related deferred tax credit,for the first half of £78,000 (2006: £40,000). The prior period comparativeamounts have also been restated, resulting in a £102,000 reduction of the profitafter tax previously declared for the 52 weeks ended 24 September 2006. FRS 20is an accounting adjustment only and does not represent a cash settled expense. Adjusting for the impact of both exceptional flotation expenses and FRS 20,gives an underlying profit before tax increase of 28% to £2.5m (2006: £2.0m).Adjusted diluted earnings per share increased to 2.8 pence from 2.5 pence forthe equivalent period last year. EBITDA, adjusted to remove the impact of the exceptional flotation expenses andof adopting FRS 20, was £3.2m (2006: £2.6m), an increase of 26%. The highly cashgenerative nature of our business enables us to continue financing our openingprogramme without recourse to borrowings and to pay dividends to ourshareholders. I am pleased to announce a maiden interim dividend of 0.6 penceper share (2006: nil) payable on 26 June 2007 to shareholders on the register asat 25 May 2007. Expansion Programme We have made good progress with our store opening programme. I reported at theyear end that we had already secured the five sites necessary to achieve ourminimum opening programme for this financial year. I am very pleased to announcethat we have secured a sixth site to open early in the summer of 2007. This willbe a third concession with Fenwick Limited, located in the Bentalls departmentstore in Kingston upon Thames. Although the concessions typically have lowerturnover than a High Street store by virtue of trading during retail hours only,their construction costs are lower and they remain valuable additions to theportfolio. We have already opened three stores during this financial year to date: TheBrunswick Centre in Bloomsbury (October 2006); Spitalfields near LiverpoolStreet Station in London (December 2006) and The Trafford Centre in Manchester(March 2007). These openings were all cash positive in their first month oftrading and we now trade from 29 locations. Our next openings will be inWalton-on-Thames (May 2007), Bentalls (Summer 2007) and Covent Garden in Londontowards the end of our financial year. We have also secured two additional sites. The first of these is a landsideconcession at Heathrow Terminal 5 which is due to open in the first half of 2008and the second of these is the already announced site at Quakers Friars, Bristol. The latter site will open in the 2009 financial year. We are seeking to gradually expand our geographical reach and are activelylooking at potential sites within a reasonable distance of Manchester andBristol as well as continuing our search in the South East. The Restaurant Market The restaurant market continues to attract significant interest from theinvestor community as witnessed by the strong share price performance of thequoted operators and high levels of corporate activity. Investors have shown aparticular enthusiasm for casual dining, the fastest growing sector within theindustry. Carluccio's unique offer of all day trading and a food shop in everystore gives us an edge over our competitors because of landlords' enthusiasm tohave us as tenants and because we are able to utilise our assets moreefficiently than most other restaurant companies. This is demonstrated by ourindustry leading cash returns on capital employed of more than 60%. This successwas recently recognised at the Retailers' Retailer Awards where we were awarded"Best Company". The team at Carluccio's remains wholly focused on maintainingthis position as we expand. Current Trading Trading since 25 March 2007 has been ahead of the previous year and in line withthe Board's expectations. In addition, much progress has been made since the2006 financial year: Turnover and profit before taxation growth is in excess of20%; this financial year's anticipated six new openings will exceed our minimumcommitment of five and our strong cash generation has enabled us to announce amaiden interim dividend. I am confident of reporting further good progress atthe end of 2007. Stephen GeeChairman15th May 2007 PROFIT AND LOSS ACCOUNT For the 26 weeks ended 25 March 2007 Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 24 Sept 25 March 2007 26 March 2006 2006 (restated) (restated) Note £'000 £'000 £'000 TURNOVER 25,880 21,557 45,759 Cost of sales (20,664) (17,423) (36.810) ________ ________ ________GROSS PROFIT 5,216 4,134 8,949-------------------------- ------ ---------- ---------- ----------FRS 20 share option expense 2 (107) (57) (145)Exceptional Flotation expenses 3 - (948) (939)Other administrative expenses (2,700) (2,148) (4,624)-------------------------- ------ ---------- ---------- ---------- Administrative expenses (2,807) (3,153) (5,708)-------------------------- ------ ---------- ---------- ----------Operating profit before Exceptionalflotation expenses& FRS 20 share option expense 2,516 1,986 4,325-------------------------- ------ ---------- ---------- ---------- OPERATING PROFIT 2,409 981 3,241 Net interest receivable 31 1 21 _________ _________ _________PROFIT ON ORDINARY ACTIVITIES BEFORETAXATION 2,440 982 3,262 Tax on profit on ordinary activities (807) (258) (824) _________ _________ _________ PROFIT ON ORDINARY ACTIVITIES AFTERTAXATION 1,633 724 2,438 __________ __________ _________Basic earnings per share (pence) 4 2.9 1.3 4.3Diluted earnings per share (pence) 4 2.8 1.2 4.2 The company's turnover and expenses all relate to continuing operations. STATEMENT OF RECOGNISED GAINS AND LOSSES Total recognised gains and losses for theyear as above 1,633 724 2,438 __________ __________Prior period adjustments 2 50 __________Total recognised gains and losses sincethe last financial statements 1,683 __________ BALANCE SHEET as at 25 March 2007 Notes Unaudited Unaudited Audited 26 wks ended 26 wks ended 52 wks ended 25 March 2007 26 March 2006 24 Sept 2006 (restated) (restated) £'000 £'000 £'000FIXED ASSETSIntangible assets 21 23 22Tangible assets 17,656 14,082 16,010 ________ ________ ________ 17,677 14,105 16,032 CURRENT ASSETS:Stocks 1,268 964 1,223Debtors 1,400 1,248 1,643Cash at bank 1,997 947 2,642 ________ ________ ________ 4,665 3,159 5,508 CREDITORS: AMOUNTS FALLING DUEWITHIN ONE YEAR (8,375) (6,545) (8,715) _________ ________ ________ NET CURRENT LIABILITIES (3,710) (3,386) (3,207) _________ ________ ________ TOTAL ASSETS LESS CURRENT LIABILITIES 13,967 10,719 12,825 _________ ________ ________ PROVISIONS (1,529) (1,014) (1,312) _________ ________ ________ 12,438 9,705 11,513 _________ ________ ________ CAPITAL AND RESERVESCalled up share capital 2,849 2,837 2,840Share premium account 1,712 1,681 1,684Profit and loss account 5 7,877 5,187 6,989 _______ ________ ________ SHAREHOLDERS' FUNDS 12,438 9,705 11,513 ________ ________ ________ CASH FLOW STATEMENT For the 26 weeks ended 25 March 2007 Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 24 Sept 25 March 2007 26 March 2006 2006 Notes £'000 £'000 £'000 Net cash inflow from operatingactivities 6 2,731 1,185 5,720 Returns on investments and servicingof financeInterest paid (12) (16) (18)Interest received 43 17 39 _______ _______ ________ 31 1 21 Taxation (214) (394) (687) Capital expenditurePayments to acquire tangible fixedassets (2,379) (2,126) (4,738)Payments to acquire intangible fixedassets - 1 (1)Receipts from sale of tangible fixedassets - - 41 _______ ________ ________ (2,379) (2,125) (4,698) Dividend paid (852) - - ________ ________ ________Cash inflow before use of liquidresources and financing (683) (1,333) 356 Management of Liquid resources (500) - (1,250) Financing Issue of share capital 38 242 248 _________ ________ ________ 38 242 248 _________ _________ _______Decrease in cash (1,145) (1,091) (646) _________ _________ _______ RECONCILIATION OF NET CASH FLOW TOMOVEMENT IN NET FUNDS Decrease in cash in the period (1,145) (1,091) (646) Cash outflow from changes in liquidresources 500 - 1,250 _________ _________ ________Change in net funds (645) (1,091) 604 Net funds at 26 March 2006 2,642 2,038 2,038 _________ __________ ________Net funds at 25 March 2007 7 1,997 947 2,642 __________ ___________ ________ NOTES TO THE FINANCIAL STATEMENTSFor the 26 weeks ended 25 March 2007 1 INTERIM FINANCIAL INFORMATION The interim financial information covers the period from 25 September 2006 to 25March 2007, is not audited and does not constitute statutory financialstatements. The financial information for the year ended 24 September 2006 hasbeen extracted from the audited financial statements of Carluccio's PLC whichhave been filed with the Registrar of Companies. The auditors' opinion on thoseaccounts was unqualified and contained no statement under section 237(2) or (3)of the Companies Act 1985. 2 ACCOUNTING POLICIES The interim financial information has been prepared on the same basis and usingthe same accounting policies as used in the financial statements for the yearended 24 September 2006, except the Company has adopted, in full, the provisionsof FRS 20 "Share-based payments". FRS 20 requires that the cost ofequity-settled transactions with employees is measured by reference to theirfair value at the date at which they are granted and then recognised over thevesting period. As a result of the adoption of FRS 20, there is an additionalcharge net of the related deferred tax credit for the period to March 2007 of£78,000 (Mar 2006: £40,000). In addition, the profit and loss reserve broughtforward was increased by £50,000 due to the deferred tax credit on the FRS 20charge. The company has taken advantage of the exemptions under FRS 20 and hastherefore applied this policy only to awards granted after November 2002 thathad not vested by 24 September 2006. 3 EXCEPTIONAL COSTS These solely relate to costs incurred in preparing the Company for listing onthe Alternative Investment Market of the London Stock Exchange on 14 December2005. 4 EARNINGS PER ORDINARY SHARE (EPS) Unaudited Unaudited Audited 26 wks ended 26 wks ended 52 wks ended 24 25 March 2007 26 March 2006 Sept 2006 £'000 £'000 £'000NumeratorProfit for the period(basic earnings per share) 1,633 724 2,438Exceptional Expenses - 948 939FRS 20 Share-based payment net ofdeferred tax credit 78 40 102Corporation tax credit on exerciseof share options (86) (262) (524) _______ _______ ______Adjusted profit for the period(adjusted earnings per share) 1,625 1,450 2,955 In calculating adjusted earnings per share, profit for the period has beenadjusted for a number of factors to enable a clearer view of underlying Companyperformance. Exceptional expenses relate entirely to the cost of listing theCompany on the Alternative Investment Market in December 2005 and are considerednon-recurring and have therefore been added back. Similarly added back are theamounts for FRS 20 "Share-based payments", adopted for the first time in theseaccounts. This is an accounting adjustment only and as such does neither reflecta cash expense nor a liability that will result in the transfer of cash in thefuture. Finally, the Company received a corporation tax credit on the exerciseof share options by employees, the majority of which occurred on flotation. Theimpact on the prior year is significant and this credit has been deducted toenable a clearer comparison over time. Unaudited Unaudited Audited 26 wks ended 26 wks ended 52 wks ended 24 25 March 2007 26 March 2006 Sept 2006 Number Number NumberDenominator ('000) ('000) ('000)Weighted average number of equityshares(basic earnings per share) 56,869 55,814 56,300Impact of dilutiveshare options 1,786 2,237 1,960 _________ _________ _________Diluted number of ordinary shares(diluted earnings per share) 58,637 58,051 58,260 The weighted average number of ordinary shares is adjusted to take into accountthe dilutive impact of share option awards made to employees. Unaudited Unaudited Audited 26 wks ended 26 wks ended 52 wks ended 24 25 March 2007 26 March 2006 Sept 2006 Pence Pence Pence Basic earnings per share 2.9 1.4 4.5Diluted earnings per share 2.8 1.3 4.4Adjusted basic earnings per share 2.9 2.6 5.2Adjusted diluted earnings per share 2.8 2.5 5.1 5 PROFIT AND LOSS RESERVES Unaudited Unaudited Audited 26 wks ended 26 wks ended 52 wks ended 24 25 March 2007 26 March 2006 Sept 2006 £'000 £'000 £'000At the beginning of the year aspreviously stated 6,939 4,400 4,400 FRS 20 - deferred tax credit 50 6 6 ________ ________ ________ Restated profit brought forward 6,989 4,406 4,406Retained profit for the period 1,633 724 2,438FRS 20 charge credited to reserves 107 57 145Dividends paid (852) - - _________ ________ _________ Profit and loss account carried forward 7,877 5,187 6,989 _________ _________ _________ 6 RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES Operating Profit 2,409 981 3,241Depreciation charges 727 585 1,236Amortisation of trade marks 1 1 3Share-based payment charge 107 57 145Increase in Stocks (45) (24) (283)(Increase)/decrease in debtors 242 150 (245)Increase/(decrease) in creditors (710) (565) 1,629Elimination of profit on disposal - - (6) _________ ________ ________ Net cash inflow from operating activities 2,731 1,185 5,720 _________ _________ _________ 7 CASH FLOW STATEMENT Analysis of net funds Unaudited Unaudited Audited 26 wks ended 26 wks ended 52 wks ended 24 25 March 2007 26 March 2006 Sept 2006 £'000 £'000 £'000 Cash at bank and in hand 1,497 947 1,392Other liquid resources 500 - 1,250 ________ ______ ______Total 1,997 947 2,642 ________ ______ ______ 8 INTERIM DIVIDEND A maiden interim dividend of 0.6p (2006: nil) per ordinary 5p share will be paidto all shareholders on the register at 25th May 2007. Payment will be made on26th June 2007. The total amount of the dividend will be £342,000. 9 INTERIM REPORT This Interim Report was approved by the Directors on 14 May 2007. A copy of theInterim Report will be posted to shareholders and will also be available fromthe Company's registered office at 12 Great Portland Street, London W1W 8QN. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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