16th May 2006 07:01
Carluccio's PLC16 May 2006 16th May 2006 Interim Results for 26 weeks ended 26th March 2006 Continued strong growth in line with IPO expectations Carluccio's PLC (the Company), the leading UK group of authentic Italianrestaurants with integrated food shops, is pleased to announce its maiden set ofinterim results as a publicly quoted company. 26 weeks to 26th 26 weeks to 27th % change March 2006 March 2005 Store Turnover (£m) 21.6 17.9 +21% Adjusted EBITDA (£m)* 2.6 2.1 +21% Adjusted Profit beforeTax (£m) * 2.0 1.6 +21% Adjusted DilutedEarnings perShare (pence)* 3.0 2.1 +43% * Before exceptional float costs of £0.9m (2005: nil) Highlights €3 new stores opened in the period at Westbourne Corner, Oxford Castle and Brighton •IPO target of 5 new openings for 2006 secure with the 4th Carluccio's open in Chiswick (13th May 2006) and the 5th in Richmond-upon-Thames under construction •Margins maintained despite significant cost pressures from higher business rates and higher utility costs •Cash generated from operating activities (pre-exceptional float costs) of £2.1m •Cash Return on Capital Invested (CROCI) continues in excess of 60% •New stores cash generative immediately •Continued record of no non-contributing stores and no store closures •Successful admission to Alternative Investment Market (AIM) on 14th December 2005 Stephen Gee, Executive Chairman said: "These are a strong set of resultsdemonstrating the continued success of the Carluccio's proposition. "Trading since 26th March 2006 has continued to be in line with expectations andwe anticipate this progress to continue for the remainder of the year. Ouranticipated opening programme of not less than five stores is on track and weare gradually extending our geographical reach by looking at potential sitesthroughout the country. We look to the future with confidence." For further information, please contact: Carluccio's PLC 020 7580 3050Simon Kossoff, Managing DirectorFrank Bandura, Finance Director Hogarth Partnership Limited 020 7357 9477Andrew JaquesFiona Noblet Photographs are available from Hogarth on request. There will be an analyst presentation today at St Christopher's Place, 3-5Barrett Street, London W1U 1AY at 9.30am nearest tube Bond Street. Chairman's Statement I am delighted to report that in our first period as an AIM listed Company wehave continued to produce strong growth in line with expectations set at our IPOin December 2005. We have opened four new stores in the current financial yearto date and our fifth site in Richmond-upon-Thames is under construction. Weexpect to achieve our IPO target of five new store openings per year some twomonths before the year end. Each new opening continues to demonstrate theexciting potential of our business. Trading Results Turnover for the 26 weeks was £21.6m, 21% up on the prior year. EBITDA at £2.6mand profit before tax at £2.0m, have also increased by 21% (before float costsof £0.9m (2005: nil)). These results demonstrate strong growth and maintenanceof key margins in the face of substantial cost pressures from utility andbusiness rate increases. The impact of a lower than standard tax charge hasresulted in an increase to adjusted diluted earnings per share (pre-float costs)of 43% to 3.0p. The IPO During the period under review the Company was admitted to the AlternativeInvestment Market (AIM) via a successful IPO on 14th December 2005. This enabledthe Board to meet its commitment to original shareholders to provide them withan opportunity to sell all or part of their shareholding. No additional fundswere raised and float costs were funded out of cash flow. Prior to admission, David Bernstein joined the Board as a non-executivedirector. David brings a wealth of listed company experience. At the same time,Antonio and Priscilla Carluccio stepped down from the Board but have assumed therole of consultants, ensuring that the Company still benefits from their input.They continue to have a shareholding in the Company. Expansion Programme Trading has continued to generate sufficient funds to finance the expansionprogramme outlined at the time of the IPO of not less than five new openings ineach financial year. Our stated strategy is to focus on openings in the South East whilst graduallyextending our geographical reach to locations throughout the country. In linewith this strategy, this year will include three openings in and around London:Westbourne Grove, W2 (opened October 2005), Chiswick W4 (opened May 2006),Richmond (opens before the year end); and two openings out of London: Oxford(opened November 2005) and Brighton (opened February 2006). Our propositioncontinues to be extremely well received wherever we open and each new opening iscash generative immediately. What makes Carluccio's unique? There are two principal factors which together make Carluccio's a uniquebusiness. Firstly, we trade all day, normally from 8.00am to 11.00pm. The quality of ourwide ranging food offer was recently recognised with an award for Best Breakfastfrom the Observer Food Magazine Awards. Secondly, we have an Italian foodshop selling fresh and packaged goods at allour stores. Caffe business outside normal meal times and food shop salestogether generate close to 50% of our turnover. Our ability to trade all daycombined with our retail and food offering enables us to achieve an averageannual store turnover which exceeds £1.7m. Our high store turnover levels and the significant cash generated by our tradingmodel, means that our average cash return on cash invested continues to exceed60%, which by any standard of measurement is an industry leading return. Our all day trading pattern and in store food shop do not of themselves ensurethat we serve in excess of 70,000 happy caffe customers and 24,000 retailcustomers each week. This success is achieved by vigorous attention to detailand a commitment to the highest standards in all aspects of our business. Wesource and use only the freshest ingredients in the recipes prepared by ourchefs, many of whom have graduated from our own Chef School, and we run morethan 24 different training courses for staff at all levels of our business. Ourefforts continue to be widely recognised in the press with The Times recentlycommenting: "breakfasts served with brilliant breads and top quality coffee,simple pasta and antipasti lunches and puddings to die for." Carluccio's wasalso included in The Grocer's Top 10 World's Finest Specialist Food Retailers. We support the caffes and foodshops with in-depth systems and controls. Therecent Sunday Times Fasttrack award "Best Use of Technology" demonstrates ourdetermination to be industry leading in all aspects of our business. Inaddition, Carluccio's has featured in the private Company Sunday Times Fasttrack100 for the last three years. Current Trading and Prospects The introduction of a smoking ban across all of our stores on 3rd April 2006 hasattracted an overwhelmingly positive response from our customers and staff. Acomplete ban simplifies our operation and removes any uncertainty associatedwith the nationwide ban in 2007. To date there has been no impact on turnover. Trading since 26th March 2006 has continued to be in line with expectations andwe anticipate this progress to continue for the remainder of the year. Ouranticipated opening programme of not less than five stores in a year is on trackand we are gradually extending our geographical reach by looking at potentialsites throughout the country. We look to the future with confidence. Stephen Gee Chairman 16th May 2006 PROFIT AND LOSS ACCOUNT For the 26 weeks ended 26 March 2006 Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 26 March 27 March 25 Sept 2006 2005 2005 Note £'000 £'000 £'000 TURNOVER 21,557 17,919 36,844 Cost of sales (17,423) (14,210) (29,367) ________ ________ ________GROSS PROFIT 4,134 3,709 7,477 Pre-opening expenses (455) (457) (837) Exceptional cost - Float and listing 3 (948) - (236)costsOther Administrative expenses (1,693) (1,599) (3,140) Administrative expenses (3,096) (2, 056) (4,213) ________ ________ ________OPERATING PROFIT 1,038 1,653 3,264 Net interest (payable)/receivable 1 (13) (20) ________ ________ ________ PROFIT ON ORDINARY ACTIVITIES BEFORETAXATION 1,039 1,640 3,244 Tax on profit on ordinary activities (275) (516) (1,022) _______ _______ _______ PROFIT ON ORDINARY ACTIVITIES AFTERTAXATION 764 1,124 2,222 _______ _______ _______ Basic Earnings per Share 4 1.4p 2.2p 4.2p Diluted Earnings per Share 4 1.3p 2.1p 4.0p There are no recognised gains or losses for the period other than those statedin the profit and loss account. The Company's turnover and expenses all relateto continuing operations. BALANCE SHEET as at 26 March 2006 Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 26 March 27 March 25 Sept 2006 2005 2005 Notes £'000 £'000 £'000FIXED ASSETSIntangible assets 23 22 24Tangible assets 14,082 11,162 12,543 ________ ________ ________ 14,105 11,184 12,567CURRENT ASSETS:Stocks 964 730 940Debtors 1,248 1,025 1,398Cash at Bank 947 2,135 2,038 ________ ________ ________ 3,159 3,890 4,376 CREDITORS: AMOUNTS FALLING DUE WITHINONE YEAR (6,545) (6,491) (7,319) ________ ________ ________ NET CURRENT LIABILITIES (3,386) (2,601) (2,943) ________ ________ ________ TOTAL ASSETS LESS CURRENT LIABILITIES 10,719 8,583 9,624 ________ ________ ________ CREDITORS: AMOUNTS FALLING DUE AFTERMORE THAN ONE YEAR - (31) - PROVISIONS FOR LIABILITIES & CHARGES (1,037) (828) (948) ________ ________ ________ 9,682 7,724 8,676 ________ ________ ________ CAPITAL AND RESERVESCalled up share capital 2,837 2,648 2,732Share premium account 1,681 1,458 1,544Profit and loss account 6 5,164 3,618 4,400 ________ ________ ________ SHAREHOLDERS' FUNDS 9,682 7,724 8,676 ________ ________ ________ CASH FLOW STATEMENT For the 26 weeks ended 26 March 2006 Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 26 March 27 March 25 Sept 2006 2005 2005 Notes £'000 £'000 £'000RECONCILIATION OF OPERATING PROFIT TONET CASH INFLOW FROM OPERATINGACTIVITIES Operating Profit 1,038 1,653 3,264Depreciation charges 585 480 973Amortisation of patents 1 1 3(Increase)/decrease in Stocks (24) 63 (147)(Increase)/decrease in Debtors 150 (53) (426)Increase/(decrease) in Creditors (565) 608 2,005Elimination of Profit on Disposal - - (9) ________ ________ ________Net cash inflow from operatingactivities 1,185 2,752 5,663 ________ _________ ________CASH FLOW STATEMENT Net cash inflow from operatingactivities 1,185 2,752 5,663 Returns on investments and servicingof financeInterest paid (16) (21) (58)Interest received 17 8 38 _______ _______ ________ 1 (13) (20) Taxation (394) - (897) Capital expenditurePayments to acquire tangible fixedassets (2,126) (1,903) (3,779)Payments to acquire intangible fixedassets 1 (1) (5)Receipts from sale of tangible fixedassets - - 11 ________ _______ ________ (2,125) (1,903) (3,773) Dividend Paid - - (316) ________ _______ ________Cash inflow before financing (1,333) 836 657 ________ _______ ________Financing Issue of share capital 242 42 212 Capital element of finance lease - (83) (171) ________ _________ ________ 242 (41) 41 ________ _________ _______Increase/(Decrease) in cash (1,091) 795 698 ________ _________ _______RECONCILIATION OF NET CASH FLOW TOMOVEMENT IN NET FUNDS Increase/(Decrease) in cash in theperiod (1,091) 795 698 Cash outflows from movement in netfunds - 83 171 _________ _________ ________Change in net funds (1,091) 878 869 Net funds at 27 March 2005 2,038 1,169 1,169 __________ __________ ________Net funds at 26 March 2006 5 947 2,047 2,038 ___________ ___________ ________ NOTES TO THE FINANCIAL STATEMENTS For the 26 weeks ended 26 March 2006 1 INTERIM FINANCIAL INFORMATION The Interim financial information covers the period from 26 September 2005 to 26March 2006, is unaudited and does not constitute statutory financial statements.The financial information for the year ended 25 September 2005 has beenextracted from the audited financial statements of Carluccio's Ltd which havebeen 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 25 September 2005, except the Company has adopted, in full, the provisionsof FRS 21, "Events after The Balance Sheet Date" during the period. The Companyhas also adopted FRS 22 "Earnings per Share" and the presentation requirementsof FRS 25 "Financial Instruments: Disclosure and Presentation", and FRS 28"Corresponding Amounts". These have no impact on the financial statements. 3 EXCEPTIONAL COSTS Carluccio's PLC listed on the Alternative Investment Market (AIM) of the LondonStock Exchange (LSE) on 14 December 2005. All costs related to the listing havebeen treated as exceptional. 4 EARNINGS PER ORDINARY SHARE Earnings per ordinary share have been calculated using the weighted averagenumber of shares in issue during the relevant financial periods as adjusted fora nominal value change from 50p per share to 5p per share. The weighted averagenumber of equity shares in issue and the earnings, being profit after tax are asfollows: Basic earnings per share Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 26 March 27 March 25 Sept 2006 2005 2005 £'000 £'000 £'000Weighted Average number ofequity shares 55,814 50,993 52,409 _________ _________ _________ Profit after tax 764 1,124 2,222 _________ __________ _________Earnings per Share 1.4p 2.2p 4.2p _________ _________ _________ Adjusted Basic earnings per share Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 26 March 27 March 25 Sept 2006 2005 2005 £'000 £'000 £'000Weighted Average number ofequity shares 55,814 50,993 52,409 _________ _________ _________ Profit after tax adjusted forexceptional costs 1,712 1,124 2,458 _________ __________ _________Adjusted Basic Earnings per 3.1p 2.2p 4.7pShare _________ _________ _________ Diluted earnings per share Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 26 March 27 March 25 Sept 2006 2005 2005 £'000 £'000 £'000Weighted Average number ofequity shares 58,051 53,320 55,022 _________ _________ _________ Profit after tax 764 1,124 2,222 _________ __________ _________Diluted Earnings per Share 1.3p 2.1p 4.0p _________ _________ _________ Adjusted diluted earnings per share Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 26 March 27 March 25 Sept 2006 2005 2005 £'000 £'000 £'000Weighted Average number ofequity shares ('000s) 58,051 53,320 55,022 _________ _________ _________ Profit after tax adjusted forexceptional costs 1,712 1,124 2,458 _________ __________ _________Adjusted Diluted Earnings per 3.0p 2.1p 4.5pShare _________ _________ _________ The weighted average number of shares has been adjusted to reflect dilutiveshare options of 2,237,000 (26 weeks to 27 March 2005 2,327,000; 52 weeks toSeptember 2005 2,613,000) 5 CASH FLOW STATEMENT Analysis of net funds Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 26 March 27 March 25 Sept 2006 2005 2005 £'000 £'000 £'000 Cash at bank and in hand 947 2,135 2,038Finance lease - (88) - ____ _____ ____ Total 947 2,047 2,038 ____ _____ ____ 6 RESERVES Unaudited Unaudited Audited 26 wks 26 wks 52 wks ended ended ended 26 March 27 March 25 Sept 2006 2005 2005 £'000 £'000 £'000Profit and loss accountbrought forward 4,400 2,494 2,494 Retained Profits for period 764 1,124 2,222 Interim Dividend Paid - - (316) ________ ________ ________Profit and loss accountcarried forward 5,164 3,618 4,400 _________ __________ _________ 7 INTERIM REPORT This Interim Report was approved by the Directors on 15th May 2006. A copy ofthe Interim Report will be posted to shareholders and will also be availablefrom the Company's registered office at 12 Great Portland Street, London W1W8QN. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Carluccios