RICHOUX GROUP PLC Richoux Group plc
Interim results for the 28 weeks ended 12 July 2015
Richoux Group plc (the "Group"), the owner and operator of Richoux, Dean's Diner and Villagio restaurants today announces its unaudited interim results for the 28 week period ending 12 July 2015. Key points:§ Turnover increased 0.3% to £6.70 million
(2014: £6.68 million).
• Adjusted* EBITDA increased 1.1% to £0.79 million
(2014: £0.78 million).
§ Profit after tax increased 101.3% to £0.32 million
(2014: £0.16 million).
§ Currently nineteen restaurants trading.
§ One new Dean's Diner and one new Richoux opened.
§ Cash of £4.40 million at period end. (2014: £3.13 million).
* Excluding pre opening costs and impairment.
Philip Shotter, Chairman of Richoux Group plc said:"We are pleased to announce another solid set of results. Towards the end of the period we opened our seventh Dean's Diner site at Hempstead Valley in Kent which is trading well. An eighth Dean's Diner site in Orpington will be opened before the end of the financial year. Last month we also opened our fifth Richoux site in the Gloucester Arcade, Gloucester Road, London. This is the first Richoux opening for a number of years and we are delighted with the way that we have been able to capture the look and feel of the other Richoux restaurants in what is effectively a newly constructed unit. The early signs of trading from the restaurant are promising."
Enquiries: Richoux Group plcPhilip Shotter, Chairman (020) 7483 7000
Cenkos Securities plc (020) 7397 8900Bobbie Hilliam
ResultsRevenue for the 28 week period ended 12 July 2015 increased 0.3% on the 28 week period ended 13 July 2014 to
£6.70 million (2014: £6.68 million, included revenue from two restaurants which were closed in the second half of
2014). Adjusted EBITDA before pre-opening costs and impairment increased 1.1% to £0.79 million (2014: £0.78 million). Adjusted operating profit before pre-opening costs and impairment increased 2.6% to £0.39 million (2014:
£0.38 million). Pre-opening costs for the period were £0.08 million (2014: £0.04 million). The net profit for the period was £0.32 million (2014: £0.16 million).
The Directors are not recommending the payment of a dividend.
OperationsThe Group currently has nineteen operating restaurants, which operate under the Richoux, Dean's Diner and Villagio brands. Further details on each of the brands are set out below.
RichouxRichoux is an all day cafe and brasserie established in London in 1909.
The Group has five Richoux restaurants in Central London - the existing restaurants in Knightsbridge, Mayfair, Piccadilly and St John's Wood and a new restaurant in Gloucester Road which opened in August 2015.
Dean's DinerDean's Diner is a classic 1950s American Diner.
The Group has currently has seven Dean's Diner restaurants - the existing restaurants in Chatham, Port Solent , Braintree, Fareham, Bicester and Trowbridge and a new restaurant in Hempstead Valley which opened in July 2015. Agreements for lease have been exchanged for new Dean's Diners in Orpington which is due to open before the end of the year and Bromley and Yate which are due to open in 2016.
VillagioVillagio is a modern local Italian family restaurant, delivering a good quality value family dining experience.
The Group currently has five Villagio restaurants in Andover, Basildon, Hammersmith, Chislehurst and Chatham. The Group plans to rebrand as a Villagio restaurant its property in High Wycombe which it has had to take a reassignment of under an authorised guarantee agreement. This restaurant is due to open before the end of the year.
The Group also has two Italian restaurants trading as Zippers Bar, Restaurant and Grill - one in Chatham and one in
Port Solent.
Capital expenditure and cash flowAs at the end of the period under review the Group held cash of £4.40 million (December 2014: £3.13 million).
Capital expenditure of £0.75 million was incurred in the period; on the fit out of the new restaurants and some replacement equipment in the existing sites.
OutlookWe hope to build on the solid start to the year over the remainder of the year. We are continuing to expand the Dean's Diner portfolio and are actively looking to add to the two opening already secured for next year. The new Richoux site in Gloucester Road has also demonstrated that there is scope for further openings of this brand but only where the appropriate geographic locations and sites can be identified.
Philip Shotter
Chairman
22 September 2015
Richoux Group plc Condensed consolidated statement of comprehensive incomefor the 28 week period ended 12 July 2015
Notes
28 week period ended
12 July
2015
28 week period ended
13 July
2014
52 week period ended
28 December
2014
£000 £000 £000
Revenue 3 6,695 6,678 12,679
Cost of sales:
Excluding pre-opening costs (6,006) (5,975) (11,220) Pre-opening costs (75) (35) (35)
Total cost of sales (6,081) (6,010) (11,255)
Gross profit 614 668 1,424
Administrative expenses (303) (324) (583) Other operating income 3 - -
Operating profit before impairment 314 344 841
Impairment of intangible assets 6 - (6) (6) Impairment of property, plant and equipment 7 - (184) (274) Onerous lease provision - - (150)
Operating profit 314 154 411
Finance income 6 5 9
Profit before taxation 3 320 159 420
Taxation - - -
Profit and total comprehensive profit for the period 320 159 420
Profit and total comprehensive profit attributable to
equity holders of the parent 320 159 420
Profit and total comprehensive profit per share:
Profit per share 4 0.3p 0.2p 0.5p
Diluted profit per share 4 0.3p 0.2p 0.4p
For the 28 week period ended 12 July 2015
Share capital
Share premium account
Profit and loss account
Total
£000 £000 £000 £000
At 29 December 2013 | 3,681 | 12,242 | (7,930) | 7,993 |
Profit for the period | - | - | 159 | 159 |
Total comprehensive profit - - 159 159
Credit to equity for equity settled share based payments - - 28 28
Total contributions by and distributions to owners of the Company,
recognised directly in equity - - 28 28
At 13 July 2014 | 3,681 | 12,242 | (7,743) | 8,180 |
Profit for the period | - | - | 261 | 261 |
Total comprehensive profit - - 261 261
Credit to equity for equity settled share based payments - - (1) (1) Total contributions by and distributions to owners of the Company,
recognised directly in equity - - (1) (1)
At 28 December 2014 | 3,681 | 12,242 | (7,483) | 8,440 |
Profit for the period | - | - | 320 | 320 |
Total comprehensive profit - - 320 320
Credit to equity for equity settled share based payments - - 33 33
Total contributions by and distributions to owners of the Company,
recognised directly in equity - - 33 33
At 12 July 2015 3,681 12,242 (7,130) 8,793
Richoux Group plc Condensed consolidated statement of financial positionat 12 July 2015
12 July
2015
13 July
2014
28 December
2014
Assets
Non-current assets
Notes £000 £000 £000
Goodwill 6 234 234 234
Other intangible assets 6 75 66 72
Property, plant and equipment 7 6,296 6,441 5,953
Trade and other receivables 38 40 40
Total non-current assets 3 6,643 6,781 6,299
Current assets | |||
Inventories | 179 | 205 | 198 |
Trade and other receivables | 897 | 917 | 691 |
Cash and cash equivalents | 4,396 | 3,133 | 3,947 |
Total current assets 5,472 4,255 4,836
Total assets 12,115 11,036 11,135
Liabilities | |||
Current liabilities | |||
Trade and other payables | (2,775) | (2,509) | (2,172) |
Provisions | (150) | - | (150) |
Total current liabilities (2,925) (2,509) (2,322)
Non-current liabilities
Trade and other payables (397) (347) (373) Total non-current liabilities (397) (347) (373) Total liabilities (3,322) (2,856) (2,695) Net assets 8,793 8,180 8,440
Total equity 8,793 8,180 8,440
Richoux Group plc Condensed consolidated statement of cash flowsfor the 28 week period ended 12 July 2015
Notes
28 week period ended
12 July
2015
28 week period ended
13 July
2014
52 week period ended
28 December
2014
Operating activities
£000 £000 £000
Cash generated from operations 8 886 463 1,486
Interest paid - - -
Net cash from operating activities 886 463 1,486
Investing activities
Purchase of property, plant and equipment (426) (1,334) (1,816) Purchase intangible assets (17) (10) (27) Net proceeds from sale of property, plant and equipment - - 286
Interest received 6 5 9
Net cash used in investing activities (437) (1,339) (1,548)
Net increase/(decrease) in cash and cash equivalents 449 (876) (62) Cash and cash equivalents at the beginning of the period 3,947 4,009 4,009
Cash and cash equivalents at the end of the period 4,396 3,133 3,947
Notes1. 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 12 July 2015 and the 28 week period ended 13
July 2014 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 28 December 2014 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 28 December 2014. 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 28 December 2014. The condensed financial information for the 28 week period ended 12 July 2015 and the 28 week period ended 13 July 2014 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 52 week period ended 28 December 2014 does not constitute the Group's statutory accounts for that period but it is derived from those accounts. Statutory accounts for the 52 week period ended 28 December 2014 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 three reportable business segments based around its core restaurant brands, Dean's Diner, 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 12 July 2015Dean's
Diner Villagio Richoux
Un-
allocated Total
£000 £000 £000 £000 £000
Revenue 1,968 2,556 2,171 - 6,695
Segment profit/(loss) 123 331 284 (124) 614
Administrative expenses - - - (303) (303)
Other operating income - - - 3 3
Finance income - - - 6 6
Profit before taxation 123 331 284 (418) 320
Non-current assets as at 28 December 2014 2,590 2,609 1,004 96 6,299
Additions 560 33 156 5 754
Depreciation and amortisation (139) (162) (85) (17) (403)
Disposals (3) (2) (2) - (7)
Non-current assets as at 12 July 2015 3,008 2,478 1,073 84 6,643
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:
12 July
2015
13 July
2014
28 December
2014
Profit
Profit for the purposes of basic profit per share being the net profit
£000 £000 £000
attributable to equity holders of the parent 320 159 420
Number of shares
Weighted average number of ordinary shares for the purposes of the
basic profit per share 92,019,612 92,019,612 92,019,612
Effect of dilutive potential ordinary shares:
Share options 1,962,242 1,010,932 2,564,456
Weighted average number of ordinary shares for the purposes of the
diluted profit per share 93,981,854 93,030,544 94,584,068
Share options not included in the diluted calculations as per the
requirements of IAS 33 (as they are anti-dilutive) 3,986,761 3,271,821 3,384,547
Basic profit per share:
From total operations 0.3p 0.2p 0.5p
Diluted profit per share:
From total operations 0.3p 0.2p 0.4p
5. No dividend is proposed.
6. | Intangible fixed assets | Goodwill | Trademarks | Software | Total |
£000 | £000 | £000 | £000 | ||
Cost | |||||
At 29 December 2013 | 269 | 21 | 145 | 435 | |
Additions | - | 1 | 9 | 10 | |
At 13 July 2014 | 269 | 22 | 154 | 445 | |
Additions | - | 1 | 16 | 17 | |
Disposals | - | - | (9) | (9) | |
At 28 December 2014 | 269 | 23 | 161 | 453 | |
Additions | - | - | 17 | 17 | |
Disposals | - | - | (12) | (12) | |
At 12 July 2015 | 269 | 23 | 166 | 458 | |
Accumulated amortisation and impairment | |||||
At 29 December 2013 | 35 | 5 | 88 | 128 | |
Charge for period | - | 1 | 10 | 11 | |
Impairment | - | - | 6 | 6 | |
At 13 July 2014 | 35 | 6 | 104 | 145 | |
Charge for period | - | 1 | 10 | 11 | |
Disposals | - | - | (9) | (9) | |
At 28 December 2014 | 35 | 7 | 105 | 147 | |
Charge for period | - | 2 | 11 | 13 | |
Disposals | - | - | (11) | (11) | |
At 12 July 2015 | 35 | 9 | 105 | 149 | |
Carrying amount | |||||
At 12 July 2015 | 234 | 14 | 61 | 309 | |
At 28 December 2014 | 234 | 16 | 56 | 306 | |
At 13 July 2014 | 234 | 16 | 50 | 300 |
Goodwill of £269,000 (2014: £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 2020 based on a sales growth rate of 2 per cent for established sites. The discount rate applied to cash flow projections is 10 per cent.
No impairment provision is required (December 2014: £6,000).
7. Property, plant and equipment
Short leasehold land and buildings
Fixtures, fittings,
and equipment Total
Cost
£000 £000 £000
At 29 December 2013 7,621 3,321 10,942
Additions 494 182 676
Disposals (29) (24) (53)
At 13 July 2014 8,086 3,479 11,565
Additions 81 168 249
Transfers 42 (42) - Disposals (658) (308) (966)
At 28 December 2014 7,551 3,297 10,848
Additions 555 182 737
Disposals - (39) (39) At 12 July 2015 8,106 3,440 11,546
At 12 July 2015 3,247 2,003 5,250
Carrying amount
At 12 July 2015 4,859 1,437 6,296
At 28 December 2014 4,482 1,471 5,953
At 13 July 2014 4,754 1,687 6,441
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 2020 based on a sales growth rate of 2 per cent for established sites. The discount rate applied to cash flow projections is 10 per cent.
No impairment provision is required (December 2014: £274,000).
8. Reconciliation of operating profit to operating cash flows
28 week period ended
12 July
2015
28 week period ended
13 July
2014
52 week period ended
28 December
2014
£000 £000 £000
Operating profit 314 154 411
Loss on disposal of intangible fixed assets 1 - - Loss on disposal of property, plant and equipment 4 6 24
Depreciation charge 390 393 736
Amortisation charge 13 11 22
Impairment of intangible fixed assets - 6 6
Impairment of property, plant and equipment - 184 274
Decrease/(increase) in stocks 19 (10) (3) Increase in debtors (204) (251) (25) Increase/(decrease) in creditors 316 (58) 14
Equity settled share based payments 33 28 27
Net cash inflow from operating activities 886 463 1,486
9. Related party transactions
During the period the Group paid professional fees for legal services in connection with properties of £32,000 (July 2014: £16,000, December 2014: £50,000) to Glovers Solicitors LLP of which Philip Shotter is a member. As at the end of the period £2,000 was outstanding (December 2014: £nil). 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
28 week period ended
12 July
2015
28 week period ended
13 July
2014
52 week period ended
28 December
2014
£000 £000 £000
Short term employee benefits 151 147 273
Share based payments 15 20 14
166 167 287
10. 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 -|
distributed by
|
