Source - RNS
RNS Number : 3802J
Richoux Group PLC
09 September 2016
 

 

 

Richoux Group plc

Interim results for the 28 weeks ended 10 July 2016

 

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 10 July 2016.

 

 

Key points: 

  •   Turnover increased 5.7% to £7.08 million

(2015: £6.70 million). 

  •   Adjusted* EBITDA decreased to £0.28 million

(2015: £0.79 million). 

  •   Loss after tax £0.58 million

(2015: profit £0.32 million). 

  •   Currently twenty-three restaurants trading. 
  •   Two new Dean's Diners and one new Villagio opened. 
  •   Cash of £3.09 million at period end.

(December 2015: £4.40 million).

 

 * Excluding pre opening costs and impairment.

 

  

 

Philip Shotter, Chairman of Richoux Group plc said:

 

"In line with a number of other restaurant groups, trading conditions have been difficult during the period as we continue to face the challenge of increased competition at a number of sites as well as increased property and staff costs, the latter due largely to the impact of the living wage. We are pleased to have opened two further Dean's Diner restaurants and one further Villagio restaurant, although handover of what will be the tenth Dean's Diner site has been delayed until 2017 due to delays on the part of the developer. A decision has also been made to recognise impairment charges against three sites which are underperforming"

 

This announcement contains inside information.

 

Enquiries:

 

Richoux Group plc

 

Philip Shotter, Chairman

(020) 7483 7000

 

 

 

 

Cenkos Securities plc

(020) 7397 8900

Bobbie Hilliam

 

 

 

 

Results

 

Revenue for the 28 week period ended 10 July 2016 increased 5.7% on the 28 week period ended 12 July 2015 to £7.08 million (2015: £6.70 million). Adjusted EBITDA before pre-opening costs and impairment decreased to £0.28 million (2015: £0.79 million). Adjusted operating loss before pre-opening costs and impairment decreased to £0.15 million (2015: profit £0.39 million). Pre-opening costs for the period were £0.09 million (2015: £0.08 million). The net loss for the period was £0.58 million (2015: profit £0.32 million).

 

The Directors are not recommending the payment of a dividend.

 

Operations

 

The Group currently has twenty-three operating restaurants, which operate under the Richoux, Dean's Diner and Villagio brands. Further details on each of the brands are set out below.

 

Richoux                                   

 

Richoux is an all day cafe and brasserie established in London in 1909.

 

The Group has five Richoux restaurants in Central London - in Knightsbridge, Mayfair, Piccadilly, St John's Wood and Gloucester Arcade.

 

Dean's Diner

 

Dean's Diner is a classic 1950s American Diner.

 

The Group currently has nine Dean's Diner restaurants - the existing restaurants in Chatham, Port Solent, Braintree, Fareham, Bicester, Trowbridge and Hempstead Valley and new restaurants in Orpington; which opened in February 2016 and Yate; which opened in May 2016. An agreement for lease has been exchanged for a new Dean's Diners in Bromley which is due to open in late 2017. An impairment charge of £0.29 million has been made against the restaurants in Bicester and Trowbridge.

 

Villagio                                    

 

Villagio is a modern local Italian family restaurant, delivering a good quality value family dining experience.

 

The Group currently has eight Villagio restaurants in Andover, Basildon, Hammersmith, Chislehurst, Port Solent, Chatham and High Wycombe and a new restaurant in Canterbury; which opened in July 2016. An impairment charge of £0.06 million has been made against the restaurant in Chislehurst.

 

The Group also has one Italian restaurant trading as Zippers Bar, Restaurant and Grill in Chatham.

 

 

Capital expenditure and cash flow

 

As at the end of the period under review the Group held cash of £3.09 million (December 2015: £4.40 million).

 

Capital expenditure of £1.71 million was incurred in the period; on the fit out of the new restaurants and some replacement equipment in the existing sites.

 

Outlook

 

The Group will be focusing on improving performance of the three principal trading formats at existing sites but will continue to evaluate new sites for further acquisitions as and when suitable opportunities present themselves.

 

Philip Shotter

Chairman

8 September 2016

 

Richoux Group plc

Condensed consolidated statement of comprehensive income

for the 28 week period ended 10 July 2016

 

 

 

 

 

Notes

28 week

period ended

10 July

2016

28 week

period ended

12 July

2015

52 week

period ended

27 December

2015

 

 

£000

£000

£000

 

 

 

 

 

Revenue

3

7,075

6,695

13,027

Cost of sales:

 

 

 

 

Excluding pre-opening costs

 

(6,930)

(6,006)

(11,612)

Pre-opening costs

 

(86)

(75)

(181)

Total cost of sales

 

(7,016)

(6,081)

(11,793)

 

 

              

              

              

Gross profit

 

59

614

1,234

Administrative expenses

 

(293)

(303)

(506)

Other operating income

 

1

3

3

 

 

              

              

              

Operating (loss)/profit before impairment

 

(233)

314

731

Impairment of intangible assets

6

-

-

(1)

Impairment of property, plant and equipment

7

(352)

-

(526)

Onerous lease provision

 

-

-

150

 

 

              

              

              

Operating (loss)/profit

 

(585)

314

354

Finance income

 

6

6

11

 

 

              

              

              

(Loss)/profit before taxation

3

(579)

320

365

Taxation

 

-

-

-

 

 

              

              

              

(Loss)/profit and total comprehensive (loss)/profit for the period

 

(579)

320

365

 

 

              

              

              

(Loss)/profit and total comprehensive (loss)/profit attributable to equity holders of the parent

 

 

(579)

 

320

 

365

 

 

              

              

              

(Loss)/profit and total comprehensive (loss)/profit per share:

 

 

 

 

(Loss)/profit per share

4

(0.6)p

0.3p

0.4p

Diluted (loss)/profit per share

4

(0.6)p

0.3p

0.4p

 

 

              

              

              

 

Condensed consolidated statement of changes in equity

For the 28 week period ended 10 July 2016

                                                                                               

           

 

 
Share capital

Share premium account

Profit and loss account

 

 

Total

 

£000

£000

£000

£000

 

 

 

 

 

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

Profit for the period

-

-

45

45

              

              

              

              

              

Total comprehensive profit

-

-

45

45

 

              

              

              

              

Credit to equity for equity settled share based payments

-

-

13

13

New share capital subscribed

3

7

-

10

 

              

              

              

              

Total contributions by and distributions to owners of the Company, recognised directly in equity

 

3

 

7

 

13

 

23

 

              

              

              

              

At 27 December 2015

3,684

12,249

(7,072)

8,861

Loss for the period

-

-

(579)

(579)

 

              

              

              

              

Total comprehensive loss

-

-

(579)

(579)

 

              

              

              

              

Credit to equity for equity settled share based payments

-

-

16

16

 

              

              

              

              

Total contributions by and distributions to owners of the Company, recognised directly in equity

 

-

 

-

 

16

 

16

 

              

              

              

              

At 10 July 2016

3,684

12,249

(7,635)

8,298

 

 

Condensed consolidated statement of financial position

at 10 July 2016                                                                                      

 

 

 

10 July
2016

12 July

 2015

27 December

 2015

 

Notes

£000

£000

£000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Goodwill

6

234

234

234

Other intangible assets

6

61

75

70

Property, plant and equipment

7

7,297

6,296

6,367

Trade and other receivables

 

-

38

-

 

 

              

              

              

Total non-current assets

3

7,592

6,643

6,671

 

 

              

              

              

Current assets

 

 

 

 

Inventories

 

206

179

215

Trade and other receivables

 

1,105

897

893

Cash and cash equivalents

 

3,094

4,396

4,402

 

 

              

              

              

Total current assets

 

4,405

5,472

5.510

 

 

              

              

              

Total assets

 

11,997

12,115

12,181

 

 

              

              

              

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

(3,253)

(2,775)

(2,894)

Provisions

 

-

(150)

-

 

 

              

              

              

Total current liabilities

 

(3,253)

(2,925)

(2,894)

 

 

              

              

              

Non-current liabilities

 

 

 

 

Trade and other payables

 

(446)

(397)

(426)

 

 

              

              

              

Total non-current liabilities

 

(446)

(397)

(426)

 

 

              

              

              

Total liabilities

 

(3,699)

(3,322)

(3,320)

 

 

              

              

              

Net assets

 

8,298

8,793

8,861

 

 

              

              

              

Capital and reserves

 

 

 

 

Share capital

 

3,684

3,681

3,684

Share premium account

 

12,249

12,242

12,249

Retained earnings

 

(7,635)

(7,130)

(7,072)

 

 

              

              

              

Total equity

 

8,298

8,793

8,861

 

 

              

              

              

 

 

Condensed consolidated statement of cash flows

for the 28 week period ended 10 July 2016

 

 

 
 
 
Notes

28 week

period ended

10 July

2016

28 week

period ended

12 July

2015

52 week

period ended

27 December

2015

 

 

£000

£000

£000

Operating activities

 

 

 

 

Cash generated from operations

8

133

886

1,767

Interest paid

 

-

-

-

 

 

              

              

              

Net cash from operating activities

 

133

886

1,767

 

 

              

              

              

Investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(1,445)

(426)

(1,307)

Purchase intangible assets

 

(4)

(17)

(26)

Net proceeds from sale of property, plant and equipment

 

2

-

-

Interest received

 

6

6

11

 

 

              

              

              

Net cash used in investing activities

 

(1,441)

(437)

(1,322)

 

 

              

              

              

Financing activities

 

 

 

 

Proceeds from issue of ordinary shares

 

-

-

10

 

 

              

              

              

Net cash from financing activities

 

-

-

10

 

 

              

              

              

Net increase/(decrease) in cash and cash equivalents

 

(1,308)

449

455

Cash and cash equivalents at the beginning of the period

 

4,402

3,947

3,947

 

 

              

              

              

Cash and cash equivalents at the end of the period

 

3,094

4,396

4,402

 

 

              

              

              

 

 
 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 condensed financial information for the 28 week period ended 10 July 2016 and the 28 week period ended 12 July 2015 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 27 December 2015 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 27 December 2015. 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 27 December 2015. The condensed financial information for the 28 week period ended 10 July 2016 and the 28 week period ended 12 July 2015 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 27 December 2015 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 27 December 2015 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 10 July 2016

 

Dean's Diner

 

Villagio

 

Richoux

Un-allocated

 

Total

£000

£000

£000

£000

£000

 

 

 

 

 

2,188

2,465

2,422

-

7,075

              

              

              

              

              

(25)

74

122

(112)

59

-

-

-

(293)

(293)

-

-

-

1

1

(292)

(60)

-

-

(352)

-

-

-

6

6

              

              

              

              

              

(317)

14

122

(398)

(579)

              

              

              

              

              

 

 

 

 

 

2,638

2,319

1,640

74

6,671

885

783

40

5

1,713

(164)

(155)

(93)

(16)

(428)

(292)

(60)

-

-

(352)

(5)

(4)

(3)

-

(12)

              

              

              

              

              

3,062

2,883

1,584

63

7,592

              

              

              

              

              

 

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.   (Loss)/profit per share

The calculation of the basic and diluted (loss)/profit per share is based on the following data:

 

 

10 July

 2016

12 July

2015

 27 December 2015

 

£000

£000

£000

(Loss)/profit

 

 

 

(Loss)/profit for the purposes of basic (loss)/profit per share being the net profit attributable to equity holders of the parent

 

(579)

 

320

 

365

 

                       

                       

                      

Number of shares

 

 

 

Weighted average number of ordinary shares for the purposes of the basic profit per share

 

92,109,612

 

92,019,612

 

92,037,661

Effect of dilutive potential ordinary shares:

 

 

 

Share options

2,013,385

1,961,242

2,042,134

 

                       

                       

                      

Weighted average number of ordinary shares for the purposes of the diluted profit per share

 

94,122,997

 

93,981,854

 

94,079,795

 

                       

                       

                      

Share options not included in the diluted calculations as per the requirements of IAS 33 (as they are anti-dilutive)

 

3,445,618

 

3,986,761

 

3,416,869

 

                       

                       

                      

Basic (loss)/profit per share:

 

 

 

From total operations

(0.6)p

0.3p

0.4p

 

                       

                       

                      

Diluted (loss)/profit per share:

 

 

 

From total operations

(0.6)p

0.3p

0.4p

 

                       

                       

                      

 

5.   No dividend is proposed.

 

 

6.   Intangible fixed assets

 

 

Goodwill

Trademarks

Software

Total

 

£000

£000

£000

£000

Cost

At 28 December 2014

269

23

161

453

Additions

-

-

17

17

Disposals

-

-

(12)

(12)

 

                

                

                

                

At 12 July 2015

269

23

166

458

Additions

-

1

8

9

Disposals

-

-

(4)

(4)

 

                

                

                

                

At 27 December 2015

269

24

170

463

Additions

-

-

4

4

Disposals

-

-

(4)

(4)

 

                

                

                

                

At 10 July 2016

269

24

170

463

 

                

                

                

                

Accumulated amortisation and impairment

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

Charge for period

-

1

8

9

Impairment

-

-

1

1

Disposals

-

-

-

-

 

                

                

                

                

At 27 December 2015

35

10

114

159

Charge for period

-

1

10

11

Disposals

-

-

(2)

(2)

 

                

                

                

                

At 10 July 2016

35

11

122

168

 

                

                

                

                

Carrying amount

 

 

 

 

At 10 July 2016

234

13

48

295

 

                

                

                            

                

At 27 December 2015

234

14

56

304

 

                 

                

                

                

At 12 July 2015

234

14

61

309

 

                 

                

                

                

 

Impairment testing of goodwill and intangible fixed assets

Goodwill of £269,000 (2015: £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 2021 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 2015: £1,000).

 

 

7.   Property, plant and equipment

 

 

Short leasehold land and buildings

 

Fixtures, fittings, and equipment

 

 

Total

 

£000

£000

£000

Cost

 

 

 

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

Additions

576

352

928

Disposals

(17)

(49)

(66)

 

                

                

                

At 27 December 2015

8,665

3,743

12,408

Additions

1,207

502

1,709

Disposals

(2)

(58)

(60)

 

                

                

                

At 10 July 2016

9,870

4,187

14,057

 

                

                

                

Accumulated amortisation and impairment

 

 

 

At 28 December 2014

3,069

1,826

4,895

Charge for period

178

212

390

Disposals

-

(35)

(35)

 

                

                

                

At 12 July 2015

3,247

2,003

5,250

Charge for period

118

199

317

Impairment

443

83

526

Disposals

(17)

(35)

(52)

 

                

                

                

At 27 December 2015

3,791

2,250

6,041

Charge for period

175

242

417

Impairment

352

-

352

Disposals

(1)

(49)

(50)

 

                

                

                

At 10 July 2016

4,317

2,443

6,760

 

                

                

                

Carrying amount

 

 

 

At 10 July 2016

5,553

1,744

7,297

 

                

               

                

At 27 December 2015

4,874

1,493

6,367

 

                 

                

                

At 12 July 2015

4,859

1,437

6,296

 

                 

                

                

         

 

Impairment testing of property, plant and equipment

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 2021 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.

 

An impairment charge of £352,000 has been recognised in relation to the irrecoverable elements of the assets of two Dean's Diner restaurants and one Villagio restaurant (December 2015: £526,000).

 

 

8.    Reconciliation of operating (loss)/profit to operating cash flows

 

 

 

28 week

period ended

10 July

2016

28 week

period ended

12 July

2015

52 week

period ended

27 December

2015

 

£000

£000

£000

 

 

 

 

Operating (loss)/profit

(585)

314

354

Loss on disposal of intangible fixed assets

2

1

5

Loss on disposal of property, plant and equipment

8

4

18

Depreciation charge

417

390

707

Amortisation charge

11

13

22

Impairment of intangible fixed assets

-

-

1

Impairment of property, plant and equipment

352

-

526

Decrease/(increase) in stocks

9

19

(17)

Increase in debtors

(212)

(204)

(162)

Increase/(decrease) in creditors

115

316

267

Equity settled share based payments

16

33

46

 

              

              

              

Net cash inflow from operating activities

133

886

1,767

 

              

              

              

 

9.    Related party transactions

During the period the Group paid professional fees for legal services in connection with properties of £20,000 (July 2015: £32,000, December 2015: £45,000) to Glovers Solicitors LLP of which Philip Shotter is a member. As at the end of the period £nil was outstanding (December 2015: £5,000). This is in addition to fees included in Directors' emoluments.

 

 

Transactions with directors:

Directors' emoluments

 

28 week

period ended

10 July

2016

28 week

period ended

12 July

2015

52 week

period ended

27 December

2015

 

£000

£000

£000

 

 

 

 

Short term employee benefits

152

151

280

Share based payments

8

15

25

 

              

              

              

 

160

166

305

 

              

              

              

 

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 -


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR AKFDPBBKBACK