Final Results
FISH PLC
22 February 2002
FISH PLC
Preliminary Results for the Year ended 31 October 2001
Fish PLC, the operator of 18 Fish! diners and specialist food suppliers, today
announces preliminary results for the year ended 31 October 2001.
• Fish! was not immune from Foot and Mouth or September 11 but achieved
profit before tax on continuing operations up 100% to £2.0m (2000: £1.0m)
• Opening programme on schedule with the Group now operating 18 Fish!
with 11 new diners opened during the period and a further two since the
year end.
• Specialist food division continues to provide the platform for growth
• While consumer confidence is low, the Board has decided to be prudent,
while retaining flexibility with the opening programme. A minimum of
five Fish! will open in the current year which can be accelerated
rapidly
• In light of the difficult market conditions the Board is actively
reviewing a range of strategies to facilitate growth and maximise
shareholder returns
Tony Allan, Chairman said:
'Fish! has suffered from events beyond its control during a critical phase of
growth. Whilst trading remains difficult, the Fish! brand remains robust. The
Group will pick up the rate of expansion when market conditions allow and there
are signs that this is happening. We are still firmly committed to building
Fish! into a nationwide chain.'
22 February 2002
ENQUIRIES:
FISH PLC Today: 0207 457 2020
Paul Gilligan, Chief Executive Thereafter: 020 7234 3300
Jeremy Ormerod, Finance Director
College Hill Tel: 020 7457 2020
Justine Warren
Matthew Smallwood
FISH PLC
Preliminary Results for the Year to 31 October 2001
Chairman's Statement
Introduction
We are pleased with the Group's achievements over the past year - a year which
has been the most challenging we have faced on a number of counts. Many changes
have taken place within the Group which are designed to create a business with
focus on the Fish! brand and the expansion of the diners and retail outlets.
We have delivered the roll out programme we promised and the Group concluded the
year end with 16 Fish! Diners and three retail shops. In addition, Cutty and
Bentley continued to develop its customer base and to supply fresh fish and meat
to the Group's diners, as well as the restaurant industry generally.
Our commitment to high standards of food quality, design and service remain at
the forefront of our ambitions. The Group continues to source reliable
sustainable fish from around the world and became the first restaurant group
worldwide to display the coveted Marine Stewardship Council logo on the menu.
Our diner designs continues to achieve favourable comment from the critics and
media. We will continue with expansion in affluent areas throughout the UK.
During the year, we launched the Fish! Academy in London. We provide training
to new staff, re-training for existing staff and management courses for up and
coming management. This supply of newly trained staff provides the pipeline for
the diner expansion programme.
External Events
The foot and mouth outbreak starting in February 2001 and the subsequent
terrorist attacks in America in September 2001 provided trading difficulties for
the Group.
As was typical for the restaurant sector as a whole, there has been an impact on
group sales in what was a critical growth period. In particular, we saw a
decline in consumer eating-out in the aftermath of September 11th, which
reflected in sales decreases against budget of approximately 20%. In areas
where we traditionally secured the lunchtime business market such as Borough and
Canary Wharf, sales were affected. In the previously popular tourist locations,
Borough and County Hall, there were also noticeable effects in evening trade.
Group Financial Performance
Group turnover increased to £18.8m (2000: £12.2m from continuing operations,
total £21.0m) reflecting the ongoing trading of Fish! and the specialist food
division. At the year end 16 Fish! diners were operational. Group operating
profit, on a continuing basis, over the period was £2.0m (2000: £1.1m, total
including discontinued operations £2.5m) and profit on ordinary activities
before tax on continuing operations was £2.0m. (2000: £1.0m, total including
discontinued operations £2.2m) Earnings per share were 6.50p (2000: 8.28p).
The Group's results have been impacted by a changed maturity profile of the
Fish! Brand amongst the newer operations. After initial strong sales, there is
a levelling off in trade which will then build again over a period of 2-2.5
years. However, in some of our diners we have proven that a very high return on
capital employed can be delivered. This is the exception, not the rule. Our
maturity profile is similar to other operators within the industry and we will
continue to manage the Group with this timescale in mind going forward.
Restaurant Division
Turnover from the restaurant division was £8.9m (2000: continuing operations
£3.9m) with operating profit of £2.3m (2000: continuing operations £1.1m)
During the year, the Company opened 11 new diners. Birmingham Mailbox opened in
November 2000 and these were followed by New Kings Road (April), Putney (April),
Leeds (May), Blackheath (June), Epsom (July), Solihull (September), Manchester
(September), Earlsfield (September), Marlow (October) and Clerkenwell (October).
Since the year end, diners have subsequently been opened in The City
(November) and Surbiton (December).
As scheduled, the majority of openings took place in the second half of the year
following a review of all property matters following Paul Gilligan's arrival in
August 2000. A new property team joined the Group and has continued to secure
sites for future growth. We have secured new sites in Brighton, St Albans and
Berners Street (W1). These will be trading by our half-year period in April
2002.
Owing to a general lack of consumer confidence at the current time, the Board of
Fish! Plc has carefully considered the plans for future growth and has decided
to review the openings programme. It is prudent not to commit extra funds to
the development of the Group until such time as a recovery is readily evident.
We have, however, continued to negotiate on a large number of new sites and have
constantly been approached by developers to take leases in new schemes. The
Directors remain confident in our ability to roll out new Fish! diners and our
overall plan remains to expand the Fish! diner brand throughout the UK.
Specialist Food Division
Turnover was £11.0m (2000: £9.6m) and operating profit was £0.7m (2000: £0.7m)
This division continues to provide the key platform for the Group's expansion.
Our expert buyers and staff at Cutty continue to source high quality fish from
UK waters and around the world. Fish is prepared at the Old Kent Road factory
and distributed daily to the diners as well as the external base of restaurant
clients.
We also continue to expand our expert knowledge in environmentally friendly
fishing methods and sustainable fisheries to deliver further growth in an area
where consumers awareness is becoming higher.
Retail and Branding
At the year-end the Group was trading from three independent retail Fish! shops
at Borough Market, Kingston and Guildford. Jarvis of Kingston was re-branded
during the period to the Fish! brand and this has proved very successful.
We have identified a real demand for our wet fish and related fine foods and
have also developed a strong range of cookery items, kitchenware and household
products. The retail shops have an incremental benefit of marketing the Fish!
brand to consumers and helps to draw custom to newly opened diners in the
crucial early weeks of trading, in particular. Since the year end we have opened
a retail unit at Blackheath.
A fifth shop is currently being fitted out adjacent to the Surbiton diner and we
plan to open shops in Marlow and St Albans over the coming months.
We have had encouragingly positive feedback from customers on the Group's retail
shops, as generally there has been a decline in traditional High Street
fishmongers. It is our intention to reverse this trend and in so doing
strengthening the market for the Fish! brand.
In addition, Tony Allan will be starring in a new prime time BBC food and
lifestyle programme which will expand knowledge of the Fish! brand and the
benefits of a healthy diet.
Operations
This was an important year for operations at Fish! 11 new sites opened smoothly
and on schedule.
We have focused on improving the efficiency of data collation and analysis from
the Group's growing portfolio of diners, and have developed a system to unite
front and back of house operations rather than following the traditional
restaurant structure of splitting the business into two separate functions.
This single reporting line has been successfully implemented resulting in better
control of all aspects of the business.
In 2002, Fish! will build on this platform Managers will have more increased
autonomy and their teams will have shared goals providing motivation and the
chance to become involved in the financial success of individual operations.
The development of key personnel to manager level is critical in the successful
operation of all the diners.
Board Changes
Paul Gilligan took over as Chief Executive and Jeremy Ormerod became the Finance
Director in July 2001. This move was designed to reflect the changes within the
Group and to address the increasing duties in both areas.
Eric Garnier resigned at the year-end in order to pursue a personal ambition of
running his own family restaurant. The Board would like to take this
opportunity to thank Eric for his significant role in helping make Fish! plc the
success it is today.
Dividend
In the light of the current performance of the Group and the variable market
conditions in which we operate, the Board has decided that it would be
inappropriate to recommend a final dividend.
Current Trading
The overall trend across our estate is that trade has been slower than expected
in our newer units and those locations exposed to changes in tourist numbers.
Like for likes for the period to the end of December 2001 were down 13%, and as
expected, January was poor. We are now experiencing improving trade outside
London and have benefited from a fixed price menu which was introduced in
December 2001 in some locations. Like for like sales in February improved to -
7% indicating that we are now seeing early signs of a return of consumer
confidence. Bookings were very strong for key calendar dates such as Valentines
Day and we are already taking reservations for Mothers' Day and the Easter
break. Most recently, we have benefited from strong sales over the half-term
period particularly in Guildford, Epsom and Surbiton.
Future Prospects
In light of the current economic climate and, in some areas, an uncertainty
regarding consumer spending, the Group will continue to monitor its activities
and improve standards in all areas of food and service.
Against the background of difficult market conditions and given the need to
continue to grow the business, the Board is actively reviewing a range of
strategies to facilitate growth and to improve and maximise shareholder returns.
Our site pipeline for the future is identified and can be accelerated at short
notice. It is our intention to open a minimum of five new Fish! diners during
the current year but retain the flexibility to increase the rate when market
conditions improve.
With the increasing focus of the Group centering on the Fish! brand, the Board
remains confident that management can deliver shareholder value in the future.
Tony Allan
Chairman
22 February 2002
Consolidated Profit and Loss Account
For the year ended 31 October 2001
Continuing Discontinued Continuing Discontinued
operations operations Total Operations Operations Total
2001 2001 2001 2000 2000 2000
£'000 £'000 £'000 £'000 £'000 £'000
Turnover 18,754 - 18,754 12,840 8,131 20,971
Cost of sales (8,797) - (8,797) (6,249) (2,335) (8,584)
Gross profit 9,957 - 9,957 6,591 5,796 12,387
Administrative expenses (7,961) - (7,961) (5,484) (4,370) (9,854)
Group operating profit 1,996 - 1,995 1,107 1,426 2,533
Disposal and closure of - (293) (293) - 154 154
Signature Restaurants
Costs of demerger of subsidiary - - - - (386) (386)
undertaking
Profit on ordinary activities
before interest and other 1,996 (293) 1,703 1,107 1,194 2,301
income
Interest receivable 82 - 82 26 - 26
Interest payable (61) - (61) (91) (17) (108)
Profit on ordinary activities 2,017 (293) 1,724 1,042 1,177 2,219
before taxation
(531)
Taxation - (709)
Profit on ordinary activities 1,193 1,510
after taxation
Dividends - (962)
Group retained profit for the 1,193 548
year
Basic earnings per share 6.50p 8.28p
Diluted earnings per share 6.17p 7.91p
All recognised gains and losses are included above
Consolidated Balance Sheet
As at 31 October 2001
2001 2001 2000 2000
£'000 £'000 £'000 £'000
Fixed assets
Intangible 164 176
Tangible 18,354 9,029
18,518 9,205
Current assets
Stocks 1,842 1,342
Debtors - due within one year 4,843 16,036
Debtors - due after more than one year 775 775
5,618 16,811
Cash at bank 587 168
8,047 18,321
Creditors: amounts falling due within one year 8,945 13,869
Net current assets (898) 4,452
Total assets less current liabilities 17,620 13,657
Creditors: amount falling due after more than one year 2,523 307
Provision for liabilities and charges 1,132 741
3,655 1,048
Net assets 13,965 12,609
Capital and reserves
Called up share capital 1,858 1,829
Share premium account 8,035 7,901
Merger reserve (1,375) (1,375)
Profit and loss account 5,447 4,254
Equity shareholders' funds 13,965 12,609
The financial statements were approved by the Board on 22 February 2002
Consolidated Cash Flow Statement
For the year ended 31 October 2001
2001 2000
£'000 £'000
Net cash inflow from operating activities 11,869 5,980
Returns on investments and servicing of finance
Interest received 82 26
Interest paid (61) (108)
Net cash inflow/(outflow) from returns on investments and servicing 21 (82)
of finance
Taxation
Corporation tax paid (212) (571)
Capital expenditure
Purchase of intangible fixed assets - (136)
Purchase of tangible fixed assets (10,116) (11,486)
Sale of tangible fixed assets 38 40
Net cash outflow from capital expenditure (10,078) (11,582)
Acquisitions and disposals
Cost of demerger of Crestport Limited - (386)
Disposal of Signature Restaurant business (293) (1,432)
Purchase of subsidiaries - deferred consideration - (158)
Net cash overdraft acquired with subsidiary
Cash outflow from acquisitions and disposals (293) (1,976)
Equity dividends paid (183) (164)
Cash inflow/(outflow) before use of liquid resources and financing 1,124 (8,395)
Management of liquid resources
Short term deposits - 3,000
Cash inflow from management of liquid resources - 3,000
Financing
Net increase in loans (418) 1,956
Capital element of finance lease rental payments (365) (78)
Issue of share capital 166 238
Expenses set against share premium accounts (3) (53)
Net cash (outflow)/inflow from financing (620) 2,063
(Increase)/decrease in cash 504 3,332
Notes to the Financial Statements
1. Corresponding Figures
The analysis between continuing and discontinued operations for the year ended
31 October 2000 is shown below. Acquisitions made in the year ended 31 October
2000 are shown as part of continuing activities and activities discontinued in
the year ended 31 October 2000 are shown as part of discontinued activities:
Continuing Discontinued Total
£'000 £'000 £'000
Turnover 12,840 8,131 20,971
Cost of Sales (6,249) (2,335) (8,584)
Gross Profit 6,591 5,796 12,387
Administrative Expenses (5,484) (4,370) (9,854)
Operating Profit 1,107 1,426 2,533
2. Segmental Information
2001 2000
£'000 £'000
Turnover
Food Preparation Division 11,027 9,618
Restaurant Division 8,876 11,648
Computer Division - 376
Holding Company 420 668
Less: Intra Group trade (1,569) (1,339)
18,754 20,971
Operating profit
Food Preparation Division 677 661
Restaurant Division 2,305 2,469
Computer Division - 58
Holding Company (986) (655)
1,996 2,533
Pre-tax profits before intra Group dividends
Food Preparation Division 664 594
Restaurant Division 2,278 2,602
Computer Division - (329)
Holding Company (1,218) (648)
1,724 2,219
Net assets
Food Preparation Division 2,794 2,208
Restaurant Division 3,524 1,699
Computer Division - -
Holding Company 7,647 8,702
13,965 12,609
Turnover arises solely in the United Kingdom.
3. Taxation
(a) Analysis of charge in year
2001 2000
£'000 £'000
Current tax
UK corporation tax on profits of the year 84 207
Under provision in respect of prior year 56 -
Deferred tax
Current year charge 391 502
Tax on profit on ordinary activities 531 709
(b) Factors affecting tax charge for year
The tax assessed for the period is lower than the standard rate of corporation
tax in the UK (30%). The differences are explained below:
2001 2000
£'000 £'000
Profit on ordinary activities before tax 1,724 2,219
Profit on ordinary activities multiplied by standard rate of 517 666
corporation tax of 30% (2000: 30.4%)
Effects of:
Expenses not deductible for tax purposes 126 257
Capital allowances for period in excess of depreciation (559) (149)
Group relief claimed and not paid for - (56)
Current year capital gains taken to current year deferred tax - (511)
Current tax charge for period 84 207
4. Dividends
2001 2000
£'000 £'000
Ordinary dividends (equity):
Final proposed nil. (2000: 0.9p per share) - 183
Dividend in specie arising on demerger of subsidiary - 779
undertaking
- 962
5. Earnings per share
2001 2000
£'000 £'000
The earnings per share is based on the following:
Earnings (£'000) 1,193 1,510
Weighted average number of shares 18,342 18,243
Diluted number of shares 19,333 19,081
Earnings per share 6.50p 8.28p
Diluted earnings per share 6.17p 7.91p
Earnings per ordinary share has been calculated using the weighted average
number of shares in issue during the year. The weighted average number of
equity shares in issue was 18,341,544 (2000:18,242,707).
The diluted earnings per share is based on 19,332,718 (2000:19,081,094) ordinary
shares which allow for the exercise of all dilutive potential ordinary shares.
6. Reconciliation of movement in shareholder's funds
2001 2000 2001 2000
£'000 £'000 £'000 £'000
Opening shareholders' funds 12,609 11,876 10,077 9,875
Retained profit for the year 1,193 548 (1,218) 17
Issue of share capital 166 238 166 238
Less cost of issue shares (3) (53) (3) (53)
Closing shareholders' funds 13,965 12,609 9,022 10,077
7. Reconciliation of operating profit to net cash inflow from operating activities
2001 2000
£'000 £'000
Operating profit 1,996 2,533
Depreciation 791 631
Amortisation of intangibles 12 5
Profit on disposal of fixed assets 30 (40)
Increase in stocks (500) (294)
Decrease/(increase) in debtors 11,193 (231)
(Decrease)/increase in creditors (1,653) 3,376
Net cash inflow from operating activities 11,869 5,980
8. Reconciliation of net cash flow to movement in net debt
2001 2000
£'000 £'000
Increase/(decrease) in cash in the year 504 3,332
Cash outflow/(inflow) from changes in debt and lease financing 335 (2,473)
Cash inflow from decrease in liquid resources - (3,000)
Change in net debt resulting from cash flows 839 (8,805)
Net (debt)/funds at the beginning of the year (6,624) 2,181
Net (debt) at the end of the year (5,785) (6,624)
9. Analysis of net funds/(debt)
Year ended Cashflow Year ended
31 October £'000 31 October
2000 2001
£'000 £'000
Cash in hand and at bank 168 419 587
Overdraft (1,898) 85 (1,813)
(1,730) 504 (1,226)
Debt due within one year (71) (1,529) (1,600)
Debt due after one year (4,200) 1,947) (2,253)
Finance leases (623) (83) (706)
Total (6,624) 839 (5,785)
10. Statutory Accounts
The financial information for the year ended 31 October 2001 set out in this
announcement does not comprise statutory accounts within the meaning of section
240 of the Companies Act 1985. There have been no changes to the accounting
policies used to prepare these financial statements since the last set of
financial statements.
The financial statements for the year ended 31 October 2001 will be delivered
after the Annual General Meeting to the Registrar of Companies and will include
the auditors' report which is expected to be unqualified and will not contain a
statement under either section 237 (2) or 237 (3) of the Companies Act 1985. The
financial statements for the year ended 31 October 2000 received an unqualified
audit report.
This information is provided by RNS
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