Interim Results
FISH PLC
16 July 2001
FISH PLC
Interim Results for the Six Months to 30 April 2001
Fish plc, the quoted restaurant operator of the 'Fish!' diner brand, today
announces Interim results for the six months to 30 April 2001.
* Group turnover, on continuing activities, increased by 40% to £8.408m
(2000: £6.023m)
* Operating profit, on continuing activities, increased sevenfold to £
0.601m (2000: £0.071m)
* Continued expansion of Fish! concept and on target to open 10 new Fish!
diners this financial year, bringing the Group total to 16 by October
2001.
* Rate of expansion programme set to increase with 12 new units due to
open next year; site pipeline secured for 2002 and beyond with sites
predominantly in London.
* Latest openings in New Kings Road and Blackheath are performing above
expectations; Putney and Leeds are performing in line; Battersea unit to
be refocused as a training academy for staff which is core to future
expansion
* Epsom opened last week; additional new units scheduled to open in second
half in Solihull, Wandsworth, Clerkenwell, Manchester and Marlow
* The food preparation division continues to provide the necessary
infrastructure to underpin the roll out programme
* Due to success of accelerated expansion and openings, Paul Gilligan has
been appointed as Chief Executive; Jeremy Ormerod resumes the position of
Finance Director; and Eric Garnier becomes Operations Director
Tony Allan, Chairman, commented:
'We have had a strong start to the year and are increasingly confident of the
strength of the Fish! brand as we expand our presence nationwide. We remain on
track to open at least 10 new units this year and will accelerate our opening
programme to a minimum of 12 new units in 2002.
'The Directors remain confident that Fish! is well placed to maintain its
growth momentum over the months ahead and are confident of a positive result
for the full year.'
16 July 2001
ENQUIRIES:
Fish plc Tel: 020 7234 3300
Tony Allan, Chairman
Paul Gilligan, Chief Executive
Jeremy Ormerod, Finance Director
College Hill Tel: 020 7457 2020
Justine Warren
Matthew Smallwood
Chairman's Statement
Fish plc has emerged in the current financial year as the operator of a single
focused restaurant concept, with the unique underpinning of Cutty, its
Specialist Food Group Division. The continued expansion of Fish! nationwide is
the primary focus of the Group going forward and the site pipeline has already
been secured for 2002 and beyond.
Group Financial Performance
Turnover on continuing activities grew to £8.408m (2000: £6.023m) reflecting
the ongoing trading of Fish! and the specialist food division. These figures
relate to continuing activities following the sale of the Group's signature
restaurants last year. At the half year end eight Fish! diners were
operational. Group operating profit, on a continuing basis, increased over the
period to £601,000 (2000: £71,000), a sevenfold increase over last year.
Profit before tax was £615,000 (2000: £759,000, including contribution from
the Group's former signature restaurants). Earnings per share were 2.41p
(2000: 1.75p after being restated for FRS19 - deferred tax).
Dividend
As was the case at the interim stage last year and in view of the cash
required for the expansion programme, the rate of the return on capital
expected from the new restaurants and the Company's continued intention to
maximise its growth, the Board has decided to pay a final dividend for the
year ending 31 October 2001 after a further six months trading.
Restaurant Division
Trading during the period under review benefited from the Group's increasing
pace of expansion from new openings, in particular from those which commenced
trading in the second half of last year, such as County Hall (opened late
August 2000) and Guildford (opened October 2000). Three further units opened
during the period under review in Birmingham (November 2000), Kings Road
(April 2000) and Putney (April 2000) and this set of results includes initial
contributions from these locations.
Turnover from the core Fish! diner estate increased by 168% to £3.604m (2000:
£1.343m) and operating profit increased by 190% to £0.862m (2000: £0.297m).
The prototype Fish! diner at Borough Market continues to show an increase in
both turnover and profit and like for like sales were up 5%. With the
exception of Battersea, all of the Group's Fish! units that have been trading
in excess of six months are in line with our model and performing to
management expectations.
Fish! in Battersea has continued to trade at breakeven levels and we have
identified that this unit is better placed as a training academy for all our
new staff. We will continue to offer a diner service at this location and
expect to continue to run it on a breakeven basis. A training centre facility
of this kind is key to the Group's expansion going forward and a function
which was previously provided for at Bank Restaurant in Aldwych.
The industry has experienced a notable fall in domestic custom and tourist
numbers to the London restaurants in particular, as a result of the foot and
mouth epidemic. However, we are particularly pleased that we have been able to
achieve our sales and profit targets in spite of these unforeseeable factors
and are confident that levels of trade will be maintained over the coming
months.
The Group's new locations which have opened since the year end have shown very
encouraging levels of trading with all units achieving profitability within
two months. There is demonstrable evidence that the Fish! brand has, indeed,
got nationwide potential and our first two units to open outside London - in
Guildford and in Birmingham - continue to outperform management expectations.
The units in Fulham (New Kings Road) and Putney, both of which commenced
trading in April, have been very well received in their respective '
neighbourhood' locations. Fish! in Fulham opened with weekly covers of 900 -
trade has been maintained at this level which has encouraged us to continue to
roll out our smaller, urban unit model. As we continue to expand the Fish!
concept, the brand is proving itself to be both diverse and flexible, and
suited to a wide variety of different sites and geographical locations. Our
ongoing brand evaluation shows that Fish! performs to optimum levels where it
has the benefit of outside dining space which will lead us to source future
sites with the potential for 'al fresco' dining, wherever possible. In keeping
with this strategy, a terrace with capacity for an additional 40+ diners has
just been added to County Hall which along with Canary Wharf, has benefited
from buoyant trade as a result of the good weather over recent weeks.
New Openings
Three additional Fish! units have opened since the half year end in Leeds
(May), Blackheath (June) - which is a conversion of the Group's former 'Lawn'
Restaurant, and Epsom (July). Initial signs show Blackheath trading well above
expectations and business is beginning to build in Leeds. The Group's eleventh
unit opened in Epsom last week and a further five new openings are planned
between now and October 2001 in Solihull, Wandsworth, Clerkenwell, Manchester
and Marlow, which will bring the Group total to 16 Fish! diners. The Group
will open 12 additional units in the next financial year and sites have been
secured for new openings well into 2002 and beyond. The Group is fully funded
for its current roll out plans.
In addition, a flagship retail Fish! shop has opened in Guildford. This is
located on the ground floor of the Fish! diner site, the restaurant being on
the top floor. The shop commenced trading in the first week of July. Located
in a 400 sq. ft site, the total conversion cost of the retail unit was
approximately £75,000. The shop offers the full range of wet fish, similar to
the range sold at the Borough Market unit and at Jarvis, together with a range
of exclusive household accessories, kitchen equipment and other food related
products. The retail shop gives the Group an additional platform from which to
market the Fish! brand and leverage additional retailing opportunities. We
will continue to look for retail outlets where they complement a Fish! diner
and are currently obtaining planning permission to develop a shop within the
Blackheath diner.
Specialist Food Division
This division of the Group remains the key platform for the expansion of Fish!
It continues to supply an increasing number of Fish! restaurants but also has
an established client list of external custom. Turnover increased by 10% to £
5.614m (2000: £5.100m) and operating profit rose 39% to £382,000 (2000: £
274,000). However, Bentleys - the Group's specialist butchery division,
suffered a predictable downturn in turnover as a result of the extended effect
of the foot and mouth epidemic on hotels and restaurants in areas of high
tourist footfall, and in London in particular.
Brand Development
We have continued to evaluate the Fish! brand throughout its roll out over the
last two years. As a result, we have been able to produce a template for '
town' and 'city' Fish! models. Given the growth of the brand in town and city
locations outside London and the targeting of sites in affluent suburbs, a
suburban model has evolved which is a downscaled version of its larger London
counterpart - typically accommodating 75 covers at a total development cost of
under £0.5m.
As the rollout progresses, we will continue to source sites in key London
locations, as well as targeting cities with large populations (ie. in excess
of 500,000 people) throughout the UK. These sites will typify the City model
with capacity for 100-140 diners and a maximum fit out cost of £0.65m.
The consequence of this accelerated expansion programme has been increasing
economies of scale, together with improved prices from our various
contractors, designers and equipment suppliers. Furthermore, brand awareness
continues to grow with each new Fish! diner opened and the marketing of the
retail shops will enhance this further.
In addition, Fish! has been working with the Marine Stewardship Council (MSC)
to raise awareness of the eco-friendly options available to consumers when
purchasing seafood. The MSC is a body which assesses and recognises
sustainably managed fisheries worldwide. Fish plc has passed the necessary,
stringent qualifying standards to become the first restaurant group in the
world to supply Alaskan Wild Salmon and to be endorsed by the MSC and as such,
has been granted the right to carry the coveted MSC logo on its menus and
marketing material.
Board Changes
Over the last six months, there has been an evolution within the Company of
the roles carried out by executive directors. The continued expansion of Fish!
nationwide remains the primary focus of the Group going forward.
Consequently, the Board is pleased to announce that Paul Gilligan will become
Chief Executive of the Group, with immediate effect. Since joining the Group
from Pizza Express in August 2000, Paul has had direct responsibility for new
restaurant site development and has overseen the expansion of the Fish!
concept into the provinces. As a result, Jeremy Ormerod will resume the
position of Finance Director and Eric Garnier, who has been largely
responsible for the operational aspects of the roll out programme, will take
up the role of Operations Director.
Future Prospects
Whilst the UK restaurant market remains competitive, the Group has had an
encouraging start to the year. We continue to benefit from operating in an
affordable sector of the market. Moreover, we are increasingly confident of
the strength of the Fish! brand which continues to receive recognition and
acceptance as we expand into wider geographical locations. The Group is on
track to open at least 10 new units to which we committed by October 2001 and
will look to increase its rate of expansion to a minimum of 12 units in the
next financial year.
The Directors remain confident that Fish! is well placed to maintain its
growth momentum over the months ahead and are confident of a positive result
for the full year.
TONY ALLAN
Chairman
16 July 2001
FISH PLC
Interim Results for the Six Months to 30 April 2001
Group Profit and Loss Account
For the Six Months to 30 April 2001
Dis- (As
Continuing Continued restated)
Unaudited Activities Activities Unaudited Audited
Six Months Six months Six months Six months Year
ended ended ended ended ended
30 April 30 April 30 April 30 April 31 Oct.
2001 2000 2000 2000 2000
£'000 £'000 £'000 £'000 £'000
Notes
Turnover 8,408 6,023 4,889 10,912 20,971
Cost of sales (4,435) (3,350) (978) (4,328) (8,584)
Gross profit 3,973 2,673 3,911 6,584 12,387
Administrative
expenses (3,372) (2,602) (2,836) (5,438) (9,854)
Operating profit 601 71 1,075 1,146 2,533
Exceptional
item 3 - - (386) (386) (232)
Interest receivable 55 43 - 43 26
Interest payable (41) (36) (8) (44) (108)
Profit on ordinary
activities
before taxation 615 78 681 759 2,219
Tax on profit on
ordinary
activities (175) (441) (709)
Profit on ordinary
activities after
taxation 440 318 1,510
Dividends 4 - (779) (962)
Retained profit/
(loss) for period 440 (461) 548
Basic earnings
per share 5 2.41p 1.75p 8.28p
Diluted earnings
per share 2.28p 1.67p 7.91p
Group Statement of Total Recognised Gains and Losses
Unaudited Unaudited Audited
Six Six Year
months months
ended ended ended
30 April 30 April 31 Oct.
2001 2000 2000
£'000 £'000 £'000
Profit for the financial period 440 318 1,510
Prior period adjustment - - (239)
Total recognised gains and losses 440 318 1,271
for the financial period
Group Balance Sheet
For the Six Months to 30 April 2001
Unaudited Unaudited Audited
As at As at As at
30 April 30 April 31
October
2001 2000 2000
Notes £'000 £'000 £'000
Fixed assets
Intangible 174 43 176
Tangible 11,554 13,703 9,029
11,728 13,746 9,205
Current assets
Stock 1,427 1,686 1,342
Debtors - due within one year 4,693 5,313 16,036
Debtors - due after more than one 775 - 775
year
Cash at bank 418 247 168
7,313 7,246 18,321
Creditors: amounts falling due (5,001) (7,963) (13,869)
within one year
Net current assets 2,312 (717) 4,452
Total assets less current 14,040 13,029 13,657
liabilities
Creditors: amounts falling due
after more
than one year (161) (1,023) (307)
Provisions for liabilities and (830) (490) (741)
charges
991 1,513 1,048
Net assets 13,049 11,516 12,609
Capital and reserves
Share capital 1,829 1,824 1,829
Share premium account 7,901 7,822 7,901
Merger reserve (1,375) (1,375) (1,375)
Profit and loss account 4,694 3,245 4,254
Equity shareholders' funds 13,049 11,516 12,609
FISH PLC
Interim Results for the Six Months to 30 April 2001
Notes to Interim Report
1. Basis of preparation
The results for FISH plc for the six months ended 30 April 2001 and the
comparative figures for the six months ended 30 April 2000 are unaudited.
They have been prepared on accounting bases and policies that are
consistent with those used in the preparation of the financial statements
of the Group for the year ended 31 October 2000.
The results for the year ended 31 October 2000 are extracted from the
latest audited accounts approved by the Members at the Annual General
Meeting. These accounts, which received an unqualified report, have been
delivered to the Registrar of Companies.
The unaudited Profit and Loss Account and Balance Sheet for the current
and prior interim periods do not amount to statutory accounts within the
meaning of section 240 of the Companies Act 1985 and have not been
delivered to the Registrar of Companies.
The comparative figures have been restated following the Group's decision
to adopt FRS19 - Deferred Tax. The effect on the prior year figures is to
increase the tax charge by £251,000.
2. Basis of consolidation
The consolidated unaudited accounts for FISH plc incorporate the accounts
of Cutty Catering Specialists Limited and Marchthistle Limited using the
merger accounting method. Other Group subsidiaries are accounted for
using the acquisition accounting method.
3. Dividend
The prior year dividend in the Group's profit and loss account amounts to
£779,000 which reflects the net assets in Crestport Limited transferred
to QuadraNet plc.
4. Earnings per share
Basic earnings per share for the six month ended 30 April 2001 has been
calculated based on the weighted average number of shares in issue during
the period of 18,290,144 and the earnings for the period of £440,000.
Diluted earnings per share has been calculated based on the weighted
average number of shares of 19,281,929 which includes the dilutive
potential of shares under option.
5. Copies available
Copies of the interim report will be sent to all shareholders and are
available to the public from the Company's registered office at:
56 Ayres Street,
London,
SE1 1EU.
For a period of fourteen days from 17 July 2001.
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