Interim Results

RNS Number : 8043S

Barkby Group PLC (The)

14 March 2019

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

14 March 2019

The Barkby Group PLC

("Barkby" or the "Company")

Interim Results for the six months ended 31 December 2018

The Barkby Group PLC (NEX: BARK), is pleased to announce its unaudited interim results for the six months ended 31 December 2018. The Company has changed its financial year end to 31 May and therefore the next audited results of the Company will be for the 17-month period ending 31 May 2019, which will be published by 31 October 2019.

Enquiries:

The Barkby Group PLC	[phone]
Rupert Fraser, Chief Executive Officer
Allenby Capital (NEX Exchange Corporate Adviser and Broker)	[phone]
Jeremy Porter/Asha Chotai
Camarco (Financial PR)	[phone]
Jennifer Renwick/Jane Glover

THE BARKBY GROUP PLC

INTERIM RESULTS

CHAIRMAN'S STATEMENT

I am pleased to present the interim results for The Barkby Group PLC for the six months ended 31 December 2018. The period has seen Barkby expand its growing portfolio of assets.  The George at Burpham and Centurian Automotive have both been added to the Group and more recently, we have signed an Operating Agreement with the Queens Arms which further adds to the Group's premium hospitality offering.

On 30 November 2018 the Company entered into a new ten-year leasehold agreement for The George at Burpham, a 17th century gastropub in the village of Burpham in the South Downs in West Sussex. The George offers customers excellence in food and service, showcasing the best produce with a convivial atmosphere and modern style, which fits perfectly with Barkby's proposition and is a strong addition to the Group.

This new lease represents further implementation of the Company's strategy to develop a portfolio of premium hospitality properties. The Company's hospitality portfolio now consists of a freehold and three leasehold gastropubs and inns, as well as the recently announced 8-year operating contract for the Queens Arms.

The Queens Arms is an award-winning 18th century pub, restaurant and hotel located in an area of outstanding natural beauty in Berkshire, approximately equidistant from London and the West Country. The restaurant offers an innovative and seasonal menu using local produce wherever possible and the Queens Arms' 12 bedrooms provide luxury accommodation for guests. The property also benefits from a 120-capacity function room, the Queens Lodge. Under the terms of the operating contract Barkby has taken over the day to day operations of the Queens Arms.

In February 2019, Barkby completed the acquisition of the entire share capital of Centurian Automotive Limited ("Centurian Automotive"). The initial consideration payable was approximately £201,000, satisfied by the issue of new ordinary shares in Barkby and deferred consideration of up to approximately £251,000 over three years based on performance targets, also to be satisfied by the issue of new ordinary shares in Barkby.

Centurian Automotive is an award-winning automotive dealership with a strong and fast growing online digital presence. Centurian Automotive prides itself on its best-in-class customer experience and was recently chosen by Autotrader from 13,000 motor dealers in the UK to represent the benchmark for all dealership training, marketing and master classes.

The board of Barkby believes that this acquisition is complementary to Barkby's existing high-end consumer offering and will be immediately earnings enhancing.

The next few months for Barkby will be spent consolidating the deals completed since June and presenting a strong set of year end results for May 2019, and to continue our policy of controlled expansion.

Financial

The financial results presented in this report cover the six-month period to 31 December 2018.

The period saw strong trading across the three gastropubs leased and owned for the full period: unaudited management accounts show revenues for that period amounted to £1,820,439, with profit before tax* and exceptional items of £117,120. The new controls and management systems implemented by Barkby have provided considerable improvements; food and drink margins are up, and staff turnover is considerably under the industry average, at 4.5%. A new back office system for the EPOS and room booking systems has also seen an increase in room bookings online due to the improved booking system.

The Company reports a loss from continuing operations of £17,881 for the period, compared to a profit from finance income of £309,171 for the corresponding period in 2017. The loss in the period represents the exceptional items of completing the acquisitions, entering into the lease for The George, and a staff restructure and bonuses.

The Company had cash resources of £36,674 at 31 December 2018, pending the grant of a mortgage over the freehold of The Plough in Kelmscott pub, and a VAT refund. The mortgage monies received at the beginning of January provide sufficient finance to cover the Company's ongoing expenditure.

We would like to thank all our shareholders for their continued support. It is an exciting time for The Barkby Group and we look forward to delivering on the Group's potential.

C G Clarke

Chairman

14 March 2019

*after amortisation, depreciation and interest

 

THE BARKBY GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Six months ended 31 December 2018

			Six months ended		Six months ended		Year ended
			31-Dec-18		31-Dec-17		31-Dec-17
	Note		Unaudited		Unaudited		Audited
			£		£		£
Turnover			1,820,439		-		-
Administrative costs
Other administrative expenses	1/ 2		(1,838,319)		(275,489)		(370,922)
Finance income			0		584,660		584,660
Profit/ (loss) on ordinary activities before taxation			(17,880)		309,171		213,738
Tax on profit/ (loss) on ordinary activities			-		-		-
Profit/ (loss) for the financial period from continuing operations			(17,880)		309,171		213,738
Profit from discontinued operation			-		(656,140)		-
Profit/ (Loss) for the period attributable to owners of the parent			(17,880)		(346,969)		213,738
Other comprehensive income
Revaluation of available for sale investments			-		(144,894)		-
Total comprehensive income/ (loss) for the period attributable to owners of the parent			(17,880)		(491,863)		213,738
Total comprehensive income/ (loss) attributable to owners of the parent arising from:
Continuing operations			(17,880)		309,171		213,738
Discontinued operations					(801,034)
			(17,880)		(491,863)		213,738
Earnings/(loss) per ordinary share (pence)
From continuing and discontinued operations: Basic and diluted	3		(0.05)		0.02		0.02

THE BARKBY GROUP PLC

 UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2018

			As at		As at		As at
			31-Dec-18		30-Jun-18		30-Dec-17
	Note		Unaudited		Unaudited		Audited
			£		£		£
FIXED ASSETS
Tangible assets	4		1,036,030		948,329		-
Available for sale financial assets			-		-
Intangible assets			918,550		918,550		-
			1,954,580		1,866,879		-
CURRENT ASSETS
Other receivables			435,285		203,488		13,529
Cash at bank			36,674		528,811		615,108
			471,959		732,299		628,637
CURRENT LIABILITIES
Trade and other payables			(709,956)		(853,136)		(50,857)
NET CURRENT ASSETS			1,716,584		1,746,042		577,780
LONG TERM LIABILITIES	5		(551,701)		(563,279)		-
NET ASSETS			1,164,883		1,182,763		577,780
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital	6		125,228		125,228		3,163,589
Share premium account			6,591,878		6,591,878		5,563,520
Reconstruction reserve
Share-based payment reserve			702,167		702,167		702,167
Capital redemption reserve			3,077,503		3,077,503
Retained earnings			(9,331,893)		(9,314,013)		(8,851,496)
TOTAL EQUITY			1,164,883		1,182,763		577,780

THE BARKBY GROUP PLC

 UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

Six months ended 31 December 2018

		Six months to		Six months to		Year ended
		31-Dec-18		31-Dec-17		31-Dec-17
		Unaudited		Unaudited		Audited
		£		£		£
Net cashflow used in operating activities		(578,434)		(247,787)		(368,998)
Finance income		0		584,660		584,660
Net decrease in cash and cash equivalents		(578,434)		336,873		215,662
Cash and cash equivalents at beginning of period		615,108		278,235		399,446
Cash and cash equivalents at end of period		36,674		615,108		615,108

All cashflows are from continuing operations.

THE BARKBY GROUP PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Six months ended 31 December 2018

		Share capital		Share premium		Reconstruction reserve		Capital redemption reserve		Share-based payment reserve		Retained earnings		Total
		£		£		£		£		£		£		£
At 30 June 2017		3,163,589		5,563,520		(586,100)		-		696,097		(7,773,533)		1,063,573
Loss and total comprehensive income for six months to 31 December 2017		-		-		-		-		-		(1,077,963)		(1,077,963)
Reconstruction movement		-		-		586,100		-		-		-		586,100
Share-based payment expense		-		-		-		-		6,070		-		6,070
At 31 December 2017		3,163,589		5,563,520		-		-		702,167		(8,851,496)		577,780
Total comprehensive income for six months ended 30 June 2018		-		-		-		-		-		309,171		309,171
Re structure of Equity after purchase of asset		(3,038,361)		1,028,358		-		3,077,503		-		(771,688)		295,812
At 30 June 2018		125,228		6,591,878		-		3,077,503		702,167		(9,314,013)		1,182,763
Total comprehensive income for six months ended 31 December 2018		-		-		-		-		-		(17,880)		(17,880)
At 31 December 2018		125,228		6,591,878		-		3,077,503		702,167		(9,331,893)		1,164,883

THE BARKBY GROUP PLC

Notes to the interim consolidated financial information

Six months ended 31 December 2018

1.    GENERAL

These unaudited consolidated interim financial statements are for the six months ended 31 December 2018.  They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 31 December 2017, which were prepared under International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU"). A number of new standards, amendments to existing standards and interpretations were effective from 1 January 2017.

The statutory accounts for the year ended 31 December 2017 have been filed with the Registrar of Companies. Those accounts have received an unqualified audit report and did not contain statements or matters to which the auditors drew attention under the Act.

The Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, these interim financial statements have been prepared on a going concern basis as the Directors are of the opinion that the Company has sufficient funds to meet their ongoing working capital and committed capital expenditure requirements

The interim financial information is unaudited, but has been reviewed by the Company's auditor. The Company's operations are not subject to seasonality or cyclicality. No dividend has been declared or paid in this interim period.

2.    ACCOUNTING POLICIES

The principal accounting policies and methods of computation have remained unchanged from those used in the preparation of the 2017 annual financial statements and are expected to be used for the 31 December 2018 annual financial statements.

3.            LOSS/EARNINGS PER SHARE

		Six months to		Six months to		Year ended
		31-Dec-18		31-Dec-17		31-Dec-17
		Unaudited		Unaudited		Audited
Weighted average number of ordinary shares in issue		37,947,751		860,858,859		860,858,859
Dilutive potential ordinary shares		-		150,000,000		150,000,000
		37,947,751		1,010,858,859		1,010,858,859
Profit/(loss) after taxation (£)
From continuing operations		(17,880)		213,738		213,738
From discontinued operations		-		0		-
		(17,880)		213,738		213,738
Basic earnings/(loss) Per Share (pence)
From continuing operations		(0.05)		0.02		0.02

4.         FIXED ASSETS

		Six months to		Six months ended		Year ended
		31-Dec-18		31-Dec-17		31-Dec-17
		Unaudited		Audited		Audited
Tangible Assets		£		£		£
The Plough- Freehold		671,866		-		-
Fixtures & Fittings		206,731		-		-
Computer Equipment		48,879		-		-
Kitchen Equipment		108,554		-		-
Total tangible assets		1,036,030		-		-
Intangible Assets
Available for sale financial assets
Investment in subsidiary		918,550		-		-
Total Fixed Assets		1,954,580		-		-

5.           LONG TERM LIABILITIES

		Six months to		Six months ended		Year ended
		31-Dec-18		31-Dec-17		31-Dec-17
		Unaudited		Audited		Audited
		£		£		£
Long Term Liabilities
Directors loans- Seb & Lana Snow		(25,076)		-		-
Kitchen equipment leases		16,777		-		-
Contingent investment		560,000		-		-
Total Long Term Liabilities		551,701		-		-
		0

6.            SHARE CAPITAL

Issued and fully paid:

	2018	2017	2018	2017
	No. of shares	No. of shares	£	£
Ordinary shares of £0.0001 each	37,947,751	860,859,050	125,228	3,163,589
	==================	==================	=============	==============

7.            COPIES OF INTERIM REPORT

Copies of the interim report are available to the public from the Company at Lakeside Fountain Lane, St Mellons, Cardiff, United Kingdom, CF3 0FB during normal office hours, Saturdays and Sundays excepted, for 14 days from today and are available on the website at www.barkbygroup.com.

 

END

 

 

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