Final Results

Signature Restaurants PLC 24 September 2002 24 September 2002 Signature Restaurants PLC Preliminary Results for the year ended 30 June 2002 Signature Restaurants PLC announces its preliminary results for the year ended 30 June 2002. Main points • Group turnover of £39.42m (2001: £39.97m) • Profit before tax, goodwill amortisation and exceptional items of £3.13m (2001: £4.32m) • Difficult trading conditions throughout the period particularly in central London • Disposals of under-performing sites • Strada opened in Clapham, Earls Court, and Market Place and under construction in Richmond and Wimbledon • No dividend (2001 - Nil) • Change in accounting policy due to release of FRS 19 - Deferred Taxation accounting For further information please contact: Signature Restaurants PLC Tel: 020 7557 6333 Andy Bassadone, Chief Executive Nick Fiddler, Finance Director Citigate Dewe Rogerson Tel: 020 7638 9571 Simon Rigby Anthony Kennaway Chairman's Statement Year ended 30 June 2002 For the year ended 30 June 2002, the Group reported sales of £39.4 million, a decrease of 1.4% against the preceding year. Profits before taxation and prior to goodwill amortisation and exceptional items, were £3.1 million compared to £4.3 million in the previous year. Basic earnings per share excluding goodwill amortisation and exceptional items were 5.73p (2001 - 8.68p). In light of the competitive trading conditions the Board is not proposing to pay a dividend. Rather, it intends to re-invest cash into developing the Group together with reducing the existing net debt which was £0.7m as at 30 June 2002. In accordance with the release of accounting standard FRS 19 -'Deferred Taxation ', the Group now makes full provision for timing differences between the treatment of certain items for taxation and accounting purposes. This change has given rise to a prior year adjustment (see note 4). The financial year ended 30 June 2002 proved a challenge. The Group's restaurants are predominantly based in central London and several factors depressed customer spending in the capital. Reduced tourism, following the dreadful events of 11 September, had an impact on the whole hospitality industry while weak financial markets affected spending by City workers. Despite tough conditions across the London restaurant market, competition continues to increase, and this has had an inevitable effect on customer numbers and our ability to pass on cost increases through higher prices. As a response to difficult market conditions the Board has taken decisive action to reduce the Group's cost base and dispose of under performing units. Review of Operations The Belgo and Bierodrome division, which is in the mid-priced market, suffered the most during the period with like for like sales down by 15 per cent. This division's flagship, Belgo Centraal, derives a sizeable proportion of its revenue from tourists. The events of September 11 compounded what were already difficult trading conditions as a result of the adverse publicity surrounding the UK's foot and mouth outbreak. In response to the under-performance of a number of the Belgo and Bierodrome outlets the Board has disposed of Belgo in Dublin, Bristol and Ladbroke Grove together with Bierodrome in Fulham and Clerkenwell. The Belgo and Bierodrome division now consists of two Belgo restaurants and three Bierodrome bars. Turnover has now stabilised somewhat, but all the units in this division trade at levels below previous years. Caprice Holdings, consisting of The Ivy, J Sheekey and Le Caprice, performed well through the period. Although these are mature businesses, they have maintained their high reputations and solid profits. The Board disposed of The Collection, where trading was increasingly difficult and the prospect of any improvement was slight without significant capital investment. Daphne's is now under the control of the Caprice Holdings management, and has responded well to their influence. Bam-Bou and Pasha have fared less well, but both remain profitable and tightly controlled. The Group's Strada brand continued to perform well. All openings to date have been within London. During the period, the Group has opened a further three Strada, bringing the total to nine at the period end with a further two under construction. However Strada's contribution to the Group's overall profitability remains relatively modest, owing to the size of the sites and the relatively low average spend. We remain focused on expanding this division with a cautious approach to site selection. Our objective is to open a further four Strada over the next twelve months. Prospects The Group has been rationalised and has a focused expansion programme, with all future openings restricted to the Strada concept and funded from cash flow. However, conditions in the London restaurant market remain highly competitive and we do not anticipate a material recovery across the industry in central London during 2002/03. The Board continues to concentrate on containing costs and restoring growth from existing outlets while also taking a cautious approach towards the expansion of Strada. As was reported on 3 May 2002, the Independent Directors have received a preliminary conditional approach that may or may not lead to an offer being made for the entire issued share capital of the company. These discussions are ongoing. Luke Johnson 24 September 2002 Chairman Consolidated Profit And Loss Account Notes Year ended Year ended 30 June 1 July 2002 2001 (unaudited) (audited) as restated £'000 £'000 Turnover 1 Continuing Less share of joint ventures (discontinued) 39,420 40,484 - (516) ______ ______ Group turnover 39,420 39,968 Cost of sales (11,078) (11,227) ______ ______ Gross profit 28,342 28,741 Administrative expenses (including goodwill amortisation) (26,294) (28,457) ______ ______ Operating profit before goodwill amortisation and exceptional 3,163 4,741 items Provision for impairment of tangible fixed assets (381) (3,723) Amortisation of goodwill 2 (734) (734) ______ ______ Group operating profit 2,048 284 Share of joint venture operating profit / (loss) including impairment provision (discontinued) 183 (1,462) Profit on the disposal of fixed assets 259 - Net interest paid (216) (105) Share of joint venture interest payable (discontinued) - (102) ______ ______ Profit / (loss) on ordinary activities before taxation 2,274 (1,385) Taxation 5 (772) (332) ______ ______ Retained profit/(loss) for the period 1,502 (1,717) ______ ______ Earnings/(loss) per ordinary share - basic 7 3.65p (3.74p) - diluted 7 3.64p (3.74p) Earnings per ordinary share excluding goodwill amortisation and exceptional items - basic 7 5.73p 8.68p - diluted 7 5.72p 8.35p All recognised gains and losses are included in the profit and loss account. Consolidated Balance Sheet 30 June 1 July 2002 2001 (unaudited) (audited) as restated £'000 £'000 Fixed Assets Intangible assets 2 11,692 12,426 Tangible assets 13,215 15,932 Investments Joint ventures 3 Share of gross assets - 71 Share of gross liabilities - (262) Other investments 63 63 ______ ______ 24,970 28,230 Current Assets Stock 973 1,286 Debtors 4,198 2,197 Cash at bank and in hand 5,674 4,500 ______ ______ 10,845 7,983 Creditors: amounts falling due within one year (13,599) (14,922) ______ ______ Net current liabilities (2,754) (6,939) ______ ______ Total assets less current liabilities 22,216 21,291 Creditors: falling due after more than one year (1,125) (1,875) Provision for liabilities and charges 4 (842) (669) ______ ______ Net assets 20,249 18,747 ______ ______ Capital and Reserves Called up share capital 8,226 8,226 Reserves 12,023 10,521 ______ ______ Equity shareholders' funds 20,249 18,747 ______ ______ Consolidated cash flow statement Notes Year ended Year ended 30 June 2002 1 July 2001 (unaudited) (audited) £'000 £'000 Net cash inflow from operating activities 8 6,151 6,874 Returns on investment and servicing of finance Interest received 3 311 Interest paid (219) (191) Loan note interest - (225) ______ ______ (216) (105) Taxation UK Corporation tax (1,437) (707) Capital expenditure and financial investment Purchase of tangible fixed assets (3,113) (4,527) Disposal proceeds on sales of fixed assets 1,885 17 ______ ______ (1,228) (4,510) Equity dividends paid - (205) ______ _____ Cash inflow before financing 3,270 1,347 - - Financing Redemption of ordinary share capital and associated - (5,943) costs Issue of ordinary share capital - 21 Loans to Joint Ventures - (1,964) Debt due within one year - repayment of loans (750) (375) - increase in short term bank loans - 750 Debt due beyond one year - increase in long term bank loans - 2,250 Repayment of finance leases (10) (20) ______ ______ Net cash outflow from financing (760) (5,281) ______ _____ Increase / (Decrease) in cash in the period 9 2,510 (3,934) ______ ______ Notes forming part of the financial statements 1 Group turnover arises substantially in the United Kingdom. Turnover, results and net assets derive from the Group's ongoing principal activity of operating restaurants. 2 Results are consolidated from the date of acquisition of subsidiary undertakings. In accordance with FRS 10, goodwill arising on the difference between the fair value of the consideration paid and the fair value of the net assets acquired is capitalised and amortised over 20 years being the estimated useful economic life. 3 In accordance with FRS 9 joint ventures are accounted for using the gross equity method. 4 In accordance with the release of the accounting standard FRS 19 'Deferred Taxation', the Group now makes full provision for timing differences between the treatment of certain items for taxation and accounting purposes. The adoption of FRS 19 represents a change in accounting policy. Prior to the release of the new accounting pronouncement the Group accounted for deferred taxation in accordance with SSAP 15 and provided for timing differences to the extent that it could be reasonably foreseen that such deferred taxation would become payable. The impact on the Group's retained profit in the period ended 30 June 2002 was a charge of £173,000 (year ended 1 July 2001 - credit of £112,000). In addition reserves brought forward in the period ended 1 July 2001 were adjusted with a charge of £781,000. 5 The tax charge is further analysed as follows: Year ended Year ended 30 June 2002 1 July 2001 £'000 £'000 (as restated) Corporation tax 599 444 Deferred taxation charge / (credit) 173 (112) _____ _____ 772 332 _____ _____ 6 The directors do not propose to pay a dividend (2001 - Nil). 7 The calculation of earnings per share is based on the weighted average number of issued ordinary shares during the period of 41,132,059 (2001 - 45,933,531) and earnings of £1,502,000 being the result after taxation (2001 - loss of £1,717,000). Diluted earnings per share includes 98,097 (2001 - 1,844,012) shares in respect of options and warrants, giving a total number of shares of 41,230,156 (2001 - 47,777,543). Earnings per share excluding goodwill amortisation and exceptional items of £734,000 (2001 - £734,000) and £122,000 (2001 - £4,970,000) respectively is based on adjusted earnings of £2,358,000 (2001 - £3,987,000). All calculations of earnings per share have been restated to reflect the effects of the 20 for 1 share consolidation that occurred during the year. 8 Reconciliation of operating profit to net cash inflow from operating activities Year ended Year ended 30 June 2002 1 July 2001 £'000 £'000 Operating profit 2,048 284 Depreciation charge 1,486 1,345 Amortisation of goodwill 734 734 Impairment of tangible fixed assets 381 3,723 Decrease / (increase) in stock 313 (234) Decrease in debtors 338 128 Increase in creditors 851 894 _____ _____ Net cash inflow from operating activities 6,151 6,874 ______ ______ 9 Reconciliation of net cash inflow to movement in net debt Year ended Year ended 30 June 2002 1 July 2001 £'000 £'000 Increase / (decrease) in cash in the period 2,510 (3,934) Cash outflow / (inflow) from movement in debt and lease 760 (2,605) financing _____ _____ Movement in net debt in the period 3,270 (6,539) Opening net (debt) / funds (3,973) 2,566 _____ _____ Closing net debt (703) (3,973) ______ ______ 10 Analysis of net debt As at Cash Non-cash As at 1 July Flow Movement 30 June 2001 2002 £'000 £'000 £'000 £'000 Cash at bank and in hand - 1,174 - 1,174 Cash deposits 4,500 - - 4,500 ______ ______ ______ ______ 4,500 1,174 - 5,674 Overdrafts (1,336) 1,336 - - ______ ______ ______ ______ 3,164 2,510 - 5,674 Debt due within 1 year (5,250) 750 (750) (5,250) Debt due after 1 year (1,875) - 750 (1,125) Finance leases (12) 10 - (2) ______ _____ ______ ______ Total (3,973) 3,270 - (703) ______ _____ ______ ______ 11 These preliminary results are unaudited and unreviewed and have been prepared utilising the accounting policies adopted by the Group in the audited accounts for the period ended 1 July 2001 except for the adoption of FRS 19 'Deferred Taxation' (see note 4). The statutory accounts for the period ended 1 July 2001 have been delivered to the Registrar of Companies and were unqualified and did not contain a statement under section 237 (2) or 237 (3) of the Companies Act 1985. 12 These preliminary results were approved by the board on 19 September 2002. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Sureserve Group (SUR)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today