Interim Results

Signature Restaurants PLC
28 March 2002

28th March 2002

                           Signature Restaurants PLC

            Interim Results for the 26 weeks ended 30 December 2001

Signature Restaurants PLC announces its interim results for the 26 weeks ended
30 December 2001.

Main points


  • Group turnover of £19.92m (2000: £19.88m)

  • Profit before tax, goodwill amortisation and impairment provisions of
    £1.5m (2000: £2.2m)

  • Difficult trading conditions throughout the period particularly in central
    London

  • Disposal of certain under-performing sites

  • Strada opened in Clapham and Earls Court and one under construction in the
    Oxford street area of London

  • No dividend

  • Change in accounting policy due to release of FRS 19 - Deferred Taxation
    accounting

Andy Bassadone, Chief Executive, commented:

'Trading in the restaurant sector was particularly difficult in central London
where the majority of the Group's restaurants are located. The Board has taken
decisive action and has disposed of a number of under-performing outlets. We
continue to make efforts to contain costs and restore growth in the existing
estate whilst also taking a cautious approach to the expansion of the Strada
division.'

For further information please contact:
Signature Restaurants PLC                        Tel: [phone]
Andy Bassadone, Chief Executive
Nick Fiddler, Finance Director

Citigate Dewe Rogerson                           Tel: [phone]
Simon Rigby

Anthony Kennaway





                              Chairman's Statement

                        26 Weeks ended 30 December 2001

In the 26 weeks ended 30 December 2001 overall Group turnover remained
relatively static at £19.92m (2000 - £19.88m). Profit before taxation and
goodwill amortisation was £1.50m compared to £992,000 in the same period in the
previous year. However, the comparative period was affected by an impairment
provision of £1.28m in respect of the now discontinued joint venture in New
York. Operating profit from continuing activities was £1.22m compared to £1.95m
in the same period in the previous year.

Basic earnings per share excluding goodwill amortisation and impairment
provision were 2.45p (2000 - 3.4p). In light of the difficult trading conditions
the Board is not proposing to pay an interim dividend. Rather, it intends to
re-invest cash into developing the Group together with reducing the existing net
debt which was some £3.8m as at 30 December 2001.

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).

On 5 November 2001 the Group obtained shareholder approval to change the name of
the group to Signature Restaurants PLC and to perform a share consolidation on
the basis of 1 new share for every 20 existing shares held.

Review of Operations

Trading during the period was difficult. Following the September 11th disaster
in New York, visitor numbers to London fell sharply and this affected many of
our restaurants, most of which are in central London. This was on top of what
was already difficult trading conditions because of a reduction in overseas
tourists as a result of the adverse publicity surrounding the UK's foot and
mouth outbreak.

The Belgo Bierodrome division, which is in the mid-priced market, has suffered
the greatest with like for like sales for the six months being down by 18%.
However the trend has improved in recent months with the last two months like
for like sales being 10% down.

The Group's division of high quality independent restaurants had mixed fortunes.
Although The Ivy, J Sheekey and Le Caprice continued to trade satisfactorily,
some of the other standalone units were affected by the difficult trading
conditions. This resulted in the overall like for like sales for this division
being some 3% down.

The Group's Strada brand performed well with like for like sales increase of 4%,
although the overall profit contribution remained relatively modest due to the
size of the sites and the relatively low average spend compared to other
restaurants within the Group. Strada now has eight units, with Strada Clapham
and Strada Earls Court being opened since the period end. We remain focused on
expanding this division with a cautious approach to site selection. We plan to
open at least two more outlets in the next six months.

In the year ended 1 July 2001, the Group made impairment provisions against
certain under-performing assets to better reflect their value. During the period
under review the Group disposed of its under-performing Bierodrome site in
Clerkenwell. Since the period end the Board has continued its review of
under-performing units and has exchanged contracts for the disposal of one of
the Belgo sites, a Bierodrome site together with the standalone restaurant The
Collection. The Board expects these disposals to be completed in the forthcoming
weeks. The Board does not envisage that these disposals will give rise to any
further write-offs in the full year results.

Prospects

Trading since the period end has stabilised to a certain extent with less
dramatic down turn in like for like sales performance. However, conditions in
the London restaurant market remain highly competitive and we do not anticipate
a rapid recovery across the industry in central London during 2002. The Board
continues to focus on containing costs and restore growth from existing outlets
whilst also taking a cautious approach towards the expansion of Strada.





Luke Johnson                                             28th March 2002

Chairman





                      Consolidated Profit And Loss Account
                                                                             26 weeks            26 weeks

                                                                                ended               ended

                                                                          30 December         31 December

                                                                                 2001                2000

                                                             Notes        (unaudited)         (unaudited)

                                                                                £'000         as restated

                                                                                                    £'000
Turnover                                                           1
Continuing                                                                     19,925              20,268

Less share of joint ventures                                                      (-)               (387)
                                                                               ______              ______
Group turnover                                                                 19,925              19,881

Cost of sales                                                                 (5,615)             (5,634)
                                                                               ______              ______
Gross profit                                                                   14,310              14,247

Administrative expenses (including goodwill)                                 (13,094)            (12,293)
                                                                               ______              ______
Group operating profit
Continuing                                                                      1,216               1,954
Discontinued - share of joint venture profit/(loss)                3               52             (1,384)
including impairment provision
                                                                               ______              ______
                                                                                1,268                 570
Net interest (paid)/received                                                    (133)                  78
Share of joint venture interest payable                                           (-)                (93)
                                                                               ______              ______
Profit on ordinary activities before taxation                                   1,135                 555

Taxation                                                           5            (495)               (535)
                                                                               ______              ______
Profit on ordinary activities after taxation                                      640                  20

Dividends - equity                                                 6                -                   -
                                                                               ______              ______
Profit for the period                                                             640                  20
                                                                               ______              ______
Earnings per ordinary share - basic                                7           1.556p              0.039p
                - diluted                                          7           1.553p              0.038p
Earnings per ordinary share excluding JV impairment and
goodwill amortisation
                - basic                                            7           2.449p               3.39p

                - diluted                                          7           2.444p               3.14p
                                                                               


                           Consolidated Balance Sheet
                                                              At December 2001  At December 2000
                                                                   (unaudited)       (unaudited)
                                                                         £'000             £'000
Fixed Assets
Intangible assets                                      2                12,059            12,793
Tangible assets                                                         15,877            18,699
Investments                                                                 63                63
Joint ventures
Share of gross assets                                  3                     -               299
Share of gross liabilities                             3                     -             (444)
                                                                        ______            ______
                                                                        27,999            31,362

Current Assets
Stock                                                                    1,256             1,273
Debtors                                                                  1,412             1,713
Cash at bank and in hand                                                 4,500             2,467
                                                                        ______            ______
                                                                         7,168             5,453
Creditors: amounts falling due within one year                        (13,341)          (13,052)
                                                                        ______            ______
Net current liabilities                                                (6,173)           (7,599)
                                                                        ______            ______
Total assets less current liabilities                                   21,826            23,763
Creditors: falling due after more than one year                        (1,500)           (2,250)
Provision for liabilities and charges                                    (556)             (637)
                                                                        ______            ______
Net assets                                                              19,770            20,876
                                                                        ______            ______
Capital and Reserves
Called up share capital                                                  8,226             8,226
Reserves                                                                11,544            12,650
                                                                        ______            ______
Equity shareholders' funds                                              19,770            20,876
                                                                        ______            ______




                        Consolidated cash flow statement
                                                                       26 weeks ended          26 weeks ended

                                                                     30 December 2001        31 December 2000

                                                                          (unaudited)             (unaudited)

                                                                                £'000                   £'000


Net cash inflow from operating activities                                       2,098                   3,961

Returns on investment and servicing of finance
Interest (paid)/received                                             (133)                      78
                                                                    ______                  ______
                                                                                (133)                      78
Taxation
UK Corporation tax                                                            (1,073)                   (699)

Capital expenditure and financial investment
Purchase of tangible fixed assets                                    (767)                 (2,940)
Disposal proceeds on sales of fixed assets                              80                       -
                                                                    ______                  ______
                                                                                (687)                 (2,940)

Equity dividends paid                                                             (-)                   (205)
                                                                               ______                  ______
Cash inflow before management of liquid resources and                             205                     195
financing
                                                                                    -                       -
Financing
Redemption of ordinary share capital and associated costs                -                 (5,919)
Issue of ordinary share capital                                          -                      21
Loans to Joint Ventures                                                  -                 (1,920)
Debt due within one year
- repayment of loans                                                 (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                                            (8)                     (8)
                                                                    ______                  ______
Net cash outflow from financing                                                 (383)                 (4,826)
                                                                               ______                  ______
Decrease in cash in the period                                                  (178)                 (4,631)




                     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. Joint ventures previously stated at cost, have been accounted
    for in accordance with FRS 9, and goodwill arising thereon has been charged
    against reserves.

    In the six months to 31 December 2000 the Group's share of the joint
    venture's result included an impairment provision of £1,279,000 to reflect
    the expected net realisable value of the joint venture's fixed assets.

 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 December 2001 was a charge of £271,000 (six months to 31
    December 2000 - charge of £203,000). In addition reserves brought forward in
    the period ended 31 December 2000 were adjusted with a charge of £434,000.

 5. The tax charge for the six months ended 30 December 2001 has been calculated
    based on the estimated effective tax rate for the full year. The tax charge
    is further analysed as follows:

                                                        26 weeks ended             26 weeks ended

                                                           30 December           31 December 2000
                                                                  2001
                                                                                            £'000
                                                                 £'000

    Corporation Tax                                                224                        332
    Deferred Taxation                                              271                        203
                                                                 _____                      _____
                                                                   494                        535
                                                                 _____                      _____

 6. The directors do not propose to pay an interim dividend (2000 - Nil).

 7. The calculation of earnings per share is based on the weighted average number
    of issued ordinary shares during the period of 41,132,061 (2000 -
    50,668,335) and earnings of £640,000 being the result after taxation (2000 -
    £20,000).

    Diluted earnings per share includes 89,707 (2000 - 2,471,911) shares in
    respect of options and warrants, giving a total number of shares of
    41,221,767 (2000 - 53,140,246). Earnings per share excluding goodwill
    amortisation and impairment provisions of £367,500 (2000 - £367,500) and
    £nil (2000 - £1,279,000) respectively is based on adjusted earnings of
    £1,007,500 (2000 - £1,666,500).



 8. Reconciliation of operating profit to net cash inflow from operating
    activities

                                                             26 weeks ended             26 weeks ended

                                                                30 December           31 December 2000
                                                                       2001
                                                                                                 £'000
                                                                      £'000

    Operating profit                                                  1,216                      1,954
    Depreciation charge                                                 822                        732
    Amortisation of goodwill                                            367                        367
    Decrease /(Increase) in stock                                        30                      (221)
    Decrease in debtors                                                 566                        848
    (Decrease) / Increase in creditors                                (903)                        281
                                                                      _____                     ______
    Net cash inflow from operating activities                         2,098                      3,961
                                                                     ______                     ______

 9. Reconciliation of net cash inflow to movement in net (debt)/funds

                                                                     26 weeks ended 30    26 weeks ended 31
                                                                         December 2001        December 2000

                                                                                 £'000                £'000

    Decrease in cash in the period                                               (178)              (4,631)
    Cash (inflow)/outflow from movement in debt and lease                          383              (2,992)
    financing
                                                                                 _____                _____
    Movement in net (debt) / funds in the period                                   205              (7,623)
    Opening net (debt) / funds                                                 (3,973)                2,556
                                                                                 _____                _____
    Closing net debt                                                           (3,768)              (5,057)
                                                                                ______               ______

10. Analysis of net debt

                                      As at 1 July       Cash Flow Non-cash Movement As at 30 December
                                              2001                                                2001

                                             £'000           £'000             £'000             £'000
    Cash at bank and in hand                     -               -                 -                 -
    Cash deposits                            4,500               -                 -             4,500
                                            ______          ______            ______            ______
                                             4,500               -                 -             4,500
    Overdrafts                             (1,336)           (178)                 -           (1,514)
                                            ______          ______            ______            ______
                                             3,164           (178)                 -             2,986
    Debt due within 1 year                 (5,250)             375             (375)           (5,250)
    Debt due after 1 year                  (1,875)               -               375           (1,500)
    Finance leases                            (12)               8                 -               (4)
                                            ______           _____            ______            ______
    Total                                  (3,973)           (205)                 -           (3,768)
                                            ______          ______            ______            ______

11. These interim 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 2 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.




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