Final Results

RNS Number : 6342A

Eclectic Bar Group PLC

30 September 2015

 



Eclectic Bar Group Plc

("Eclectic", the "Group")

 Final results for the 52 weeks to 28 June 2015

30 September 2015

Eclectic Group operates 19 premium bars across a number of concepts trading in major towns and cities in the UK.  The Group targets sophisticated students midweek and stylish over 21's and professionals at the weekend.

		52 weeks ended 28 June 2015		52 weeks ended 29 June 2014	Discontinued operations	Total including discontinued operations
		£m		£m	£m	£m
Revenue		22.3		22.7	0.4	23.1
Group EBITDA before highlighted items		1.8		2.6	0.3	2.9
Group EBITDA after highlighted items		0.7		1.34	0.33	1.67
(Loss)/profit before taxation and highlighted items		(0.5)				1.0
Loss before taxation after highlighted items		(6.2)				(0.2)
Loss for the year		(5.8)				(0.3)
Adjusted (loss)/earnings per share - Basic & Diluted		(0.3)p		6.9p	2.5p	9.4p
(Loss)/earnings per share - Basic & Diluted		(44.7)p		(5.2)p	2.5p	(2.7)p

HIGHLIGHTS

·    Despite a challenging backdrop, Eclectic delivered £1.8m (2014: £2.6m) of EBITDA on continuing operations. It remains cash generative and has invested in a number of its units which are subsequently delivering improved performance.

·    The Loss for the year of £5.8m includes impairment of fixed assets and goodwill of £4.0m. This amount is included in the highlighted items (refer to note 3)

·    Management have swiftly responded to the challenging trading conditions by reducing head office costs, closing non-profitable nights, focussing on its food offer, rationalising its estate and renegotiating its principal supply contracts.

·    Further benefit of these cost savings will be achieved over the coming months.

·    Minor investment, funded from cash flow, will continue across the estate to maintain standards.

·    Appointment of Luke Johnson as Executive Chairman.

·    £1.65 million of additional capital has come into the Group from subscriptions to new shares after the period end, providing additional working capital to fund the development of the Group's business.

·    Future growth of the Group is likely to be through acquisition and development of small groups of trading sites with a focus on delivering greater food revenue.

·    Trading over the summer was as anticipated and the Group expects to remain cash generative, with trading expected to be similar to FY 2015.

Commenting on the results, Luke Johnson, Executive Chairman said:

"Much progress has been made in re-aligning the Group for today's marketplace. The management team are taking the requisite steps to create a firm foundation for the future. Fundamentally Eclectic is a good company with a robust business model and an attractive portfolio of sites."

All Group announcements and news can be found on www.eclecticbars.co.uk.

Enquiries:

Eclectic Bar Group Plc       (www.eclecticbars.co.uk)	Tel: [phone]
Reuben Harley, CEO John Smith, CFO
Panmure Gordon	Tel: [phone]
Corporate Finance
Andrew Godber / Atholl Tweedie / Duncan Monteith
Corporate Broking
Charles Leigh-Pemberton / Maisie Atkinson
Instinctif Partners	Tel: [phone]
Matthew Smallwood
Justine Warren

About Eclectic Group

The Group is a leading operator of premium bars in the UK. Eclectic's portfolio comprises 19 venues trading in major towns and cities, predominantly targeting a customer base of sophisticated students midweek and stylish over 21s and young professionals at weekends. The Group focuses on delivering added value for its customers, with premium product ranges, high-quality music and entertainment, and a commitment to high service levels and standards. Eclectic trades across its estate under a variety of concepts, including Embargo Republica, Lola Lo, Sakura, Lowlander, Dirty Blonde, Coalition, Po Na Na and Fez Club.

The Group's management team, led by Luke Johnson, who has been involved in the hospitality industry for over 20 years, and Reuben Harley, who has over 25 years' experience of working in the UK pub and bar industry, is implementing a strategy to grow the business through the development of new sites either under the Company's existing formats or those of acquired businesses as appropriate opportunities present themselves.

Lola Lo (9 sites)
	Brighton
	Bristol
	Cambridge
	Edinburgh
	Derby
	Lincoln
	Oxford
	Reading
	Manchester
Sakura (2 sites)
	Manchester
	Reading
Po Na Na (2 sites)
	Bath
	Wimbledon
Fez Club (2 sites)
	Cambridge
	Putney
Coalition	Brighton
Dirty Blonde	Brighton
Lowlander	Covent Garden
Embargo Republica	Kings Road

Chairman's Statement

The 52 weeks to the end of June 2015 financial year has been a challenging period for Eclectic Bar Group Plc (the Group).  The Group has faced issues in a number of areas: the change in behaviour of students, intense competition in a number of the Group's key trading towns and disappointments in Lola Lo Derby and Dirty Blonde in Brighton. Together, these issues have resulted in EBITDA on continuing operations before highlighted items of £1.8 million for the year versus £2.6 million the prior year.

The Group has responded to these factors by reducing costs at the head office, closing non-profitable nights, focusing on development of its food offer and rationalising its estate. Given the risks associated with new developments, it has been decided not to refurbish the recently acquired Sheffield and Liverpool sites and to seek to dispose of them both over the next 12 to 24 months.

The impact of these events has resulted in a number of one off costs that are detailed in notes 5 and 13.  The Group has impaired fixed assets relating to underperforming sites amounting to £1.2 million, made goodwill impairments of £2.9 million, incurred losses of £0.6 million relating to site disposals and provided £0.7million for onerous leases. I am gaining a deeper understanding of the business and believe we are making tangible progress to assist the Group to plan and execute its strategy. In the short term the focus will be to continue to provide quality service and delivery, continue to focus on reducing costs and to dispose of the Sheffield and Liverpool sites.

The financial highlights are included in the Chief Executive's Review.

Board

There have been a number of changes during the year, Richard Kleiner and Clive Watson resigned from the board and I thank them both for the work they have done during their period in office.

Jim Fallon stepped down as Chairman and I am pleased that he continues on the board as a non-executive director chairing the remuneration committee. During the period we also welcomed to the board Leigh Nicolson as Chief Operating Officer and Paul Viner as a Non-Executive Director, both of whom have considerable experience in this sector. Paul Viner is also a qualified accountant and will chair the audit committee.

I believe these appointments have brought a wide range of expertise to the Board.

Future prospects

I have known the Executive management and had contact with them prior to the Company's listing, and was delighted to be appointed as Executive Chairman in June and to invest in the business with my fellow Directors. This has raised £1,650,000 of cash for the Company and will provide useful additional funding for the Group going forward.

Eclectic is fundamentally a good company with a robust business model. It has much potential including some great people and an attractive portfolio of sites. It has firm foundations and continues to be cash generative. The future opportunity is to build on these strengths and take advantage of the opportunities which exist in the market to diversify into more food led operations and grow the business through acquisition and market consolidation.

Luke Johnson

Chairman

29 September 2015

Chief Executive's Review

Eclectic Bar Group Plc (the Group), is a leading operator of 19 (2014: 21) premium bars trading in major towns and cities across the UK.

The Group trades across its estate under a variety of concepts including Embargo Republica, Lola Lo, Sakura, Po Na Na, Fez Club, Lowlander, Dirty Blonde and Coalition. The Group predominantly targets a customer base of sophisticated students midweek and stylish over 21s and professionals at the weekend. The Group focuses on delivering added value for its customers, with premium product ranges, high quality music and entertainment and a commitment to high service standards.

Eclectic's estate is nationwide across key university cities and towns which provide a vibrant night time economy and the demographics to support premium bars.

The loss before tax and highlighted items was £0.5 million (2014: profit £1.0 million). Adjusted loss per share (basic and diluted) on all operations was 0.3 pence per share (2014: earnings per share of 9.4 pence). The loss before tax and after highlighted items was £6.2 million (2014: profit £0.2 million). Loss per share (basic and diluted) on all operations was 44.7 pence per share (2014: 2.7pence).

However, the Group has swiftly responded to these factors by reducing costs at the head office, closing non profitable nights, focusing on development of its food offer, and rationalising its estate.

Review of The Group's activities during the year

The Company has experienced three main challenges which have impacted on its results during this period: 

•            University undergraduates nationwide have been less active across the market place during the freshers' weeks and have been less predictable during the academic year

•            There has been increased and intense competition in a number of specific locations

•            Additionally, two of the new openings, Lola Lo in Derby and Dirty Blonde in Brighton, have not performed as well as expected.

The management team have swiftly undertaken a range of mitigating actions;

•            Undertaken student focus groups across a number of venues - the intelligence and findings from these sessions has been used to formulate our student plans for the returning students in late September 2015

•            Reviewed the head office cost base and reduced this by 28%. These savings benefitted the Group in the second half of this financial year with further benefits to come next year

•            Focussed our activity on profitable trading nights and ensuring cost savings by closing non profitable sessions

•            Reviewed our estate, to establish the ongoing viability of some of the smaller, albeit profitable, sites. Consequently we disposed of Norwich Lola Lo in June 2015, and further disposals are expected during the next financial year

•            Renegotiated the principal supply contracts at the end of February 2015 bringing revenue and margin benefits and the logistical simplicity of a single drink supplier.

Key developments in the estate over the period

Embargo Republica on the Kings Road

After a four week closure for an extensive refurbishment and rebranding as Embargo Republica, the venue re-opened in the last week of August 2014. The rebranded and refurbished Embargo Republica delivers more emphasis to its Cuban spirit and created additional space with the move of the back office functions to the area vacated by the Head Office, which in turn, has been relocated above Lowlander on Drury Lane. An extended outside terrace, a new stage for live acts and a cigar shop at the entrance are all part of the bar's Cuban backdrop giving a distinctive colonial atmosphere. Trading since the re-opening is ahead of expectations.

Bristol Lola Lo

This venue was closed for three weeks and reopened half way through September to coincide with returning university students for the new academic year. This refit to this Lola Lo extends the brand into the South West of England. Trading since opening has been in line with expectations.

Coalition and Manchester Lola Lo

Both venues completed their first anniversary during this period. The combined cash on cash returns (the cash income earned from the cash invested) for the financial year are in excess of 50%. The Company is delighted with trading at both of these units.

Bournemouth Sakura

This venue was refitted as a Sakura during the period and despite every effort to stimulate increased trade, this venue continued to underperform. The announcement of plans by the landlord to develop residential accommodation above this unit left the Company with limited options. At the end of January the decision was taken to close the business and the lease was surrendered to the landlord at the end of March 2015.

Lowlander on Drury Lane

This venue continues to flourish since its acquisition at the end of March 2014. Trading is in line with expectations; furthermore the unutilised upstairs areas have provided useful space for the relocation of the Company head office, enabling the expansion of Embargo.

Derby Lola Lo and Brighton Dirty Blonde

Initially Lola Lo in Derby was successful in breaking into the student market, a crucial part of trade in this City, but has since underperformed. However, it is anticipated that Lola Lo Derby will break-even in the coming year. Dirty Blonde continues to have one of the most successful Saturdays in the estate but midweek trading has been more subdued. Some modifications have taken place to make the bar more visible to the street and we are working on steps to simplify the food offering and to reduce the cost base. Additionally, we will be building on the success of last year's Christmas trading with additional sessions.

Sheffield and Liverpool

In light of the revised strategy highlighted earlier, the decision has been made to halt the development at both of these sites.

Since the year end the Liverpool landlord has agreed to conditionally rescind the lease on this property. Eclectic will carry out separation works to split the property into two units, each consisting of approximately half of the property. Once this work is completed two new leases will be granted, one to a new tenant and the second to Eclectic. The Group will seek to dispose of its share of this site over the next 12 to 24 months.

Norwich Lola Lo

In June 2015 this site was disposed for a consideration of £103,000.

For the remainder of the estate trading has been in line with expectations for the period.

An evolving strategy

Future growth of the Group is primarily anticipated to be through the acquisition and development of small groups of trading sites with a new focus on driving greater food revenues into the bar estate. The Group will also continue to evaluate the purchase of individual sites with a strong trading history but intends to move away from the development of new 'green field' sites.

Eclectic's business platform provides an excellent framework for the variety of venues that the Group owns enabling the management team to choose the correct concept for the location and community within which it is situated, whilst maintaining the Group's focus on a premium customer base and utilising standard processes and supply.

It is anticipated that future acquisitions will be in major cities and towns where there is also a young and vibrant population. These businesses will also have a more substantial food element to their trade. The Group targets a 30 percent EBITDA return on new acquisitions and 25 percent on redevelopments of existing sites in the first 12 months post-acquisition or re-development.

The Group will continue to finance its new acquisitions and developments with cash generated from operating activities, bank funding and where necessary through the issue of new shares in Eclectic Bar Group Plc.

Outlook for the coming year

The Group expects to benefit from the full year effect of cost savings over the coming months both at the head office and at site level, and will continue to dispose of smaller sites where the opportunity arises. In addition, the Group continues to seek out opportunities to acquire smaller bar operating groups or sites with quality earnings to leverage up on the existing head office overhead.

The learnings from the student focus groups have been adopted into the fresher campaigns for the new intake that return in late September and early October. The success of the student campaign and trading leading up to Christmas will be very important to the outcome for the first half.

Furthermore the Group will be targeting minor investment into a few of the venues that have been impacted by strong competition. The measures implemented will take time to flow through, especially the operational changes. Whilst the Group will continue to be cash generative, it is anticipated that the overall trading result will be similar to the previous year. Trading during the quieter summer months was as expected and we have worked hard to prepare for the all-important return of students for the new academic year.

Significant events that have taken place since the year end

On the 15 June 2015, Eclectic announced that Luke Johnson, the serial leisure entrepreneur, would become Executive Chairman of the Group and that he intended to subscribe for 3,000,000 new ordinary shares of 25 pence each in the capital of Eclectic Bar Group Plc at a price of 50 pence per ordinary share. In addition, the Self Invested Pension Plans of Reuben Harley, Eclectic's Chief Executive Officer, and John Smith, Eclectic's Chief Financial Officer, also intended to subscribe for 150,000 new ordinary shares (300,000 new ordinary shares in total) at the Subscription Price. These proposals were presented and approved by the shareholders at the General Meeting on the 30 July 2015, raising £1.65 million to fund the future development of the Group's business.

In addition Eclectic Bar Group Plc has also issued warrants to subscribe for up to 1,622,274 ordinary shares at a price of 60 pence per ordinary share to Luke Johnson. These warrants can be exercised in up to two tranches, but must be exercised by 30 June 2019, after which they will lapse. The authority to issue shares and to disapply pre-emption rights were also presented and approved by the shareholders at the General Meeting on the 30 July 2015.

Since the year end the Liverpool landlord has agreed to conditionally rescind the lease on this property. Eclectic will carry out separation works to split the property into two units, each consisting of approximately half of the property. Once this work is completed two new leases will be granted, one to a new tenant and the second to Eclectic. The Group will seek to dispose of its share of the site over the next 12 to 24 months.

On the 27 August 2015 the Group reduced its Revolving Credit Facility from £5,000,000 to £3,500,000.

Finance review

Despite the significant competitive and trading pressures experienced during the year the Group remains strongly cash generative:

·      Revenue on continuing operations was down 1.9% at £22.3 million (2014: £22.7 million).

·      Revenue including discontinued operations was down 3.5% at £22.3 million (2014: £23.1 million).

·      Group EBITDA on all operations before highlighted items was £1.8 million (2014: £2.9 million).

·      Group EBITDA on all operations after highlighted items was £0.7 million (2014: £1.7 million).

·      Group EBITDA on continuing operations before highlighted items was £1.8 million (2014: 2.6 million).

·      Group EBITDA on continuing operations after highlighted items was £0.7 million (2014: £1.3 million).

·      Loss before tax and highlighted items was £0.5 million (2014: profit £1.0 million).

·      Loss before tax and after highlighted items was £6.2 million (2014: loss of £0.2 million).

·      Adjusted loss per share (basic and diluted) on all operations was 0.3 pence per share (2014: earnings per share of 9.4 pence).

·      The loss after tax and highlighted items was £5.8 million (2014: loss of £0.3 million).

·      Loss per share (basic and diluted) on continuing operations was 44.7 pence per share (2014: loss of 5.2p).

Balance Sheet

Fixed Assets

During the period ended 28 June 2015, assets with a net book value of £2,854,000 were impaired. These assets were impaired following the decision to no longer pursue the developments of Liverpool and Sheffield, together with the poor performance of other sites around the estate (see note 9).

During the period, management has also assessed value in use of goodwill, and as a result the Group booked goodwill impairments totalling £1,156,000 (see note 9).

Assets with a further net book value of £687,000 were written down, of which £221,000 related to the refurbishments of Embargo Republica and Bristol Lola Lo.

The sale of Norwich Lola Lo and closure of Bournemouth Sakura resulted in a loss on disposal of fixed assets of £569,000.

The impairments, write offs and loss on disposal have been included as highlighted items in the income statement.

Bank debt

On 18 March 2014, the Group agreed new banking facilities with Barclays Bank increasing its Revolving Credit Facility (RCF) from £1.5 million to £5.0 million, with improved interest terms and simplified covenants. Debt was reduced after the 2015 period end with further funding of £1.65 million in cash being received at the beginning of August 2015 from the new share subscriptions. On 27 August 2015, the Group reduced its Revolving Credit Facility from £5,000,000 to £3,500,000.

At the period end the Group had:

·      an outstanding term facility of £0.2 million (2014: £0.8 million), with repayments of £0.2 million due to be repaid within the next 12 months. This facility will have been fully repaid by the end of September 2015

·      an RCF facility of £5.0 million with £3.5 million drawn (2014: £1.7 million), and

·      cash balances of £1.0 million (2014: £0.5 million).

Key Performance indicators

The Group's key performance indicators are focused on the continued expansion of the group to drive revenues and EBITDA growth. Through this growth the Group will be able to offer good career prospects for our staff and great food, drink and entertainment for our premium customers and ensure regular dividends are payable to our shareholders in the future.

New acquisitions and developments

The Group looks to acquire groups of trading sites and existing venues with a strong track record of historic cash generation. In addition the Group continues to develop existing sites. The key to this success is to focus on the best locations, good rent cover and the right concept for the customer and location.

·      We have refurbished two existing venues during the period.

·      We entered in to leases at 2 new sites in Liverpool and Sheffield (2014: 4 new sites were acquired). Given the Group's strategy to reduce the risks associated with the development of "green field" sites, the intention is to dispose of these sites and change the focus to the acquisition of smaller groups and individual sites with a track record of consistent earnings.

·      We continue to focus on the long term quality of acquisitions rather than the quantity of units acquired.

Group Revenue performance versus the prior period;

The group will continue to drive sales through acquisition and development, together with a strong focus over the coming year to further increase food sales where the opportunity arises. The Group intends to dispose of smaller less profitable sites which will impact on sales in the short term but improve profitability in the longer term.

·      Revenue on continuing operations was down 1.9% at £22.3 million (2014: £22.7million)

·      Total revenue including discontinued operations was down 2.9% at £22.3 million (2014: £23.1 million)

Growth in Group EBITDA on continuing operations before highlighted items

EBITDA is a key valuation metric for the valuation of the Group's business.

We continue to focus on driving site EBITDA through new acquisitions and developments.

·      Group EBITDA on continuing operations before highlighted items was £1.8 million (2014: 2.6 million).

·      Group EBITDA on continuing operations after highlighted items was £0.7 million (2014: £1.3 million).

Consolidated income statement

For the period the 52 week period ended 28 June 2015

			52 weeks ended 28 June 2015				52 weeks ended 29 June 2014		Discontinued operations		Total including discontinued operations
	Notes		£'000				£'000		£'000		£'000
Revenue			22,282				22,707		371		23,078
Cost of sales			(4,589)				(4,760)		-		(4,760)
-
Gross profit			17,693				17,947		371		18,318
Operating expenses - excluding highlighted items			(18,026)				(16,828)		(42)		(16,870)
Operating expenses - highlighted items	3		(5,732)				(1,225)		-		(1,225)
Total operating expenses			(23,758)				(18,053)		(42)		(18,095)
Operating (loss)/profit - before highlighted items			(333)				1,119		329		1,448
Highlighted items - operating expenses	3		(5,732)				(1,225)		-		(1,225)
Operating (loss)/profit			(6,065)				(106)		329		223
Finance revenue			-				3		-		3
Finance cost			(178)				(407)		-		(407)
(Loss)/profit before tax and highlighted items			(511)				715		329		1,044
Highlighted items	3		(5,732)				(1,225)		-		(1,225)
(Loss)/profit on ordinary activities before taxation			(6,243)				(510)		329		(181)
Taxation on ordinary activities	4		470				(15)		(74)		(89)
Loss for the year from continuing operations		(5,773)										(525)
Profit after tax from discontinued operations		-										255
Loss for the year		(5,773)										(270)
(Loss)/earnings per share - Basic**	6	(44.7)p				(5.2)p				2.5p			(2.7)p
Adjusted* earnings per share - Basic**	6	(0.3)p				6.9p				2.5p			9.4p
(Loss)/earnings per share - Diluted	6	(44.7)p				(5.2)p				2.5p			(2.7)p
Adjusted* earnings per share - Diluted	6	(0.3)p				6.9p				2.5p			9.4p

* Adjusted basic and diluted earnings per share are calculated based on the profit for the period adjusted for highlighted items.

** 2015 basic weighted average number of shares in issue 12.92 million (2014: 10.17 million).

The comparative period has been adjusted to reflect a reclassification of £251,000 between revenue and costs of sales. For the period ended 28 June 2015 the share based payment expense of £54,000 has been presented within other operating costs, rather than in highlighted items. Due to the immaterial nature of this change the prior year comparative figures have not been adjusted. An analysis of the impact of this change can be found in note 3.

No other comprehensive income was earned during the year (2014: nil)

Consolidated balance sheet

As at 28 June 2015

		As at 28 June 2015		As at 29 June 2014
	Notes	£'000		£'000
Non current assets
Intangible assets	7	4,308		5,464
Property, plant & equipment	8	4,537		8,270
		8,845		13,374
Current assets
Inventories		395		455
Trade and other receivables		1,204		1,650
Income tax receivable		-		9
Cash and cash equivalents		976		461
		2,575		2,575
TOTAL ASSETS		11,420		16,309
EQUITY
Issued share capital		3,231		3,231
Share Premium		8,093		8,093
Merger reserve		(1,575)		(1,575)
Other reserve		130		76
Retained (deficit)/earnings		(5,950)		146
Equity attributable to equity shareholders of the parent		3,929		9,971
TOTAL EQUITY		3,929		9,971
LIABILITIES
Current liabilities
Trade and other payables		3,088		3,189
Other financial liabilities		176		671
Provisions	11	374		201
		3,638		4,061
Non current liabilities
Deferred tax liability	4	-		472
Other financial liabilities		3,489		1,801
Provisions	11	364		-
		3,853		2,277
TOTAL LIABILITIES		7,491		6,338
TOTAL EQUITY AND LIABILITIES		11,420		16,309

Deferred tax balances as at 28 June 2015 have been presented on a net basis. The presentation of the prior year comparative figures has also been adjusted accordingly. 

These consolidated financial statements have been approved by the Board of Directors and signed on its behalf by:  J A Smith, Director

29 September 2015

Consolidated statement of cash flows

For the period ended 28 June 2015

	52 weeks to		52 weeks to
	28th Jun 2015		29th Jun 2014
	£'000		£'000
Operating activities
Loss before tax from continuing operations	(6,243)		(510)
Profit before tax from discontinued operations	-		329
Net finance costs	178		404
Depreciation of property, plant and equipment	1,868		1,448
Impairment of intangible assets	1,156		-
Impairment of tangible fixed assets	2,854		-
Write down of tangible fixed assets	221
Loss/(Gain) on disposal of property, plant and equipment	566		(9)
Share based payment expense	54		76
Decrease/(increase) in inventories (excl. inventory acquired)	60		(108)
Decrease/(increase) in trade and other receivables	446		(302)
Increase in trade and other payables	508		668
Interest received	-		3
Interest paid	(192)		(416)
Income tax paid	-		(84)
Net cash flow from operating activities	1,476		1,499
Investing activities (from continuing operations)
Purchase of property, plant & equipment and intangible assets	(1,935)		(3,210)
Acquisition of business net of cash	-		(1,767)
Proceeds from disposal of property, plant & equipment	174		9
Net cash flows used in investing activities	(1,761)		(4,968)
Financing activities (from continuing operations)
Proceeds from borrowings	1,800		2,450
Repayment of borrowings	(650)		(8,703)
Proceeds from IPO	-		10,500
IPO costs recognised directly in equity	-		(851)
Dividends paid	(323)		-
Capital element on finance lease rental payments	(27)		(24)
Net cash flows from financing activities	800		3,372
Net increase/(decrease) in cash and cash equivalents	515		(97)
Cash and cash equivalents at beginning of period	461		558
Cash and cash equivalents at year end date	976		461

Consolidated statement of changes in equity

For the period ended 28 June 2015

	Issued share capital	Share Premium	Other reserves	Merger reserve		Retained earnings/ (deficit)		Total shareholders' equity
	£'000	£'000	£'000	£'000	£'000		£'000
At 30 June 2013	-	-	-	-	416		416
Capital restructuring	1,575	-	-	(1,575)	-		-
Issue of shares	1,656	8,944	-	-	-		10,600
Share based payments charge	-	-	76	-	-		76
IPO costs taken to equity	-	(851)	-	-	-		(851)
Loss for the period	-	-	-	-	(270)		(270)
At 30 June 2014	3,231	8,093	76	(1,575)	146		9,971
Share based payments charge	-	-	54	-	-		54
Dividends paid	-	-	-	-	(323)		(323)
Loss for the period	-	-	-	-	(5,773)		(5,773)
At 28 June 2015	3,231	8,093	130	(1,575)	(5,950)		3,929

Notes to the consolidated financial statements

For the period ended 28 June 2015

1. Accounting policies

Eclectic Bar Group Plc is a public limited company incorporated and domiciled in England and Wales. The company's ordinary shares are traded on the Alternative Investment Market. Its registered address is 36 Drury Lane, London, WC2B 5RR. Both the immediate and ultimate parent of the group is Eclectic Bar Group Plc. Eclectic Bar Group Plc, is a leading operator of 19 premium bars located in major towns and cities across the UK.

Announcement

This announcement was approved by the Board of directors on 29 September 2015. The preliminary results for the year ended 28 June 2015 are audited. The financial information set out in this announcement does not constitute the Company's statutory accounts for the years ended 28 June 2015 or 29 June 2014. The financial information set out in the announcement has been prepared on the basis of the accounting policies set out in the statutory accounts of Eclectic Bar Group Plc for the year ended 29 June 2014. This condensed consolidated financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The auditor's report on the financial statements for the years ended 28 June 2015 or 29 June 2014 was unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The financial statements for the year ended 29 June 2014 have been delivered to the Registrar of Companies.

Basis of preparation

The group financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union as they apply to financial statements of the group for the period ended 28 June 2015 and applied in accordance with the Companies Act 2006. The accounting policies which follow set out those policies which apply in preparing the financial statements for the period ended 28 June 2015. These accounting policies were consistently applied for all the periods presented.

The group financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (£000) except when otherwise indicated.

The group financial statements have been prepared under the historical cost convention.

The financial statements are prepared on a 52 or 53 week basis up to the last Sunday in June each year (2015: 52 week year ended 28 June 2015 - 2014: 52 week year ended 29 June 2014).  The notes to the consolidated financial statements are on this basis.

2.  Significant accounting estimates, judgements and assumptions

The preparation of the Group's financial statements requires management to make estimates, judgements and assumptions that affect the reported amount of assets and liabilities at the statement of financial position date, amounts reported for revenues and expenses during the year, and the disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets or liability affected in the future.

In the process of applying the Group's accounting policies, management has made the following judgments and estimates which have the most significant effect on the amounts recognised in the financial statements:

Estimates

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on similar assets or observable market prices less incremental costs for disposing the assets. The value in use calculation is based on a discounted cash flow model. The recoverable amount is most sensitive to changes in expected future cash flows. The cash flows are derived from the budget and projections for the next three years. These projections are influenced by factors which are inherently uncertain such as footfall and non-controllable costs such as rent, rates and license costs. They do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset's performance of the cash generating unit being tested. The recoverable amount is also sensitive to the discount rate used for the discounted cash flow model and the growth rate used for extrapolation purposes. The key assumptions used to determine the recoverable amount for the different cash generating units, including a sensitivity analysis, are disclosed further in note 9.

Rent review provisions

Operating leases on commercial property are subject to regular rent reviews by landlords. Lease clauses provide for upward review to open market rental rates in the local areas around each site. Such reviews can take time to conclude, meaning management must estimate the likelihood of each review resulting in an increase in rental payments. Where increases do occur, landlords may apply this retrospectively from the period when the review process was contractually required to commence. Management therefore makes estimates on whether an increase in rental payments is likely at each rent review date and creates a provision for any estimated increase in rent expense. The provision amount is based on observable market rental rate specific for local area around each individual site. Further details can be found in note 11.

Judgements

Operating lease commitments

The group has entered into commercial property leases as a lessee. In doing so, it obtains the use of property, plant and equipment. The classification of such leases as operating or finance lease requires the group to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risk and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

Deferred tax assets

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except in those circumstances outlined in note 1. Significant management judgement is required to determine the amount of deferred tax that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies.

3. Highlighted items

	Period ended 28 June 2015		Period ended 29 June 2014
	£'000		£'000
Acquisition and pre-opening costs
Acquisition costs	-		159
Site pre-opening costs	166		174
	166		333
Impairments, write downs and onerous lease provisions
Impairment intangible non-current assets*	1,156		-
Impairment of tangible non-current assets*	2,854		-
Loss on disposal of non-current assets*	569
Onerous lease provisions	710
	5,289		-
Restructuring, closure and legal costs
Restructuring costs	208
Other closure costs & legal costs	69		-
	277
Costs associated with the listing
Restructuring costs associated with IPO	-		175
IFRS 2 Share based payment charge**	-		76
Share issue costs	-		399
Listing costs	-		33
Listing bonus payments	-		209
	-		892
Total	5,732		1,225

The above items have been highlighted to give a better understand of non-comparable costs included in the Consolidated Income Statement for this period.

Site pre-opening costs of £166,000 which relate to the one-off opening costs of sites in London, Bristol, Bournemouth, Liverpool and Sheffield.

Restructuring costs of £208,000 were incurred as a result of the reorganisation of the Group and incorporation of Eclectic Icon Limited.

Costs of £1,156,000 relate to the one-off impairments of goodwill (see note 9). Write downs of tangible non-current assets resulted in one-off costs of £2,854,000 (see note 9). Highlighted losses on disposal of £569,000 relate to the disposal of the Norwich and Bournemouth sites (see note 8).

The tax effect of the above highlighted items was to increase the total tax credit by £354,000.

*these are non-cash items that are excluded from Group EBITDA.

**The share based payment charge of £53,000 for the period ended 28 June 2015 has been included in administrative expenses rather than in highlighted items. This is because these costs will be recurring in future years and so are no longer consider by management to be exceptional. The impact of this change on the income statement for the period ended 29 June 2014 is summarised in the table below.

	As per prior year published accounts			Adjusted
	£'000			£'000
Highlighted items	1,225			1,149
Operating profit before highlighted items	1,448			1,372
EBITDA before highlighted items	2,896			2,820
Profit before tax and highlighted items	1,044			968
Adjusted earnings per share (basic and diluted - pence per share)	9.4			8.6

4. Income tax

(a) Tax on profit on ordinary activities

The tax is made up as follows:

	Period			Period
	ended			ended
	28 June			29 June
	2015			2014
	£'000			£'000
Current tax:
UK Corporation tax (credit)/charge on the  (loss)/profit for the period		-			(33)
Adjustment in respect of prior periods		6			8
Total current tax		6			(25)
Deferred tax:
Origination and reversal of temporary differences	(476)					114
Total tax (credit)/charge for the year	(470)					89

(b) Factors affecting tax charge for the period

The tax charge/(credit) for the period is different from the standard rate of corporation tax in the UK of 20.75% (2014 - 22.5%). The differences are explained below:

	Period ended 28 June 2015	Period ended 29 June 2014
	£'000	£'000
(Loss)/profit on ordinary activities before tax	(6,243)	(181)
(Loss)/profit on ordinary activities multiplied by standard rate
of corporation tax in the UK of 20.75% (2014 - 22.5%)	(1,295)	(41)
Effects of:
Expenses not (taxable)/deductible  for tax purposes	498	189
Tax losses not recognised as deferred tax asset	289	-
Chargeable gains	19
Impact of tax rate change	13	(67)
Adjustment in respect of prior periods	6	8
Total tax charge for the period	(470)	89

Legislation to reduce the UK main rate of corporation tax from 23% to 21% with effect from 1 April 2014 and to 20% with effect from 1 April 2015 was enacted in July 2013. Accordingly, deferred tax balances at 28 June 2015 have been calculated based on these rates.

c). Deferred tax

On 8^th July 2015, the Chancellor announced that the UK main rate of corporation tax will fall to 19% from 1 April 2017 and 18% from 1 April 2020.  These rate changes had not been substantively enacted at the balance sheet date and consequently in these accounts deferred tax continues to be recorded at the 20% rate.  The deferred taxation liability, using a tax rate of 20% (2014: 20%), comprises the following:

	Period ended  28 June 2015	Period ended 29 June 2014
	£'000	£'000
Assets
Capital allowances in (advance)/arrears of depreciation	469	44
Taxable losses carried forward	66	-
Other temporary differences	42	48
	577	92
Recognised in the balance sheet:
Included in (payables)/receivables
Liabilities
Goodwill	(577)	(568)
Total deferred tax liability	-	470

c). Deferred tax (continued)

Deferred tax balances as at 28 June 2015 have been presented on a net basis. The presentation of the prior year comparative figures has also been adjusted accordingly.  In the 2014 published accounts a deferred tax asset of £92,000 and a deferred tax liability of £568,000 were shown separately on the balance sheet.

In 2015, deferred tax assets totalling £289,000 in relation to trading losses carried forward in Barclub Trading Ltd were not recognised as there is currently no certainty that the Group will have future taxable profits against which the tax asset will be realised.

5.  Segmental information

The following tables present revenue and loss and certain asset and liability information regarding the Group's business segments for the period ended 28 June 2015. The contract operation of bars represents a discontinued operation for the period ended 29 June 2014, meaning that the Group consisted of just one segment, Owned Bars, as at the period end date of 28 June 2015.

		Period ended 28 June 2015				Period ended 29 June 2014
		Owned bars	Contract operation of bars	Total		Owned bars	Contract operation of bars	Total
		£'000	£'000	£'000		£'000	£'000	£'000
Revenue
Sales to external customers		22,282	-	22,282		22,707	371	23,078
Group operating (loss)/profit		(6,065)	-	(6,065)		(106)	329	223
Net finance cost		(178)	-	(178)		(404)	-	(404)
Impairment & write down of tangible and intangible assets		(4,231)	-	(4,231)		-	-	-
(Loss)/profit before taxation		(6,243)	-	(6,243)		(510)	329	(181)
Assets and liabilities
Segment assets		11,420	-	11,420		16,309	-	16,309
Segment liabilities		7,491	-	7,491		6,338	-	6,338

The Group has included additional disclosure on the face of the income statement to make clear the contribution to Revenue, Profit before tax and Profit after tax of the operations that were discontinued in 2014.

6. Earnings per share

Basic earnings per share amounts are calculated by dividing net income for the period attributable to ordinary shareholders of Eclectic Bar Group Plc by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

The following reflects the income and share data used in the basic and diluted earnings per share computations:

		Period ended 29 June 2014
Basic earnings per share	Period ended 28 June 2015	Continuing operations	Discontinued operations	Total
(Loss)/profit for the period (£'000)	(5,773)	(525)	255	(270)
Basic weighted number of shares (number)	12,922,741	10,173,068	10,173,068	10,173,068
Loss)/earnings per share (pence) - Basic (pence)	(44.7)	(5.2)	2.5	(2.7)

Basic adjusted earnings per share

			Period ended 29 June 2014
	Period ended			Continuing	Discontinued	Total
	28 June 2015			operations	operations
(Loss)/profit for the period before highlighted items (£'000)	(41)			700	255	955
Basic adjusted weighted number of shares (number)	12,922,741			10,173,068	10,173,068	10,173,068
Adjusted earnings per share - Basic (pence)	(0.3)			6.9	2.5	9.4

Diluted basic earnings per share

The impact of dilutive shares on the weighted average number of shares is summarised below:

	2015	2014
	Number	Number
Weighted average number of shares for Basic EPS	12,922,741	10,173,068
Dilutive effect of share options	-	24,893
Weighted average number of share for Diluted EPS	12,922,741	10,197,961

As the Group made a loss from continuing operations, all potential ordinary shares are deemed to be anti-dilutive. Therefore the diluted and basic earnings per share for continuing operations are the same. No share options were in issue for the prior period, therefore there were no dilutive shares in the comparative period.

		Period ended 29 June 2014
	Period ended	Continuing	Discontinued	Total
	28 June 2015	operations	operations
(Loss)/profit for the period (£'000)	(5,773)	(525)	255	(270)
Diluted weighted number of shares (number)	12,922,741	10,173,068	10,197,961	10,173,068
Earnings per share (pence) - Diluted (pence)	(44.7)	(5.2)	2.5	(2.7)

Adjusted diluted earnings per share

		Period ended 29 June 2014
	Period ended	Continuing	Discontinued	Total
	28 June 2015	operations	operations
(Loss)/profit for the period (£'000)	(41)	700	255	955
Diluted weighted number of shares (number)	12,922,741	10,197,961	10,197,961	10,197,961
Earnings per share (pence) - Adjusted diluted (pence)	(0.3)	6.9	2.5	9.4

7. Intangible assets

	Group
	Goodwill
	£'000
Cost:
At 30 June 2013	7,189
Additions	866
At 29 June 2014	8,055
At 28 June 2015	8,055
Amortisation & impairments:
At 30 June 2013	2,591
At 29 June 2014	2,591
Impairment (note 9)	1,156
At 28 June 2015	3,747
Net book value
At 30 June 2013	4,598
At 29 June 2014	5,464
At 28 June 2015	4,308

The goodwill balance above relates primarily to the Group's acquisition of 12 sites in 2006. These sites included; Embargo, Putney Fez, Cambridge Fez, Wimbledon Po Na Na, Bath Po Na Na, Oxford Po Na Na, Bath Lola Lo, Lincoln Lola Lo, Brighton Lola Lo, Norwich Lola Lo, Edinburgh Lola Lo and Reading Sakura. The goodwill arising from this transaction amounted to £3,897,000. 

The goodwill totalling £1,567,000 arising from subsequent acquisitions has been allocated on an individual basis against each site acquired.

The Group only has one operating segment, however management considers each site to be a separate CGU on the basis that each site generates cash flows which are largely independent of the cash flows generated by other sites.

The value of the goodwill was tested for impairment during the current financial year by means of comparing the recoverable amount of each CGU with the carrying value of its goodwill.  Based on the operating performance of the CGUs, an impairment of goodwill of £1,156,000 was identified in the current financial year (2014: nil) and has been included as a highlighted item in the consolidated income statement (see note 3).

The remaining valuations indicate sufficient headroom such that a reasonably possible change to key assumptions would not result in any impairment of goodwill. Refer to note 9 for further information of the impairment review.

8. Property, plant and equipment

			Fixtures,			Assets in the
		Motor	Fittings&	Leasehold	Buildings	course of
	Computers	vehicles	equipment	improvement	improvement	construction	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Cost:
At 30 June 2013	171	154	5,372	3,620	-	6	9,323
Transfers	31	-	627	576	-	(1,234)	-
Additions	128	-	1,531	323	-	1,228	3,210
Assets acquired	-	-	179	465	428	-	1,072
Disposals	-	(40)	-	-	-	-	(40)
At 29 June 2014	330	114	7,709	4,984	428	-	13,565
Transfers	-	-	(49)	225	-	(176)	-
Additions	66	66	1,201	424	-	178	1,935
Disposals	(55)	(117)	(1,254)	(834)	-	(2)	(2,262)
At 28 June 2015	341	63	7,607	4,799	428	-	13,238
Depreciation:
At 30 June 2013	128	69	2,720	970	-	-	3,887
Charge for the period	49	24	998	374	3	-	1,448
Disposals	-	(40)	-	-	-	-	(40)
At 29 June 2014	177	53	3,718	1,344	3	-	5,295
Charge for the period	86	20	1,408	286	68	-	1,868
Impairments	39	-	1,543	1,208	64	-	2,854
Disposals	(54)	(53)	(917)	(292)	-	-	(1,316)
At 28 June 2015	248	20	5,752	2,546	135	-	8,701
Net Book value;  28 June 2015	93	43	1,855	2,253	293	-	4,537
Net Book value; 29 June 2014	153	61	3,991	3,640	425	-	8,270
Net Book value; 30 June 2013	43	85	2,652	2,650	-	6	5,436

Assets acquired relate to assets acquired as part of business combinations. As the period ended 28 June 2015, the net book of assets held under finance leases was £35,000 and the gross carrying amount of fully depreciated property, plant and equipment that is still in use was £5,139,000 ( 2014: £1,632,000).

During the period ended 28 June 2015 assets with a net book value of £2,854,000 were impaired. These assets were impaired following the decision to no longer pursue the developments Liverpool and Sheffield, and the poor performance of other sites around the estate. See note 9 for further details.

The sale of Norwich Lola Lo and the closure of Bournemouth Sakura resulted in a loss on disposal of fixed assets of £569,000. The impairments and loss on disposal have been included as highlighted items in the income statement.

As a result of the refurbishment at Embargo and Bristol, assets with a net book value of £221,000 were written off during the period. These write offs have been included within operating expenses in the income statement.

Cars with a net book value of £67,000 were disposed of during the period, resulting in a gain on disposal of £3,000.

9. Impairment review

The group performed its annual impairment test in June 2015 and 2014. The Group considers the relationship between the trading performance of each CGU and their book value when reviewing for indicators of impairment, as at 28 June 2015, the closure of the Bournemouth Lola Lo site and generally difficult trading conditions across the Group indicated a potential impairment of the assets.

Each site represents a cash generating unit (CGU). Goodwill is allocated to the site on which it arose.

The recoverable amount of the goodwill has been determined based on a value in use calculation using cash flow projections from financial budgets approved by senior management covering a three year period.

Cash flows for each CGU beyond the three year period are extrapolated assuming a terminal growth of 1.5% (2014: 1.5%) that reflects the expected growth based on market research. The pre-tax discount rate applied to cash flow projections is 12% (2014: 9.8%). As each CGU shares similar risks and has similar geographical characteristics the same discount and growth rates have been applied to all CGUs.

To assess for impairment, the value in use of the CGU is compared to the carrying value of the assets of that CGU including any attributed goodwill. If the resultant net present value of the discounted cash flows is less than the carrying value of the CGU including goodwill the difference is written off through the income statement.

Carrying amount of goodwill allocated to each of the CGUs:

As a result of this analysis, management has recognised impairment charges totalling £1,156,000 in the current year against goodwill with a carrying amount of £5,464,000 giving a carrying amount as at 28 June 2015 of £4,308,000. The impairment charge is recorded within highlighted items in the consolidated income statement. See the detailed table below.

Carrying amount of property, plant and equipment allocated to each of the CGUs:

As a result of this analysis, management has recognised further impairment charges totalling £2,854,000 in the current year against property, plant and equipment with a carrying amount of £8,270,000 giving a carrying amount as at 28 June 2015 of £4,537,000. The impairment charge is recorded within highlighted items in the consolidated income statement. See the detailed table below.

	As at 28 June 2015			As at 28 June 2015
Site	Goodwill carrying value	Impairment		Fixed asset carrying value		Impairment	Write down/disposal
	£'000	£'000		£'000		£'000	£'000
Norwich Lola Lo	28	28		-		-	103
Bournemouth Lola Lo	296	296		-		-	466
Disposals	324	324		-		-	569
Sites no longer being developed (Liverpool & Sheffield)	-	-		344		344	-
Brighton Dirty Blonde	405	405		836		836	-
Derby Lola Lo	-	-		726		726	-
Reading Sakura	316	316		758		266	-
Other sites	150	111		682		682	-
Under performing sites	871	832		3,002		2,510	-
Totals	1,195	1,156		3,346		2,854	569

All fixed assets held by Norwich Lola Lo and Bournemouth Sakura were disposed of during the period, resulting in a loss on disposal of £569,000. This is included in highlighted items in the income statement.

The calculation of value in use for all CGUs is most sensitive to the following assumptions

-       Discount rates

-       Growth rates used to extrapolate cash flows beyond the forecast period

-       Growth in expenses including rent based on rent reviews

Discount rates - The discount rate calculation is based on the specific circumstances of the Group and is derived from its weighted average cost of capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Group's investors. The cost of debt is based on the interest-bearing borrowings the Group is obliged to service.

Growth rates - Rates are based on published industry research and market conditions and economic factors such as the changing habits of students in the towns and cities the Group operates in and competition faced from other businesses in these areas. Management has also considered general consumer confidence including factors like job prospects, inflation and household disposable income. When determining the appropriate growth rates, management has also considered the regulatory environment.

Growth in expenses including rent - Eclectic's main costs are drinks, labour and rent. Estimates regarding the drink cost is based on the past actual price movements as well as the expected results from supplier negotiations. Labour increases have been estimated in relation to the National Minimum Wage. Rent reviews are typically every five years and budgets assume increases of between 2 to 5% annually compounded. The rate reflects the specific market locations for the related venue.

The headroom is dependent upon sensitivities to these and other assumptions. The largest elements of goodwill are in the Embargo and Putney Fez CGUs.  A fall in forecast EBITDA of between 60% to 66% or an increase in the WACC to 28% would be required before the carrying value of goodwill exceeded its value in use at these sites.  In the case of other CGUs, in most instances a fall exceeding 30% of forecasted EBITDA or an increase in the WACC to greater than 20% would be required before an impairment was required, with the exception of Reading Lola Lo and Lowlander where a decrease of EBITDA of 10% or increase in the WACC to 15% would trigger and impairment.

10. Movement in cash and cash equivalents reconciled in debt

The movement in cash and cash equivalents is reconciled to movements in debt as follows:

	2015	2014
	£'000	£'000
(Decrease)/increase in cash and cash equivalents	515	(97)
Repayment of loan to Avanti Capital Plc	-	7,302
(Increase)/decrease in other borrowings	(1,150)	(561)
Decrease/(increase) in debt resulting from cash flows	(635)	6,644
Other non-cash movements	(44)	(427)
Decrease in net debt in the period	(679)	6,217
Net debt at start of period	(2,011)	(8,228)
Net debt at end of period	(2,690)	(2,011)

11. Provisions

Rent review provision

The group has made a provision in respect of expected increases in rent costs as a result of rent reviews on operating leases. Operating leases on commercial property are subject to regular rent reviews by landlords in accordance with the lease agreement.

Management uses current open market rental rates in the local areas around each site and compares this to the Group's current lease terms. The provision recognised represents the best estimate of any expected increase in rental payments as a result of rent reviews applied retrospectively to the date of the last rent review as per the lease agreement.

For each operating lease on which a rent review is due, management estimates a rental payment increase of between 2% to 5%, based on current open market rental rates.

Onerous lease provision

In respect of onerous leases, provision is made for onerous lease contracts on sites that have either closed, or where projected future trading income is insufficient to cover the fixed unavoidable expenses such as rent, rates and other property costs to the end of the lease term net of expected trading on sublet income provision. The provision is based on the present value of expected future cash outflows relating to unavoidable expenses in excess of economic benefits guaranteed with the site business. The majority of this provision is expected to be utilised over the next three years.

	Rent review provision	Onerous Lease provision	Total
	£'000	£'000	£'000
Balance at 30 June 2013	134	-	134
Additional provision charged to the income statement	89	-	89
Unused amounts reversed during the period	(22)	-	(22)
Balance at 29 June 2014	201	-	201
Additional provision charged to the income statement	16	710	726
Unused amounts reversed during the period	(189)	-	(189)
Balance at 28 June 2015	28	710	738
Current	28	346	374
Non-current	-	364	364

12. Reconciliation to EBITDA

Group profit before tax can be reconciled to Group EBITDA as follows:

2015 EBITDA Reconciliation	2015	2014
Loss before tax for the year	(6,243)	(181)
Add back depreciation	1,868	1,448
Add back net interest paid	178	404
Add back fixed asset write downs not in highlighted items	221	-
Add back share based payment charge	54	-
Add back highlighted items	5,732	1,225
Group EBITDA before highlighted items	1,810	2,896
Discontinued operations
- PBR revenue	-	(329)
Group EBITDA before highlighted items and discontinued operations	1,810	2,567

 

END

 

 

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