FishWorks plc
13 April 2007
Date: 13th April 2007
On Behalf of: FishWorks plc ('FishWorks' or 'the Group')
FishWorks plc
Unaudited Interim Results for the six months to 31 January 2007
FishWorks plc, the award winning local restaurant group listed on AIM (Symbol:
FSH), today announces its interim results for the six month period to 31 January
2007.
The Group now operates 12 sites with the opening of Notting Hill and Chelsea
within this period. The opening of new restaurants since January 2006 has led
to a 119% increase in sales. The Group continues to develop its other income
streams from Channel Fisheries Limited which was acquired in January 2006.
Channel Fisheries continues to trade well.
The Group's recent trading difficulties, which were substantially caused by
rapid expansion, has led to board changes in the period with the departures of
Roy Morris and Ratnesh Bagdai. Subsequent appointments have been made with the
appointment of a new Chairman Gary Ashworth, Chief Operating Officer Paul
Goodale and Finance Director Chris Marsh.
We are assessing the viability of each site to the Group and are currently
reviewing the offer at restaurant level, which will include menu, staffing
structure and some superficial changes to the look of the restaurants. This
will also include our training and controls, which, we hope, will lead to
improved and more profitable execution.
Significant cuts have been made to the central overhead base with a view to
ensuring the continuing business is profitable for the balance of the year
ending 31 July 2007.
We have completed a detailed financial review of the Group which has led to
considerable costs having to be provided for large non-continuing central
overhead items that have been incurred up to 31 January 2007. The unaudited
pre-tax loss is £740,807 (compared with £540,808 shown in the circular issued to
shareholders on 16 March 2007) of which £458,744 are non-recurring items.
Continuing unaudited EBITDA for the Group in the period was £85,942.
Mitchell Tonks, Chief Executive Officer of FishWorks plc, commented:
'It is a disappointment that the first half of the year has been dominated with
problems caused by the roll out last year, however FishWorks remains a strong,
popular and unique brand in the restaurant sector and our focus is currently on
improving execution and driving sales from our current sites. Whilst we are
reporting a substantial loss for this period, we believe the benefits of
restructuring the Group will allow us to operate from a more appropriate cost
base in the future. With our new management, funding and the improved controls
and measures we have introduced, I am confident that FishWorks can achieve its
full potential by improving profitability and revenue from existing sites then
continuing with a controlled roll out of the brand. We have been well supported
by our shareholders and staff and would like to take this opportunity to thank
them.'
- Ends -
Enquiries to:
Mitchell Tonks, Group Chief Executive Officer /
Gary Ashworth, Chairman
Via Redleaf Communications Tel: 020 7822 0200
Emma Kane/Sanna Lehtinen
Redleaf Communications Tel: 020 7822 0200
Richard Day / Steve Pearce
Arden Partners plc Tel: 020 7398 1632
Notes to Editors:
• FishWorks was founded in 1994 by Mitchell Tonks.
• FishWorks operates a chain of 12 seafood outlets, currently located in
Bath, Bristol, Christchurch, Richmond and London (Battersea, Chiswick,
Islington, Marylebone, Primrose Hill, Parsons Green, Notting Hill and
Chelsea), each of which provides a distinctive combination of seafood
restaurant and traditional fishmongers.
• The Company was listed on AIM in June 2005.
• FishWorks also supplies fish and seafood to over 300 hotels and restaurants
across the UK through its subsidiary, Channel Fisheries Limited.
Further information on FishWorks is available at the Company's website:
www.fishworks.co.uk
FishWorks plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months to 31 January 2007
Unaudited Unaudited Audited
Six months to Six months to year to 31
31 January 2007 31 January 2006 July 2006
Notes £ £ £
TURNOVER 6,182,990 2,821,432 7,616,490
Cost of sales (2,951,176) (1,099,707) (3,019,390)
----------- ----------- -----------
GROSS PROFIT 3,231,814 1,751,725 4,597,100
Administrative expenses (3,829,462) (1,990,840) (4,841,511)
----------- ----------- -----------
OPERATING (LOSS) / PROFIT (597,648) (239,115) (244,411)
Loss on termination - - (280,806)
of an operation
Interest receivable - 31,147 34,731
Interest payable and (143,159) (40,435) (28,187)
similar charges
LOSS ON ORDINARY (740,807) (248,403) (518,673)
ACTIVITIES BEFORE TAXATION
----------- ----------- -----------
Taxation 2 - - -
----------- ----------- -----------
(LOSS) / PROFIT ON
ORDINARY ACTIVITIES
AFTER TAXATION (740,807) (248,403) (518,673)
=========== =========== ===========
(LOSS) / EARNINGS PER ORDINARY
SHARE (PENCE) 4
Basic (2.27p) (0.76p) (1.60p)
=========== =========== ===========
Diluted (2.27p) (0.76p) (1.60p)
=========== =========== ===========
The year ended 31 July 2006 includes continuing and discontinuing activities.
FishWorks plc
CONSOLIDATED BALANCE SHEET
as at 31 January 2007
Unaudited Unaudited Audited
31 January 2007 31 January 2006 31 July 2006
Notes £ £ £
FIXED ASSETS
Intangible assets - goodwill 1,162,416 1,204,763 1,179,480
Tangible assets 5 6,483,878 3,051,322 5,374,820
----------- ----------- -----------
7,646,294 4,256,085 6,554,300
CURRENT ASSETS
Stocks 302,918 166,987 226,766
Debtors 1,471,099 707,654 1,085,363
Cash at bank and in hand 6,741 159,635 191,860
----------- ----------- -----------
1,780,758 1,034,276 1,503,989
CREDITORS: Amounts falling due (4,339,655) (1,373,122) (3,130,992)
within one year
----------- ----------- -----------
NET CURRENT (2,558,897) (338,846) (1,627,003)
(LIABILITIES)/ ASSETS
----------- ----------- -----------
TOTAL ASSETS LESS CURRENT
LIABILITIES 5,087,397 3,917,239 4,927,297
CREDITORS: Amounts falling due (2,465,698) (276,363) (1,564,791)
after more than one year
----------- ----------- -----------
NET ASSETS / (LIABILITIES) 2,621,699 3,640,876 3,362,506
=========== =========== ===========
CAPITAL AND RESERVES
Called up share capital 326,216 326,216 326,216
Share premium account 5,503,543 5,634,643 5,503,543
Merger reserve 58,000 (65,000) 58,000
Profit and loss account (3,266,060) (2,254,983) (2,525,253)
----------- ----------- -----------
2,621,699 3,640,876 3,362,506
=========== =========== ===========
FishWorks plc
CONSOLIDATED CASH FLOW STATEMENT
for the six months to 31 January 2007
Unaudited Unaudited Audited
Six months to Six months to Seventeen
months to
31 January 2007 31 January 2006 31 July 2006
Notes £ £ £
NET CASH (OUTFLOW)/INFLOW FROM
OPERATING ACTIVITIES 6 (118,597) (83,692) 660,171
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest received - 31,656 34,731
Interest paid (85,567) (40) (62,482)
Finance lease charges (57,592) (40,902) (75,750)
----------- ----------- -----------
NET CASH OUTFLOW FROM RETURNS
ON INVESTMENTS AND SERVICING
OF FINANCE (143,159) (9,286) (103,501)
CAPITAL EXPENDITURE
Payments to acquire tangible
fixed assets (1,316,840) (1,011,530) (3,523,491)
-------------- -------------- -----------
NET CASH OUTFLOW FROM
CAPITAL EXPENDITURE (1,316,840) (1,011,530) (3,523,491)
ACQUISITIONS AND DISPOSALS
Purchase of subsidiary
undertaking - (647,218) (691,265)
Net overdraft acquired with
subsidiary undertaking - (7,026) (227,331)
----------- ----------- -----------
NET CASH OUTFLOW FROM
ACQUISITIONS AND DISPOSALS (1,316,840) (654,244) (918,596)
-------------- ----------- -----------
NET CASH OUTFLOW BEFORE
FINANCING (1,578,596) (1,758,752) (4,442,087)
FINANCING
Issue of shares net of
costs - (4,953) (13,053)
Loan stock issued - - -
Loan stock repaid - - -
Bank loan increase/(repaid) 747,687 - 1,869,500
Finance lease loans /
(capital repayments) 248,057 (128,685) (322,843)
------------ ----------- -----------
NET CASH (OUTFLOW) /
INFLOW FROM FINANCING 995,744 (133,638) 1,533,604
----------- ----------- -----------
(DECREASE) / INCREASE IN
CASH IN THE PERIOD 7 (582,852) (1,892,390) (2,351,813)
=========== =========== ===========
FishWorks plc
CONSOLIDATED CASH FLOW STATEMENT (continued)
for the six months to 31 January 2007
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Unaudited Unaudited Six Audited year
Six months to months to to 31 July
31 January 31 January
2007 2006 2006
£ £ £
(Decrease) / increase in
cash in the period (582,852) (1,892,390) (2,351,813)
Cash flow from movements in
debt (995,744) 128,685 (1,546,657)
----------- ----------- -----------
Change in net debt
resulting from cash flows (1,578,596) (1,763,705) (3,898,470)
Loans acquired on acquisition - (230,398) -
New finance lease agreements
acquired on purchase of
assets - - (10,093)
----------- ----------- -----------
Movement in net (debt) /
funds in the year (1,578,596) (1,994,103) (3,908,563)
Opening net funds / (debt) (2,265,450) 1,643,113 1,643,113
----------- ----------- -----------
Closing net (debt) / funds (3,844,046) (350,990) (2,265,450)
=========== =========== ===========
1 ACCOUNTING POLICIES
The significant accounting policies, which have been consistently
applied in preparing the financial statements are as follows:
BASIS OF PREPARATION
The interim financial statements comprise the audited results for the six
months to 31 January 2007 and 31 January 2006 and for the year to 31 July
2006. The interim financial statements have been prepared on a consistent
basis and using the accounting policies set out in the accounts for the
period ended 31 July 2006.
The interim results are unaudited and do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.
Statutory financial statements for the Group for the period to 31 July
2006, prepared on the basis of the accounting policies set out in those
accounts, were reported on by the auditors without qualification or
statement under section 237(2) or (3) of the Companies Act 1985 and have
been delivered to the Registrar of Companies. Comparative information for
the period ended 31 July 2006 shown in this report has been extracted from
those accounts.
The financial statements have been prepared under the historical cost
convention and in accordance with applicable accounting standards.
BASIS OF CONSOLIDATION
The financial statements consolidate the results, cash flows and assets and
liabilities of the company and its wholly owned subsidiary undertaking, The
Fish Market Limited, by the method of merger accounting. The acquisition
of Channel Fisheries Limited has been accounted for using acquisition
accounting.
In the Company's balance sheet the investment in The Fish Market Limited is
stated at the nominal value of shares issued. As permitted by Sections 131
and 133 of the Companies Act 1985, no premium has been recorded on the
ordinary shares in connection with this acquisition.
On consolidation the difference between the nominal value of the shares
issued with the nominal value of the shares received has been debited to
a merger reserve.
2 TAXATION
Taxation charged for the period ended 31 January 2007 is calculated by
applying the directors' best estimate of the annual tax rate to the result
for the period.
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a
right to pay less tax in the future have occurred at the balance sheet
date. Timing differences are differences between the company's taxable
profits and its results as stated in the financial statements.
Deferred tax is measured at the average tax rates that are expected to
apply in the periods in which timing differences are expected to reverse,
based on tax rates and laws that have been enacted or substantially enacted
by the balance sheet date. Deferred tax is measured on a non-discounted
basis.
The directors have recognised a deferred tax asset of £305,000 (31 July
2006: £305,000) in respect of accumulated tax losses.
3 SHARE CAPITAL
As at 31 January 2007, the Company had an authorised share capital of
40,000,000 ordinary shares of 1p each, of which 32,621,631 had been issued
and were fully paid.
The Company has established an unapproved share option scheme for the
benefit of directors and employees. 2,117,380 options had been granted
under this scheme.
The Company also granted warrants to Arden Partners Limited to subscribe
for up to 2% (646,433 ordinary shares) of the enlarged share capital of the
Company following its admission to AIM at the admission price of 33p per
share. These warrants are exercisable up to the third anniversary from the
date of admission.
4 (LOSS)/EARNINGS PER ORDINARY SHARE
The (loss)/earnings per ordinary share has been calculated using the
(loss)/profit for the period and the weighted average number of ordinary
shares in issue during the period as follows:
Six months to Six months to Year to
31 January 2007 31 January 2006 31 July 2006
£ £ £
(Loss) / profit for the period after taxation (740,807) (248,403) (518,673)
================ ================ =================
Number Number Number
Basic weighted average of ordinary shares of 1p
each 32,476,973 32,334,674 32,476,973
================ ================ =================
Diluted weighted average of ordinary shares of 1p
each 32,476,973 32,334,674 32,476,973
================ ================ =================
Pps pps Pps
Basic (loss) / earnings (pence per share) (2.27p) (0.76p) (1.60p)
================ ================ =================
Diluted (loss) / earnings (pence per share) (2.27p) (0.76p) (1.60p)
================ ================ =================
The basic earnings per share is calculated on the weighted average number
of shares in issue during each period. Fully diluted earnings per share
takes account of the dilutive effect of outstanding share options. Where
the diluted earnings per share calculation is based on a loss after
taxation, share options in issue have been excluded from the weighted
average number of ordinary shares used in the calculation of the basic loss
per share. This is because the exercise of share options would have the
effect of reducing the loss per ordinary share and is therefore not
dilutive under the terms of FRS 22.
5 TANGIBLE FIXED ASSETS
Leasehold Fixtures fittings Assets under Motor Total
improvements and equipment construction vehicles
£ £ £ £ £
Cost or valuation
At 1 August 2006 4,674,759 1,548,640 - 33,215 6,256,614
Additions 862,597 454,243 - - 1,316,840
----------- ------------------ -------------- -------------- --------------
At 31 January 5,537,356 2,002,883 - 33,215 7,573,454
2007
=========== =========== =========== =========== ===========
Depreciation
At 1 August 2006 422,396 436,260 - 23,138 881,794
Charge for the 110,201 93,429 - 4,152 207,782
period
------------ ----------------- ------------ ---------------- ----------------
At 31 January 532,597 529,689 - 27,290 1,089,576
2007
=========== =========== =========== =========== ===========
Net book value
At 31 January 5,004,759 1,473,194 - 5,925 6,483,878
2007
=========== =========== =========== =========== ===========
At 31 January 1,708,673 646,324 677,799 18,526 3,051,322
2006
=========== =========== =========== =========== ===========
At 31 July 4,252,363 1,112,380 - 10,077 5,374,850
2006
=========== =========== =========== =========== ===========
6 RECONCILIATION OF OPERATING (LOSS)/PROFIT TO NET CASH (OUTFLOW)/ INFLOW
FROM OPERATING ACTIVITIES
Six months to Six months to Year to
31 January 2007 31 January 2006 31 July 2006
£ £ £
Operating
(loss) /
profit (597,648) (239115) (244,411)
Depreciation 207,782 128,913 259,679
Amortisation
of goodwill 17,064 3,450 34,129
Increase in
stock (76,152) (39,064) (104,843)
Decrease /
(increase) in
debtors (385,736) 45,435 (205,361)
Increase /
(decrease) in
creditors
Impa
irment of 716,093 16,689 909,729
tangible fixed
assets - - 11,249
------------------- ------------------- -------------------
Net cash
(outflow) /
inflow from
operating
activities (118,597) (83,692) 660,171
=========== =========== ===========
7 ANALYSIS OF CHANGES IN NET FUNDS / (DEBT)
At Cash flows Acquisitions At
1 August 2006 31 January
2007
£ £ £ £
Cash at bank 191,860 (185,119) - 6,741
and in hand
Bank (502,274) (397,733) - (900,007)
overdrafts
----------- -------------- ---------------------- -----------
Net cash (310,414) (582,852) - (893,266)
----------- -------------- ---------------------- -----------
Bank loan (1,869,500) (747,687) - (2,617,187)
Finance lease (85,536) (248,057) - (333,593)
agreements
----------- -------------- ----------- -----------
Total net funds / (2,265,450) (1,578,596) - (3,844,046)
(debt)
=========== =========== =========== ===========
8 COPIES OF THE INTERIM REPORT
Copies of the interim report have been sent to shareholders and are
available from the company secretary at 10 Gees Court, London,
This information is provided by RNS
The company news service from the London Stock Exchange