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FishWorks plc (FSH)

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Friday 13 April, 2007

FishWorks plc

Interim Results

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                                                                                                                                                                                                                                                         

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