TIDMRIC
RNS Number : 1656S
Richoux Group PLC
29 September 2017
Richoux Group plc
Interim results for the 28 weeks ended 9 July 2017
Richoux Group plc (the "Group"), the owner and operator of
Richoux, Friendly Phil's and Villagio restaurants today announces
its unaudited interim results for the 28 week period ending 9 July
2017.
Key points:
-- Turnover decreased 20.2% to GBP5.65 million
(2016: GBP7.08 million).
-- Loss after tax GBP1.12 million
(2016: GBP0.58 million).
-- Currently seventeen restaurants trading.
-- Cash of GBP4.73 million at period end.
(December 2016: GBP3.86 million).
This announcement contains inside information.
Enquiries:
Richoux Group plc
Simon Morgan, Chairman (020) 7483 7000
Cenkos Securities plc (020) 7397 8900
Bobbie Hilliam
Results
Revenue for the 28 week period ended 9 July 2017 decreased 20.2%
on the 28 week period ended 10 July 2016 to GBP5.65 million (2016:
GBP7.08 million). Adjusted operating loss before pre-opening costs,
impairment, reorganisation costs and onerous lease provision
decreased to GBP0.73 million (2016: GBP0.63 million). Pre-opening
costs for the period were GBP0.39 million (2016: GBP0.09 million).
The net loss for the period was GBP1.12 million (2016: GBP0.58
million).
The Directors are not recommending the payment of a
dividend.
Operations
The Group currently has seventeen operating restaurants, which
operate under the Richoux, Friendly Phil's and Villagio brands.
Further details on each of the brands are set out below.
During the first half, we have focused on improving our
restaurant teams, food and premises, as well as laying the
foundations for significant improvements in our digital
capabilities. We have modernised our Richoux restaurants whilst
staying true to our traditional heritage, and have rebranded our
Dean's Diners into our new Friendly Phil's format.
We successfully disposed of three underperforming units during
the period, and have disposed of a further two since the period
end.
Richoux
Richoux is an all day cafe and brasserie established in London
in 1909.
The Group has six Richoux restaurants - in Knightsbridge,
Mayfair, Piccadilly, Gloucester Arcade, Port Solent and
Chislehurst. The Port Solent and Chislehurst restaurants were
previously Villagio restaurants and were converted into Richoux
restaurants in February and March 2017 respectively. The restaurant
in St John's Wood closed in May 2017 when the restaurant lease
ended. The restaurants in Gloucester Arcade, Knightsbridge and
Piccadilly were refurbished in May, June and July 2017
respectively.
Friendly Phil's
Friendly Phil's is a vintage American Diner.
The Group currently has six Friendly Phil's restaurants, in
Hempstead Valley which opened in March 2017, Port Solent which
opened in April 2017, Chatham which opened in May 2017, Braintree
which opened in May 2017, Canterbury which opened in May 2017 and
Fareham which opened in June 2017. These restaurants were
previously Dean's Diner restaurants apart from Canterbury which was
a Zintino restaurant.
The restaurant in Bicester was sold in January 2017, the lease
for the restaurant in Orpington was surrendered in April 2017, the
restaurant in Trowbridge was sold in September 2017 and the lease
for the restaurant in Yate was surrendered in September 2017.
Italian restaurants
The Group currently has four Villagio restaurants in Andover,
Basildon, Hammersmith, and Chatham. The restaurant in High Wycombe
was sold at the end of January 2017.
The Group also has one Italian restaurant trading as Zippers
Bar, Restaurant and Grill in Chatham.
Capital expenditure and cash flow
As at the end of the period under review the Group held cash of
GBP4.73 million (December 2016: GBP3.86 million).
Capital expenditure of GBP3.71 million was incurred in the
period; on the rebranding and refurbishment of the existing
restaurants.
Outlook
Over the last six months we have continued to refresh our
estate, and have focussed on restaurant design, food and service
quality. We have experienced some growth in trade of the rebranded
restaurants but, in line with the industry, not at the level we had
hoped for and we currently see no consistent improvement in trading
conditions from those prevailing when we last reported in April
this year.
Simon Morgan
Chairman
28 September 2017
Richoux Group plc
Condensed consolidated statement of comprehensive income
for the 28 week period ended 9 July 2017
28 week 28 week 52 week
period ended period ended period ended
9 July 10 July 25 December
Notes 2017 2016 2016
GBP000 GBP000 GBP000
Revenue 3 5,646 7,075 13,320
Cost of sales:
-------------- -------------- --------------
Excluding pre-opening costs (6,026) (6,930) (13,367)
Pre-opening costs (390) (86) (103)
-------------- -------------- --------------
Total cost of sales (6,416) (7,016) (13,470)
Gross (loss)/profit (770) 59 (150)
Administrative expenses (586) (293) (582)
Net profit on disposals 235 - -
Other operating income - 1 3
Operating loss before impairment (1,121) (233) (729)
Impairment of intangible assets 6 - - (4)
Impairment of property, plant and equipment 7 - (352) (5,039)
Reorganisation costs - - (511)
Onerous lease provision - - (420)
Operating loss (1,121) (585) (6,703)
Finance income 1 6 7
Loss before taxation 3 (1,120) (579) (6,696)
Taxation - - -
Loss and total comprehensive loss for the period (1,120) (579) (6,696)
Loss and total comprehensive loss attributable to equity
holders of the parent (1,120) (579) (6,696)
Loss and total comprehensive loss per share:
Loss per share 4 (1.1)p (0.6)p (7.3)p
Diluted loss per share 4 (1.1)p (0.6)p (7.1)p
Richoux Group plc
Condensed consolidated statement of changes in equity
For the 28 week period ended 9 July 2017
Share capital Share premium account Profit and loss account
Total
GBP000 GBP000 GBP000 GBP000
At 27 December 2015 3,684 12,249 (7,072) 8,861
Loss for the period - - (579) (579)
Total comprehensive loss - - (579) (579)
Credit to equity for equity settled
share based payments - - 16 16
Total contributions by and distributions
to owners of the Company, recognised
directly in
equity - - 16 16
At 10 July 2016 3,684 12,249 (7,635) 8,298
Loss for the period - - (6,117) (6,117)
Total comprehensive loss - - (6,117) (6,117)
Credit to equity for equity settled
share based payments - - 16 16
New share capital subscribed 291 1,447 - 1,738
Total contributions by and distributions
to owners of the Company, recognised
directly in
equity 291 1,447 16 1,754
At 25 December 2016 3,975 13,696 (13,736) 3,935
Loss for the period - - (1,120) (1,120)
Total comprehensive loss - - (1,120) (1,120)
Credit to equity for equity settled
share based payments - - 29 29
New share capital subscribed 1,022 3,053 - 4,075
New share capital issue costs - (5) - (5)
Total contributions by and distributions
to owners of the Company, recognised
directly in
equity 1,022 3,048 29 4,099
At 9 July 2017 4,997 16,744 (14,827) 6,914
Richoux Group plc
Condensed consolidated statement of financial position
at 9 July 2017
9 July 2017 10 July 25 December
2016 2016
Notes GBP000 GBP000 GBP000
Assets
Non-current assets
Goodwill 6 229 234 234
Other intangible assets 6 49 61 57
Property, plant and equipment 7 5,809 7,297 2,358
Total non-current assets 3 6,087 7,592 2,649
Current assets
Inventories 202 206 198
Trade and other receivables 1,149 1,105 927
Cash and cash equivalents 4,727 3,094 3,857
Total current assets 6,078 4,405 4,982
Total assets 12,165 11,997 7,631
Liabilities
Current liabilities
Trade and other payables (4,671) (3,253) (2,817)
Provisions (200) - (420)
Total current liabilities (4,871) (3,253) (3,237)
Non-current liabilities
Trade and other payables (380) (446) (459)
Total non-current liabilities (380) (446) (459)
Total liabilities (5,251) (3,699) (3,696)
Net assets 6,914 8,298 3,935
Capital and reserves
Share capital 4,997 3,684 3,975
Share premium account 16,744 12,249 13,696
Retained earnings (14,827) (7,635) (13,736)
Total equity 6,914 8,298 3,935
Richoux Group plc
Condensed consolidated statement of cash flows
for the 28 week period ended 9 July 2017
Notes 28 week 28 week 52 week
period ended period ended period ended
9 July 10 July 25 December
2017 2016 2016
GBP000 GBP000 GBP000
Operating activities
Cash (used in)/generated from operations 8 (1,871) 133 6
Interest paid - - -
Net cash (used in)/from operating activities (1,871) 133 6
Investing activities
Purchase of property, plant and equipment (1,618) (1,445) (2,271)
Purchase intangible assets (5) (4) (29)
Net proceeds from sale of property, plant and equipment 293 2 4
Interest received 1 6 7
Net cash used in investing activities (1,329) (1,441) (2,289)
Financing activities
Proceeds from issue of ordinary shares 4,075 - 1,738
Share issue costs (5) - -
Net cash from financing activities 4,070 - 1,738
Net increase/(decrease) in cash and cash equivalents 870 (1,308) (545)
Cash and cash equivalents at the beginning of the period 3,857 4,402 4,402
Cash and cash equivalents at the end of the period 4,727 3,094 3,857
Notes
1. The consolidated financial statements have been prepared in
compliance with International Financial Reporting Standards
("IFRS") as adopted by the European Union and therefore the Group
financial statements comply with Article 4 of the EU IAS
Regulation. The financial statements have been prepared on the
historical cost basis.
2. The condensed financial information for the 28 week period
ended 9 July 2017 and the 28 week period ended 10 July 2016 has
been prepared in accordance with IAS 34 "Interim financial
reporting" and should be read in conjunction with the annual
financial statements for the period ended 25 December 2016 which
have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union. The
accounting policies used in preparing the condensed financial
information are consistent with those of the annual financial
statements for the period ended 25 December 2016. During the period
various Standards and Interpretations were adopted in line with the
effective dates as outlined in the annual financial statements for
the period ended 25 December 2016. The condensed financial
information for the 28 week period ended 9 July 2017 and the 28
week period ended 10 July 2016 has not been audited or reviewed and
does not constitute full financial statements within the meaning of
section 435 of the Companies Act 2006.
The financial information for the 52 week period ended 25
December 2016 does not constitute the Group's statutory accounts
for that period but it is derived from those accounts. Statutory
accounts for the 52 week period ended 25 December 2016 have been
delivered to the Registrar of Companies. The auditors have reported
on these accounts; their report was unqualified and did not contain
statements under section 498(2) or (3) of the Companies Act
2006.
3. Business segments
Based on the financial information which is monitored by the
board, which comprises the chief operating decision maker as
defined in IFRS 8, the group has three reportable business segments
based around its core restaurant brands, Diners, Richoux and
Italian restaurants. All brands are engaged in the restaurant trade
so derive their revenues and results from similar products and
services.
For the 28 week period ended 9 July 2017
Un-allocated
Diners Italians Richoux Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 1,255 1,753 2,638 - 5,646
Segment loss (295) (60) (264) (151) (770)
Administrative expenses - - - (586) (586)
Net profit/(loss) on disposals 30 5 203 (3) 235
Finance income - - - 1 1
Loss before taxation (265) (55) (61) (739) (1,120)
Non-current assets as at 25 December 2016 338 1,365 873 73 2,649
Additions 2,083 7 1,605 14 3,709
Depreciation and amortisation (34) (88) (70) (21) (213)
Disposals (27) - (28) (3) (58)
Non-current assets as at 9 July 2017 2,360 1,284 2,380 63 6,087
The unallocated segment loss includes the cost of the restaurant
area management, and the unallocated administrative expenses
include the costs of the Group's head office.
4. Loss per share
The calculation of the basic and diluted loss per share is based
on the following data:
9 July 10 July 25 December 2016
2017 2016
GBP000 GBP000 GBP000
Loss
Loss for the purposes of basic loss per share being the net loss
attributable to equity holders
of the parent (1,120) (579) (6,696)
Number of shares
Weighted average number of ordinary shares for the purposes of the
basic profit per share 103,002,105 92,109,612 92,356,891
Effect of dilutive potential ordinary shares:
Share options and incentive shares 1,885,321 2,013,385 1,883,224
Weighted average number of ordinary shares for the purposes of the
diluted profit per share 104,887,426 94,122,997 94,240,115
Share options and incentive shares not included in the diluted
calculations as per the requirements
of IAS 33 (as they are anti-dilutive) 26,326,085 3,445,618 26,053,182
Basic loss per share:
From total operations (1.1)p (0.6)p (7.3)p
Diluted loss per share:
From total operations (1.1)p (0.6)p (7.1)p
5. No dividend is proposed.
6. Intangible fixed assets
Goodwill Trademarks Software Total
GBP000 GBP000 GBP000 GBP000
Cost
At 27 December 2015 269 24 170 463
Additions - - 4 4
Disposals - - (4) (4)
At 10 July 2016 269 24 170 463
Additions - 1 24 25
Disposals - - (47) (47)
At 25 December 2016 269 25 147 441
Additions - 1 4 5
Disposals (5) (6) (23) (34)
At 9 July 2017 264 20 128 412
Accumulated amortisation and impairment
At 27 December 2015 35 10 114 159
Charge for period - 1 10 11
Disposals - - (2) (2)
At 10 July 2016 35 11 122 168
Charge for period - 1 9 10
Impairment - - 4 4
Disposals - - (32) (32)
At 25 December 2016 35 12 103 150
Charge for period - 1 9 10
Disposals - (3) (23) (26)
At 9 July 2017 35 10 89 134
Carrying amount
At 9 July 2017 229 10 39 278
At 25 December 2016 234 13 44 291
At 10 July 2016 234 13 48 295
Impairment testing of goodwill and intangible fixed assets
Goodwill of GBP264,000 (2016: GBP269,000) relates to the
acquisition of Richoux Limited in August 2000 and is allocated to
the group of cash generating units (CGUs) that comprise the
business acquired with each restaurant site being treated as a
single CGU.
The Group tests annually for impairment or more frequently if
there are indications that the goodwill and intangible assets may
be impaired. The recoverable amounts of the restaurants are
calculated from value in use calculations based on cash flow
projections from forecasts to December 2022 based on a sales growth
rate of 2 per cent for established sites. The discount rate applied
to cash flow projections is 10 per cent.
The Board has concluded that at this time no impairment
provision is required (December 2016: GBP4,000).
7. Property, plant and equipment
Short leasehold land and
buildings Fixtures, fittings, and
equipment Total
GBP000 GBP000 GBP000
Cost
At 27 December 2015 8,665 3,743 12,408
Additions 1,207 502 1,709
Disposals (2) (58) (60)
At 10 July 2016 9,870 4,187 14,057
Additions 26 154 180
Disposals (38) (36) (74)
At 25 December 2016 9,858 4,305 14,163
Additions 2,865 839 3,704
Disposals (3,507) (1,840) (5,347)
At 9 July 2017 9,216 3,304 12,520
Accumulated amortisation and
impairment
At 27 December 2015 3,791 2,250 6,041
Charge for period 175 242 417
Impairment 352 - 352
Disposals (1) (49) (50)
At 10 July 2016 4,317 2,443 6,760
Charge for period 170 222 392
Impairment 3,410 1,277 4,687
Disposals (1) (33) (34)
At 25 December 2016 7,896 3,909 11,805
Charge for period 110 93 203
Disposals (3,507) (1,790) (5,297)
At 9 July 2017 4,499 2,212 6,711
Carrying amount
At 9 July 2017 4,717 1,092 5,809
At 25 December 2016 1,962 396 2,358
At 10 July 2016 5,553 1,744 7,297
Impairment testing of property, plant and equipment
The Group considers each trading restaurant to be a
cash-generating unit (CGU) and each CGU is reviewed when there are
indications of impairment.
The recoverable amounts of the restaurants are calculated from
value in use calculations based on cash flow projections from
forecasts to December 2022 based on a sales growth rate of 2 per
cent for established sites. The discount rate applied to cash flow
projections is 10 per cent.
The Board has concluded that at this time no impairment
provision is required (December 2016: GBP5,039,000).
8. Reconciliation of operating loss to operating cash flows
28 week 28 week 52 week
period ended period ended period ended
9 July 10 July 25 December
2017 2016 2016
GBP000 GBP000 GBP000
Operating loss (1,121) (585) (6,703)
Loss on disposal of intangible fixed assets 8 2 17
(Profit)/loss on disposal of property, plant and equipment (243) 8 46
Depreciation charge 203 417 809
Amortisation charge 10 11 21
Impairment of intangible fixed assets - - 4
Impairment of property, plant and equipment - 352 5,039
(Increase)/decrease in stocks (4) 9 17
Increase in debtors (222) (212) (34)
(Decrease)/increase in creditors (531) 115 758
Equity settled share based payments 29 16 32
Net cash (outflow)/inflow from operating activities (1,871) 133 6
9. Related party transactions
Transactions with directors:
Directors' emoluments
28 week 28 week 52 week
period ended period ended period ended
9 July 10 July 25 December
2017 2016 2016
GBP000 GBP000 GBP000
Short term employee benefits 102 152 293
Share based payments 12 8 17
114 160 310
During the period Salvatore Diliberto subscribed for 5,273,375
(includes 2,636,687 subscribed for by his wife Irene Diliberto)
ordinary shares (2016: 1,054,394), The Hon. Robert Rayne subscribed
for 4,103,838 ordinary shares (2016: 1,054,394), Jonathan Kaye
subscribed for 3,125,000 ordinary shares (2016: 1,354,395), Simon
Morgan subscribed for 125,000 ordinary shares (2016: nil) and Mehdi
Gashi subscribed for nil ordinary shares (2016: 400,000) as part of
the subscription that took place during the period. The price paid
per share was 16 pence.
Transactions with substantial shareholders:
During the period Phillip Kaye subscribed for 3,121,025 ordinary
shares (2016: 451,465), Samuel Kaye subscribed for 1,250,000
ordinary shares (2016: 451,465), Adam Kaye subscribed for 1,250,000
ordinary shares (2016: 451,465) and Michinoko Limited subscribed
for 4,216,750 ordinary shares (2016: 1,054,394) as part of the
subscription that took place during the period. The price paid per
share was 16 pence.
10. Post balance sheet events
On 4 September 2017 the Group disposed of its restaurant in
Trowbridge for GBP50,000 (before costs), on 12 September 2017 the
Group entered into a new 10 year lease for a new office in
Tilehurst at a rent of GBP13,650 per annum, and on 20 September
2017 the Group surrendered the lease for its restaurant in Yate for
a reverse premium of GBP99,808 (before costs).
11. Report and accounts
Copies of the interim report and accounts will be available at
www.richouxgroup.co.uk.
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
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