Interim Results
04 Marzo 2003 - 1:01AM
UK Regulatory
RNS Number:2296I
Madisons Coffee PLC
04 March 2003
Date 4 March 2003
Contacts Gareth Lloyd-Jones, Chief Executive
Madisons Coffee plc (020) 8394 5555
John Bick, Trevor Phillips
Holborn (020) 7929 5599
Madisons Coffee plc
Interim Results for the 28 week period ended 12 January 2003
Madisons Coffee plc, the owner of
MADISONS COFFEE and Richoux Restaurant brands
Highlights
* Operating loss, before exceptional items, cut by half to #0.3 million
(2002: #0.6 million)
* Gross profit percentage improved to 41.2 percent (2002: 38.8 percent)
* EBITDA for the period #0.2 million (2002: loss #0.1 million)
* Like-for-like sales during the Christmas eight-week period up 2.3 percent
* At the period end the Group had #0.9 million cash at bank and in hand and
remains net debt free
Commenting on the results, Chairman Nigel Whittaker, said:
"The Group has again improved its financial performance and has cut losses
before exceptional items by half, on the same period last year. This result has
been achieved notwithstanding the difficulties affecting our highly competitive
sector and the general economic environment. It is satisfying that our
continued efforts to manage the central costs of the business efficiently have
contributed to the improved performance."
Commenting on current trading, he said:
"Since 12 January 2003 trading has continued in line with the management's
expectations with like-for-like sales ahead by 3.5%, and we are confident that
we will continue to make progress with the operational performance of the
Group."
Madisons Coffee plc
Interim Statement
Overview
We are once again pleased to be able to report that the loss, before exceptional
items, of the Group has been cut this time by 50.7 percent on the same period
last year. The improved result, due to the strategy the Group embarked upon in
2001 to rationalise the property portfolio and control central costs, has
delivered tangible financial benefits and is particularly satisfying given the
present difficulties affecting our sector and the general economic environment.
The result has also been achieved without the benefit of any franchise receipts
in the period, last year they accounted for an additional #0.2 million of other
operating income.
Results
As expected, turnover for the 28 week period ended 12 January 2003 decreased by
14.4 percent to #6.6 million (2002: #7.8 million) due to our reduced number of
sites.
We were encouraged that despite the difficult market conditions, like-for-like
sales for the Madisons bars and Richoux restaurants showed an increase of 2.3
percent for the important eight week Christmas period to 6 January 2003 and an
overall like-for-like increase of 1.9 percent for the 28 week period ended 12
January 2003.
The measures taken by your Board to adjust the site portfolio and focus on the
higher margin businesses has meant that the gross profit percentage for the
period increased by two point four percentage points to 41.2 percent (2002: 38.8
percent).
Our strategy to refocus the Group has reduced losses, before taxation, by 44.6
percent to #0.3 million (2002: loss #0.6 million), for the period. The basic
loss per share was 0.6 pence, (2002: loss 1.0 pence).
The Directors are not recommending a dividend in line with the Company's policy
to invest in the continued development of our brands.
Franchising
Our strategy to franchise the Richoux brand has already proved to be beneficial
to the Group and we have continued to develop the existing franchisees during
the period. As a result of the current tensions in the Middle East we have
resolved to widen the geographical territories that we believe can accommodate
franchise partners so as to maintain the momentum. The Board remains confident
about the long-term prospects for Richoux franchising, especially in the Middle
East, and the recent marketing efforts in new territories have met with
encouraging additional leads. There were no proceeds from franchising during
the period (2002: #0.2 million).
Operations
The bars and restaurants made a net trading profit before tax of #0.2 million
(2002: loss #0.2 million), reflecting an improvement on the year.
Importantly EBITDA from the ongoing trading sites of the Madisons Coffee bars
and Richoux restaurants improved by 26.7 percent on a like-for-like basis.
Since the period end we have extended the service offering of Barons, our
catering division, to include providing catering solutions for large events
under the banner of Capital Cuisine. The initial response and bookings from our
customers has been encouraging.
Our operational efforts remain focused on our stated objectives to further
improve the financial performance of the Group.
Finance
Capital expenditure and cashflow has again been tightly managed to ensure that
the Group is able to fund its working capital requirements.
The overall positive movement in net cash for the period was #0.7 million. This
was achieved though the net capital inflow from the sale of the three shops of
#0.5 million together with net trading cash inflow of #0.2 million.
The Group improved the position of its net current liabilities by #0.6 million
since 30 June 2002, and at the period end the Group had #0.9 million cash at
bank and in hand and remains net debt free.
Current trading and prospects
Since 12 January 2003 trading has continued in line with the management's
expectations with like-for-like sales ahead by 3.5%, and we are confident that
we will continue to make progress with the operational performance of the Group.
Nigel Whittaker
Chairman
Gareth Lloyd-Jones
Chief Executive
Madisons Coffee plc
Consolidated profit and loss account
for the 28 week period ended 12 January 2003
28 week 28 week 53 week
period period period
ended ended ended
12 January 6 January 30 June
2003 2002 2002
Total Total Total
Notes #'000 #'000 #'000
Turnover 6,637 7,755 13,321
Cost of sales (3,904) (4,747) (8,161)
Gross profit 2,733 3,008 5,160
Administrative expenses (3,026) (3,755) (6,617)
Other operating income 3 - 153 328
Operating loss before exceptional item (293) (594) (1,129)
Operating exceptional item
Net (loss)/profit on disposal of fixed (21) 37 (9)
assets
Operating Loss after exceptional item (314) (557) (1,138)
Interest receivable 13 11 18
Interest payable and similar charges (14) (23) (34)
Loss on ordinary activities before (315) (569) (1,154)
taxation
Taxation on loss on ordinary - (3) (3)
activities
Loss for the financial period (315) (572) (1,157)
Loss per share 4 (0.6p) (1.0p) (2.1p)
Diluted loss per share 4 (0.6p) (1.0p) (2.1p)
There were no recognised gains and losses during the current and previous
periods other than the results reported above.
Madisons Coffee plc
Consolidated balance sheet
at 12 January 2003
12 January 6 January 2002 30 June
2003 2002
#'000 #'000 #'000
Fixed assets
Intangible assets 335 354 345
Tangible assets 3,560 4,880 4,497
3,895 5,234 4,842
Current assets
Stocks 232 293 254
Debtors 483 900 1,240
Cash at bank and in hand 856 899 186
1,571 2,092 1,680
Creditors: amounts falling due within
one year (2,265) (3,125) (2,986)
Net current liabilities (694) (1,033) (1,306)
Total assets less current liabilities 3,201 4,201 3,536
Creditors: amounts falling due after more than (136) (236) (156)
one year
Net assets 3,065 3,965 3,380
Capital and reserves
Ordinary shares 548 548 548
Preference shares 1,088 1,088 1,088
Called up share capital 1,636 1,636 1,636
Warrants reserve 70 70 70
Share premium account 9,435 9,435 9,435
Merger reserves 902 902 902
Profit and loss account (8,978) (8,078) (8,663)
Equity shareholders' funds 1,977 2,877 2,292
Non-equity shareholders' funds 1,088 1,088 1,088
Shareholders' funds 3,065 3,965 3,380
Madisons Coffee plc
Consolidated cash flow statement
for the 28 week period ended 12 January 2003
Note 28 week 28 week 53 week
period period period
ended ended ended
12 January 6 January 30 June
2003 2002 2002
Total Total Total
#'000 #'000 #'000
Cash inflow/(outflow) from operating 6 217 (199) (754)
activities
Returns on investments and servicing 2 (28) (36)
of finance
Taxation - (3) (3)
Capital expenditure and financial 481 703 631
investment
Cash inflow/(outflow) before financing 700 473 (162)
Management of liquid resources and (30) (100) (177)
financing
Increase/(decrease) in cash in the 670 373 (339)
period
Notes
1. The financial information for the 28-week period ended 12 January 2003
has been prepared in accordance with the company's accounting policies as
disclosed in the financial statements for the period ended 30 June 2002.
The financial information for the 28 week period ended 12 January 2003 and the
28 week period ended 6 January 2002 have not been audited and does not
constitute full financial statements within the meaning of s240 of the Companies
Act 1985.
The financial information relating to the 53 week period ended 30 June 2002 does
not constitute full financial statements within the meaning of s240 of the
Companies Act 1985, but it is an extract from the audited financial statements
for that period on which the auditors gave an unqualified report. A copy of
those financial statements has been filed with the Registrar of Companies.
2. The consolidated financial statements include the financial statements
of the Company and its subsidiary undertakings made up to 12 January 2003.
The results of all subsidiary undertakings are consolidated. Intra-group sales
are fully eliminated on consolidation.
3. Other operating income
All other operating income represents franchise fees received net of all
associated costs and charges.
4. Loss per share
The loss per share is calculated by reference to the loss after taxation and the
weighted average number of ordinary shares in issue during the period of
54,772,660 (2002: 54,772,660).
The loss per share is calculated on the basis of a loss for the period of
#315,000 (2002: loss #572,000).
The diluted loss per share is calculated by reference to the loss after taxation
and the weighted average number of ordinary shares, convertible preference
shares, share options and warrants in issue during the period of 54,778,827
(2002: 55,420,160).
5. No dividend is proposed.
6. Reconciliation of operating loss to operating cash flows
28 week 28 week 53 week
period period period
ended ended ended
12 January 2003 6 January 30 June
#'000 2002 2002
#'000 #'000
Operating loss (314) (557) (1,138)
Depreciation charge 435 503 913
Amortisation charge 10 10 19
Loss/(profit) on sale of fixed assets 21 (37) 9
Decrease in stocks 22 68 107
Decrease/(increase) in debtors 757 280 (61)
Decrease in creditors (714) (466) (603)
Net cash inflow/(outflow) from operating 217 (199) (754)
activities
7. Reconciliation of net cash flow to movement in net debt
28 week 28 week 53 week
period period period
ended ended ended
12 January 6 January 30 June
2003 2002 2002
#'000 #'000 #'000
Increase/(decrease) in cash in the period 670 373 (339)
Cash outflow from changes in debt and 30 100 177
lease financing
Change in net debt resulting from cash 700 473 (162)
flows
New finance leases - (27) (27)
Movement in net funds in the period 700 446 (189)
Net (debt)/funds at the start of the (45) 144 144
period
Net funds/(debt) at the end of the period 655 590 (45)
8. Copies of the interim statement are being sent to shareholders and are
also available from the company's registered office at 165 Queen Victoria
Street, London, EC4V 4DD.
- ENDS -
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The company news service from the London Stock Exchange
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