RNS Number:6974K
FishWorks plc
19 October 2006
Date: 19th October 2006
On Behalf of: FishWorks plc ("FishWorks")
Embargoed until: 0700hrs
FishWorks plc
Preliminary Results for the year ended 30 July 2006
FishWorks plc ("FishWorks" or "the Group"), the local fishmongers and restaurant
group listed on AIM (Symbol: FSH), today announces its final results for the 12
months ended 30 July 2006:
Financial Overview:
* Turnover increased by 41% to #7.62m (from #5.40m in previous 17 month period)
* Turnover increased by 85% to #7.62m (from #4.13m in previous 12 month period)
* EBITDA on continuing operations of #0.463m
* Profit before tax on continuing operations of #0.226m
* Group Loss before tax #0.519m, after discontinued and exceptional items
totalling #0.744m
Operational Overview
* Acquisition of Channel Fisheries seafood suppliers in January 2006
* Successful openings of five restaurants in Battersea, Islington, Parsons
Green, Primrose Hill and Richmond, with another two sites agreed and opened
after the year end
Commenting on the results, Roy Morris, Executive Chairman of FishWorks plc said:
"This period, following our successful listing on the AIM market in June 2005,
has been the busiest and most productive time in the Group's history. We have
now moved into profitability on continuing activities.
FishWorks has continued to grow and develop and is now recognised as a
significant operator in the vibrant and growing British restaurant scene.
Although the results for the period have been adversely affected by the now
discontinued Harvey Nichols operations, our businesses going forward, with 12
operating sites today and our Channel Fisheries supplier business now fully
integrated into the Group, sees us set fair to move forward and continue to
build on our expansion plans."
Enquiries to:
Roy Morris, Executive Chairman
FishWorks plc Tel: 020 7355 0366
via Redleaf on number below on 19/10/2006
Ratnesh Bagdai, Finance Director
FishWorks plc Tel: 020 7355 0366
via Redleaf on number below on 19/10/2006
Richard Day
Arden Partners Plc Tel: 020 7398 1632
Emma Kane/Sanna Lehtinen
Redleaf Communications Tel: 020 7822 0200
CHAIRMAN'S STATEMENT
This year, following our successful listing on the AIM market in June 2005, has
been the busiest and most productive time in the Group's history.
During this period, we have opened five new FishWorks sites, and also secured
our exit from the concession within Harvey Nichols, which was an exciting
opportunity for us but in the end, did not provide enough upside for us in the
context of our overall operations. The concession was clearly outside the normal
FishWorks model, operational structure and market focus distracting from our
core business. Accordingly it has been treated as discontinued activity in the
financial statements.
We also acquired Channel Fisheries, the seafood supplier, which has given us a
secure source of supply of fresh, quality fish across our operating sites as
well as providing us with opportunities to improve margins.
In line with the UK restaurant sector generally, we have experienced some
fluctuations of business during the summer with the World Cup and warmer weather
conditions. Our like for like sales were up 7.4% from August 2005 to May 2006
and 4.6% for the full year to 30 July 2006 compared with the same periods in the
previous year.
Overview of Financial Results
Turnover has grown to #7.62m (12 months to 31 July 2005: #4.13m), up by 85%,
with an operating loss of #0.244m for the year to 30th July 2006, (12 months to
31 July 2005: profit #0.021m).
On continuing operations the Group made an operating profit of #0.219m and
profit before tax of #0.226m (12 months to 31 July 2005: #0.021m and loss
#0.180m respectively).
All 12 month figures to July 2005 are unaudited and are provided for comparative
purposes only.
We are pleased to have moved to profitability at the continuing operations level
and look forward to building on this going forward.
Operations
Since the end of our financial year, we have opened two new sites with
fishmongers and seafood restaurants, in Notting Hill and Chelsea, situated in
Westbourne Grove and Fulham Road.
Although it is still early in our financial year, both of the new sites have
been busy and well received by the local communities which are two of the
premier "foodie" areas in London.
People
FishWorks would not have continued to move forward without the help of all our
employees and I would like to take this opportunity to thank them for their hard
work and commitment during the period, which is key in making FishWorks the
success story it is today.
Current Trading and Prospects
Current trading is in line with expectations.
We are seeing an increasing amount of new site opportunities and continue to
research available sites in London, surrounding areas and further afield with a
number under current intense scrutiny. We see no shortage of good quality,
available sites for us to acquire and use to expand the FishWorks' site
portfolio.
The "eating out" market continues to grow and with the increasing focus on fish
for healthy diets and the increasing awareness of the beneficial effects of
Omega-3 fatty acids, we are confident of maintaining and increasing our share of
this vibrant and growing market sector.
The Board is confident that we can continue to build on the progress we have
made during this period and look forward to having nineteen sites by July 2008,
with associated financial performance, whilst maintaining the high standards of
freshness, quality and service expected of FishWorks for our customers and
shareholders.
Roy Morris
Executive Chairman
19 October 2006
FishWorks plc
Unaudited Consolidated profit and loss account for the year ended 30 July 2006
Note Continuing Discontinued
Operations Operations Total 17 months
Year ended Year ended Year ended ended
30 July 30 July 30 July 31 July
2006 2006 2006 2005
# # # #
Turnover
Existing operations 6,492,976 246,548 6,739,524 5,403,039
Acquisitions 876,966 - 876,966 -
7,369,942 246,548 7,616,490 5,403,039
Cost of sales (2,863,854) (155,536) (3,019,390) (2,035,189)
Gross profit 4,506,088 91,012 4,597,100 3,367,850
Administrative expenses (4,287,121) (554,390) (4,841,511) (3,329,418)
Operating profit/(loss)
Existing operations 106,721 (463,378) (356,657) 38,432
Acquisitions 112,246 - 112,246 -
218,967 (463,378) (244,411) 38,432
Interest receivable 34,731 - 34,731 16,482
Interest payable and similar charges (28,187) - (28,187) (282,524)
Exceptional Items 3 - (280,806) (280,806) -
Profit/(loss) on ordinary activities
before taxation 225,511 (744,184) (518,673) (227,610)
Taxation 4 - - - 305,000
Profit/(loss) on ordinary
activities after taxation 225,511 (744,184) (518,673) 77,390
(Loss)/earnings per share 5
From continuing and discontinued
operations
Basic (1.60p) 0.46p
Diluted (1.60p) 0.43p
From continuing operations
Basic 0.69p 0.46p
Diluted 0.65p 0.43p
All recognised gains and losses are included in the profit and loss account.
FishWorks plc
Unaudited Consolidated balance sheet at 30 July 2006
Note 2006 2006 2005 2005
# # # #
Fixed assets
Intangible assets 1,179,480 119,030
Tangible assets 5,374,820 2,121,849
6,554,300 2,240,879
Current assets
Stocks 226,766 109,923
Debtors 1,085,363 593,593
Cash at bank and in hand 191,860 2,046,656
1,503,989 2,750,172
Creditors: amounts falling due within
one year 3,130,992 1,074,070
Net current (liabilities)/assets (1,627,003) 1,676,102
Total assets less current liabilities 4,927,297 3,916,981
Creditors: amounts falling due
after more than one year (1,564,791) (148,749)
3,362,506 3,768,232
Capital and reserves
Called up share capital 326,216 323,216
Share premium account 5,626,543 5,516,596
Merger reserve (65,000) (65,000)
Profit and loss account (2,525,253) (2,006,580)
Shareholders' funds 7 3,362,506 3,768,232
FishWorks plc
Unaudited Consolidated cash flow statement for the year ended 30 July 2006
Note 17 months 17 months
Year ended Year ended ended ended
30 July 30 July 30 July 31 July
2006 2006 2005 2005
# # # #
Net cash inflow/(outflow) from
Operating activities 8(a) 660,171 (514,273)
Returns on investments and
servicing of finance
Interest received 34,731 16,482
Interest paid (62,482) (191,873)
Finance lease charges (75,750) (90,651)
Net cash outflow from returns on
Investments and servicing of finance (103,501) (266,042)
Capital expenditure and financial
Investment
Payments to acquire tangible fixed (3,523,491) (840,650)
assets
Acquisitions
Purchase of a subsidiary undertaking 8(b) (918,596) -
Net cash outflow before financing (3,885,417) (1,620,965)
Financing
Proceeds from issues of shares net (13,053) 3,821,096
of costs
Loan stock received - 866,350
Loan stock repaid - (200,000)
Increase/(decrease) in borrowings 1,869,500 (400,000)
Finance lease capital repayments (322,843) (266,045)
Director's loan repaid - (116,982)
Net cash inflow from financing 1,533,604 3,704,419
(Decrease)/Increase in cash in the year 8(c) (2,351,813) 2,083,454
FishWorks plc
Notes forming part of the preliminary results for the year ended 30 July 2006
1 Accounting policies
The financial information has been prepared under the historical cost
convention and in accordance with applicable UK accounting standards and the
accounting policies applied in the financial statements for the year ended 31
July 2005.
2 Discontinued operations
The discontinued results relate to trading activity of the single concession
outlet held at Harvey Nichols, which was closed in August 2006. This was the
only concession outlet operated by the Group which had a separate operational
structure and, as such, the closure represents the withdrawal of the Group from
this market.
3 Exceptional items
Exceptional costs of #0.281m relate to losses on the termination of an
operation and have been incurred in relation to the closure of the concession
outlet held at Harvey Nichols.
4 Taxation
The Group has no liability to UK corporation tax due to the availability
of brought forward tax losses. A deferred tax asset of #305,000 (2005 -
#305,000) has been recognised.
5 Loss per share
Basic loss per share is based on the loss for the year attributable to
shareholders and on the weighted average number of shares in issue during the
period. The weighted number of shares used for calculating basic loss per share
was 32,476,973 (2005 - 16,678,143). The weighted number of shares used for
calculating diluted earnings per share on continuing operations takes into
account share option schemes and was 34,834,476 (2005 - 17,992,061).
6 Acquisition
On 23 January 2006 the Group acquired Channel Fisheries Limited for total
consideration of #973,500, made up of cash consideration, deferred
consideration, earn out consideration and the issue of shares. Goodwill arising
on the acquisition was #1,094,579.
FishWorks plc
Notes forming part of the preliminary results for the year ended 30 July 2006
7 Reserves
Profit Profit
Share Share Merger and loss
capital premium reserve account Total
# # # # #
At 1 August 2005 323,216 5,516,596 (65,000) (2,006,580) 3,768,232
Loss for the year - - - (518,673) (518,673)
Issue of shares 3,000 123,000 - - 126,000
Share issue costs - (13,053) - - (13,053)
At 30 July 2006 326,216 5,626,543 (65,000) (2,525,253) 3,362,506
8 (a) Reconciliation of operating (loss)/profit to net cash flow from
operating activities
Note 17 months
Year ended ended
30 July 31 July
2006 2005
# #
Operating (loss)/profit (244,411) 38,432
Depreciation 259,678 215,124
Amortisation of goodwill 34,129 9,775
Movement in stocks (104,843) (82,680)
Movement in debtors (205,361) (187,405)
Movement in creditors 909,730 (507,519)
Loss on disposal of fixed assets 11,249 -
Net cash inflow/(outflow) from operating
activities 660,171 (514,273)
FishWorks plc
Notes forming part of the preliminary results for the year ended 30 July 2006
8 (b) Acquisitions
17 months
Year ended ended
30 July 31 July
2006 2005
# #
Purchase of subsidiary undertaking (691,265) -
Cash acquired with subsidiary 3,600 -
Net overdraft acquired with subsidiary (230,931) -
Net cash outflow from acquisitions (918,596) -
8 (c) Analysis of changes in net debt
1 August Cash flows Non-cash 30 July
2005 # Movements 2006
# # #
Cash at bank and in hand 2,046,656 (1,854,796) - 191,860
Bank overdrafts (5,257) (497,017) - (502,274)
Net cash 2,041,399 (2,351,813) - (310,414)
Bank loan - (1,869,500) - (1,869,500)
Obligations under finance leases (398,286) 322,843 (10,093) (85,536)
(398,286) (1,546,657) (10,093) (1,955,036)
Total net funds/(debt) 1,643,113 (3,898,470) (10,093) (2,265,450)
The non cash movement represents the capital element of new finance leases
acquired with the subsidiary undertaking.
FishWorks plc
Notes forming part of the preliminary results for the year ended 30 July 2006
8 (d) Reconciliation of net cash flow to movement in net debt
Note 17 months
Year ended ended
30 July 31 July
2006 2005
# #
(Decrease)/Increase in cash in the year / period (2,351,813) 2,083,454
Cash (outflow)/inflow from movements in debt (1,546,657) 116,677
Change in net debt resulting from cash flows (3,998,470) 2,200,131
New finance lease arrangements (10,093) (539,000)
Loan stock converted to ordinary shares - 855,000
Movement in net debt (3,908,563) 2,516,131
Opening net funds/(debt) 1,643,113 (873,018)
Closing net (debt)/funds (2,265,450) 1,643,113
9 The financial information on the Group set out above does not
constitute statutory accounts within the meaning of section 240 of the Companies
Act 1985. Information relating to the period ended 31 July 2005 is derived from
the statutory accounts for that year, which have been delivered to the Registrar
of Companies. The auditors' report on those accounts was unqualified and did
not contain a statement under section 237(2) or (3) of the Companies Act 1985.
The financial information above has been derived from the draft unaudited
financial statements of FishWorks plc for the year ended 30 July 2006. The
financial information does not constitute the Group's full financial statements
for the year ended 30 July 2006. The statutory accounts for 2006 will be
finalised on the basis of the financial information presented in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.
10 Copies of the 2006 Report and Accounts will be posted to shareholders in
due course. Copies will also be sent to the AIM team and will be available from
the Company's registered office at 10 Gees Court, St Christopher's Place,
London, W1U 1JJ.
11 The Directors do not recommend the payment of a dividend (2005 - nil).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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