RNS Number : 1371J
FishWorks plc
28 November 2008
FishWorks plc - Un-Audited Final Results
Preliminary unaudited results for the year ended 31 July 2008
The Board of FishWorks plc ("The Company"), the specialist seafood restaurant group, announces its unaudited preliminary results for the
year ended 31 July 2008.
Financial highlights
� Turnover of continuing operations up 6.0% to �9.7m (2007 �9.2m)
� Like for like sales up 5.1%.
� Gross Profit of continuing operations at �5.7m (2007: �5.9m)
� Impairment of under-performing sites at �3.4m
� Loss for the period before tax on continuing operations of �5.5m (2007 �1.6 m loss).
Operational highlights
� Successful opening of new format restaurant in Swallow Street, London
� Disposal of underperforming sites impaired at 07/08 interims results
� Sale of wholly owned subsidiary, Channel Fisheries, for up to full book value.
� Board strenghened with appointment of full-time finance Director.
� Implementation of comprehensive stock control and payroll control systems
Commenting on the results, Gary Ashworth, Chairman said:
"The year has seen the comprehensive overhaul of the FishWorks business. Significant cost savings have been achieved centrally, whilst
operational controls within restaurants are now delivering improvements in margin whilst also dropping payroll costs. Service standards have
been improved thanks to intense focus from management on a series of key service measures. The new format concept delivered in Swallow
Street has demonstrated the future potential for the brand. Our bank remains supportive and we have successfully negotiated a rescheduling
of our borrowings over a longer period of time enabling us to reduce the monthly interest payments. Like many others we remain cautious
regarding the UK financial outlook but although current market conditions are extremely tough the Board believes they will also present good
opportunities in the coming months, as commercial terms improve on potential acquisitions of additional units."
Chief Executive's Statement
Un-Audited Results
The un-audited results for Fishworks plc for the year ended 31 July 2008 show a loss attributable to shareholders of �5.45m. This
compares with a loss of �1.7m for the corresponding year ended 31 July 2007.
Turnover of continuing operations in the year to 31July 2008 was �9.7m, compared to �9.2m for the year ended 31 July 2007 which includes
part year for the new opening and part year for leases that have been disposed of.
The un-audited loss for the year represents a loss of 5.55 pence per ordinary share compared to a loss of 3.74 pence per ordinary share
for the year ended 30 July 2007.
Un-audited consolidated net assets as at 31 July 2008 amounted to �534,128.
The business experienced a year of significant change as the new management team overhauled operations. I, along with Finance Director
Stephen Easthope, drove this progrmme of change.
The institutional placing in November 2007 provided the means to test a new format concept in Swallow Street, London. This has been both
a critical and a commercial success and will be the model for future development.
The viability work completed in 2007 resulted in the subsequent disposal of a three under-performing sites within the Group. During the
period, the Company also disposed of the specialist fish supplier Channel Fisheries. Following the disposal of the three underperforming
sites and the opening of the new format site at Swallow Street, the Group now operates 10 outlets.
The Company has carried out an annual impairment review of the carrying values of plant, property and equipment, taking into account the
current trading performance and anticipated future cashflows from individual cash generating units in accordance with IAS 36 Impairment of
Assets. As a result, an impairment charge of �3.4m has been taken to write them down to what is deemed to be their recoverable amount on
disposal.
The board would like to extend its thanks to the entire staff of Fishworks and appreciation for their continued support during this
transition period.
Outlook
The current turmoil in the global economy makes forecasting very difficult at present. Uncertainty in the market and a lack of
visibility means that the focus has been on ensuring consistent delivery of product, keeping retail prices competitive and closely
controlling all costs and margins within the business.
Against a backdrop of cost-price inflation considerable focus has been placed on margin control and supplier negotiations and the
Directors anticipate that this will impact results positively for the coming year.
Payroll control continues to be an area of focus, again against a backdrop of increases to minimum wage. Bulk purchasing of utilities is
also being pursued to mitigate the forecast increases of the coming period.
The deterioration in the UK economy has been well documented over the past twelve months. There are a number of key economic factors
which are adversely affecting consumer-facing businesses. Whilst the Company is not immune from these factors we are seeing some good
opportunities which we anticipate will enable us to cautiously grow and expand our business.
In conclusion, your board is pleased with the progress made by the Company under the new management and believes that all appropriate
actions are being taken to move the business forward in what are unprecedented and challenging times.
__________________________________
GARY ASHWORTH CHAIRMAN
PAUL GOODALE CHIEF EXECUTIVE
Tel 07909 912800 Tel 020 7355 0366 / 07740 841048
FishWorks plc
FISHWORKS PLC
PRELIMINARY REPORT
CONSOLIDATED INCOME STATEMENT
Un-audited to
31 July 2008 Year to
exc. results of 31 July 2007
business held exc. results of
Note Un-audited for sale business held
Year to � for sale
31 July 08 Year to �
Group 31 July
� 2007
�
Turnover 11,170,817 9,670,307 10,708,834 9,182,012
Cost of sales (4,254,065) (3,894,630) (3,721,158) (3,283,587)
------------------- ------------------- ------------------- -------------------
Gross profit 6,916,752 5,775,677 6,987,676 5,898,425
Other operating expenses (8,744,505) (7,696,976) (7,538,379) (6,656,086)
Impairment of plant, property (3,395,255) (3,395,255) (558,319) (558,319)
and equipment
------------------- ------------------- ------------------- -------------------
Operating loss (5,223,008) (5,316,554) (1,109,022) (1,315,980)
Net finance costs (226,967) (301,179)
------------------- -------------------
Loss before tax (5,543,521) (1,617,159)
Tax expense - (305,000)
------------------- -------------------
Loss for the year from
continuing operations (5,543,521) (1,922,159)
Operating profit of business 88,416 207,114
held for sale
------------------- -------------------
Loss for the year attributed �(5,455,105) �(1,715,045)
to the equity shareholders of
the parent company
========= =========
========== ==========
Basic and diluted loss per 2 (5.55)p (3.74)p
share
========== ==========
FISHWORKS PLC
PRELIMINARY REPORT
CONSOLIDATED BALANCE SHEET
Un-audited
Year to
31 July 2008 Year to
31 July 2007
� �
ASSETS
Non-current assets
Property, plant and equipment 3,002,519 6,101,556
Intangible assets 63,655 1,205,726
------------------- -------------------
3,066,174 7,307,282
------------------- -------------------
Current assets
Inventories 218,799 288,410
Trade and other receivables 847,327 1,092,690
Cash and cash equivalents - 157,339
Assets of business held for sale 1,724,650
------------------- -------------------
2,790,776 1,538,439
------------------- -------------------
Total assets �5,856,950 �8,845,721
========= =========
EQUITY
Capital and reserves
attributable to the Company's
equity shareholders
Called up share capital 1,126,383 742,883
Share premium account 9,093,008 7,339,465
Merger reserve 58,000 58,000
Retained earnings (9,743,263) (4,240,298)
------------------- -------------------
Total equity 534,128 3,900,050
------------------- -------------------
LIABILITIES
Non-current liabilities
Borrowings 1,101,898 1,776,936
Obligations under finance leases 20,788 95,004
------------------- -------------------
1,122,686 1,871,940
------------------- -------------------
Current liabilities
Borrowings 1,346,248 1,433,846
Obligations under finance leases 87,991 161,642
Trade and other payables 2,080,335 1,478,243
Liabilities of business held for 685,562 -
sale
------------------- -------------------
4,200,136 3,073,731
------------------- -------------------
Total liabilities 5,322,822 4,945,671
------------------- -------------------
Total equity and liabilities �5,856,950 �8,845,721
========= =========
FISHWORKS PLC
PRELIMINARY REPORT
CONSOLIDATED CASH FLOW STATEMENT
Un-audited
Year to
31 July 2008 Year to
31 July 2007
� �
Cash flows from operating
activities
Loss before tax (5,455,105) (1,410,045)
Adjustments for:
Net finance charges 232,097 301,023
Depreciation and amortisation 437,037 426,788
Increase in inventories 14,035 (61,644)
Increase in trade and other (55,657) (312,327)
receivables
Increase in trade and other 972,902 (760,290)
payables
Impairment of non current 3,395,255 440,445
assets
Share based payments 75,696 -
Other movements in intangible - (13,206)
assets
------------------- -------------------
Net cash used in operating (383,740) (1,389,256)
activities
------------------- -------------------
Cash flows from investing
activities
Finance income - 3,837
Purchase of property, plant & (914,533) (1,188,906)
equipment
Purchase of intangible assets - (12,980)
------------------- -------------------
Net cash used in investing (914,533) (1,198,049)
activities
------------------- -------------------
Cash flows from financing
activities
Issue of ordinary shares (net 2,137,043 2,252,589
of costs)
Finance costs (232,097) (250,115)
(Repayments)/drawdown of bank loans and other loans (650,492) 526,829
Capital element of finance leases and rental (258,451) (288,698)
payments
------------------- -------------------
Net cash generated from 996,003 2,240,605
financing activities
------------------- -------------------
Net decrease in cash and cash (302,270) (346,700)
equivalents
Cash and cash equivalents at (657,114) (310,414)
beginning of period
------------------- -------------------
Cash and cash equivalents at �(959,384) �(657,114)
end of period
========= =========
FISHWORKS PLC
NOTES TO THE UN-AUDITED PRELIMINARY REPORT
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
As explained below the group will be presenting its financial
statements in accordance with IFRS for the first time in the 31
July 2008 full year financial statements. Set out below are the
accounting policies that differ from the full financial
statements prepared at 31 July 2007 that management expect to
apply in the 31 July 2008 IFRS-compliant full year financial
statements. This Report has neither been audited nor reviewed
pursuant to guidance issued by the Auditing Practices Board
(a) Basis of preparation
These un-audited Preliminary consolidated financial statements
are for the year ended 31 July 2008. These Preliminary financial
statements have been prepared in accordance with those IFRS
standards and IFRIC interpretations issued and effective or
issued and early adopted as at the time of preparing these
statements (November 2008).
Fishworks plc's consolidated financial statements were prepared
in accordance with UK Generally Accepted Accounting Practices
(UK GAAP) until 31 July 2007. UK GAAP differs in some areas from
IFRS. In preparing the consolidated Preliminary financial
statements, management has amended certain accounting methods
applied in the UK GAAP financial statements to comply with IFRS.
The comparative figures were restated to reflect these
adjustments and also the removal of intra-group trading.
Reconciliations and descriptions of the effect of the transition
from UK GAAP to IFRS on the Group's equity and its net income
and cash flows are provided in Note 4.
These consolidated Preliminary financial statements have been
prepared under the historical cost convention.
These consolidated Preliminary financial statements are prepared
on a going concern basis. The directors are in advanced
negotiations with their bankers and expect negotiations to be
concluded successfully.
The information set out in this Preliminary report for the
twelve months ended 31 July 2008 does not comprise statutory
accounts within the meaning of section 240 of The Companies Act
1985. The Preliminary report was approved by the directors on 24
November 2008. The statutory accounts for the year ended 31 July
2007 have been delivered to the Registrar of Companies. The
auditors have yet to report on the statutory accounts for the
year ended 31 July 2008. Accordingly the financial information
in this preliminary announcement is un-audited. The audit report
on the statutory accounts for the year ended 31 July 2007 was
unqualified and did not contain statements under the Companies
Act 1985, section 237 (2) and (3).
(b) Taxation
The tax expense represents the sum of the current tax expense
and deferred tax expense.
The tax currently payable is based on taxable profit for the
period. Taxable profit differs from net profit as reported in
the income statement because it excludes items of income or
expense that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated by using tax
rates that have been enacted or substantively enacted by the
balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amount of assets and
liabilities in the financial statements and the corresponding
tax bases used in the computation of taxable profit, and is
accounted for using the balance sheet liability method. Deferred
tax liabilities are recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent
that it is probable that taxable profits will be available
against which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill or
from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction
which affects neither the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries and
associates, and interests in joint ventures, except where the
Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will
not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to
apply to the period when the asset is realised or the liability
is settled based upon tax rates that have been enacted or
substantively enacted by the balance sheet date. Deferred tax is
charged or credited in the income statement, except when it
relates to items credited or charged directly to equity, in
which case the deferred tax is also dealt with in equity.
(c) Goodwill
UK GAAP required goodwill to be amortised over its expected
useful economic life. Under IFRS, goodwill is no longer
amortised but held at carrying value on the balance sheet and
tested annually for impairment.
(d) Employee share options
The Group has applied the requirements of IFRS 2 Share-based Payment. In
accordance with the transitional provisions, IFRS 2 has been applied to
all grants of equity instruments after 7 November 2002 that were
unvested as of 1 August 2006.
The Group issues equity-settled share-based payment transactions to
certain employees. Equity-settled share-based payment transactions are
measured at fair value at the date of grant. The fair value determined
at the grant date of equity-settled share-based payments is expensed on
a straight-line basis over the vesting period, based on the Group's
estimate of shares that will eventually vest. Fair value is measured by
use of a Black -Scholes model. The expected life used in the model has
been adjusted, based on management's best estimate, for the effect of
non-transferability, exercise restrictions, and behavioural
considerations.
FISHWORKS PLC
NOTES TO THE UN-AUDITED PRELIMINARY REPORT (Continued)
2. LOSS PER SHARE
Un-audited IFRS Restated
Year to Year to
31st July 2008 31 July 2007
Loss for the period �(5,455,105) �(1,715,045)
========== ==========
Weighted average number of shares in 98,283,243 45,901,366
issue
========== ==========
Restated
Year to Year to
31 July 2008 31 July 2007
Basic and diluted Basic and diluted
(5.55)p (3.74)p
====== ======
3. TRANSITION TO IFRS
The Group's financial statements for the year ending 31 July 2008 will be the first annual financial
statements that comply with IFRS. These Preliminary financial statements have been prepared as described in
Note 1. The Group has applied IFRS 1 in preparing these consolidated Preliminary financial statements.
Fishworks plc's transition date to IFRS is 1 August 2006. The Group prepared its opening IFRS balance sheet
at that date. The reporting date of these Preliminary consolidated financial statements is 31 July 2008. The
Group's IFRS adoption date is 1 August 2007.
4. EXPLANATION OF THE EFFECT OF THE TRANSITION TO IFRS
The following explains the material adjustments on the transition to IFRS.
Goodwill
UK GAAP required goodwill to be amortised over its expected useful economic life.
Under IFRS, goodwill is no longer amortised but held at carrying value on the balance
sheet and tested annually for impairment.
Deferred tax
Deferred tax assets are now required to be shown as non-current assets.
FISHWORKS PLC
NOTES TO THE UN-AUDITED PRELIMINARY REPORT
4(a). RECONCILIATION OF NET INCOME FOR THE PERIOD ENDED 31 JULY 2007
UK GAAP Adjustments IFRS
� � �
Turnover 10,708,834 - 10,708,834
Cost of sales (3,721,158) - (3,721,158)
------------------- ------------------- -------------------
Gross profit 6,987,676 - 6,987,676
Other operating expenses (7,586,239) 47,860 (7,538,379)
Exceptional operating expenses (558,319) - (558,319)
------------------- ------------------- -------------------
Operating profit (1,156,882) 47,860 (1,109,022)
Net finance costs (301,023) - (301,023)
------------------- ------------------- -------------------
Loss before tax (1,457,905) 47,860 (1,410,045)
Tax expense (305,000) - (305,000)
------------------- ------------------- -------------------
Loss for the period attributed
to the equity shareholders of �(1,762,905) �47,860 �(1,715,045)
the parent company
========= ========= =========
FISHWORKS PLC
NOTES TO THE PRELIMINARY REPORT
4(b). RECONCILIATION OF EQUITY AT 31 JULY 2007
UK GAAP Adjustments IFRS
� � �
ASSETS
Non-current assets
Property, plant and equipment 6,101,556 - 6,101,556
Intangible assets 1,157,866 47,860 1,205,726
------------------- ------------------- -------------------
7,259,422 47,860 7,307,282
------------------- ------------------- -------------------
Current assets
Inventories 288,410 - 288,410
Trade and other receivables 1,092,690 - 1,092,690
Cash and cash equivalents 157,339 - 157,339
------------------- ------------------- -------------------
1,538,439 - 1,538,439
------------------- ------------------- -------------------
Total assets �8,797,861 �47,860 �8,845,721
========= ========= =========
EQUITY
Capital and reserves
attributable to the Company's
equity shareholders
Called up share capital 742,883 - 742,883
Share premium account 7,339,465 - 7,339,465
Merger reserve 58,000 - 58,000
Retained earnings (4,288,158) 47,860 (4,240,298)
------------------- ------------------- -------------------
Total equity 3,852,190 47,860 3,900,050
------------------- ------------------- -------------------
LIABILITIES
Non-current liabilities
Borrowings 1,776,936 - 1,776,936
Obligations under finance 95,004 - 95,004
leases
------------------- ------------------- -------------------
1,871,940 - 1,871,940
------------------- ------------------- -------------------
Current liabilities
Borrowings 1,433,846 - 1,433,846
Obligations under finance 161,642 - 161,642
leases
Trade and other payables 1,478,243 - 1,478,243
------------------- ------------------- -------------------
3,073,731 - 3,073,731
------------------- ------------------- -------------------
Total liabilities 4,945,671 - 4,945,671
------------------- ------------------- -------------------
Total equity and liabilities �8,797,861 �47,860 �8,845,721
========= ========= =========
FISHWORKS PLC
NOTES TO THE PRELIMINARY REPORT
4(c). RECONCILIATION OF CASH FLOWS FOR THE PERIOD ENDED 31 JULY 2007
UK GAAP Adjustments IFRS
� � �
Cash flows from operating
activities
Loss before tax (1,457,905) 47,860 (1,410,045)
Adjustments for:
Net finance charges 301,023 - 301,023
Depreciation and amortisation 474,648 (47,860) 426,788
Increase in inventories (61,644) - (61,644)
Increase in trade and other (312,327) - (312,327)
receivables
Increase in trade and other (760,290) - (760,290)
payables
Impairment of fixed assets 440,445 - 440,445
Other movements in intangible (13,206) - (13,206)
assets
------------------- ------------------- -------------------
Net cash used in operating (1,389,256) - (1,389,256)
activities
------------------- ------------------- -------------------
Cash flows from investing
activities
Interest received 3,837 - 3,837
Purchase of tangible fixed (1,188,906) - (1,188,906)
assets
Purchase of intangible assets (12,980) - (12,980)
------------------- ------------------- -------------------
Net cash used in investing (1,198,049) - (1,198,049)
activities
------------------- ------------------- -------------------
Cash flows from financing
activities
Issue of ordinary shares (net 2,252,589 - 2,252,589
of costs)
Interest paid (250,115) - (250,115)
Repayments bank and other 526,829 - 526,829
loans
Capital element of finance leases and rental (288,698) - (288,698)
payments
------------------- ------------------- -------------------
Net cash used in financing 2,240,605 - 2,240,605
activities
------------------- ------------------- -------------------
Net decrease in cash and cash (346,700) - (346,700)
equivalents
Cash and cash equivalents at (310,414) - (310,414)
beginning of period
------------------- ------------------- -------------------
Cash and cash equivalents at �(657,114) - �(657,114)
end of period
========= ========= =========
This information is provided by RNS
The company news service from the London Stock Exchange
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