Final Results
April 17 2003 - 2:00AM
UK Regulatory
RNS Number:1429K
Prezzo PLC
17 April 2003
prezzo plc
chairman's statement
I am pleased to report on the results for the 52 weeks ended 29 December 2002,
the first set of annual results since our flotation.
When the Company's shares were admitted to the Alternative Investment Market in
March 2002, the Company was operating four restaurants. At December 2002 the
Company operated fifteen restaurants under the three branded formats of Prezzo,
Jonathans and Anyway. Since the year-end we have opened a Prezzo in Alton and
are currently working on a further three in Newbury, Wokingham and Horsham and
are contracted on a further three sites.
During the period from the flotation on 21 March to 29 December 2002 the Company
opened eleven new restaurants, which included Salisbury, Romsey, East Grinstead
and Braintree. The turnover has increased from #1.1 million in the period ended
30 December 2001 to almost #3.8 million in the period ended 29 December 2002.
More than half of the new restaurants have been opened in the latter part of the
year, incurring pre-opening costs and carrying the burden of an infrastructure
for a much larger business. However, I feel the disappointing loss for the
year will be put into perspective by the benefits of economies of scale as the
company grows.
Three restaurants, which opened in leisure complexes, did not come up to initial
expectations. These "Prezzo" formats have now been changed to the "Anyway"
concept, which has a more varied menu to help improve performance. As yet it
is too early to know whether this has achieved the required result.
Our senior management team comprises of a mixture of experience, youth and
enthusiasm. The managers of our restaurants are carefully selected for their
experience and we place great weight upon the training of our staff and the
service which they provide. The development stage of any business, which deals
directly with the public, is always demanding and I would like to thank all our
staff for their efforts over the past twelve months.
At the Annual General Meeting we are asking shareholders to vote on resolutions
that will enable the Company, at the appropriate time, to raise additional
finance to further expand the Company.
In view of the Company's early stage of development the Board does not consider
it appropriate to pay a dividend for this period.
Michael Carlton
Chairman
17 April 2003
prezzo plc
profit and loss account
for 52 weeks ended 29 december 2002
2002 2001
(restated)
#000 #000
Turnover 3,794 1,102
Cost of sales 3,677 958
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Gross profit 117 144
Administrative expenses 265 68
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Operating (Loss)/profit -148 76
Interest receivable 62 18
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(Loss)/profit on ordinary activities before taxation -86 94
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Taxation on ordinary activities - -35
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(Loss)/profit on ordinary activities after taxation -86 59
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and retained (loss)/profit for the year
Earnings per share
Basic (0.45)p 0.66p
Diluted (0.45)p 0.66p
All amounts relate to continuing activities
prezzo plc
balance sheet
for 52 weeks ended 29 december 2002
2002 2001
#000 #000
Fixed assets
Tangible assets 6,644 2,336
----------- -----------
Current assets
Stock 213 57
Debtors 534 93
Cash at bank and in hand 1,450 1,118
----------- -----------
2,197 1,266
Creditors: amounts falling due within one year 1,888 530
----------- -----------
Net current assets 309 736
Provisions for liabilities and charges 29 29
----------- -----------
6,924 3,043
=========== ===========
Capital and reserves
Called up share capital 4,197 3,000
Share premium reserve 2,770 -
Profit and loss account -43 43
----------- -----------
Shareholders' funds - equity 6,924 3,043
=========== ===========
The financial statement were approved by the Board on 17 April
2003
prezzo plc
cash flow statement
for 52 weeks ended 29 december 2002
2002 2001
#000 #000
Net cash inflow from operating activities 663 386
Returns on investments and servicing of finance
Interest received 62 18
Taxation
Uk corporation tax paid - -
Capital expenditure and financial investment
Payments to acquire tangible fixed assets -4,540 -1,828
Equity dividends paid - -
Net cash inflow/(outflow) before use of
liquid resources and financing -3,815 -1,424
Management of liquid resources -550 -200
----------- -----------
Net cash inflow/(outflow) before financing -4,365 -1,624
Financing
Issue of share capital 3,967 2,000
----------- -----------
(Decrease)/Increase in cash -598 376
Notes to the Financial Statements
1 Basis of Accounting
The financial information included in this document has been prepared on
a consistent basis and using the same accounting policies as the audited
financial statements for the 52 weeks ended 30 December 2001 except that
during the year the company has adopted FRS19- "Deferred Taxation", and
has adapted its policy on lease incentives such that the benefit of rent
free periods arising after the date of opening of restaurants are treated
as deferred income and written back to the profit and loss account evenly
over the period to the next rent review.
As a result of the adoption of FRS19 full provision has been made for
deferred tax. There is no effect on current year taxation charge from
the change in this policy. The tax charge for the 52 weeks ended
30 December 2001 has been increased by #35,000. In addition shareholders
funds for the 52 weeks ended 30 December 2001 have been reduced by
#29,000.
2 Earnings per 20p ordinary share
Earnings per share have been computed on the basis of the net loss for
the period of #96,000 (2001 - #59,000 profit), and the weighted average
number of shares in issue during the period of 19,045,171 (2001 -
8,890,410). As the company made a loss during the year there are no
dilutive shares outstanding during the year and therefore diluted
earnings per share has been calculated using 19,045,171 (2001 - 8,890,410
ordinary shares).
3 Financial Information
The announcement set out above, does not constitute a full financial
statement of the Company's affairs for the 52 weeks ended 29 December
2002. The auditors have reported on the full accounts for the said
period and have accompanied them with an unqualified report. The
accounts have yet to be delivered to the Registrar of Companies. The
annual report and accounts will be posted to shareholders on 17 April
2003, and the Annual General Meeting of the company will be held on
19 May 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
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