TIDMIRC
RNS Number : 6650P
Individual Restaurant Company PLC
30 March 2009
Individual Restaurant Company plc
("IRC" or "the Group")
Preliminary results for the 12 months ended 31 December 2008
Highlights
Individual Restaurant Company Plc ("IRC" or "the Group"), a leading operator of
34 restaurants throughout the UK which trade under the Piccolino (23) and
Restaurant Bar & Grill (11) formats, today announces preliminary results for the
year ended 31 December 2008.
Another resilient performance during the period
* Trading in line with market expectations across the Group's portfolio
* Revenue increased by 17% to GBP52.5m (pro-forma 2007*: GBP45.0m)
* Restaurant EBITDA** increased to GBP10.2m (pro-forma 2007: GBP9.7m)
* Average restaurant EBITDA of GBP0.3m per site
* Clean*** profit before tax of GBP1.8m (pro-forma 2007: GBP2.5m); the reduction
predominantly due to a GBP0.5m increase in depreciation in 2008 to GBP2.6m
(pro-forma 2007 GBP2.1m)
* Clean diluted EPS 2.9p (pro-forma 2007: 6.8p)
Brand evolution
* Bar & Grill roll-out potential as strong as the Piccolino brand
* Both brands working nationally
* Dedicated development team in place for each brand
* Following the successful trial of making fresh pasta at Piccolino in Hale,
Bristol and Clitheroe, it is the intention to expand this feature to a number of
other Piccolino sites
Estate expansion
* Six new restaurants, comprising five Piccolinos (Birmingham, York, Hale, Bristol
and Clitheroe) and one Bar & Grill (Harrogate), opened in 2008
* New sites traded slightly ahead of expectations
* Additional leases have been signed in Aberdeen, Knutsford, the City of London
and Dorking
Financially strong
* Year-end net debt to EBITDA just under 3 times multiple
* Interest covered five times by EBITDA
* GBP9.2m capex invested in the estate in the period
* Successful renegotiation of GBP18.5m banking facility
Current trading
* Trading for the first 13 weeks of the current year slightly ahead of management
expectations
* Pro-forma means the 12 months ended 31 December 2007 adjusted by removing the
impact from the two restaurants disposed of in 2007
** Restaurant EBITDA is defined as EBITDA generated by restaurants after adding
back pre-opening costs
*** Clean is defined as before non trading costs
Steven Walker, Chief Executive of Individual Restaurant Company, said:
"I am pleased to report another period of progress for the Group both in terms
of financial performance and in the continued expansion of our restaurant
portfolio. This is a particularly creditable result in what was a challenging
trading period for consumer-facing businesses as a whole."
"Whilst trading conditions are likely to remain tough particularly in the first
half of 2009, current trading is slightly ahead of management expectations. The
measures we have taken to evolve both of our brands are proving successful.
This, together with an ongoing focus on tight cost control, will continue to
underpin a resilient performance from both brands and the Directors remain
confident about the future prospects for the Group."
30 March 2009
Enquiries:
+-----------------------------------+---------------------------------------------+
| Individual Restaurant Company Plc | |
+-----------------------------------+---------------------------------------------+
| Steven Walker, Chief Executive | 020 7457 2020 (today) |
+-----------------------------------+---------------------------------------------+
| Vernon Lord, Finance Director | 0161 839 5511 (thereafter) |
+-----------------------------------+---------------------------------------------+
| | |
+-----------------------------------+---------------------------------------------+
| Altium | 0161 831 9133 |
+-----------------------------------+---------------------------------------------+
| Mike Fletcher | |
+-----------------------------------+---------------------------------------------+
| | |
+-----------------------------------+---------------------------------------------+
| College Hill | 020 7457 2020 |
+-----------------------------------+---------------------------------------------+
| Justine Warren | |
+-----------------------------------+---------------------------------------------+
Chairman's statement
Introduction
We are pleased to announce our results for the year ended 31 December 2008. The
results reflect another period of expansion with the restaurant estate growing
from 28 to 34 premium casual restaurants, trading under either the Piccolino
brand (23) or the Bar and Grill brand (11). The new restaurant openings
comprised five Piccolino's: Birmingham (June); York (July); Hale (September);
Bristol (September); and Clitheroe (December), and one Bar and Grill in
Harrogate (November).
Trading conditions became increasingly challenging as 2008 progressed.
Encouragingly, trading strengthened over the Christmas period - the critical
trading period for our business. It is particularly pleasing that in a period of
reducing consumer spend generally, the Group's restaurants performed well over
the period with results for the full year in line with market consensus at a
trading level (EBITDA).
Financial performance
Revenues have increased across the Group by GBP1.6m (3.1%) to GBP52.5m (14
months ended December 2007: GBP50.9m). It is, however, more meaningful to
consider revenue growth in 2008 against "pro-forma" revenue in 2007 (i.e.
revenue for the 12 months ended 31 December 2007 adjusted by removing revenue
from the two restaurants disposed in 2007). On this basis, revenue in 2008
increased by GBP7.5m (16.7%) to GBP52.5m (pro-forma 2007: GBP45.0m). The uplift
in revenue was generated from the full year contribution of the six restaurants
opened in 2007 together with the additional revenue contributed by the six
restaurants opened throughout 2008. Encouragingly, average new site weekly
revenue was 7% ahead of the level predicted in our "template model site."
Restaurant EBITDA* increased by GBP0.5m (5.9%) to GBP10.2m (pro-forma 2007:
GBP9.7m). Restaurant EBITDA* as a percentage of revenue was 19.5% (2007: 21.3%).
The 1.8% decline in margin resulted from three factors: a 0.9% reduction in
gross margin due to input cost pressures on food and beverage supplies which
have been well documented across the industry; a 0.7% reduction in margin due to
like for like increases in fixed costs and a 0.2% reduction in margin due to a
decrease in like for like restaurant EBITDA of GBP0.2m (before the impact of
like for like fixed costs).
Pre-opening costs in the period were GBP0.7m (pro-forma 2007: GBP0.8m) at an
average per site of GBP116,000. This was slightly higher than the GBP100,000
average pre-opening cost per site which has historically been achieved by the
Group due to the Piccolino site in Birmingham, an existing restaurant purchased
by the Group, which incurred additional costs including the termination of a
number of employment and other service contracts.
Central costs in 2008 were GBP4.2m (pro-forma 2007: GBP3.7m). As the restaurant
estate grows it is natural the absolute level of central costs would increase
year on year. However, as a percentage of sales costs should fall which in the
year they did by 0.3% (representing a relative cost reduction of GBP0.2m). The
primary driver of the absolute cost increase was an increase in head count to
support the growth in the estate.
After pre-opening and central costs, EBITDA for the year was GBP5.3m (pro-forma
2007: GBP5.2m). Clean operating profit before non trading items declined by
GBP0.3m to GBP2.7m (pro-forma 2007: GBP3.1m) due to an uplift in depreciation of
GBP0.5m to GBP2.6m (pro-forma 2007: GBP2.1m). This increase was driven by the
annualised impact of sites opened in 2007 together with the six openings
completed in 2008.
Operating profit for the year fell GBP1.1m to GBP2.1m due to the net effect of
non-trading items. The operating profit in 2007 included a contribution to
profit of GBP0.5m, being the net amount arising from the disposal of the Bank
Aldwych restaurant and business restructuring costs (including a provision in
respect of the Zinc restaurant in Birmingham). For the 2008 year the Board has
decided to provide a further GBP0.5m against that restaurant as the effect of
the economic downturn has been to extend the realistic date for finding a
suitable sub-tenant.
Total finance costs of GBP1.0m (pro-forma 2007: GBP0.6m) increased as a result
of the increase in net debt.
The tax charge in the period of GBP0.6m (2007: GBP0.3m) relates entirely to
deferred tax. Tax payable will be GBPnil (pro-forma 2007: GBPnil) as the Group
continues to benefit from capital allowances generated from new site capital
expenditure.
Clean profit before tax for the year was down GBP0.7m to GBP1.8m (pro-forma
2007: GBP2.5m) which, as already stated was due predominantly to the uplift in
depreciation of GBP0.5m. Clean profit after tax was GBP1.1m (pro-forma GBP2.3m).
Clean earnings per share for the year was 2.9p (pro-forma 2007: 6.8p).Profit
after tax for the year is GBP0.5m (2007: GBP2.3m.) Earnings per share fell from
7.4p to 1.3p There is no impact in 2008 arising from share options.
Cash flow and balance sheet
The Group generates strong cash flow. In 2008 cash flow from operations was
GBP4.7m. After interest, tax and maintenance capital expenditure free cash flow
was GBP2.8m.
At 31 December 2008 net debt was GBP15.8m (2007: GBP6.0m). The drivers of this
increase were new site capital expenditure in the year of GBP8.3m and the
payment of a deferred consideration of GBP4.3m.
New site capital expenditure in the year of GBP8.3m included GBP7.6m invested in
sites opened in the year, GBP0.4m on sites opened in 2007 and GBP0.3m on sites
yet to be opened.
As reported in last year's Chairman's statement a deferred consideration of
GBP4.3m was due following the Group's acquisition in December 2006 of the entire
share capital of Individual Restaurant Company Limited. This sum was paid in
April 2008.
With net debt at GBP15.8m, gearing was 38% (2007: 15%). Interest costs of
GBP1.0m (pro-forma 2007: GBP0.6m) were covered by EBITDA generated in the 12
months ended 31 December 2008 by a factor of over five times (2007: eight
times). Net debt of GBP15.8m represented just under three times EBITDA.
Whilst the year end net debt multiple was just under three times EBITDA and the
Group was not in breach of any of its covenants the Group felt some of its
future covenant tests were potentially inappropriate for the business.
Accordingly, the Board felt it was sensible to agree revised covenants with the
Group's bankers, Lloyds Banking Group plc.
I am pleased therefore to report the Group has successfully renegotiated new
banking facility terms to January 2012 including more appropriate covenant tests
and test levels. The covenants will be tested every half year on the below
basis:
* Net Debt:EBITDA
* EBITDA:Senior Interest
* Cash Flow available for Debt Service (CFADS)
Brand progress and future roll out
In all aspects of the business, the Group continually strives to make progress
through innovation and the Board believes that strong progress was made in both
brands in 2008.
Most significantly, the Group has now experienced a lengthy period of successful
trading for both brands in the south of England (six Piccolinos and three Bar &
Grills), demonstrating that the Group has established two genuinely national
brands.
In respect of Piccolino, the Board believes that this brand has always set
itself apart from its competition through the quality of its design, fit out,
food and service. Further progress was made in 2008 with the introduction of
freshly made pasta on site at Hale, Bristol and Clitheroe. In 2009 this will be
extended to a number of other Piccolino restaurants, as we have already done so
in our York site this year.
Both brands have their own dedicated development teams which we believe
underlines consistent quality and individuality.
Looking ahead, leases have been signed on four sites, Aberdeen, Knutsford, the
City of London and Dorking. The Aberdeen site, which had been planned to open at
the end of 2008, experienced delays in planning and licensing. Future openings,
including Aberdeen, will be funded out of cash flow and the existing bank
facilities. The quantum and timing of openings will be determined by trading
performance and available headroom in these facilities.
Future outlook and current trading
The Group anticipates that trading conditions in 2009 will be at least as
challenging as those experienced in the latter months of 2008. Furthermore, many
operators have increased the level of discounting in the opening months of this
year. However, the Group will continue with its strategy of avoiding the margin
erosion resulting from such policies, concentrating instead on the quality of
its people, food, customer service and restaurant cleanliness.
Nevertheless, the Group expects to come under further gross margin pressure in
both food and beverage as suppliers strive to offset their rising costs
resulting from the weakness in Sterling. A number of utility contracts are also
subject to renewal in the year. To meet this challenge, a number of cost saving
initiatives have been implemented which are expected to save around GBP2.0m in
2009. Lastly, the Group will benefit from a full year contribution from the six
sites - most of which were opened towards the end of 2008.
Encouragingly, trading for the first 13 weeks of the year has been slightly
ahead of management expectations.
The Board believes that the Group's brands and business model are robust and
remains confident of the future prospects for Individual Restaurant Company.
Robert Breare
Chairman
30 March 2009
(*) Restaurant EBITDA is defined as EBITDA generated by restaurants after
adding back pre-opening costs
Consolidated income statement
+----------------------------------------------+------+------------+------------+
| | | Year | 14 months |
+----------------------------------------------+------+------------+------------+
| | | ended | ended |
+----------------------------------------------+------+------------+------------+
| |Note | 31 | 31 |
| | | December | December |
+----------------------------------------------+------+------------+------------+
| | | 2008 | 2007 |
+----------------------------------------------+------+------------+------------+
| | | GBP'000 | GBP'000 |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Revenue | | 52,472 | 50,852 |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Cost of sales | | (13,328) | (13,094) |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Gross profit | | 39,144 | 37,758 |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Other operating expenses | | (36,424) | (34,393) |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Operating result before non-trading costs | | 2,720 | 3,365 |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Profit on disposal of assets | | - | 1,267 |
+----------------------------------------------+------+------------+------------+
| Business restructuring costs | | - | (784) |
+----------------------------------------------+------+------------+------------+
| Reversal of impairment of non-current assets | | 996 | - |
+----------------------------------------------+------+------------+------------+
| Impairment of non-current assets | | (996) | - |
+----------------------------------------------+------+------------+------------+
| Share option charge | | (108) | (108) |
+----------------------------------------------+------+------------+------------+
| Increase in provision for onerous leases | | (500) | (500) |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Operating profit | | 2,112 | 3,240 |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Finance income | | - | 17 |
+----------------------------------------------+------+------------+------------+
| Finance cost | | (957) | (676) |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Profit before taxation | | 1,155 | 2,581 |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Income tax | | (639) | (251) |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Profit from continuing operations | | 516 | 2,330 |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Profit for the period attributable to equity | | | |
| holders | | | |
+----------------------------------------------+------+------------+------------+
| of parent | | 516 | 2,330 |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Earnings per share from continuing | 2 | | |
| operations: | | | |
+----------------------------------------------+------+------------+------------+
| Basic | | 1.34p | 7.41p |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
| Diluted | | 1.34p | 6.86p |
+----------------------------------------------+------+------------+------------+
| | | | |
+----------------------------------------------+------+------------+------------+
Consolidated balance sheet
+----------+----------+----------+----------+----------+----------+----------+----------+
| | | As at | As at |
+---------------------+---------------------+---------------------+---------------------+
| | | 31 | 31 |
| | | December | December |
+---------------------+---------------------+---------------------+---------------------+
| | | 2008 | 2007 |
+---------------------+---------------------+---------------------+---------------------+
| | | GBP'000 | GBP'000 |
+---------------------+---------------------+---------------------+---------------------+
| ASSETS | | | |
+---------------------+---------------------+---------------------+---------------------+
| Non-current assets | | | |
+---------------------+---------------------+---------------------+---------------------+
| Property, plant and | | 36,909 | 29,353 |
| equipment | | | |
+---------------------+---------------------+---------------------+---------------------+
| Intangible assets | | 38,647 | 38,647 |
+---------------------+---------------------+---------------------+---------------------+
| Total non current | | 75,556 | 68,000 |
| assets | | | |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Current assets | | | |
+---------------------+---------------------+---------------------+---------------------+
| Inventories | | 1,059 | 809 |
+---------------------+---------------------+---------------------+---------------------+
| Trade and other | | 2,492 | 1,999 |
| receivables | | | |
+---------------------+---------------------+---------------------+---------------------+
| Derivative | | 7 | 17 |
| financial | | | |
| instrument | | | |
+---------------------+---------------------+---------------------+---------------------+
| Cash and cash | | 2,686 | 4,455 |
| equivalents | | | |
+---------------------+---------------------+---------------------+---------------------+
| Total current | | 6,244 | 7,280 |
| assets | | | |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Total assets | | 81,800 | 75,280 |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| LIABILITIES | | | |
+---------------------+---------------------+---------------------+---------------------+
| Current liabilities | | | |
+---------------------+---------------------+---------------------+---------------------+
| Trade and other | | (11,867) | (10,539) |
| payables | | | |
+---------------------+---------------------+---------------------+---------------------+
| Provisions | | (177) | (110) |
+---------------------+---------------------+---------------------+---------------------+
| Deferred | | - | (4,248) |
| consideration | | | |
+---------------------+---------------------+---------------------+---------------------+
| Short term | | (18,500) | (10,500) |
| borrowings | | | |
+---------------------+---------------------+---------------------+---------------------+
| Total current | | (30,544) | (25,397) |
| liabilities | | | |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Non-current | | | |
| liabilities | | | |
+---------------------+---------------------+---------------------+---------------------+
| Provisions | | (500) | (390) |
+---------------------+---------------------+---------------------+---------------------+
| Deferred taxation | | (9,707) | (9,068) |
+---------------------+---------------------+---------------------+---------------------+
| Total non current | | (10,207) | (9,458) |
| liabilities | | | |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Total liabilities | | (40,751) | (34,855) |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Net assets | | 41,049 | 40,425 |
+----------+----------+----------+----------+----------+----------+----------+----------+
+----------+----------+----------+----------+----------+----------+----------+----------+
| | | | |
| | | As at | As at |
| | | 31 December | 31 December |
| | | 2008 | 2007 |
+---------------------+---------------------+---------------------+---------------------+
| | | | GBP'000 |
| | | GBP'000 | |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| EQUITY ATTRIBUTABLE | | | |
| TO EQUITY HOLDERS | | | |
+---------------------+---------------------+---------------------+---------------------+
| OF THE PARENT | | | |
+---------------------+---------------------+---------------------+---------------------+
| Share capital | | 13,826 | 12,409 |
+---------------------+---------------------+---------------------+---------------------+
| Share premium | | 11,663 | 8,832 |
| account | | | |
+---------------------+---------------------+---------------------+---------------------+
| Merger reserve | | 22,034 | 22,034 |
+---------------------+---------------------+---------------------+---------------------+
| Shares to be issued | | 216 | 4,356 |
+---------------------+---------------------+---------------------+---------------------+
| Retained earnings | | (6,690) | (7,206) |
+---------------------+---------------------+---------------------+---------------------+
| Total equity | | 41,049 | 40,425 |
+---------------------+---------------------+---------------------+---------------------+
| |
+----------+----------+----------+----------+----------+----------+----------+----------+
Consolidated statement of changes in shareholders' equity
+----------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+
| | Share | Other | Shares | Retained | Total |
| | capital | reserves | to be | earnings | |
| | | | issued | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------+---------------+---------------+---------------+---------------+---------------+
| | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| At 1 November | 1,125 | 7,925 | - | (9,536) | (486) |
| 2006 | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Profit for | - | - | - | 2,330 | 2,330 |
| the period | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Reclassification | | | | | |
| of preference | | | | | |
| shares | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| from debt | 17 | 833 | - | - | 850 |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Exercise of | 37 | 74 | - | - | 111 |
| share options | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Shares issued | 11,230 | 22,996 | - | - | 34,226 |
| on | | | | | |
| acquisition | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Transaction | - | (962) | - | - | (962) |
| costs of | | | | | |
| share issue | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Deferred | | | | | |
| consideration | | | | | |
| shares to | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| be issued | - | - | 4,248 | - | 4,248 |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Share based | - | - | 108 | - | 108 |
| payments to | | | | | |
| be issued | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| At 31 | 12,409 | 30,866 | 4,356 | (7,206) | 40,425 |
| December 2007 | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Profit for | - | - | - | 516 | 516 |
| the year | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Deferred | 1,417 | 2,831 | (4,248) | - | - |
| consideration | | | | | |
| shares | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| Share based | - | - | 108 | - | 108 |
| payments to | | | | | |
| be issued | | | | | |
+------------------+---------------+---------------+---------------+---------------+---------------+
| At 31 | 13,826 | 33,697 | 216 | (6,690) | 41,049 |
| December 2008 | | | | | |
+----------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+-------+
Other reserves represent the share premium account and the merger reserve.
Consolidated cash flow statement
+----------+----------+----------+----------+----------+----------+----------+----------+
| | | | 14 months |
| | | Year | ended |
| | | ended | |
+---------------------+---------------------+---------------------+---------------------+
| | | | 31 December |
| | | 31 December | |
+---------------------+---------------------+---------------------+---------------------+
| | | 2008 | 2007 |
+---------------------+---------------------+---------------------+---------------------+
| | | GBP'000 | GBP'000 |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Cash flows from | | | |
| operating | | | |
| activities | | | |
+---------------------+---------------------+---------------------+---------------------+
| Profit after | | 516 | 2,330 |
| taxation | | | |
+---------------------+---------------------+---------------------+---------------------+
| Adjustments for: | | | |
+---------------------+---------------------+---------------------+---------------------+
| Depreciation, | | 2,609 | 2,306 |
| impairment and | | | |
| amortisation | | | |
| charges | | | |
+---------------------+---------------------+---------------------+---------------------+
| Share based | | 108 | 108 |
| administrative | | | |
| expense | | | |
+---------------------+---------------------+---------------------+---------------------+
| Interest expense | | 957 | 676 |
+---------------------+---------------------+---------------------+---------------------+
| Interest received | | - | (17) |
+---------------------+---------------------+---------------------+---------------------+
| Movement in | | 639 | 251 |
| deferred tax | | | |
| provision | | | |
+---------------------+---------------------+---------------------+---------------------+
| Movement in | | 177 | 500 |
| provisions | | | |
+---------------------+---------------------+---------------------+---------------------+
| Profit on sale of | | - | (1,267) |
| property, plant and | | | |
| equipment | | | |
+---------------------+---------------------+---------------------+---------------------+
| (Increase) in trade | | (493) | (141) |
| and other | | | |
| receivables | | | |
+---------------------+---------------------+---------------------+---------------------+
| (Increase) in | | (250) | (278) |
| inventories | | | |
+---------------------+---------------------+---------------------+---------------------+
| Increase in trade | | 432 | 810 |
| payables | | | |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Cash flow from | | 4,695 | 5,278 |
| operations | | | |
+---------------------+---------------------+---------------------+---------------------+
| Interest paid | | (965) | (676) |
+---------------------+---------------------+---------------------+---------------------+
| Net cash from | | 3,730 | 4,602 |
| operating | | | |
| activities | | | |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Cash flows from | | | |
| investing | | | |
| activities | | | |
+---------------------+---------------------+---------------------+---------------------+
| Purchase of | | (9,251) | (10,595) |
| property, plant and | | | |
| equipment | | | |
+---------------------+---------------------+---------------------+---------------------+
| Purchase of | | (4,248) | (15,923) |
| subsidiary | | | |
+---------------------+---------------------+---------------------+---------------------+
| Net cash acquired | | - | 1,408 |
| with subsidiary | | | |
+---------------------+---------------------+---------------------+---------------------+
| Proceeds from sale | | - | 3,500 |
| of property, plant | | | |
| and equipment | | | |
+---------------------+---------------------+---------------------+---------------------+
| Interest received | | - | 17 |
+---------------------+---------------------+---------------------+---------------------+
| Net cash used in | | (13,499) | (21,593) |
| investing | | | |
| activities | | | |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Cash flows from | | | |
| financing | | | |
| activities | | | |
+---------------------+---------------------+---------------------+---------------------+
| Proceeds from issue | | - | 32,111 |
| of share capital | | | |
+---------------------+---------------------+---------------------+---------------------+
| New bank loans | | 8,000 | 14,000 |
| raised | | | |
+---------------------+---------------------+---------------------+---------------------+
| Repayment of loan | | - | (7,218) |
+---------------------+---------------------+---------------------+---------------------+
| Repayment of loans | | - | (17,106) |
| acquired with | | | |
| subsidiary | | | |
+---------------------+---------------------+---------------------+---------------------+
| Net cash from | | 8,000 | 21,787 |
| financing | | | |
| activities | | | |
+---------------------+---------------------+---------------------+---------------------+
| | | | |
+---------------------+---------------------+---------------------+---------------------+
| Net | | (1,769) | 4,796 |
| (decrease)/increase | | | |
| in cash and cash | | | |
| equivalents | | | |
+---------------------+---------------------+---------------------+---------------------+
| Cash and cash | | 4,455 | (341) |
| equivalents at | | | |
| beginning of year | | | |
+---------------------+---------------------+---------------------+---------------------+
| Cash and cash | | 2,686 | 4,455 |
| equivalents at end | | | |
| of the year | | | |
+---------------------+---------------------+---------------------+---------------------+
| |
+----------+----------+----------+----------+----------+----------+----------+----------+
Notes to the financial statements
1. Basis of preliminary statement
The financial information set out above does not constitute the Group's
statutory accounts for the year ended 31 December 2008 but is derived from those
accounts, which are prepared in accordance with International Financial
Reporting Standards.
The financial statements for the year ended 31 December 2008 have not yet been
filed at Companies House, but will be in due course. The auditor has reported on
those accounts; their report was unqualified and did not contain a statement
under section 237 (2) of the Companies Act 1985.
The 2008 statutory accounts are prepared on the basis of the accounting policies
stated in the Consolidated Interim report for the period ended 30 June 2008.
Copies of the June 2008 interim report can be found on the Company's website
at:
www.individualrestaurantcompanyplc.co.uk.
Going concern
The Group has re-negotiated its financial covenants with Lloyds TSB Plc. Based
on heavily sensitised forecasts to 31 March 2010 the Group will remain compliant
with these covenants. The Group has a revolving credit facility of GBP18.5m
repayable in January 2012, subject to annual review, the next such review being
March 2010. The revolving credit facility is subject to amortisation prior to
maturity, the first payment of which (GBP1m) is due in December 2009.
The Directors have prepared heavily sensitised forecasts. Reasonable enquires
have been made and assumptions taken with regard to cashflow and prudent
sensitivities. The Board is satisfied that should the lower of these estimates
be achieved the Group will generate sufficient working capital to meet all of
its liabilities through implementing a number of cost saving initiatives which
could be easily implemented should the need arise.
It is the opinion of the Directors that forecasted profit will be achieved and
that the Group will continue to attract customers to its restaurants. In
addition, support from the Group's bankers has been confirmed. Accordingly, the
Directors continue to adopt the going concern basis in preparing the financial
statements.
2. Earnings per share
The calculation of earnings per share (basic and diluted) is based on Group
profit after taxation, and the weighted average number of ordinary shares.
+-----------------------+--------------------+--------------------+--------------------+
| | Year ended 31 December 2008 |
+-----------------------+--------------------------------------------------------------+
| | Earnings | Weighted | Per share |
| | | Average | |
| | | number of | |
| | | shares | |
+-----------------------+--------------------+--------------------+--------------------+
| | GBP'000 | '000 | p |
+-----------------------+--------------------+--------------------+--------------------+
| | | | |
+-----------------------+--------------------+--------------------+--------------------+
| | | | |
+-----------------------+--------------------+--------------------+--------------------+
| Basic and diluted EPS | 516 | 38,490 | 1.34 |
+-----------------------+--------------------+--------------------+--------------------+
+-------------------------+--------------------+--------------------+--------------------+
| | 14 months ended 31 December 2007 |
+-------------------------+--------------------------------------------------------------+
| | Earnings | Weighted | Per share |
| | | average | |
| | | number of | |
| | | shares | |
+-------------------------+--------------------+--------------------+--------------------+
| | GBP'000 | '000 | p |
+-------------------------+--------------------+--------------------+--------------------+
| | | | |
+-------------------------+--------------------+--------------------+--------------------+
| | | | |
+-------------------------+--------------------+--------------------+--------------------+
| Basic EPS | 2,330 | 31,415 | 7.41 |
+-------------------------+--------------------+--------------------+--------------------+
| Effect of share options | - | 2,540 | - |
+-------------------------+--------------------+--------------------+--------------------+
| Diluted EPS | 2,330 | 33,955 | 6.86 |
+-------------------------+--------------------+--------------------+--------------------+
The outstanding options at 31 December 2008 do not have a dilutive effect on the
weighted average number of shares as the exercise price of options during the
year exceeded the average market price of ordinary shares.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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