REG - Comptoir Group PLC - Half-year Report

ComptoirAnnouncement

19/09/2018 07:05

RNS Number : 1817B
Comptoir Group PLC
19 September 2018
 


19 September 2018
 
Comptoir Group plc
("Comptoir", the "Company" or the "Group")
 
Half-year report for the period ended 30 June 2018
 
Introduction and Highlights
 
Highlights:
 
·      Group revenue of £15.7m up by 19.8% (H1 2017: £13.1m).
·      Gross profit of £11.3m up by 19.0% (H1 2017: £9.5m).
·      Adjusted EBITDA* before highlighted items of £0.5m up by 152% (H1 2017: £0.2m).
·      Net cash and cash equivalents at the period end of £3.9m (H1 2017: £0.1m; 31 December 2017: £5.6m).
·      Comptoir Birmingham opened in March 2018 and is trading in line with the Board's expectations.
·      Currently own and operate 26 restaurants, with a further 3 franchise restaurants.
 
*Adjusted EBITDA was calculated from the profit/(loss) before taxation adding back interest, depreciation, share-based payments and non-recurring costs incurred in opening new sites (note 11).
 
Richard Kleiner, Non-Executive Chairman, said: "I am pleased to announce that despite the continuing well publicised turbulence within the UK restaurant sector and the increase in costs, Comptoir Group have proven their strength as a resilient operator with a robust set of results delivering performance as per the Board's expectations. This has been driven through revenue growth in the existing estate, focus on cost management, efficiencies, innovations and continued selective investment in new restaurants. Our proposition provides our customers with a unique offering in the market place with a welcoming warm team hospitality. I would like to thank the Board for their continued dedicated focus as well as the teams in our restaurants and our supporting operations, for providing our customers with a great experience."
 
Enquiries:
 
Comptoir Group plc
Chaker Hanna                                                                      Tel: 0207 486 1111
Mark Carrick                                                                        Tel: 0207 317 0409
 
Cenkos Securities plc (NOMAD and Broker)
Mark Connelly                                                                     Tel: 020 7397 8900 
Harry Hargreaves
 
 
 
Chief executive's review
 
I am pleased to report the results for the 6-month period ended 30 June 2018.  The performance of the Group's various brands and restaurants, during the first half of the year, has been steady despite the persistent challenging economic climate. The Group ended the period owning and operating 26 restaurants, with a further 3 franchise restaurants. Revenue for the period was £15.7m, an increase of £2.6m or 19.8% (H1 2017: £13.1m) over the comparative period. Adjusted EBITDA was £0.5m, an increase of 152% (H1 2017: £0.2m); the income statement shows a pre-tax loss of £417k (H1 2017: loss of £756k).
 
The Group has successfully opened one additional new site in March 2018, namely Comptoir Birmingham. The pop-up Yalla Yalla restaurant in Greenwich was closed in February 2018 having come to the end of its short lease. The Company now currently owns and trades from 26 restaurants (19 Comptoir Libanais, 2 Yalla Yalla, 3 Shawa, 1 Levant and 1 Kenza). The Company's 3 franchise restaurants are located in Heathrow, Gatwick & Utrecht. 
 
The first half of 2018 has seen revenue growth both in the current estate, and more significantly, from the increasing maturity of the new sites opened over the last two years. This yields benefit with the top line growth converting to strong EBITDA as a result of operating efficiencies gained as the new sites progress through their early stages of maturity.
 
A number of well-known national restaurant chains, with a fairly generic homogenous offering and no real 'differential' in their proposition to customers, have fallen recent victim to the challenging marketplace. We have observed a significant increase in the level of promotional activity within the restaurant sector, however, we have refrained from discounting and instead have focussed all of our efforts on further improving the customer offering. Most recently through our enhanced new menu implemented in May this year, which introduced, amongst many other new items, our increasingly popular 'Feast menu'; with a minimum of two diners at a competitive price point offering a truly well rounded exposure to the whole Lebanese dining experience.
 
The basic loss per share for the period was 0.34 pence (H1 2017: basic loss per share 0.55 pence) and diluted loss per share was 0.34 pence (H1 2017: diluted loss per share 0.55 pence).
 
Estate roll-out and franchised operations
 
The Group remain focused on investing in carefully selected sites following close analysis of site feasibility subject to in depth scrutiny by the Board prior to approval.
 
There will be two additions to the estate in the second half of the year, with the opening of a new Comptoir restaurant by London Bridge railway station, with heavy footfall and a customer demographic proven to be highly successful with the Comptoir brand. This is currently under development and is expected to be trading from late October 2018. The second opening will be another franchise operation with HMS Host in Cheshire Oaks in November 2018. We continue to work closely with our franchise partners and have already agreed terms on two additional franchised sites with HMS Host in 2019; our second international franchised operation in Dubai Airport, due to open in March 2019; followed by Ashford (in Kent) in June 2019.
 
Cash Flow & balance sheet
The Group's cash balance at the end of the reporting period was £3.9m (31 December 2017: £5.6m). As at 30 June 2018 the Group had bank borrowings of £1.1m (31 December 2017: £1.4m).  This strong balance sheet allows the Group to continue to invest in the current estate and explore potential new sites and other revenue generating opportunities as they arise.
 
We remain cautious and committed to only invest in the sites which fit within the attributes associated with our most successful restaurants and that would contribute positively from their first full year of trading.
 
With our strong net cash position our investment strategy over the next 18 months will be to remain cautious and to acquire new sites where possible through internally generated cash, whilst seeking to maintain our healthy cash position.
 
Management team enhancements
 
The Group appointed a Chief Financial Officer, Mark Carrick, who joined in April 2018 and was appointed to the Board in July 2018, bringing to the Group a wealth of experience from a diverse range of multi-site leisure businesses over the past 19 years, providing finance, commercial and operational expertise. This appointment will enable the finance team to be brought in-house from October 2018 from its current outsourced partner. This will also allow further efficiencies through integration of current systems and processes.
 
Current trading and outlook
 
The Group has clearly demonstrated that it is a leading player of a differential offering within the sector and will continue to provide its ever growing customer base with excellent quality, healthy food in an environment with a genuine feel of family hospitality.
 
Despite the continuation of the exceptionally hot and dry weather conditions into the early part of the second half of the year, we can report that year to date trading is still in line with the Board's expectations, with a particularly strong contribution from the restaurants with external dining areas. As already indicated, the Group continues to control its costs and improve its operational efficiencies and margins whilst maintaining great value for money and, with the quality of the new site opening in London Bridge in October this year, together with the continuing  trading performance, the Board maintains its expectations for the full 2018 financial year. 
 
The pipeline for 2019 is currently under consideration and is dependent on selective site availability and funds available. The Group is currently in advanced negotiations with two new locations for Comptoir and one location for Shawa for 2019 and is reviewing other potential sites to strengthen its pipeline for 2020 and beyond.
 
The Group's focus, however, still remains on continuing to invest in, and improve, the performance of its current estate. The Group also continues to assess new sites and acquisition opportunities, whilst also actively negotiating with our partners, a pipeline of potential additional franchise sites. Irrespective of the outcome of these negotiations, we expect to end 2019 with a minimum of 6 franchised operations.
 
 
Chaker Hanna
Chief Executive
18 September 2018
 
 
 
 
Consolidated statement of comprehensive income
For the half-year ended 30 June 2018
 



 
 
 
 
Revenue
 


Notes
 
 
 


Half-year ended 30 June 2018
£
 
15,738,471


Half-year ended 30 June 2017
£
 
13,135,881


Year ended 31 December 2017
£
 
29,581,696




Cost of sales
 






(4,442,030)


(3,644,404)


(8,275,701)




Gross profit
 
Distribution expenses
 






11,296,441
 
(4,358,098)


9,491,477
 
(3,864,456)


21,305,995
 
(8,424,399)




Administrative expenses
 






(7,334,277)


(6,350,455)


(13,636,697)




Other income


2


-


436


6,293


























Profit from sale of freehold property


2


-


-


1,266,086


























Operating (loss)/profit
 


 
 


(395,934)


(722,998)


517,278




Finance costs
 


 
 


(21,453)


(32,835)


(60,420)




(Loss)/profit before tax
 






(417,387)


(755,833)


456,858




Taxation (charge)/credit
 


 
 


(3,709)


224,332


(57,746)




(Loss)/profit for the period
 






(421,096)


(531,501)


399,112




Other comprehensive income
 






-


-


-




Total comprehensive (loss)/profit for the period


(421,096)


(531,501)


399,112


























Basic (loss)/earnings per share (pence)


5


(0.34)


(0.55)


0.39




Diluted (loss)/earnings per share (pence)


5


(0.34)


(0.55)


0.39


























Adjusted EBITDA:




















Operating (loss)/profit - as above






(395,934)


(722,998)


517,278




Add back:




















Depreciation and amortisation






766,396


730,852


1,521,586




Profit from sale of freehold property






-


-


(1,266,086)




Impairment of assets






-


1,826


1,825




Share-based payments - (credit)/expense






(8,650)


-


(162,620)




EBITDA






361,812


9,680


611,983




Restaurant opening costs


2


120,432


181,386


509,704




Adjusted EBITDA


11


482,244


191,066


1,121,687



 
All of the above results are derived from continuing operations.
 
 
 
Consolidated balance sheet
At 30 June 2018
 







Notes


30 June 2018
£


30 June 2017
£


31 December 2017
£




 
Assets
 




















Non-current assets




















Property, plant and equipment
Intangible assets
Deferred tax asset


6
7
 


11,659,845
951,003
171,509


11,376,393
1,061,437
565,889


11,104,026
1,009,892
148,822












12,782,357


13,003,719


12,262,740




Current assets




















Inventories






654,456


544,300


606,652




Trade and other receivables






3,092,916


2,622,780


2,380,619




Cash and cash equivalents






3,886,355


140,866


5,627,341












7,633,727


3,307,946


8,614,612


























Total assets






20,416,084


16,311,665


20,877,352




 
Liabilities




















 
Current liabilities




















Borrowings






(548,351)


(624,398)


(669,778)




Trade and other payables






(5,302,916)


(4,662,292)


(5,053,198)




Current tax liabilities






(148,163)


(85,459)


(148,163)












(5,999,430)


(5,372,149)


(5,871,139)




 
Non-current liabilities




















Borrowings
Provisions for liabilities


 
 


(514,124)
(54,414)


(1,061,648)
(40,613)


(706,711)
(48,036)




Deferred tax liability






(145,168)


(323,847)


(118,772)












(713,706)


(1,426,108)


(873,519)


























Total liabilities






(6,713,136)


(6,798,257)


(6,744,658)




 
Net assets






 
13,702,948


 
9,513,408


 
14,132,694




 
 




















Equity




















Share capital


9


1,226,667


960,000


1,226,667




Share premium






10,050,313


6,465,687


10,050,313




Other reserves






307,940


415,200


316,590




Retained earnings






2,118,028


1,672,521


2,539,124




Total equity - attributable to equity shareholders of the company






13,702,948


9,513,408 


14,132,694



 
 
 
 
Consolidated statement of changes in equity
For the half-year ended 30 June 2018
 







Notes
 


Share capital
£
 


Share premium
£
 


Other reserves
£


Retained earnings
£
 


Total equity
£
 




Half year ended 30 June 2018


























































At 1 January 2018
 






1,226,667


10,050,313


316,590


2,539,124


14,132,694




Total comprehensive income






-


-


-


(421,096)


(421,096)




 
Transactions with owners




























Share-based payments


4


-


-


(8,650)


-


(8,650)




Total transactions with owners






-


-


(8,650)


-


(8,650)




 
At 30 June 2018






 
1,226,667


 
10,050,313


 
307,940


 
2,118,028


 
13,702,948




 
Half year ended 30 June 2017


























































At 1 January 2017
 






960,000


6,465,687


479,210


2,140,012


10,044,909




Total comprehensive income






-


-


-


(531,501)


(531,501)




 
Transactions with owners




























Share-based payments


4


-


-


(64,010)


64,010


-




Total transactions with owners






-


-


(64,010)


64,010


-




 
At 30 June 2017






 
960,000


 
6,465,687


 
415,200


 
1,672,521


 
9,513,408


































Year ended 31 December 2017


























































At 1 January 2017






960,000


6,465,687


479,210


2,140,012


10,044,909


































Total comprehensive income






-


-


-


399,112


399,112


































Transactions with owners




























Share-based payments


4


-


-


(162,620)


-


(162,620)




Issue of shares


9


266,667


3,733,333


-


-


4,000,000




Share issue costs


9


-


(148,707)


-


-


(148,707)




Total transactions with owners






266,667


3,584,626


(162,620)


-


3,688,673


































At 31 December 2017






1,226,667


10,050,313


316,590


2,539,124


14,132,694



 
 
 
 
 
Consolidated statement of cash flows
For the half-year ended 30 June 2018
 







Notes
 


Half-year ended 30 June 2018
£
 


Half-year ended 30 June 2017
£
 


Year ended 31 December 2017
£
 




Operating activities
 




















Cash flow from operations


10


42,169


582,123


1,626,031




Interest paid






(21,453)


(32,835)


(60,420)




Tax paid






-


(8,566)


(15,950)




Net cash from operating activities






20,716


540,722


1,549,661




 
Investing activities




















Purchase of property, plant & equipment


6


(1,263,326)


(934,489)


(2,772,518)




Payments for lease premiums






-


-


(14,982)




Proceeds from sale of property






-


-


2,652,278




Net cash used in investing activities






(1,263,326)


(934,489)


(135,222)




 
Financing activities




















Proceeds from issue of shares






-


-


3,851,293




Repayment of bank borrowings






(314,014)


(304,480)


(614,039)




Payment of finance lease obligations
 






-


(21,921)


(21,921)




Net cash (used in)/from financing activities






(314,014)


(326,401)


3,215,333




 
 




















(Decrease)/increase in cash and cash equivalents
 






(1,556,624)


(720,168)


4,629,772




Cash and cash equivalents at beginning of period
 






5,442,979


813,207


813,207




Cash and cash equivalents at end of period






 
3,886,355


 
93,039


 
5,442,979




 
 




















Cash and cash equivalents:




















Cash at bank and in hand






3,886,355


140,866


5,627,341




Bank overdrafts included in creditors payable within one year






 
-


(47,827)


(184,362)

























 
 
Notes to the financial information
For the half-year ended 30 June 2018
 
1.   Basis of preparation
 
The consolidated financial information for the half-year ended 30 June 2018, has been prepared in accordance with the accounting policies the group applied in the Company's latest annual audited financial statements and are expected to be applied in the annual financial statements for the year ending 31 December 2018. These accounting policies are based on the EU-adopted International Financial Reporting Standards ("IFRS") and International Financial Reporting Interpretation Committee ("IFRIC") interpretations. The consolidated financial information for the half-year ended 30 June 2018 has been prepared in accordance with IAS 34: 'Interim Financial Reporting', as adopted by the EU, and under the historical cost convention.
 
The financial information relating to the half-year ended 30 June 2018 is unaudited and does not constitute statutory financial statements as defined in section 434 of the Companies Act 2006. It has, however, been reviewed by the Company's auditors and their report is set out at the end of this document. The comparative figures for the year ended 31 December 2017 have been extracted from the consolidated financial statements, on which the auditors gave an unqualified audit opinion and did not include a statement under section 498 (2) or (3) of the Companies Act 2006. The annual report and accounts for the year ended 31 December 2017 has been filed with the Registrar of Companies.
 
The group's financial risk management objectives and policies are consistent with those disclosed in the 2017 annual report and accounts.
 
The half-yearly report was approved by the board of directors on 18 September 2018. The half-yearly report is available on the Comptoir Libanais website, www.comptoirlibanais.com, and at Comptoir Group's registered office, Suite 4 Strata House, 34a Waterloo Road, London, NW2 7UH.
 
Going concern
 
The directors are satisfied that the group has sufficient cash resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
 
 
2.   Group operating loss
 







Half-year ended 30 June 2018
£


Half-year ended 30 June 2017
£


Year ended
31 December 2017
£




This is stated after charging/(crediting):
 
Impairment of assets
Operating lease charges
Share based payments (see note 4)
Opening costs (see below)
Amortisation of intangible assets (see note 7)
Depreciation of property, plant & equipment (see note 6)
Profit from sale of freehold property
Exchange gain


 
 
-
1,944,433
(8,650)
120,432
58,889
707,507
-
-


 
 
1,826
1,677,361
-
181,386
59,583
671,269
-
-


 
 
1,825
3,417,211
(162,620)
509,704
126,111
1,395,475
(1,266,086)
 (412)



 



For the initial trading period following opening of a new restaurant, the performance of that restaurant will be lower than that achieved by other, similar, mature restaurants. The difference in this performance, which is calculated by reference to gross profit margins amongst other key metrics, is quantified and included within opening costs. The breakdown of opening costs, between pre-opening costs and post-opening costs for 3 months is shown below:
 














Half-year ended 30 June 2018
£


Half-year ended 30 June 2017
£


Year ended
31 December 2017
£




Pre-opening costs


18,001


65,073


179,152




Post-opening costs


102,431


116,313


330,552








120,432


181,386


509,704



 
3.   Operating segments
 
The Group has only one operating segment: the operation of restaurants with Lebanese and Middle Eastern offering and one geographical segment (the United Kingdom). The Group's brands meet the aggregation criteria set out in paragraph 22 of IFRS 8 "Operating Segments" and as such the Group reports the business as one reportable segment.
 
None of the Group's customers individually contribute over 10% of the total revenue.
 
4.   Share options and share-based payment charge
 
On 14 June 2016, the company established an Enterprise Management Incentive ("EMI") share option scheme and on the same day granted 2,970,000 EMI share options to certain key employees. The exercise price of all of the options is £0.50, the term to expiration is 10 years and all of the options have the same vesting conditions attached to them.
 
On 21 June 2016, as a result of the company's IPO, all 2,970,000 of the EMI options in issue vested, resulting in a charge to the income statement equal to the fair value of the options on the date of grant. Since vesting and to the date of approval of this financial information none of the options had been exercised and 1,200,000 had been cancelled.
 
The total share-based payment credit for the period was £8,650 (half-year ended 30 June 2017: £nil and year ended 31 December 2017: £162,620).
 
Subsequent to the half year end 30 June 2018, the Company introduced a Company Share Option Plan ("CSOP"). As a result those employees holding EMI share options at the period end date have surrendered their existing holding and replaced it with share options under the new CSOP. Further details of the CSOP have been set out in note 12.
 
5.   (Loss)/earnings per share
 
The Company had 122,666,667 ordinary shares of £0.01 each in issue at 30 June 2018. The basic and diluted (loss)/earnings per share figures, is based on the weighted average number of shares in issue during the periods. The basic and diluted (loss)/earnings per share figures are set out below.
 



 
 


Half-year
ended 30 June
2018
£
 


Half-year
ended 30 June 2017
£


Year ended
31 December 2017
£


 




(Loss)/profit attributable to shareholders


(421,096)


(531,501)


399,112


 




















 




 
 


Number
 


Number


Number




Weighted average number of shares
















For basic earnings per share


122,666,667


96,000,000


102,940,639




Adjustment for options outstanding


-


76,050


-




For diluted earnings per share


122,666,667


96,076,050


102,940,639


























Pence per share


Pence per share


Pence per share




(Loss)/earnings per share:
















Basic (pence)
















From (loss)/profit for the period


(0.34)


(0.55)


0.39






















Diluted (pence)
















From (loss)/profit for the period


(0.34)


(0.55)


0.39



 
For both of the above (loss)/earnings per share calculations, the diluted (loss)/earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders by the weighted average number of shares and 'in the money' share options in issue. Share options are classified as 'in the money' if their exercise price is lower than the average share price for the period. As required by 'IAS 33: Earnings per share', this calculation assumes that the proceeds receivable from the exercise of 'in the money' options would be used to purchase shares in the open market in order to reduce the number of new shares that would need to be issued. As the shares were not 'in the money' as at 30 June 2018 and consequently would be antidilutive, no adjustment was made in respect of the share options outstanding to determine the diluted number of options.
 
6.    Property, plant and equipment
 
 



Group
As at 30 June 2018


Freehold land and buildings


Leasehold land and buildings


Plant
and machinery


Fixtures, fittings & equipment


Motor vehicles


Total
 








£


£


£


£


£


£




Cost
At 1 January 2018
Additions


 
-
-


 
9,962,461
821,769


 
4,644,190
138,855


 
2,650,155
302,702


 
15,120
-


 
17,271,926
1,263,326




At 30 June 2018


-


10,784,230


4,783,045


2,952,857


15,120


18,535,252




Accumulated depreciation and impairment
At 1 January 2018
Depreciation


 
 
 
-
-


 
 
 
(3,492,423)
(378,831)


 
 
 
(1,777,015)
(225,457)


 
 
 
(895,438)
(102,009)


 
 
 
(3,024)
(1,210)


 
 
 
(6,167,900)
(707,507)




At 30 June 2018


-


(3,871,254)


(2,002,472)


(997,447)


(4,234)


(6,875,407)
































































Net book value
As at 30 June 2018
As at 30 June 2017
As at 31 December 2017


 
-
1,409,862
-


 
6,912,976
5,653,894
6,470,038


 
2,780,573
2,879,714
2,867,175


 
1,955,410
1,419,315
1,754,717


 
10,886
13,608
12,096


 
11,659,845
11,376,393
11,104,026



 
7.    Intangible assets
 
Intangible fixed assets consist of lease premiums and goodwill from the acquisition of Agushia Limited. During the period, the Group spent £nil on intangible assets (half-year ended 30 June 2017: £nil and year ended 31 December 2017: £14,982). During the period amortisation charges of £58,889 were recognised in respect of these assets.
 
8.    Dividends
 
No dividends were distributable to equity holders during the period ending 30 June 2018 (half-year ended 30 June 2017: £nil and year ended 31 December 2017: £nil).
 
9.    Share capital
 
Allotted and fully paid
 







Number of ordinary 1p shares








30 June 2018
 


30 June 2017
 


31 December 2017
 




Brought forward


122,666,667


96,000,000


96,000,000




Issued in the period


-


-


26,666,667




Carried forward


122,666,667


96,000,000


122,666,667



 
 







Nominal value








30 June 2018
£
 


30 June 2017
£
 


31 December 2017
£
 




Brought forward


1,226,667


960,000


960,000




Issued in the period


-


-


266,667




Carried forward


1,226,667


960,000


1,226,667



 
 
10.  Cash flow from operations
 







Half-year ended 30 June 2018
£
 


Half-year ended 30 June 2017
£
 


Year ended 31 December 2017
£
 




Loss for the period


(421,096)


(531,501)


399,112






















Income tax expense/(credit)


3,709


(224,332)


57,746




Finance costs


21,453


32,835


60,420




Depreciation


707,507


671,269


1,395,475




Amortisation of intangible assets


58,889


59,583


126,111




Impairment of assets


-


1,826


1,825




Share-based payment credit


(8,650)


-


(162,620)




Profit on disposal of property


-


-


(1,266,086)






















Movements in working capital
















Increase in inventories


(47,804)


(64,470)


(126,822)




Increase in trade and other receivables


(712,297)


(425,465)


(183,303)




Increase in trade and other payables and provisions


440,458


1,062,378


1,324,173






















Cash from operations


42,169


582,123


1,626,031



 
11.  Adjusted EBITDA
 
Adjusted EBITDA was calculated from the profit/loss before taxation adding back interest, depreciation, share-based payments and non-recurring costs incurred in opening new sites, as follows:
 



 
 






6 months ended
30 June 2018






6 months ended
30 June 2017












£
 






£
 




Operating loss
 






(395,934)






(722,998)




Add back:




















Amortisation (see note 7)






58,889






59,583




Depreciation (see note 6)






707,507






671,269




Impairment of assets






-






1,826




Share-based payments






(8,650)






-




EBITDA
 






361,812






9,680




Non-recurring costs incurred in opening new sites (see note 2)
 






120,432






181,386


























Adjusted EBITDA






482,244






191,066



 
 
12.  Subsequent events
 
Subsequent to the half year end 30 June 2018, on 4 July 2018 the Company granted 5,210,000 approved and unapproved options to key employees under a new Company Share Option Plan ("CSOP").
 
As a result of introducing the CSOP, those employees holding EMI share options at the period end date have surrendered their existing holding and replaced them with share options under the new CSOP.
 
In accordance with IFRS 2, the total Share-based Payments Reserve (£307,940) will be transferred to Retained Earnings on the surrender of the existing EMI share options. Assuming no leavers, the total charge to the Statement of Comprehensive Income in respect of the share options granted under the new CSOP is expected to be approximately £183,000. As required by IFRS 2, the charge will be spread in annual amounts of £61,000 over 3 years, being the length of the vesting period.
 
J Kaye resigned from his role as a non-executive director on 16 July 2018.
 
M Carrick was appointed as the chief financial officer on 16 July 2018.
 
 
 
Independent review report by the auditors
For the half-year ended 30 June 2018
 
Introduction
 
We have been engaged by the company to review the condensed set of financial information in the half-yearly financial report for the half-year ended 30 June 2018 which comprises the consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated balance sheet, consolidated statement of cash flows and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
 
Directors' responsibilities
 
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules for Companies.
 
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34: 'Interim Financial Reporting', as adopted by the European Union.
 
Our responsibility
 
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
 
Scope of review
 
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410: 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity', issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
 
Conclusion
 
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the half-year ended 30 June 2018 is not prepared, in all material respects, in accordance with International Accounting Standard 34, as adopted by the European Union, and the AIM Rules for Companies.
 
 
UHY Hacker Young
Chartered Accountants
 
Quadrant House
4 Thomas More Square
London E1W 1YW
18 September 2018
 
Notes
1.   The maintenance and integrity of the Comptoir Group plc website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the half-yearly report or the auditors' review report since they were initially presented on the website.
2.   Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.




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