REG - Comptoir Group PLC - Interim Results

ComptoirAnnouncement

29/09/2021 07:00

RNS Number : 2898N
  
Comptoir Group PLC
  
29 September 2021
  
 

29 September 2021
Comptoir Group Plc
 
      ("Comptoir", the "Group" or the "Company")
 
Interim Results 
Highlights:
 
·     Group revenue of £5.7m down by 6.9% (H1 2020: £6.1m)
·     Gross profit of £4.3m down by 4.8% (H1 2020: £4.5m).
·     Adjusted EBITDA* before highlighted items of £1.6m up by 262.8% (H1 2020: £0.45m).
·     IFRS loss after tax of £1.2.m (H1 2020: £4.97m loss).
·     Net cash and cash equivalents** at the period end of £9.2m (H1 2020: £5.0m; 31 December 2020: £7.8m).
·     The basic loss per share for the period was 0.98 pence (H1 2020: basic loss per share 4.05 pence).
·     Currently own and operate 21 restaurants, with a further 4 franchise restaurants.
Note that these results are impacted by COVID-19 related closures affecting all restaurants in the Group. In 2020 periods were affected from 19 March onwards. In 2021 the periods affected were between 1 January and 19 July
*Adjusted EBITDA was calculated from the profit/(loss) before taxation adding back interest, depreciation, share-based payments, and non-recurring costs (note 12).
Richard Kleiner, Non-Executive Chairman, said: "We have made strong progress over the past six months. Whilst we have been focusing on the re-opening of the sites and welcoming back dine-in customers as the Government restrictions were lifted; we have also been transforming the business through investment in systems and technology. 
The unique family ethos that pervades throughout the Comptoir team has made me extremely proud, as everyone pulled together in adversity to support not just their team but every member of the Group to ensure we delivered that unique Comptoir hospitality.
The sector is still under extreme pressure from well-documented challenges such as the availability of labour as well as the pressure on the supply chain, but we recognise we are fortunate to be in a better position relative to many of our peers.  
As ever, we monitor and respond to these challenges as and when they occur. However, with strong sales since the phased reopening began in April, a relatively strong balance sheet and the potential for new openings, we are optimistic for the future and the long-term prospects for the business looks extremely positive."
 
Enquiries:
Comptoir Group plc
Chaker Hanna                                                                                                     Tel: 0207 486 1111
 
Canaccord Genuity Limited (NOMAD and broker)
Adam James                                                                                                        Tel: 020 7523 8000            
Georgina McCooke
 
 
 
 
Chief executive's review
 
Once again, the first half of this financial year was hugely disrupted by the restrictions placed on the sector by the Government due to the ongoing Covid-19 pandemic.  The first fifteen weeks of the year found the country in a third full lockdown with trade limited to takeaway and delivery only.  For five weeks from 12 April, we opened for trade however this was restricted to outside areas only. From 17 June, sites were fully reopened but with social distancing restrictions kept in place. All restrictions were finally lifted 19 July, therefore in the six-month period ending 4 July there were zero weeks of no restrictions and just seven weeks of full trading, albeit with distancing restrictions still in place.
 
Since reopening, the trading performance has been very strong with the group comfortably outperforming forecasts.  I can only reiterate our Chairman's statement of how proud I am personally of the way the teams have consistently pulled together to help everyone through what is a uniquely difficult period in the sector's history. This wouldn't have been possible without the unwavering commitment of the Comptoir family and for that I am and remain extremely proud.
 
However, we have some exceptional challenges to face in the next trading period as we navigate the upcoming short-term issues.  These include the end of the Government support such as the furlough scheme, rates holiday, normalisation of VAT as well as the availability of labour and the inflationary pressures on the supply chain.  The labour and inflationary pressures will continue through 2021 and into 2022 with the National Living Wage (NLW), as well as the recently announced 1.25% increase in Employers NI (both April 2022) only exacerbating this. However, we fully expect to navigate these issues successfully as we always have done. These issues won't be solved without strong relationships with our key stakeholders and at this point I would like to thank all our suppliers and landlords who we have worked so closely with over the last 18 months. Their support has been paramount, and with all concessions agreed we look to expanding on these relationships in the future. 
 
Conversely, it must also be noted that there is an opportunity for Comptoir to add to its site pipeline with the reduction in competition for premium sites. This coupled with our excellent relationships with our current landlords allows us to some extent pick and choose where we may wish to increase our estate where we feel there is value in doing so. Accordingly, we intend to invest in not only Comptoir Libanais but also expand our QSR Shawa brand.  This strategy has already commenced with the opening of our latest Shawa in Westfield Shepherds Bush in September.
 
Financial Performance Half Year
 
As already noted, the period was hugely impacted by nationwide lockdowns, however the half year results are resilient despite the elongated closure periods.  
As a consequence of the lockdown periods, the revenue for the total Group for the half year was £5.7m (H1 2020: £6.1m).
However, I'm pleased to report an adjusted EBITDA profit of £1.6m (H1 2020: £0.5m) driven by the Government assistance received but also through exceptional cost control across the business. Since reopening in April, the Group has reported positive EBITDA every period at a level ahead of expectations.
The Board carried out a full impairment review at the half year and as a result, impairment of £0.34m has been charged, based on judgement of future cash flow generation from each restaurant. The Board will revisit these assumptions at the year end and adjust the impairment provision according to the forecast at that time.
 
This impairment charge contributed towards the reported IFRS loss after tax of £1.2m (H1 2020: £5.0m loss).
The Group has also taken account of the amendment to IFRS16 COVID-19 related rent concessions. Where the rent concession is a direct consequence of COVID-19, and the reduction does not involve substantive changes to the lease then the concessions are able to be credited to the profit and loss. This has resulted in a one-off credit of £0.71m in the period.
We envisage exiting two more leases over the next 12 months, as we continue to discuss with our landlords and assess the trading conditions. We will make these final decisions at the appropriate time and only if it is in the best interest of the Group.
 
Team
 
Our staff continued to be impacted by Covid-19 throughout the period, with most remaining on furlough. We have continued to prioritise their wellbeing, maintaining contact throughout this period as well as offering financial support to all members.  It has again been a difficult time for not only our team but also their families and the management team would like to thank them for their attitude and resolve. Since reopening in April, we have continued to welcome our staff back in in line with the restrictions being removed.  We now have all staff back in the business with no furlough being utilised since the end of July.
 
Leanne Galer-Reick joined as Head of Marketing during the period.  Leanne has a fantastic track record having worked in the industry at the highest level and has already made a substantial contribution, as we add to the Group's expertise and plan for future opportunities.
 
Current and future outlook
 
Whilst there is the argument for pent up demand post lockdown, we have found trading has continued to improve week to week and the overall outperformance of the group is hugely encouraging and gives the board every confidence in the prospects for the remainder of the year and into 2022.
 
We have seen solid performance in our London sites, which naturally remain impacted by the lower number of office workers and tourists.  The regional sites have outperformed pre-pandemic 2019 levels and we have seen record levels of trading in a selection of sites. Importantly, all 21 sites are making a positive contribution at the profit level since reopening, highlighting the quality of the existing estate.
 
The Group has an excellent base to continue to operate from as we return to normality, and the future looks to be one of growth and success.
 
 
 
 
Chaker Hanna
Chief Executive Officer
28 September 2021
 
 
Consolidated statement of comprehensive income
For the half-year ended 4 July 2021
 




 


Notes


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




 


 


£


£


£




Revenue


 


           5,670,300 


           6,090,758 


         12,492,506 




Cost of sales


 


          (1,393,582)


          (1,597,547)


          (3,179,944)




Gross profit


 


           4,276,718 


           4,493,211 


           9,312,562 




Distribution expenses


 


          (1,228,118)


          (1,785,442)


          (7,463,177)




Administrative expenses


 


          (7,339,366)


          (4,604,293)


       (10,276,882)




Other income


 


           3,109,446 


                           -   


           4,579,201 




Rent concessions


 


               714,822 


               302,413 


               982,209 




Impairment costs


8


             (336,356)


          (2,572,443)


          (4,019,871)




Payroll provision


3


                           -   


             (353,012)


             (353,012)




Operating loss


3


             (802,854)


          (4,519,566)


          (7,238,970)




Finance costs


 


             (399,414)


             (482,589)


             (910,885)




Loss before tax


 


          (1,202,268)


          (5,002,155)


          (8,149,855)




Taxation charge


 


                           -   


                 30,695 


                 48,326 




Loss for the year


 


          (1,202,268)


          (4,971,460)


          (8,101,529)




Other comprehensive income


 


                           -   


 - 


 - 




Total comprehensive loss for the year


 


          (1,202,268)


          (4,971,460)


          (8,101,529)




Basic loss per share (pence)


6


                    (0.98)


                    (4.05)


                    (6.60)




Diluted loss per share (pence)


6


                    (0.98)


                    (4.05)


                    (6.60)




 


 


 


 


 




 


Notes


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




Adjusted EBITDA:


 


 


 


 




Loss before tax - as above


 


          (1,202,268)


          (5,002,155)


          (8,149,855)




Add back:


 


 


 


 




Depreciation


8


           1,610,395 


           2,011,000 


           4,020,265 




Finance costs


 


               399,414 


               482,589 


               910,885 




Impairment of assets


8


               336,356 


           2,572,443 


           4,019,871 




EBITDA


 


           1,143,897 


                 63,877 


               801,166 




Share-based payments expense


3


                 25,046 


                 26,394 


                 14,578 




Restaurant opening costs


3


                    3,489 


                    7,032 


                 53,378 




Payroll provision


3


                           -   


               353,012 


               353,012 




Loss on disposal of fixed assets


 


               461,185 


                           -   


               171,617 




Adjusted EBITDA


 


           1,633,617 


               450,315 


           1,393,751 




 
All the above results are derived from continuing operations.

 
Consolidated balance sheet
At 4 July 2021
 




 


Notes


4 July 2021


30 June 2020


31 December 2020




 


 


£


£


£




Assets


 


 


 


 




 


 


 


 


 




Non-current assets


 


 


 


 




Intangible assets


7


                 55,267 


                 55,267 


                 55,267 




Property, plant and equipment


8


           7,425,908 


           9,688,797 


           8,473,596 




Right-of-use assets


8


         16,098,264 


         19,558,261 


         17,596,744 




Deferred tax asset


 


               292,409 


               262,137 


                           -   




                                                                                             


 


         23,871,848 


         29,564,462 


         26,125,607 




Current asset


 


 


 


 




Inventories


 


               441,364 


               494,878 


               424,673 




Trade and other receivables


 


               837,619 


           1,388,244 


           1,100,922 




Cash and cash equivalents


 


           9,174,260 


           5,009,864 


           7,833,676 




 


 


         10,453,243 


           6,892,986 


           9,359,271 




 


 


 


 


 




Total assets


 


         34,325,091 


         36,457,448 


         35,484,878 




 


 


 


 


 




Liabilities


 


 


 


 




 


 


 


 


 




Current liabilities


 


 


 


 




Borrowings


 


             (555,000)


             (181,490)


             (250,000)




Trade and other payables


 


          (8,209,594)


          (5,439,441)


          (6,527,668)




Lease liabilities


 


          (2,331,800)


          (2,113,151)


          (2,443,198)




Current tax liabilities


 


                (45,817)


             (183,518)


                (45,817)




 


 


       (11,142,211)


          (7,917,600)


          (9,266,683)




Non-current liabilities


 


 


 


 




Borrowings


 


          (2,445,000)


                (15,817)


          (2,750,000)




Provisions for liabilities


 


             (841,663)


             (808,452)


             (832,455)




Lease liabilities


 


       (18,306,833)


       (21,837,360)


       (20,161,543)




Deferred tax liability


 


             (292,409)


             (262,137)


                           -   




 


 


       (21,885,905)


       (22,923,766)


       (23,743,998)




 


 


 


 


 




Total liabilities


 


       (33,028,116)


       (30,841,366)


       (33,010,681)




 


 


                                   


                                   


                                   




Net assets


 


           1,296,975 


           5,616,082 


           2,474,197 




 


 


 


 


 




Equity


 


 


 


 




Share capital


10


           1,226,667 


           1,226,667 


           1,226,667 




Share premium


 


         10,050,313 


         10,050,313 


         10,050,313 




Other reserves


 


               122,332 


               109,102 


                 97,286 




Retained losses


 


       (10,102,337)


          (5,770,000)


          (8,900,069)




Total equity - attributable to equity shareholders of the company


 


           1,296,975 


           5,616,082 


           2,474,197 




      
 
 
Consolidated statement of changes in equity
For the half-year ended 4 July 2021
 
 




 


Notes


Share capital


Share premium


Other reserves


Retained losses


Total equity




 


 


£


£


£


£


£




 


 


 


 


 


 


 




 


 


 


 


 


 


 




At 1 January 2021


 


      1,226,667 


    10,050,313 


            97,286 


    (8,900,069)


      2,474,197 




 


 


 


 


 


 


 




Total comprehensive loss


 


 


 


 


 


 




Loss for the period


 


                      -   


                      -   


                      -   


    (1,202,268)


    (1,202,268)




 


 


 


 


 


 


 




Transactions with owners


 


 


 


 


 


 




Share-based payments 


 


                      -   


 - 


            25,046 


 - 


            25,046 




 


 


 


 


 


 


 




At 4 July 2021


 


      1,226,667 


    10,050,313 


          122,332 


  (10,102,337)


      1,296,975 




 


 


 


 


 


 


 




 


 


 


 


 


 


 




At 1 January 2020


 


      1,226,667 


    10,050,313 


            82,708 


        (798,540)


    10,561,148 




 


 


 


 


 


 


 




Total comprehensive loss


 


 


 


 


 


 




Loss for the period


 


                      -   


                      -   


                      -   


    (4,971,460)


    (4,971,460)




 


 


 


 


 


 


 




Transactions with owners


 


 


 


 


 


 




Share-based payments 


 


                      -   


                      -   


            26,394 


                      -   


            26,394 




 


 


 


 


 


 


 




At 30 June 2020


 


      1,226,667 


    10,050,313 


          109,102 


    (5,770,000)


      5,616,082 




 


 


 


 


 


 


 




 


 


 


 


 


 


 




At 1 January 2020


 


      1,226,667 


    10,050,313 


            82,708 


        (798,540)


    10,561,148 




 


 


 


 


 


 


 




Total comprehensive loss


 


 


 


 


 


 




Loss for the year


 


                      -   


                      -   


                      -   


    (8,101,529)


    (8,101,529)




 


 


 


 


 


 


 




Transactions with owners


 


 


 


 


 


 




Share-based payments 


 


                      -   


                      -   


            14,578 


                      -   


            14,578 




 


 


 


 


 


 


 




At 31 December 2020


 


      1,226,667 


    10,050,313 


            97,286 


    (8,900,069)


      2,474,197 




      
 
 
Consolidated statement of cash flows
For the half-year ended 4 July 2021
 
 




 


Notes


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




 


 


£


£


£




Operating activities


 


 


 


 




 


 


 


 


 




Cash inflow from operations


11


           2,405,268 


           1,613,637 


           2,842,394 




Interest paid


 


                           -   


                  (4,723)


                  (6,253)




Tax paid


 


                           -   


                     (606)


             (120,677)




Net cash from operating activities


 


           2,405,268 


           1,608,308 


           2,715,464 




 


 


 


 


 




Investing activities


 


 


 


 




 


 


 


 


 




Purchase of property, plant & equipment


8


             (163,949)


               (97,494)


             (182,578)




Net cash used from investing activities


 


             (163,949)


               (97,494)


             (182,578)




 


 


 


 


 




Financing activities


 


 


 


 




 


 


 


 


 




Payment of lease liabilities


 


             (900,735)


         (1,457,522)


         (2,458,474)




Bank loan proceeds


 


                           -   


                           -   


           3,000,000 




Bank loan repayments


 


                           -   


             (120,038)


             (317,346)




Net cash (used)/received from financing activities


 


             (900,735)


         (1,577,560)


               224,180 




 


 


 


 


 




Increase/(decrease) in cash and cash equivalents


 


           1,340,584 


               (66,746)


           2,757,066 




Cash and cash equivalents at beginning of year


 


           7,833,676 


           5,076,610 


           5,076,610 




 


 


 


 


 




Cash and cash equivalents at end of year


 


           9,174,260 


           5,009,864 


           7,833,676 




     
 
 
Notes to the financial information
For the half-year ended 4 July 2021
 
1.      Basis of preparation
 
The Group changed to a weekly accounting calendar during the period, consequently, the consolidated financial information has been prepared for the 26 weeks ending 4 July 2021 rather than for 6 months ending 30 June 2021.
 
The consolidated financial information for the half-year ended 4 July 2021, 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 2021. 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 4 July 2021 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 4 July 2021 is unaudited and does not constitute statutory financial statements as defined in section 434 of the Companies Act 2006. The comparative figures for the year ended 31 December 2020 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 2020 has been filed with the Registrar of Companies. 
 
The Group's financial risk management objectives and policies are consistent with those disclosed in the 2020 annual report and accounts.
 
The half-yearly report was approved by the board of directors on 28 September 2021. The half-yearly report is available on the Comptoir Libanais website, www.comptoirlibanais.com, and at Comptoir Group's registered office, Unit 2, Plantain Place, Crosby Row, London Bridge, SE1 1YN.
 
2.      Changes in accounting policies
 
The accounting policies adopted in the preparation of the consolidated financial information for the half-year ended 4 July 2021 are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2020.
 
At the date of authorisation of the half-yearly report, the following amendments to Standards and Interpretations issued by the IASB that are effective for an annual period that begins on or after 1 January 2021. These have not had any material impact on the amounts reported for the current and prior years.
 
Standard or Interpretation                                                                                                           Effective Date
Interest Rate Benchmark Reform Phase 2                                                                                  1 January 2021
(Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)                                   
 
 
New and revised Standards and Interpretations in issue but not yet effective
 
At the date of authorisation of these financial statements, the Group has not early adopted the following amendments to Standards and Interpretations that have been issued but are not yet effective:
 
Standard or Interpretation                                                                                                           Effective Date
Narrow scope amendments to IFRS 3, IAS 16 and IAS 37                                                        1 January 2022
Annual improvements to IFRS Standards 2018-2020                                                               1 January 2022
Amendments to IAS 1: Classification of Liabilities as
Current or Non-Current                                                                                                                 1 January 2022
 
As yet, none of these have been endorsed for use in the UK and will not be adopted until such time as endorsement is confirmed. The directors do not expect any material impact as a result of adopting standards and amendments listed above in the financial year they become effective.
 
Critical accounting judgements and key sources of estimation uncertainty
 
The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. The resulting accounting estimates may differ from the related actual results.
 
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 
In the process of applying the Group's accounting policies, management has made a number of judgments and estimations of which the following are the most significant. The estimates and assumptions that have a risk of causing material adjustment to the carrying amounts of assets and liabilities within the future financial years are as follows:
 
Depreciation, useful lives and residual values of property, plant & equipment
The Directors estimate the useful lives and residual values of property, plant & equipment in order to calculate the depreciation charges. Changes in these estimates could result in changes being required to the annual depreciation charges in the statement of comprehensive incomes and the carrying values of the property, plant & equipment in the balance sheet.
 
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
 
 
Critical accounting judgements and key sources of estimation uncertainty (continued)
 
Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value of money and the risks specific to the asset. Impairment losses of continuing operations are recognised in the profit or loss in those expense categories consistent with the function of the impaired asset.
 
An impairment of assets of £336,356 (H1 2020: £2,572,443, 31 December 2020: £4,019,871) was required for the half year ended 4 July 2021.  
 
Leases
The Group has estimated the lease term of certain lease contracts in which they are a lessee, including whether they are reasonably certain to exercise lessee options. The incremental borrowing rate used to discount lease liabilities has also been estimated in the range of 2.6% to 4%. This is assessed as the rate of interest that would be payable to borrow a similar about of money for a similar length of time for a similar right-of-use asset.
 
Deferred tax assets
Historically, deferred tax assets had been recognised in respect of the total unutilised tax losses within the Group. A condition of recognising this amount depended on the extent that it was probable that future taxable profits will be available.  
 
Given the uncertainty of the current trading outlook, management have decided to only recognise a deferred tax asset amount of £292,409, being equal to the deferred tax liability amount and therefore have an unprovided deferred tax asset amount of £435,624.
 
 
 
 
 
3.    Group operating loss




 


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




 


£


£


£




This is stated after (crediting)/charging:


 


 


 




Operating lease charges


               235,579 


               101,634 


               185,456 




Rent concessions


             (714,822)


             (302,413)


             (982,209)




Lease term modifications


             (447,785)


               117,800 


             (340,494)




Share-based payments expense (see note 5)


                 25,046 


                 26,394 


                 14,578 




Restaurant opening costs


                   3,489 


                   7,032 


                 53,378 




Depreciation of property, plant and equipment (see note 8)


           1,610,395 


           2,011,000 


           4,020,265 




Impairment of assets (see note 7 & 8)


               336,356 


           2,572,443 


           4,019,871 




Loss on disposal of fixed assets


               461,186 


                           -   


               171,617 




Payroll provision


                           -   


               353,012 


               353,012 




Auditors' remuneration


                           -   


                           -   


                 52,250 




 


 


 


 




 


 


 


 




 


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




 


£


£


£




Pre-opening costs


                   3,489 


                   7,032 


                 53,378 




Post-opening costs


                           -   


                           -   


                           -   




 


                   3,489 


                   7,032 


                 53,378 




      
 
The payroll provision relates to a one-off provision as a result of a review of the current pension scheme in place as part of a planned transition to Payroll Bureau services.
 
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 is shown above.
 
4.      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.
 
5.      Share options and share-based payment charge
 
On 4 July 2018, the Group established a Company Share Option Plan ("CSOP") under which 4,890,000 share options were granted to key employees. The CSOP scheme includes all subsidiary companies headed by Comptoir Group PLC. The exercise price of all of the options is £0.1025 and the term to expiration is 3 years from the date of grant, being 4 July 2018. All of the options have the same vesting conditions attached to them. 
 
5.      Share options and share-based payment charge (continued)
 
On 21 May 2021, the Group established a new Company Share Option Plan ("CSOP") under which 3,245,000 share options were granted to key employees. The CSOP scheme includes all subsidiary companies headed by Comptoir Group PLC. The exercise price of all of the options is £0.0723 and the term to expiration is 3 years from the date of grant, being 21 May 2021. All of the options have the same vesting conditions attached to them.
 
The total share-based payment charge for the period was £25,046 (H1 2020: £26,394, 31 December 2020: £14,578).
 
6.      Loss per share
 
The Company had 122,666,667 ordinary shares of £0.01 each in issue at 4 July 2021. The basic and diluted loss per share figures, is based on the weighted average number of shares in issue during the periods. The basic and diluted loss per share figures are set out below.
 
 
 
 
 




 


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




 


£


£


£




 


 


 


 




Loss attributable to shareholders


          (1,202,268)


          (4,971,460)


          (8,101,529)




 


 


 


 




 


Number


Number


Number




Weighted average number of shares


 


 


 




For basic earnings per share


       122,666,667 


       122,666,667 


       122,666,667 




For diluted earnings per share


       122,666,667 


       122,666,667 


       122,666,667 




 


 


 


 




 


 


 


 




 


Pence per share


Pence per share


Pence per share




Loss per share:


 


 


 




Basic (pence)


 


 


 




From loss for the year


                    (0.98)


                    (4.05)


                    (6.60)




 


 


 


 




Diluted (pence)


 


 


 




From loss for the year


                    (0.98)


                    (4.05)


                    (6.60)




    
 
The loss per share and diluted loss 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 4 July 2021 and consequently would be antidilutive, no adjustment was made in respect of the share options outstanding to determine the diluted number of options.
7.      Intangible assets
 
 




Group


Goodwill


Total




 


£


£




Cost


 


 




At 1 January 2021


                 89,961 


                 89,961 




Additions


                             - 


                             - 




At 4 July 2021


                 89,961 


                 89,961 




 


 


 




Accumulated amortisation and impairment


 


 




At 1 January 2021


                (34,694)


                (34,694)




Amortised during the year


                             - 


                             - 




Impairment during the year


                             - 


                             - 




At 4 July 2021


                (34,694)


                (34,694)




 


 


 




Net Book Value as at 4 July 2021


                 55,267 


                 55,267 




Net Book Value as at 30 June 2020


                 55,267 


                 55,267 




Net Book Value as at 31 December 2020


                 55,267 


                 55,267 




   
 
Intangible fixed assets consist of goodwill from the acquisition of Agushia Limited. 
 
Goodwill arising on business combinations is not amortised but is subject to an impairment test annually which compares the goodwill's 'value in use' to its carrying value. No impairment of goodwill was considered necessary in the current period.
 
8.      Property, plant and equipment
 




 


Right-of use Assets


Leasehold Land and buildings


Plant and machinery


Fixture, fittings & equipment


Motor Vehicles


Total




 


£


£


£


£


£


£




Cost


 


 


 


 


 


 




At 1 January 2021


    27,924,649 


    11,016,023 


      4,800,774 


      2,858,547 


            53,430 


    46,653,423 




Additions


                        - 


               9,763 


            72,867 


            81,319 


                        - 


          163,949 




Disposals


                        - 


        (590,869)


        (286,494)


        (167,407)


                        - 


     (1,044,770)




Modifications


        (302,180)


                        - 


                        - 


                        - 


                        - 


        (302,180)




At 4 July 2021


    27,622,469 


    10,434,917 


      4,587,147 


      2,772,459 


            53,430 


    45,470,422 




 


 


 


 


 


 


 




Accumulated depreciation and impairment


 


 


 


 


 


 




At 1 January 2021


  (10,327,905)


     (5,878,170)


     (2,926,080)


     (1,441,993)


             (8,935)


  (20,583,083)




Depreciation during the year


     (1,126,199)


        (274,189)


        (139,802)


           (68,388)


             (1,817)


     (1,610,395)




Disposals during the year


                        - 


          382,953 


          139,100 


            61,531 


                        - 


          583,584 




Impairment during the year


           (70,101)


        (182,897)


           (58,661)


           (24,697)


                        - 


        (336,356)




At 4 July 2021


  (11,524,205)


     (5,952,303)


     (2,985,443)


     (1,473,547)


           (10,752)


  (21,946,250)




 


 


 


 


 


 


 




 


 


 


 


 


 


 




Net book value


 


 


 


 


 


 




As at 4 July 2021


    16,098,264 


      4,482,614 


      1,601,704 


      1,298,912 


            42,678 


    23,524,172 




As at 30 June 2020


    19,558,261 


      6,036,453 


      2,036,756 


      1,570,299 


            45,289 


    29,247,058 




As at 31 December 2020


    17,596,744 


      5,137,853 


      1,874,694 


      1,416,554 


            44,495 


    26,070,340 




     
8.      Property, plant and equipment (continued)
At each reporting date the Group considers any indication of impairment to the carrying value of its property, plant and equipment. The assessment is based on expected future cash flows and Value-in-Use calculations are performed annually and at each reporting date and is carried out on each restaurant as these are separate 'cash generating units' (CGU). Value-in-Use was calculated as the net present value of the projected risk-adjusted post-tax cash flows plus a terminal value of the CGU. A pre-tax discount rate was applied to calculate the net present value of pre-tax cash flows. The discount rate was calculated using a market participant weighted average cost of capital. A single rate has been used for all sites as management believe the risks to be the same for all sites.
 
The outbreak of COVID-19 and related global responses have caused material disruptions to businesses around the world, leading to an economic slowdown. Global equity markets have experienced significant volatility and weakness. As at the date of this half-yearly report, the fair value of the Group's assets and investments has declined as a result of the virus outbreak and the resulting temporary closure of the Group's restaurants. These factors have been incorporated into our review.
 
The recoverable amount of each CGU has been calculated with reference to its Value-in-Use. The key assumptions of this calculation are shown below:
 
Sales and costs growth                     3%
Discount rate                                      8.0%
Number of years projected              over life of lease
 
The projected sales growth was based on the Group's latest forecasts at the time of review. The key assumptions in the cashflow pertain to revenue growth. Management have determined that growth based on industry average growth rates and actuals achieved historically are the best indication of growth going forward. The Directors are confident that the Group is largely immune from the effects of Brexit and forecasts have considered the impact of COVID-19. Management has also performed sensitivity analysis on all inputs to the model and noted no material sensitivities in the model.
 
Based on the review, an impairment charge £336,356 (H1 2020: £2,572,443, 31 December 2020: £4,019,871) was recorded for the period. 
 
9.      Dividends
 
No dividends were distributable to equity holders during the half-year ending 4 July 2021 (H1 2020: £nil and year ended 31 December 2020: £nil).
 
 
 
10.   Share capital
 
 




Authorised, issued and fully paid


Number of 1p shares




 


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




Brought forward


122,666,667


122,666,667


122,666,667




Issued in the period


                           -   


                           -   


                           -   




At 31 December


122,666,667


122,666,667


122,666,667




 


 


 


 




 


 


 


 




 


Nominal value




 


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




 


£


£


£




Brought forward


1,226,667


1,226,667


1,226,667




Issues in the period


                           -   


                           -   


                           -   




At 31 December 


            1,226,667 


1,226,667


1,226,667




   
 
11.   Cash flow from operations
 
 




Reconcilliation of (loss)/profit to cash generated from operations


 


 




 


 


 


 




 


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




 


£


£


£




 


 


 


 




Operating loss for the year


             (802,854)


          (4,519,566)


          (7,238,970)




 


 


 


 




Depreciation


           1,610,395 


           2,011,000 


           4,020,265 




Loss on disposal of fixed assets


               461,185 


                           -   


      171,617 




Impairment of assets


               336,356 


           2,572,443 


           4,019,871 




Share-based payment charge


                 25,046 


                 26,394 


                 14,578 




Rent concessions


             (714,822)


             (302,413)


             (982,209)




Lease term adjustments


             (447,785)


               117,800 


             (340,494)




Payroll provision


                           -   


               353,012 


                           -   




 


 


 


 




Movements in working capital


 


 


 




(Increase)/decrease in inventories


                (16,693)


                 99,532 


               169,736 




Decrease in trade and other receivables


               263,307 


               814,731 


           1,102,052 




Increase in payables and provisions


           1,691,133 


               440,704 


           1,905,948 




 


 


 


 




Cash from operations


           2,405,268 


           1,613,637 


           2,842,394 




   
 
 
 
 
12.   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:
 
 




 


Half-year ended 4 July 2021


Half-year ended 30 June 2020


Year ended 31 December 2020




 


£


£


£




 


 


 


 




Operating loss


             (802,854)


          (4,519,566)


          (7,238,970)




 


 


 


 




Add back:


 


 


 




Depreciation


           1,610,395 


           2,011,000 


           4,020,265 




Impairment of assets


               336,356 


           2,572,443 


           4,019,871 




Share-based payments


                 25,046 


                 26,394 


                 14,578 




Loss on disposal of fixed assets


               461,185 


                           -   


               171,617 




Payroll provision


                           -   


               353,012 


               353,012 




EBITDA


           1,630,128 


               443,283 


           1,340,373 




 


 


 


 




Non-recurring costs incurred in opening new sites


                    3,489 


                    7,032 


                 53,378 




 


 


 


 




Adjusted EBITDA


           1,633,617 


               450,315 


           1,393,751 




   
 
 
13.   Subsequent events
 
In September, the Group opened a new site under the Shawa brand name. The new site is located in Westfield shopping centre in Shepherds Bush.

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