REG - Comptoir Group PLC - Interim Results
22/09/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230922:nRSV2858Na&default-theme=true
RNS Number : 2858N Comptoir Group PLC 22 September 2023
22 September 2023
Comptoir Group plc
("Comptoir", the "Company" or the "Group")
Interim Results
Comptoir Group Plc (AIM: COM), the owner and/or operator of Lebanese and
Middle Eastern restaurants, is pleased to announce its interim results for the
six-month period ended 2 July 2023.
Financial Highlights
· Group revenue of £14.8m, an increase of 2.1% (H1 2022: £14.5m)
· Like for Like sales growth of 6.0% (Vat Adjusted)
· Gross Profit of £11.5m (H1 2022: £11.5m)
· Adjusted EBITDA* before highlighted items of £1m, a decrease of
73.7% (H1 2022 Restated: £3.8m)
· IFRS loss after tax of £0.8m (H1 2022: £0.9m Profit)
· Net cash and cash equivalents at the period end of £5.7m ((H1
2022: £8.2m; 1 January 2023: £7.7m)
· The basic loss per share for the period was 0.64 pence (H1 2022:
basic earnings per share 0.77p)
· Currently own and operate 20 restaurants, with a further 6
franchise restaurants
· Terms agreed for 2 new sites including a London flagship
restaurant, opening in early 2024
*Adjusted EBITDA was calculated from the profit/(loss) before taxation adding
back interest, depreciation, share-based payments, and non-recurring costs
(note 11).
Beatrice Lafon, Non-executive Chair, said: "We are pleased with our first half
results, delivering growth in total like-for-like sales (VAT adjusted) of 6.0%
as we continue the transformation programme we started at the end of 2022.
Total dine-in like-for-like sales (VAT adjusted) were up 8.1%.
Against this backdrop, the Group is navigating a challenging trading
environment, with the macroeconomic pressures of the continuing cost of living
crisis, high inflation and the removal of government support with business
rates and VAT resulting in a decrease in profit. Utilities costs will
significantly decline from Q4 and other inflationary sensitive costs like
ingredients and labour have now started to plateau. The net effect will bring
improved performance towards the end of this year.
Trading continues to be impacted by significant events outside of our direct
control such as the ongoing public transport industrial action which now
enters a second year. We have also had a relatively poor summer in terms of
terrace weather. Both of these issues have adversely impacted our sites,
despite the welcome relief that a warm start to September and the completion
of our terraces' refurbishment has so far brought to footfall.
Significant progress has been made in the first six months of the year for
those aspects that we can control: new menus have been implemented across
all our brands, particularly in Comptoir Libanais; the changes are the most
expansive seen in several years and have been well received by customers. We
have rebuilt our restaurants' teams and a new Hospitality Training Programme
is underway in all locations.
Having announced the opening of our first new owned site in over four years in
Ealing later this year, we will continue our growth plans into 2024 as we are
close to securing a new flagship Comptoir Libanais. We also continue to grow
our franchise business first with our existing partner HMS Host and the
opening of the first franchised Shawa in Abu Dhabi but also with a new
additional partner which will see us open in Milan airport in 2024.
Furthermore, a new digital experience will be offered to our guests in early
2024, our first web revamp in eight years.
Comptoir Group remains in a strong financial position to take advantage of
future opportunities and to continue to innovate. Whilst we remain cautious
about the immediate future as macro challenges continue to prevail, we are
optimistic about the longer-term prospects for the business."
Change of Name of Nominated Adviser and Broker
The Company also announces that its Nominated Adviser and Broker has changed
its name to Cavendish Capital Markets Limited following completion of its own
corporate merger.
Enquiries
Comptoir Group plc
via Camarco
Beatrice Lafon, Non-Executive Chair
Nick Ayerst, CEO
Michael Toon, FD
Cavendish Capital Market Limited (Nominated Adviser and Broker)
Simon Hicks
0207 220 0500
Camarco (press enquiries)
Jennifer
Renwick
comptoir@camarco.co.uk
Letaba Rimell
Notes to Editors
Comptoir Group PLC owns and operates 26 Lebanese restaurants, six of which are
franchised, based predominately in the UK. The flagship brand of the group,
Comptoir Libanais, is a collection of 20 restaurants located across London and
nationwide, including cities such as Manchester, Bath, Birmingham, Oxford and
Exeter.
The name Comptoir Libanais means Lebanese Counter and is a place where guests
can eat casually and enjoy Middle Eastern food, served with warm and friendly
hospitality, just like back home.
The Group also operates Shawa, serving traditional shawarmas through a counter
service model in Westfield and Bluewater shopping centres, Yalla-Yalla with
branches near Oxford Circus and in Soho, and entertainment venue Kenza,
located in Devonshire Square, London.
The group has expanded internationally with its franchise partners HMSHOST,
with restaurants in the Netherlands, Qatar and Dubai.
Chief Executive's review
I am pleased to report the results for the six-month period ending 3 July
2023. The performance of the Group's various brands and restaurants during
these first six months has been in line with management's expectations, with
strong top-line trading being offset by increased costs, stemming in the main
from food inflation, the increase in the national minimum wage and significant
increases in our utility costs.
The underlying trading performance has remained resilient and is a testament
to the hard work of our teams, who have had another interrupted period of
trade due to regular train strikes which have an impact on a significant
number of our sites. To support our teams, we have continued to invest in
our people and our infrastructure, implementing several strategies to simplify
the business and improve efficiency. These include investment in our tech
stack such as tablets for integrated ordering at tables, pay-at-table QR codes
and improved labour productivity tools. This has also been allied with
substantial investment in team training following significant brand work for
Comptoir Libanais.
During the six-month period, once again, some exceptional challenges were
presented to the business. In comparison to 2022, there was no government
support in respect of business rates and VAT, whereas in 2022 these were still
significantly lower than where we find ourselves now. At the same time, the
National Living Wage (NLW) increased by 9.7% from £9.50 to £10.42. As the
war in Ukraine continues into a second year, we are still seeing a significant
impact on utility and food prices, though as noted in the 2022 results
announcement this was anticipated and the pressure is starting to plateau.
Food inflation in the business has reduced the profit conversion but the
overall impact is significantly less than the headline rate across the
industry, thanks mainly to the excellent work done on our supply chain and
logistics, including the consolidation of a previously fragmented supply
chain. Utilities in these 6 months were the highest in the Group's history
as, like many of our peers, we entered into a short-term contract in September
2022 for 12 months at a significantly higher rate than the previous two-year
agreement. Even with the government cap benefit in the first three months of
2023, this cost was hugely increased compared to the same period in 2022.
However, I can confirm that we have hedged on a three-year flexible contract
from September 2023 at a rate significantly lower than that seen in the first
half of 2023. As ever the business will work to mitigate all costs as look to
deliver excellence to our guests in the most cost-efficient manner.
Thanks to our strong relationships with our current landlords and a proactive
approach to finding suitable new sites, there is an opportunity for the Group
to add to its site pipeline. We have exchanged on a new site in Ealing where
we will begin trading in October and have two other sites in advanced
discussions. As well as managed site growth, we continue to expand our
footprint with our franchise partners and expect to open two sites by the end
of 2023, one with our existing partner where we will open our shawarma-based
QSR brand Shawa in Abu Dhabi, and a Comptoir Libanais in Milan airport with
our new partner AREAS, one of the largest operators of food and beverage in
global airports. In terms of the existing estate, we had a significant number
of lease renewals to negotiate, and these have been successfully concluded,
ahead of expectations, which is a testament to our strong relationship with
our current landlords and the power of the brands within the Group's
portfolio.
Financial Performance Half-Year
The total revenue for the Group for the half-year was £14.8m (H1 2022
£14.5m) and the adjusted EBITDA profit was £1.0m (H1 2022 £3.8m).
Like-for-like sales were pleasing at 6.0% (VAT adjusted) with LFL Dine in
sales growing by 8.1% (VAT adjusted) but conversely, in line with the rest of
the industry, we have seen delivery sales decline post the growth seen during
the years disrupted by Covid. Franchise system sales grew 150.5% (+14.9% Like
for Like) in the six-month period with the new sites opening in 2022
performing extremely well. Stansted in particular is benefiting from the
growth in Travel.
The Group controls remained strong, but profit declined due to the
aforementioned impact of VAT and Business Rates returning to previous levels,
as well as the utility, food and wage inflation. The impact of the VAT
movement back to 20% was £388k in comparison to 2022. The IFRS loss after
tax was £0.78m (H1 2019: £0.9m profit).
During the period we closed one site (Comptoir Leeds). We do not envisage any
further closures across the Group this year.
A summary of the financial performance for the half year is shown in the table
below:
Post IFRS 16 Pre IFRS 16 Post IFRS 16 Pre IFRS 16 Post IFRS 16 Pre IFRS 16
2 July 2 July Restated Restated Restated Restated
2023
2023
3 July
3 July
1 January 2023
1 January 2023
2022
2022
£ £ £ £ £ £
Revenue 14,801,949 14,801,949 14,501,725 14,501,725 31,046,546 31,046,546
Adjusted EBITDA:
Profit after tax (780,460) (545,243) 945,825 737,267 588,304 264,463
Add back:
Finance costs 497,567 67,731 409,860 41,319 1,042,697 94,078
Taxation (496,100) (496,100) 361,081 361,081 314,146 314,146
Depreciation 1,655,805 561,532 1,628,502 540,612 3,252,841 1,124,243
Impairment of assets - - 336,356 - 78,266 -
EBITDA 876,812 (412,080) 3,681,624 1,680,279 5,276,254 1,796,930
Share-based payments expense 10,006 10,006 14,050 14,450 15,377 15,377
Loss on disposal of fixed assets - - - - 8,188 8,188
Exceptional legal and professional fees 23,045 23,045 - - 1,002,054 1,002,054
Restaurant opening costs - - 38,245 38,245 36,745 36,745
Restaurant closing costs 75,657 75,657 - - 28,628 28,628
Dilapidations 16,493 16,493 17,334 17,334 5,956 5,956
Adjusted EBITDA 1,002,013 (286,879) 3,751,253 1,750,308 6,373,203 2,893,879
We continue to prioritise our team's well-being and the Group has looked to
improve the benefits available to the staff increasing pay rates, bonus
potential as well as mental and physical health care schemes.
Nicole Goodwin joined as Director of Marketing. Nicole is an award-winning
Marketing Director with over 25 years of experience across diverse
market-leading FMCG & drinks brands and has already made a substantial
contribution as we add to the Group's expertise and plan for future
opportunities.
Current and future outlook
Despite the challenging macro environment, trading and the overall
outperformance of our peers is encouraging. The Group has a strong base to
continue to operate from, and we will look to grow in H2 and into 2024 and
beyond. The Board has every confidence in the prospects for the remainder of
the year and into 2024.
Nick Ayerst
Chief Executive Officer
22 September 2023
Consolidated statement of comprehensive income
For the half-year ended 2 July 2023
Notes Half-year ended 2 July 2023 Half-year ended 3 July 2022 Period ended 1 January 2023
£ £ £
Revenue 14,801,949 14,501,725 31,046,546
Cost of sales (3,264,510) (2,994,130) (6,605,074)
Gross profit 11,537,439 11,507,595 24,441,472
Distribution expenses (6,077,722) (5,308,893) (11,431,633)
Administrative expenses (6,246,967) (4,741,711) (11,357,436)
Other income 8,257 259,775 292,744
Operating (loss)/profit 3 (778,993) 1,716,766 1,945,147
Finance costs (497,567) (409,860) (1,042,697)
Profit/(loss) before tax (1,276,560) 1,306,906 902,450
Taxation charge 496,100 (361,081) (314,146)
Loss/(profit) for the year (780,460) 945,825 588,304
Other comprehensive income - - -
Total comprehensive (loss)/profit for the year (780,460) 945,825 588,304
Basic (loss)/earnings per share (pence) 6 (0.64) 0.77 0.48
Diluted (loss)/earnings per share (pence) 6 (0.64) 0.77 0.48
All the above results are derived from continuing operations.
Consolidated balance sheet
At 2 July 2023
Notes 2 July 2023 3 July 2022 1 January 2023
£ £ £
Non-current assets
Intangible assets 7 29,134 55,267 29,134
Property, plant and equipment 8 6,536,519 6,970,576 6,708,383
Right-of-use assets 8 12,607,187 14,872,490 13,704,427
Deferred tax asset 224,133 - -
19,396,973 21,898,333 20,441,944
Current asset
Inventories 526,071 517,775 474,655
Trade and other receivables 1,379,568 1,627,408 1,220,053
Cash and cash equivalents 7,640,868 10,738,261 9,930,323
9,546,507 12,883,444 11,625,031
Total assets 28,943,480 34,781,777 32,066,975
Current liabilities
Borrowings (600,000) (600,000) (600,000)
Trade and other payables (5,793,557) (6,924,257) (6,399,675)
Lease liabilities (1,165,194) (2,380,659) (2,351,410)
Current tax liabilities - (104,839) -
(7,558,751) (10,009,755) (9,351,085)
Non-current liabilities
Borrowings (1,300,000) (1,900,000) (1,600,000)
Provisions for liabilities (373,347) (735,686) (362,088)
Lease liabilities (15,728,067) (16,811,910) (15,728,066)
Deferred tax liability - (214,063) (271,967)
(17,401,414) (19,661,659) (17,962,121)
Total liabilities (24,960,165) (29,671,414) (27,313,206)
Net assets 3,983,315 5,110,363 4,753,769
Equity
Share capital 9 1,226,667 1,226,667 1,226,667
Share premium 10,050,313 10,050,313 10,050,313
Other reserves 155,105 144,172 145,099
Retained losses (7,448,770) (6,310,789) (6,668,310)
Total equity 3,983,315 5,110,363 4,753,769
Consolidated statement of changes in equity
For the half-year ended 2 July 2023
Notes Share capital Share premium Other reserves Retained losses Total equity
£ £ £ £ £
At 2 January 2022 1,226,667 10,050,313 145,099 (6,668,310) 4,753,769
Total comprehensive income
Loss for the period 3 - - - (780,460) (780,460)
Transactions with owners
Share-based payments 5 - - 10,006 - 10,006
At 3 July 2023 1,226,667 10,050,313 155,105 (7,448,770) 3,983,315
At 3 January 2022 1,226,667 10,050,313 129,722 (7,256,614) 4,150,088
Total comprehensive loss
Loss for the period 3 - - - 945,825 945,825
Transactions with owners
Share-based payments 5 - - 14,450 - 14,450
At 3 July 2022 1,226,667 10,050,313 144,172 (6,310,789) 5,110,363
At 3 January 2022 1,226,667 10,050,313 129,722 (7,256,614) 4,150,088
Total comprehensive income
Profit for the period 3 - - - 588,304 588,304
Transactions with owners
Share-based payments 5 - - 15,377 - 15,377
At 1 January 2023 1,226,667 10,050,313 145,099 (6,668,310) 4,753,769
Consolidated statement of cash flows
For the half-year ended 2 July 2023
Notes Half-year ended 2 July 2023 Half-year ended 3 July 2022 Period ended 1 January 2023
£ £ £
Operating activities
Cash inflow from operations 10 81,028 2,897,522 4,368,949
Interest paid (67,731) (41,319.00) (94,078)
Tax paid - - -
Net cash from operating activities 13,297 2,856,203 4,274,871
Investing activities
Purchase of property, plant & equipment 8 (386,701) (278,319) (581,250)
Net cash used in investing activities (386,701) (278,319) (581,250)
Financing activities
Payment of lease liabilities (1,616,051) (1,407,422) (3,031,097)
Bank loan proceeds - - -
Bank loan repayments (300,000) (300,000.00) (600,000)
Net cash used from financing activities (1,916,051) (1,707,422) (3,631,097)
Increase in cash and cash equivalents (2,289,455) 870,462 62,524
Cash and cash equivalents at beginning of period 9,930,323 9,867,799 9,867,799
Cash and cash equivalents at end of period 7,640,868 10,738,261 9,930,323
Notes to the financial information
For the half-year ended 2 July 2023
1. Basis of preparation
The consolidated financial information for the half-year ended 2 July 2023,
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 period ending 1
January 2023. These accounting policies are based on the UK-adopted
International Financial Reporting Standards ("IFRS") and International
Financial Reporting Interpretation Committee ("IFRIC") interpretations. The
consolidated financial information for the half-year ended 2 July 2023 has
been prepared in accordance with IAS 34: 'Interim Financial Reporting', as
adopted by the UK, and under the historical cost convention.
The financial information relating to the half-year ended 2 July 2023 is
unaudited and does not constitute statutory financial statements as defined in
section 434 of the Companies Act 2006. The comparative figures for the period
ended 1 January 2023 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 period ended 1 January 2023 has
been filed with the Registrar of Companies.
The Group's financial risk management objectives and policies are consistent
with those disclosed in the period ended 1 January 2023 annual report and
accounts.
The half-yearly report was approved by the board of directors on 22 September
2023. The half-yearly report is available on the Comptoir Libanais website,
www.comptoirgroup.com (http://www.comptoirgroup.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 2 July 2023 are consistent with
those followed in the preparation of the Group's annual consolidated financial
statements for the year ended 1 January 2023.
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 2023. These
amendments have not had any material impact on the amounts reported for the
current and prior years.
Standard or
Interpretation
Effective Date
IFRS 17 - Insurance
Contracts
1 January 2023
IAS 8 - Definition of Accounting
Estimates
1 January 2023
IAS 1 - Disclosure of Accounting
Policies
1 January 2023
IAS 12 - Deferred Tax Arising from a Single
Transaction
1 January 2023
Initial Application of IFRS 17 and IFRS 9 - Comparative
Information 1
January 2023
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
IAS 1 Classification of liabilities as current or
non-current
1 January 2024
IAS 1 - Non-current liabilities with
covenants
1 January 2024
IFRS 7 - Supplier finance
arrangements
1 January 2024
IFRS 16 - Lease liability in a Sale and Leaseback
1 January 2024
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. Please
refer to note 8 for further details on impairments.
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.
3. Group operating profit/(loss)
Half-year ended 2 July 2023 Half-year ended 3 July 2022 Period ended 1 January 2023
This is stated after (crediting)/charging: £ £ £
Variable lease charges 347,069 385,208 444,327
Rent concessions - (150,887) (171,856)
Share-based payments expense (note 5) 10,006 14,450 15,377
Depreciation of property, plant and equipment (note 8) 1,655,805 1,628,502 3,252,841
Impairment of assets (note 7 & 8) - - 78,266
Loss on disposal of fixed assets - - 8,188
Auditors' remuneration - - 75,000
Exceptional legal and professional fees 23,045 - 1,002,054
Half-year ended 3 July 2023 Restated Restated
Half-year ended 3 July 2022 Period ended 1 January 2023
£ £ £
Restaurant opening costs - 38,245 36,745
Restaurant closing costs 75,657 - 28,628
Dilapidations 16,493 17,334 5,956
92,150 55,579 71,330
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, which all carry a three year
vesting period and the term to expiration is ten years from the date of grant
(4 July 2018).
On 21 May 2021, the Group established another 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, which all carry a
three year vesting period and the term to expiration is ten years from the
date of grant (21 May 2021).
The total share-based payment charge for the period was £10,006 (H1 2021:
£14,450, 1 January 2023: £15,377).
6. Earnings/(loss) per share
The Company had 122,666,667 ordinary shares of £0.01 each in issue at 2 July
2023. The basic and diluted earnings/(loss) per share figures, is based on the
weighted average number of shares in issue during the periods. The basic and
diluted earnings/(loss) per share figures are set out below.
Half-year ended 2 July 2023 Half-year ended 3 July 2022 Period ended 1 January 2023
£ £ £
Profit/(loss) attributable to shareholders (780,460) 945,825 588,304
Weighted average number of shares Number Number Number
For basic earnings/(loss) per share 122,666,667 122,666,667 122,666,667
Adjustment for options outstanding - 558,126 -
For diluted earnings/(loss) per share 122,666,667 123,224,793 122,666,667
Earning/(loss) per share: Pence per share Pence per share Pence per share
Basic (pence)
From profit/(loss) for the year (0.64) 0.77 0.48
Diluted (pence)
From profit/(loss) for the year (0.64) 0.77 0.48
6. Earnings/(loss) per share (continued)
The basic and diluted earnings/(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. The shares were not 'in the money' as at
the half-year ended 2 July 2023 or period ended 1 January 2023 and
consequently would be antidilutive. Therefore, no adjustment was made in
respect of the share options outstanding to determine the diluted number of
options for these periods.
7. Intangible assets
Goodwill Total
Cost £ £
At 2 January 2023 89,961 89,961
Additions - -
At 2 July 2023 89,961 89,961
Accumulated amortisation and impairment
At 2 January 2023 (60,827) (60,827)
Amortised during the year - -
Impairment during the year - -
At 2 July 2023 (60,827) (60,827)
Net Book Value as at 2 July 2023 29,134 29,134
Net Book Value as at 3 July 2022 55,267 55,267
Net Book Value as at 1 January 2023 29,134 29,134
Intangible fixed assets consist of goodwill from the acquisition of Agushia
Limited, which included the Yalla Yalla brand. 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 2 January 2023 28,596,410 10,371,174 5,093,306 2,991,247 38,310 47,090,447
Additions - - 164,113 222,588 - 386,701
Disposals - (11,290) - - - (11,290)
At 2 July 2023 28,596,410 10,359,884 5,257,419 3,213,835 38,310 47,465,858
Accumulated depreciation and impairment
At 2 January 2023 (14,891,983) (6,820,336) (3,236,904) (1,717,177) (11,237) (26,677,637)
Depreciation during the year (1,097,240) (310,621) (160,218) (84,866) (2,860) (1,655,805)
Disposals during the year - 11,290 - - - 11,290
At 2 July 2023 (15,989,223) (7,119,667) (3,397,122) (1,802,043) (14,097) (28,322,152)
Net book value
At 2 July 2023 12,607,187 3,240,217 1,860,297 1,411,792 24,213 19,143,706
At 3 July 2022 14,872,490 3,906,950 1,737,645 1,292,779 33,202 21,843,066
At 1 January 2023 13,704,427 3,550,838 1,856,402 1,274,070 27,073 20,412,810
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 recoverable amount of each CGU has been calculated with reference to its
Value-in-Use. The key assumptions of this calculation are shown below:
Growth rate 3%
Discount rate 4.4%
Number of years projected over life of lease
The value-in-use figure has been calculated using the expected annual
cashflows of the Group from the latest forecasts at the time of review. In
producing the forecasts, the Directors have considered the impact of current
inflation levels, rising wage costs as well as the potential risk of
recession.
The growth rate is based on a combination of industry average growth rates,
actual results achieved historically and the current economic conditions.
Sensitivity analysis was performed on the forecasted cashflows as well as the
growth rate and only a significant reduction in cashflows would result in a
material impairment charge. Therefore, based on the impairment review and
sensitivity analysis carried out, an impairment charge of £nil (H1 2022:
£nil, 1 January 2023: £78,266) was recorded for the period.
9. Share capital
Authorised, issued and fully paid Number of shares
2 July 2023 3 July 2022 1 January 2023
Brought forward 122,666,667 122,666,667 122,666,667
Issued in the period - - -
122,666,667 122,666,667 122,666,667
Nominal value
2 July 2023 3 July 2022 1 January 2023
£ £ £
Brought forward 1,226,667 1,226,667 1,226,667
Issues in the period - - -
1,226,667 1,226,667 1,226,667
10. Cash flow from operations
Reconciliation of profit/(loss) to cash generated from operations:
Half-year ended 2 July 2023 Half-year ended 3 July 2022 Period ended 1 January 2023
£ £ £
Operating (loss)/profit for the period (778,993) 1,716,766 1,945,147
Depreciation 1,655,805 1,628,502 3,252,841
Loss on disposal of fixed assets - - 8,188
Impairment of assets - - 78,266
Share-based payment charge 10,006 14,450 15,377
Rent concessions - (150,887) (171,856)
Movements in working capital
Increase in inventories (51,416) (51,885) (8,765)
Increase in trade and other receivables (159,506) (928,416) (521,065)
(Increase)/decrease in payables and provisions (594,868) 668,992 (229,184)
Cash generated from operations 81,028 2,897,522 4,368,949
11. Adjusted EBITDA
Adjusted EBITDA was calculated from the profit/loss before taxation adding
back interest, depreciation, share-based payments and non-recurring/non-cash
costs incurred in relation to restaurant sites, as follows:
Half-year ended 2 July 2023 Restated Restated
Half-year ended 3 July 2022 Period ended 1 January 2023
£ £ £
Profit after tax (780,460) 945,825 588,304
Add back:
Finance costs 497,567 409,860 1,042,697
Taxation (credit)/charge (496,100) 361,081 314,146
Depreciation 1,655,805 1,628,502 3,252,841
Impairment of assets - 336,356 78,266
EBITDA 876,812 3,681,624 5,276,254
Share-based payments 10,006 14,050 15,377
Loss on disposal of fixed assets - - 8,188
Exceptional legal and professional fees 23,045 - 1,002,054
Restaurant opening costs - 38,245 36,745
Restaurant closing costs 75,657 - 28,628
Dilapidations 16,493 17,334 5,956
Adjusted EBITDA 1,002,013 3,751,253 6,373,203
12. Subsequent events
The Group exchanged an agreement to open and operate a new Comptoir Libanais
in Ealing, London, and is at the final stage of securing a new London flagship
site. The group also signed a new Franchise agreement with AREAS.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FLFLTALILFIVRecent news on Comptoir
See all newsRCS - Comptoir Group PLC - Comptoir opens first restaurant in Abu Dhabi
AnnouncementREG - Comptoir Group PLC - Appointment of Finance Director
AnnouncementREG - Comptoir Group PLC - Pre-close trading update
AnnouncementRCS - Comptoir Group PLC - New restaurant at the Southbank Centre, London
AnnouncementREG - Comptoir Group PLC - Standard form for notification of major holdings
Announcement