REG - Fulham Shore PLC - Half-year Report
06/12/2021 07:00
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RNS Number : 5984U Fulham Shore PLC (The) 06 December 2021
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR").
The Fulham Shore PLC
Unaudited interim results for the six months ended 26 September 2021
Strong revenue growth in the Half Year and continued buoyant current trading
ahead of management's expectations
The Directors of The Fulham Shore PLC ("Fulham Shore", the "Company" or the
"Group") are pleased to announce unaudited interim results for the six months
ended 26 September 2021.
Highlights:
· Revenues increased 103% to £39.5m (2020: £19.9m)
· Restaurants traded with no COVID-19 restrictions for only 10 of
the 26 weeks comprising the Half Year
· Adjusted Headline EBITDA* of £6.9m (2020: loss of £0.1m)
· Headline EBITDA* of £10.6m (2020: £3.6m)
· Operating profit of £4.5m (2020: loss of £3.0m)
· Both business' revenue, Headline EBITDA* and profit before
taxation ahead of the same period prior to COVID-19 in 2019
· Profit after tax of £2.4m (2020: loss of £3.9m)
· Operating cash inflow of £15.6m (2020: £6.3m)
· Opened:
o Two new Franco Manca pizzeria in Glasgow and Holborn, London
o One new The Real Greek restaurant in Norwich
· 75 restaurants operated as at 26 September 2021 (2020: 72)
· Net cash (excluding lease liabilities) of £5.1m (2020: debt of
£3.3m)
· An improvement of £8.7m from the net debt position of £3.6m as
at 28 March 2021
Post the period end highlights:
· Two Franco Manca (to 57 pizzeria) opened at Blackheath, London
and Baker Street, London
· One The Real Greek (to 21 restaurants) opened in Bluewater, Kent
· One Franco Manca and one The Real Greek are currently being
fitted out
· 21 more potential sites are in solicitors' hands for both Franco
Manca and The Real Greek.
· Franchise agreement signed with plans to open a minimum of six
Franco Manca in Greece over the next three years
· Government backed CLBIL Loan repaid early and in full in November
2021
· RCF loan facility increased to £17m and extended to three years
commitment with HSBC
· As at 3 December 2021, the Group had:
o Net cash (excluding lease liabilities) of £5.1m
o Undrawn debt facilities of £15.9m out of total facilities of £17.75m
· Group revenues for both October and November have continued to be
ahead of 2019 comparatives
* Definition of Headline EBITDA and Adjusted Headline EBITDA can be found in
note 3 to the unaudited interim financial information.
David Page, Chairman of Fulham Shore, said:
"During the Half Year, revenue more than doubled against the prior year and
increased by 10% when compared to the first half to September 2019. This is
despite being able to trade without restrictions and serve dine in customers
for only 10 out of the 26 weeks of the Half Year. This strong performance
continues to reflect the outstanding quality and value of our menus as well as
the talent of the amazing teams across both of our restaurant businesses.
"We have seen continued trading momentum in recent weeks, with revenues in
October and November ahead of 2019 comparatives. This includes our office and
theatre district located restaurants which are continuing to trade positively,
over the four weeks in November 2021, achieving revenues ahead of the same
weeks in 2019.
"With strong revenue growth in the Half Year and continued buoyant current
trading, Fulham Shore is performing ahead of management's expectations with
many restaurants throughout the UK continuing to break weekly trading records.
This augurs well for the Group's full year performance, which we expect to be
now ahead of market expectations, and our UK wide expansion plans. We have 21
more potential sites in solicitors' hands across both businesses and look
forward with confidence to the continued growth of both of our fantastic
restaurant businesses over the coming years."
Contacts:
The Fulham Shore PLC www.fulhamshore.com (http://www.fulhamshore.com/)
David Page / Nick Wong Via Hudson Sandler
Singer Capital Markets (Nominated Adviser and Broker)
Shaun Dobson / James Moat / Kailey Aliyar Tel: 020 7496 3000
Hudson Sandler (Financial PR) fulhamshore@hudsonsandler.com (mailto:fulhamshore@hudsonsandler.com)
Alex Brennan / Lucy Wollam Telephone: 020 7796 4133
The Company will provide a presentation via the Investor Meet Company platform
on 6 December 2021 at 5:30pm GMT. The presentation is open to all existing and
potential shareholders. Questions can be submitted at any time during the live
presentation.
Investors can sign up to Investor Meet Company for free and add to meet THE
FULHAM SHORE PLC via:
https://www.investormeetcompany.com/the-fulham-shore-plc/register-investor
(https://www.investormeetcompany.com/the-fulham-shore-plc/register-investor)
Notes for editors
Information on The Fulham Shore PLC
Fulham Shore owns and operates "The Real Greek" (www.therealgreek.com) and
"Franco Manca" (www.francomanca.co.uk
(file://///10.21.1.3/Nick.Wong$/My%20Documents/Fulham%20Shore/Interims%20Sept%202018/www.francomanca.co.uk)
) restaurants.
Fulham Shore was incorporated in March 2012. The Directors believed that there
were attractive investment opportunities within the restaurant sector in the
UK and that, given their collective experience in the restaurant sector, they
could take advantage of the opportunities which existed.
The ordinary shares of the Company were admitted to trading on AIM in October
2014 in order to capitalise on such opportunities and to give the company's
employees, customers and public the ability to share in the enterprise.
The Real Greek
Since its foundation in London in 1999, The Real Greek business has grown
steadily, now offering modern Greek cuisine in 21 restaurants across London,
Southern England and the recently opened Norwich.
The Real Greek food centres on the delicious, healthy diet of the Eastern
Mediterranean, staying true to the Greek ethos of food, family and friends.
Dishes are created using premium ingredients sourced from Greece and Cyprus
whenever possible, and developed by Tonia Buxton, the face of Greek food in
the UK.
The Real Greek's menu and atmosphere retain the spirit of eating in Greece,
encouraging diners to take their time eating amongst friends and family, be it
a relaxed dinner, family get-together, or a fully catered party.
Franco Manca
Franco Manca opened its first restaurant in 2008 and now has 57 restaurants,
primarily in London, but also with restaurants across the UK (e.g., Edinburgh,
Glasgow, Manchester, Leeds, Cambridge, Birmingham, Brighton, Bristol and
Exeter). Franco Manca will be opening its first franchised pizzeria in Greece
in December 2021.
Franco Manca's pizza is made from slow-rising sourdough and is baked in an
oven that produces high heat. The slow levitation and blast cooking process
lock in the flour's natural aroma and moisture, giving a soft and easily
digestible crust. Where possible, locally sourced and organic ingredients are
used.
Franco Manca has received the following accolades:
- Winner of the Peach 20/20 Hero & Icon Consumer Choice Award
2021
- Winner of the Casual Dining Best Family Dining Experience Award
2020
- Winner of the R200 Best Value Restaurant Operator- Over 20 Sites
Award 2019 and 2017
Chairman's statement
Introduction
I am pleased to announce the unaudited interim results for the six months
ended 26 September 2021 (the "Half Year") for Fulham Shore.
Trading performance
During the Half Year, revenue increased by 103% to £39.5m (2020: £19.9m) and
by 10% when compared to £36.0m for the half year to September 2019, the most
recent pre COVID-19 comparable period. This was despite being able to trade
without restrictions and serve dine in customers for only 10 out of the 26
weeks of the Half Year, as restrictions were removed in mid July 2021.
Fulham Shore continues to maintain its Headline EBITDA* margins in both
businesses. The increase in our restaurant revenues noted above is enabling
the Group to deal with the well flagged inflation of utility costs and the
wage increases that we instigated during the Half Year to attract the best and
most skilled operators in our sector.
In response to the well-publicised shortage in staff in the leisure sector
earlier in the year, the Group has increased its training programmes for new
entrants into the restaurant sector. These employee initiatives have seen the
number of vacancies in the Group fall materially.
Headline EBITDA* for the Half Year has increased by 186% to £10.6m (2020:
£3.7m) and by 26% when compared to £8.4m for the half year to September
2019. The Group's Adjusted Headline EBITDA* for the Half Year was £6.9m
(2020: loss of £0.1m), an increase of 38% when compared to £5.0m for the
half year to September 2019. During the Half Year, we opened three new
restaurants (2020: one) giving rise to pre-opening costs of £0.2m (2020:
£0.1m).
Both Franco Manca and The Real Greek showed increased revenue, increased
Headline EBITDA* and increased profit before taxation well ahead of the same
period in 2019.
The Group's eight new restaurants (compared to the estate in 2019) combined
with customers returning to our restaurants after COVID-19 restrictions were
eased as well as continued higher delivery and take out sales contributed to
the Group's improved trading figures.
We continue to tightly control costs. We have a negligible advertising budget
and we do not overspend on restaurant design. Over the last 10 years we have
developed and maintained "best on the market" product sourcing skills from the
UK and Europe. The Fulham Shore team effort enables us to pass on the benefits
of the close relationship with all our producers/suppliers to our customers in
the form of our competitive menu pricing.
We aim to keep our menu prices lower than a basket of our direct competitors.
We believe that this leads to higher than average customer volumes in our
restaurants.
The Franco Manca loyalty app has continued to be very popular and has now been
downloaded and used by over 270,000 customers.
Cash flow
During the period, the Group generated positive cash inflow from operating
activities of £15.6m (2020: £6.3m). This included a seasonal working capital
benefit from trade and other payables of £7.0m (2020: £6.1m).
The Group's current financial year to March 2022 started with net debt
(excluding lease liabilities recognised under IFRS16) of £3.6m.
As of 26 September 2021, the Group had a net cash position (excluding lease
liabilities recognised under IFRS16) of approximately £5.1m, showing net cash
generation of over £8.7m over six months, despite opening three restaurants
and building a fourth during the period.
Despite the associated cash outflow of over £2m on these new sites and the
repayment of the remaining £9.3m UK Government backed CLBIL facility that
supported the business during the height of lockdown uncertainty, the Group's
net cash position as at 3 December 2021 stood at a positive £5.1m.
The revised RCF and the overdraft facility, combined with the current net cash
position gives the Group financial headroom of over £20m.
Although we intend to finance our expansion programme predominantly using our
existing cash and operating cashflow, the renewed banking facilities will
enable us, where appropriate, to accelerate our organic growth from now for
the next three to five years and also to take advantage of opportunistic
property portfolio acquisitions.
Current trading
Group revenues are continuing at higher levels than both 2019 and 2020 with
significantly improved revenues from delivery and take-out. Our customers
continue to choose our quality ingredients and value pricing served by
charming, motivated and loyal employees.
Office and theatre district located restaurants are now trading ahead of 2019
levels. As previously announced, our group of 17 restaurants located in the
West End of London and city centre office locations continue to trade
positively over the four weeks in November 2021, achieving revenues ahead of
the same weeks in 2019.
This is an improvement on the 3% sales reduction we reported for the five-week
period announced in our AGM statement on 29 September 2021. Over the next 12
months we expect footfall in these office centric sites to continue to
increase and therefore return to trade in line with the rest of the Group's
performance. Tourists from abroad have still to return in a meaningful way,
but when they do this should provide further impetus to these city centre and
the West End of London restaurants.
We have noted recent UK government advice and changes in the COVID-19 rules as
a result of the new variant, Omicron. At present there is no impact on the
Group's business and the team is ready and prepared to deal with any changes
in the rules for dining out which may be instituted by the UK Government. The
potential for trade to migrate back to delivery and takeaway would, if
mirroring the 2020 outcome, result in a continued Headline EBITDA contribution
and a positive cash generation for the Group.
With strong revenue growth in the Half Year and the continued current buoyant
trading Fulham Shore is performing ahead of management's expectations with
many restaurants throughout the UK continuing to break trading records. This
augurs well for the Group's full year performance and our UK wide expansion
plans.
New restaurants
Since the Half Year we have opened three more restaurants. Fitting out works
are in train at the first The Real Greek in Manchester, at the Corn Exchange,
due to open this week, and at a new Franco Manca pizzeria in Bishops
Stortford, due to open in Spring 2022. With these locations and others about
to commence works, the Group intends to open around 10 new restaurants in the
current financial year.
In addition, 21 more potential sites are in solicitors' hands for both Franco
Manca and The Real Greek, these new restaurants will increase our rate of
expansion.
Rents have not been so affordable for many years and we intend to take
advantage of this over the next few years. We will aim for 17 to 18 new
openings in the next financial year to March 2023. Subject to market
conditions the Group will look to gradually accelerate our opening programme
over the succeeding years.
International expansion
As announced on 4 November 2021, Franco Manca has entered into a franchise
agreement for Greece. The franchisee has plans for a minimum of six
restaurants to be opened over the next three years. The first restaurant will
be in the Athens metropolitan area and is expected to open before Christmas.
The Group continues to explore a number of additional international
territories where franchised restaurants could be opened, and is currently in
discussions on territories in Europe, the Middle East, and Africa.
Outlook
Strong revenues coupled with well maintained margins, a strong balance sheet,
over £20m of financial headroom, a strong pipeline of exciting new locations
in the UK and the opportunity to expand internationally, mean that Fulham
Shore has a sound platform for continued expansion.
We look forward with confidence to the end of our financial year in March
2022, where we expect to be ahead of market expectations, and over the next
few years to the continued growth of both of our fantastic restaurant
businesses.
David Page
Chairman
6 December 2021
* Definition of Headline EBITDA and Adjusted Headline EBITDA can be found in
note 3 to the unaudited interim financial information.
.
The Fulham Shore PLC
Unaudited Consolidated Statement of Comprehensive Income
for the six months ended 26 September 2021
Restated
Six months Six months Year
ended ended ended
26 September 27 September 28 March
2021 2020 2021
Notes Unaudited Unaudited Audited
(Note 9)
£'000 £'000 £'000
Revenue 39,458 19,459 40,285
Cost of sales (24,185) (12,854) (25,227)
Gross profit 15,273 6,605 15,058
Administrative expenses (11,827) (13,295) (27,479)
Other income 1,688 4,776 10,270
Headline operating profit/(loss) 5,134 (1,914) (2,151)
Share based payments (41) (75) (91)
Pre-opening costs (162) (61) (212)
Amortisation of brand (411) (411) (821)
Exceptional costs
- impairment of property, plant and equipment - (461) (1,013)
- COVID-19 costs - (83) (483)
Operating profit/(loss) 4,520 (3,005) (4,771)
Finance income 1 1 10
Finance costs 4 (1,427) (1,323) (2,754)
Profit/(loss) before taxation 3,094 (4,327) (7,515)
Income tax (677) 389 1,209
Profit/(loss) for the period attributable to owners of the Company
2,417 (3,938) (6,306)
Earnings per share
Basic 5 0.4p (0.7p) (1.1p)
Diluted 5 0.4p (0.7p) (1.1p)
There were no other comprehensive income items.
The Fulham Shore PLC
Unaudited Consolidated Balance Sheet
as at 26 September 2021
As at As at As at
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Non-current assets
Intangible assets 23,679 24,583 24,127
Property, plant and equipment 100,373 97,177 94,958
Trade and other receivables 788 1,081 935
Deferred tax assets 823 325 942
125,663 123,166 120,962
Current assets
Inventories 2,153 2,013 1,976
Trade and other receivables 4,395 5,541 2,721
Cash and cash equivalents 6 16,211 15,039 12,270
22,759 22,593 16,967
Total assets 148,422 145,759 137,929
Current liabilities
Trade and other payables (21,133) (18,603) (14,177)
Borrowings 7 (12,311) (8,909) (11,639)
Income tax payables (743) (135) (10)
(34,187) (27,647) (25,826)
Net current liabilities (11,428) (5,054) (8,859)
Non-current liabilities
Borrowings 7 (74,959) (79,312) (75,198)
Deferred tax liabilities (1,438) (1,768) (1,448)
(76,397) (81,080) (76,646)
Total liabilities (110,584) (108,727) (102,472)
Net assets 37,838 37,032 35,457
Equity
Share capital 6,205 6,096 6,191
Share premium account 9,153 8,639 9,078
Merger relief reserve 30,459 30,459 30,459
Reverse acquisition reserve (9,469) (9,469) (9,469)
Retained earnings 1,490 1,307 (802)
Total equity attributable to owners of the company
37,838 37,032 35,457
The Fulham Shore PLC
Unaudited Consolidated Statement of Changes in Equity
for the six months ended 26 September 2021
Six months ended 26 September 2021
Unaudited
Attributable to owners of the Company
Merger Reverse
Share Share Relief Acquisition Retained Total
capital premium Reserve Reserve earnings Equity
£'000 £'000 £'000 £'000 £'000 £'000
At 28 March 2021 6,191 9,078 30,459 (9,469) (802) 35,457
Profit for the period - - - - 2,417 2,417
Total comprehensive income for the period
- - - - 2,417 2,417
Transactions with owners:
Share based payments - - - - 41 41
Deferred tax on share based payments
- - - - (166) (166)
Exercise of share options
14 75 - - - 89
Total transactions with owners
14 75 - - 2,292 2,381
At 26 September 2021
6,205 9,153 30,459 (9,469) 1,490 37,838
Six months ended 27 September 2020
Unaudited
Attributable to owners of the Company
Merger Reverse
Share Share Relief Acquisition Retained Total
capital premium Reserve Reserve earnings Equity
£'000 £'000 £'000 £'000 £'000 £'000
At 29 March 2020 5,736 6,911 30,459 (9,469) 5,123 38,760
Loss for the period - - - - (3,938) (3,938)
Total comprehensive income for the period
- - - - (3,938) (3,938)
Transactions with owners:
Share based payments - - - - 75 75
Deferred tax on share based payments
- - - - 47 47
Issue of new ordinary shares (net of costs)
360 1,728 - - - 2,088
Total transactions with owners
360 1,728 - - 122 2,210
At 27 September 2020
6,096 8,639 30,459 (9,469) 1,307 37,032
Year ended 28 March 2021
Audited
Merger Reverse
Share Share Relief Acquisition Retained Total
Capital Premium Reserve Reserve Earnings Equity
£'000 £'000 £'000 £'000 £'000 £'000
At 29 March 2020 5,736 6,911 30,459 (9,469) 5,123 38,760
Loss for the year - - - - (6,306) (6,306)
Total comprehensive income
- - - - (6,306) (6,306)
Transactions with owners:
Share based payments - - - - 91 91
Deferred tax on share based payments
- - - - 290 290
Issue of share capital (net of costs)
360 1,728 - - - 2,088
Exercise of share options 95 439 - - - 534
Total transactions with owners
455 2,167 - - (5,925) (3,303)
At 28 March 2021 6,191 9,078 30,459 (9,469) (802) 35,457
The Fulham Shore PLC
Unaudited Consolidated Cash Flow Statement
for the six months ended 26 September 2021
Six months Six months Year
ended ended ended
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Net cash from operating activities 8 15,642 6,284 9,705
Investing activities
Acquisition of property, plant and equipment (2,165) (554) (1,679)
Acquisition of intangible assets (2) (25) (28)
Net cash flow used in investing activities (2,167) (579) (1,707)
Financing activities
Proceeds from issuance of new ordinary shares (net of expenses)
89 2,088 2,622
Capital received from bank borrowings - 6,750 11,750
Capital repaid on bank borrowings (4,738) - (7,440)
Principal element for lease payments (3,459) (238) (1,972)
Interest received 1 1 10
Interest paid (1,427) (1,323) (2,754)
Net cash (used in)/from financing activities (9,534) 7,278 2,216
Net increase in cash and cash equivalents 3,941 12,983 10,214
Cash and cash equivalents at beginning of the period 12,270 2,056 2,056
Cash and cash equivalents at end of period 6 16,211 15,039 12,270
The Fulham Shore PLC
Notes to the Unaudited Interim Financial Information
for the six months ended 26 September 2021
1. General information
The Fulham Shore PLC is a public limited company incorporated and domiciled in
England and Wales. The address of the registered office is 1(st) Floor, 50-51
Berwick Street, London, W1F 8SJ, United Kingdom. Copies of this Interim
Statement may be obtained from the above address or the investor section of
the Group's website at http://www.fulhamshore.com (http://www.fulhamshore.com)
.
2. Basis of preparation
The unaudited interim financial information for the six months ended 26
September 2021 has been prepared under UK-adopted International Accounting
Standards (UK adopted IAS) based on the accounting policies consistent with
those used in the financial statements for the period ended 28 March 2021, but
does not contain all the information necessary for full compliance with UK
adopted IAS.
The unaudited interim financial information was approved and authorised for
issue by the Board on 6 December 2021.
The unaudited interim financial information for the six months ended 26
September 2021 does not constitute statutory accounts within the meaning of
section 434 of the Companies Act 2006 and should be read in conjunction with
the statutory accounts for the period ended 28 March 2021. The information for
the period ended 28 March 2021 has been extracted from the statutory accounts
for that period which have been delivered to the Registrar of Companies. The
audit report on these statutory accounts was unqualified, did not contain an
emphasis of matter paragraph, and did not contain a statement under sections
498(2)-(3) of the Companies Act 2006.
The unaudited interim financial information is presented in Pounds Sterling
because that is the currency of the primary economic environment in which the
company operates. All values are rounded to the nearest one thousand Pounds
(£'000) except when otherwise indicated.
Prior period restatement:
For the six months ended 27 September 2020, the Group has changed the
presentation of COVID-19 grants received and certain related costs in the
unaudited consolidated statement of comprehensive income to bring the
presentation in line with the accounting policies and presentations adopted in
the financial statements for the period ended 28 March 2021
The impact of this change is to increase administrative expenses by
£4,467,000 and other income by £4,776,000 and to decrease Revenue by
£410,000, Exceptional costs - COVID-19 costs by £4,467,000 and Exceptional
costs - COVID-19 grants received against costs by £4,366,000 on the unaudited
consolidated statement of comprehensive income.
This has no impact on net assets, net cash/debt or the Group's loss for the
six months ended 27 September 2020.
Changes in accounting policies and disclosures:
There were no changes in accounting policies and disclosures during the
period.
Going concern:
The Directors have reviewed current performance and cash flow forecasts, and
are satisfied that the Group's forecasts and projections, taking account of
potential changes in trading performance, show that the Group will be able to
operate within the level of its available facilities for not less than 12
months from the date of approval of this unaudited interim financial
information. The Directors have therefore continued to adopt the going concern
basis in preparing the Group's unaudited interim financial information.
3. Segment information
For management purposes, the Group was organised into two operating divisions
during the 6 months ended 26 September 2021. These divisions, The Real Greek
and Franco Manca, are the basis on which the Group reports its primary segment
information as identified by the chief operating decision maker which is the
Group's board of directors.
For the six months ended 26 September 2021 (Unaudited)
The Real Franco
Greek Manca Other
segment segment unallocated Total
£'000 £'000 £'000 £'000
External revenue 13,712 25,746 - 39,458
Headline EBITDA* 4,247 7,098 (792) 10,553
Depreciation and amortisation (1,451) (3,954) (14) (5,419)
Headline operating profit/(loss) 2,796 3,144 (806) 5,134
Share based payments (14) (20) (7) (41)
Pre-opening costs (40) (122) - (162)
Amortisation of brand - (411) - (411)
Operating profit/(loss) 2,742 2,591 (813) 4,520
Finance income - 1 - 1
Finance costs (394) (836) (197) (1,427)
Segment profit/(loss) before taxation 2,348 1,756 (1,010) 3,094
Income tax expense (677)
Profit for the period 2,417
Assets 41,664 102,124 4,634 148,422
Liabilities (31,179) (65,364) (14,041) (110,584)
Net assets 10,485 36,760 (9,407) 37,838
Capital expenditure excluding right of use assets
601 1,562 2 2,165
For the six months ended 27 September 2020 (Unaudited and restated)
The Real Franco
Greek Manca Other
segment segment unallocated Total
£'000 £'000 £'000 £'000
External revenue 5,005 14,264 190 19,459
Headline EBITDA* 744 3,326 (461) 3,609
Depreciation and amortisation (1,520) (3,989) (14) (5,523)
Headline operating loss (776) (663) (475) (1,914)
Share based payments (28) (43) (4) (75)
Pre-opening costs - (61) - (61)
Amortisation of brand - (411) (411)
Impairment of property, plant and equipment
‑ (461) - (461)
COVID-19 related costs (69) (14) - (83)
Operating loss (873) (1,653) (479) (3,005)
Finance income - - 1 1
Finance costs (347) (781) (195) (1,323)
Segment loss before taxation (1,220) (2,434) (673) (4,327)
Income tax credit 389
Loss for the period from co (3,938)
Assets 34,946 103,782 7,031 145,759
Liabilities (26,762) (61,122) (20,843) (108,727)
Net assets 8,184 42,660 (13,812) 37,032
Capital expenditure excluding right of use assets
23 531 - 554
For the year ended 28 March 2021 (Audited)
The Real Franco
Greek Manca Other
segment segment unallocated Total
£'000 £'000 £'000 £'000
Revenue from external customers 9,007 30,779 499 40,285
Headline EBITDA* 1,578 8,091 (670) 8,999
Depreciation and amortisation (3,190) (7,932) (28) (11,150)
Headline operating (loss)/profit (1,612) 159 (698) (2,151)
Share based payments (19) (64) (8) (91)
Pre-opening costs (31) (181) - (212)
Amortisation of brand - (821) - (821)
Impairment of property plant and equipment
(321) (692) - (1,013)
COVID-19 related costs (57) (27) (399) (483)
Operating loss (2,040) (1,626) (1,105) (4,771)
Finance income 6 4 - 10
Finance costs (694) (1,607) (453) (2,754)
Segment loss before taxation (2,728) (3,229) (1,558) (7,515)
Income tax credit 1,209
Loss for the year from continuing operations
(6,306)
Assets 33,574 97,905 6,450 137,929
Liabilities (25,172) (59,306) (17,994) (102,472)
Net assets 8,402 38,599 (11,554) 35,457
Capital additions to PPE 1,382 6,464 - 7,846
Capital additions excluding right of use assets
456 1,223 - 1,679
In addition to the revenues generated from external customers, The Real Greek
segment also generated internal revenues from another segment to the value of
£155,000 (2020: £100,000).
Head office and PLC costs are not related to the Group's two business segments
and are therefore included in other unallocated and are not part of a business
segment.
The Group's two business segments primarily operate in one geographical area
which is the United Kingdom.
* Headline EBITDA and Adjusted Headline EBTIDA are key measures for the Group
as well as industry analysts as they are indicative of ongoing EBITDA
generation of the businesses. Headline EBITDA is defined as EBITDA before
share based payments and pre-opening costs, where EBITDA is defined as
operating profit before depreciation and amortisation, amortisation of brand,
impairment of property, plant and equipment, impairment of goodwill and
intangible assets, impairment and changes in fair value of investments,
COVID-19 related costs, restructuring costs, costs of reverse acquisition,
cost of acquisition and loss on disposal of property, plant and equipment.
Adjusted Headline EBITDA is defined as Headline EBITDA less rent expense
calculated on an accrual basis which excludes the effect of IFRS16.
Restated
Six months Six months Year
ended ended ended
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
(Note 9)
£'000 £'000 £'000
Profit/(loss) before taxation 3,094 (4,327) (7,515)
Finance costs 1,427 1,323 2,754
Finance income (1) (1) (10)
Operating profit/(loss) 4,520 (3,005) (4,771)
Depreciation and amortisation 5,419 5,523 11,151
Amortisation of brand 411 411 821
Exceptional costs:
- impairment of property, plant and equipment - 461 1,013
- COVID-19 costs - 83 483
EBITDA 10,350 3,473 8,697
Share based payments 41 75 91
Pre-opening costs 162 61 212
Headline EBITDA 10,553 3,609 9,000
Adjustment for rent expenses (3,697) (3,691) (7,106)
Adjusted Headline EBITDA 6,856 (82) 1,894
4. Finance costs
Six months Six months Year
ended ended ended
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Interest expenses on bank loans and overdrafts 201 196 457
Interest on lease liabilities recognised under IFRS16 1,226 1,127 2,297
1,427 1,323 2,754
5. Earnings per share
Restated
Six months Six months Year
ended ended ended
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit/(loss) for the purposes of basic and diluted earnings per share
(continuing operations):
2,417 (3,938) (6,306)
Share based payments 41 75 91
Deferred tax on share based payments (95) (11) (214)
Pre-opening costs 162 61 212
Amortisation of brand 411 411 821
Deferred tax on amortisation of brand (69) (68) (137)
Loss on disposal - - 3
Exceptional costs
- impairment of property, plant and equipment - 461 1,013
- COVID-19 costs (net) - 83 483
Headline profit/(loss) for the period for the purposes of Headline basic and
diluted earnings per share
2,867 (2,926) (4,034)
Six months Six months Year
ended ended ended
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
No. '000 No. '000 No. '000
Weighted average number of ordinary shares in issue for the purposes of basic
earnings per share
619,230 581,175 596,214
Effect of dilutive potential ordinary shares:
- Share options 24,739 - 23,225
Weighted average number of shares for the purpose of diluted earnings per
share
643,969 581,175 619,439
As the Group reported a loss for the period ended 27 September 2020 and period
ended 28 March 2021, under IAS33, the share options in issue during the period
are not considered dilutive and basic and diluted earnings per share are,
therefore, the same.
Six months Six months Year
ended ended ended
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
Earnings per share:
Basic earnings per share 0.4p (0.7p) (1.1p)
Diluted earnings per share 0.4p (0.7p) (1.1p)
Headline basic 0.5p (0.5p) (0.7p)
Headline diluted 0.4p (0.5p) (0.7p)
6. Cash and cash equivalents
As at As at As at
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash at bank and in hand 16,211 15,039 12,270
Bank balances comprise cash held by the Group on a short term basis with
maturity of three months or less. The carrying amount of these assets
approximates their fair value.
7. Borrowings
As at As at As at
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Short term borrowings:
Bank loans 4,850 1,480 3,730
Lease liabilities 7,461 7,429 7,909
12,311 8,909 11,639
Long term borrowings:
Bank loans 6,262 16,810 12,120
Lease liabilities 68,697 62,502 63,078
74,959 79,312 75,198
87,270 88,221 86,837
As at 26 September 2021, the Group's committed Sterling borrowing facilities
comprised a revolving credit facility of £14,250,000, expiring within 1 year,
a Coronavirus Large Business Interruption Loan facility ("CLBIL") of
£10,750,000, expiring within 2 years and a bank overdraft facility of
£750,000 repayable on demand, all of which are secured by a mortgage
debenture in favour of HSBC Bank PLC representing fixed or floating charges
over the assets of the Group. As at 26 September 2021, the Group had
£14,600,000 undrawn headroom across its banking facilities.
8. Reconciliation of net cash flows from operating
activities
Six months Six months Year
ended ended ended
26 September 27 September 28 March
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit/(loss) for the period 2,417 (3,938) (6,306)
Adjustments:
Income tax expense/(credit) 677 (389) (1,209)
Profit/ (loss) before tax for the period 3,094 (4,327) (7,515)
Finance income (1) (1) (10)
Finance costs 1,427 1,323 2,754
Operating profit/(loss) for the period 4,520 (3,005) (4,771)
Depreciation and amortisation 5,829 5,934 11,972
Impairment of property, plant and equipment - 461 1,013
Loss on disposal of property, plant and equipment - - 3
Share based payments expense 41 75 91
Operating cash flows before movement in working capital
10,390 3,465 8,308
Increase in inventories (177) (107) (70)
Increase in trade and other receivables (1,527) (3,198) (233)
Increase in trade and other payables 6,956 6,124 1,700
Cash generated from operations 15,642 6,284 9,705
Income taxes paid - - -
Net cash from operating activities 15,642 6,284 9,705
9. Restatement of consolidated statement of
comprehensive income for the six months ended 27 September 2020
Six months Six months
ended ended
27 September 27 September
2020 2020
Unaudited Unaudited
Adjustment Restated
£'000 £'000 £'000
Revenue 19,869 (410) 19,459
Cost of sales (12,854) - (12,854)
Gross profit 7,015 (410) 6,605
Administrative expenses (8,828) (4,467) (13,295)
Other income - 4,776 4,776
Headline operating loss (1,813) (101) (1,914)
Share based payments (75) - (75)
Pre-opening costs (61) - (61)
Amortisation of brand (411) - (411)
Exceptional costs
- impairment of property, plant and equipment (461) - (461)
- COVID-19 related costs (4,550) 4,467 (83)
- COVID-19 grants received against COVID-19 related costs
4,366 (4,366) -
Operating loss (3,005) - (3,005)
Finance income 1 - 1
Finance costs (1,427) - (1,323)
Loss before taxation (4,327) - (4,327)
Income tax income 389 - 389
Loss for the period (3,938) - (3,938)
Earnings per share
Basic (0.7p) - (0.7p)
Diluted (0.7p) - (0.7p)
Headline Basic (0.5p) - (0.5p)
Headline Diluted (0.5p) - (0.5p)
For the six months ended 27 September 2020, the Group has changed the
presentation of COVID-19 grants received and certain related costs in the
unaudited consolidated statement of comprehensive income to bring the
presentation in line with the accounting policies and presentations adopted in
the financial statements for the period ended 28 March 2021
The impact of this change is to increase administrative expenses by
£4,467,000 and other income by £4,776,000 and to decrease Revenue by
£410,000, Exceptional costs - COVID-19 costs by £4,467,000 and Exceptional
costs - COVID-19 grants received against costs by £4,366,000 on the unaudited
consolidated statement of comprehensive income.
This has no impact on net assets, net cash/debt or the Group's loss for the
six months ended 27 September 2020.
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