Final Results

Hermes Pacific Investments

28/09/2011 07:00

RNS Number : 0405P

Indian Restaurants Group PLC

28 September 2011

 



INDIAN RESTAURANTS GROUP PLC

(AIM: IRGP)

 

Audited final accounts for 18-month period ended 31 March 2011

 

Chairman's Statement

 

I am pleased to report the results of Indian Restaurant Group plc ("IRGP" or the "Group") for the 18 month period ended 31 March 2011.

 

The Group generated revenues of £3.63 million in the 18 month period to 31 March 2011 compared with revenues of £2.47 million in the 12 month period ended 30 September 2009. These results reflect the very tough trading conditions that we had highlighted in our previous annual and interim reports. The restaurant sector is very competitive and, against a background of a slowing economy, we have had to continue with higher promotional activity in the period to retain our customers. The Group made a loss before tax of £1.62 million in the 18 month period compared with a loss before tax of £1.05 million in the previous 12 month period. Loss per share for the 18 month period amounted to 9.6 pence, compared with a loss of 8.1 pence per share in the previous 12 months. As at 31 March 2011, the Group had net assets of £0.26 million, versus £1.73 million as at 30 September 2009.

 

Through its three subsidiaries, the Group operated Indian restaurants. In February 2008, the Group acquired Mela, Chowki and, the now closed, Three Monkeys in Herne Hill.  Subsequently it opened Mela Redhill. The expectation in 2008 was that the Group would be able to grow both organically and through acquisition. However, against a background of the challenging economic conditions that have prevailed since 2008, the Group has not been able to implement this strategy successfully. As stated in the interim results, released on 28 March 2011, we had been actively working with our major shareholders with respect to evaluating alternative options to increase the scale of operations. Despite our best efforts, we have been unable to achieve this objective and therefore indicated that, in consultation with our shareholders we would conduct a review of our operations.

 

The result of this review was that the Board concluded that the interests of the Shareholders would be best served by a realisation of the restaurant business thereby allowing the Group the chance to explore other investment opportunities that may offer Shareholders a better prospect in the current economic environment. The Directors also believed that, given the continuing uncertain economic climate, the interests of the restaurants would be best served not being part of a public company.

 

As a result, after the period end on 15 July 2011 IRGP entered into an agreement with Swadha Limited to sell the entire share capital of its three subsidiaries for £250,000 of which £150,000 was received on completion and the balance is payable in 78 equal instalments. Security has been granted by Swadha to the Company to secure these weekly payments. As part of the agreement the Company agreed to capitalise its intercompany loans to Chandan group amounting to £610,000. This transaction was completed on 1 September 2011. Following on from this disposal the Company no longer has a trade and in accordance with AIM Rule 15 IRGP is now treated as an investing company. 

 

The investing policy of IRGP was approved at the general meeting on 26 August 2011.  The investing policy is to acquire either minority interests or controlling stakes, either through the issue of securities or for cash, in quoted and non -quoted companies operating in the leisure sector.  IRGP has until 26 August 2012 to implement its investing policy.

 

The results for the 18 month period ended 31 March 2011 incorporate the results of its three subsidiaries (Chandan Limited, Rice & Spice Limited and Mela Redhill Limited). As discussed above, these subsidiaries have been sold after the period end in September 2011.

 

Haresh Kanabar

Chairman

28 September 2010

 

Contacts:
Indian Restaurants Group plc
www.indianrestaurantsgroup.com
Haresh Kanabar, Chairman
+44 (0) 116 261 2004
WH Ireland Limited
www.wh-ireland.co.uk
Mike Coe / Marc Davies
+44 (0) 117 945 3470

 

 

Audited Consolidated Income Statement for the period ended 31 March 2011

 

18 months ended
31 March
Year
ended
30 September
Note
2011
2009
£'000
£'000
Continuing operations
Revenue
3
3,598
2,470
Cost of sales
(810)
(657)
gross profit
2,788
1,813
Other operating income
10
-
Administrative expenses
4
(4.417)
(2,508)
Operating loss
(1,619)
(695)
Finance income
7
3
26
Finance costs
7
(1)
(10)
Loss on ordinary activities before tax
(1,617)
(679)
Tax expense
10
-
26
Loss for the year from continuing activities
(1,617)
(653)
Discontinued operations
Loss for the year from discontinued operations
17
-
(405)
Loss for the year
(1,617)
(1,058)
Basic and diluted loss per share
From continuing operations
11
(9.6)p
(5.0)p
From discontinuing operations
11
-
(3.1)p
(9.6)p
(8.1)p


 

 

Audited Consolidated Balance Sheet at 31 March 2011

 

As at
31 March
As at
30 September
2011
2009
Notes
£'000
£'000
ASSETS
Non-current assets
Goodwill
12
475
1,473
Property, plant and equipment
13
292
357
767
1,830
Current assets
Inventories
15
20
20
Trade and other receivables
18
295
218
Cash and cash equivalents
16
142
650
457
888
LIABILITIES
Current liabilities
Trade and other payables
19
(755)
(553)
Financial liabilities - borrowings
20
(127)
(216)
(882)
(769)
Net current (liabilities)/assets
(425)
119
Non-current liabilities
Financial liabilities - borrowings
20
(85)
(190)
Provisions for other liabilities and charges
-
(25)
(85)
(215)
NET ASSETS
257
1,734
SHAREHOLDERS' EQUITY
Issued share capital
21
1,336
1,308
Share premium account
3,563
3,451
Share based payments reserve
139
139
Retained earnings
(4,781)
(3,164)
TOTAL EQUITY
257
1,734


 

Audited Consolidated Statement of Changes in Equity

 

Ordinary share capital
Deferred share capital
Share premium
Share
based payments reserve
Retained earnings
Total
£'000
£'000
£'000
£'000
£'000
£'000
At 1 October 2008
1,308
-
3,451
133
(2,106)
2,786
Share based payments
-
-
-
6
-
6
Total comprehensive loss for the period
-
-
-
-
(1,058)
(1,058)
At 1 October 2009
1,308
-
3,451
139
(3,164)
1,734
Share re-organisation
(1,243)
1,243
-
-
-
-
Share issue
28
112
140
Total comprehensive loss for the period
-
-
-
-
(1,617)
(1,617)
At 31 March 2011
93
1,243
3,563
139
(4,781)
257


 

 

Audited Consolidated Cash Flow Statement for the Period ended 31 March 2011

 

Note
18 months ended
31 March
Year
ended
30 September
2011
2009
£'000
£'000
Net cash flow from operating activities
24
(443)
(413)
Cash flows from investing activities
Purchase of property, plant and equipment
(13)
(127)
Disposal/acquisition of subsidiaries, including overdraft
-
45
Interest received
3
26
Net cash used in investing activities - continuing operations
(10)
(56)
Net cash used in investing activities - discontinued operations
-
-
Net cash used in investing activities
(10)
(56)
Cash flows from financing activities
Proceeds of share issues
140
-
Repayment of bank loans and finance leases
(100)
(103)
Interest paid
(1)
(10)
Net cash from/(used in) financing activities - continuing operations
39
(113)
Net cash used in financing activities - discontinued activities
-
(31)
Net cash from/(used in) financing activities
39
(144)
Decrease in cash and cash equivalents
(414)
(613)
Cash and cash equivalents at start of period
25
548
1,161
Cash and cash equivalents at end of period
25
134
548


 

 

Notes to the Financial Statements for the 18 Month Period ended 31 March 2011

 

1.      Basis of preparation

 

Indian Restaurant Group Plc is a public limited company incorporated and domiciled in United Kingdom. The principal activity of the company is to operate a chain of Indian restaurants.  The company's ordinary shares are traded on the AIM market of the London Stock Exchange plc ("AIM").

 

The registered office of the Company is c/o SRL Accountancy & Payroll Services Ltd, Entrance E2, Leicester Business Centre, 111 Ross Walk, Leicester, LE4 5HH.

 

The consolidated and the company's financial statements for the period ended 31 March 2011 have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union, including International Accounting Standards ('IAS') and interpretations issued by the International Accounting Standards Board.

 

Statutory accounts for the 18 months ended 31 March 2011 will be delivered to shareholders and to the Registrar of Companies and will be available on the Company's website (www.indianrestaurantsgroup.com).  The report of the auditors on the statutory accounts for the 18 months ended 31 March 2011 was unqualified and did not contain a reference to any matters which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under section 498 (2) or section 498 (3) of the Companies Act 2006.

 

 

2.      Accounting policies

 

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Group's financial statements.

 

Going concern

 

The consolidated financial statements have been prepared on a going concern basis as, after making appropriate enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future at the time of approving the financial statements. 

 

Basis of consolidation

 

The consolidated financial statements incorporate the financial statements of the Company and enterprises controlled by the Company made up to 31 March 2011.  The excess of cost of acquisition over the fair values of the Group's share of identifiable net assets acquired is recognised as goodwill.  Any deficiency of the cost of acquisition below the fair value of identifiable net assets acquired is recognised directly in the income statement.

 

 

3.      Segmental information

 

i)      Primary business segment

Segment information is presented in respect of the group's business segments.  The primary business segments are based on the group's reporting structure.

 

Segmental results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. 

       

Restaurants
Head Office
Group
£'000
£'000
£'000
18 month period ended 31 March 2011
Revenue
Sales to external customers
3,598
-
3,598
Results
Operating profit/(loss) before interest and tax
51
(1,670)
(1,619)
Net finance income/(expense)
(1)
3
2
Profit/(loss) before tax
50
(1,667)
(1,617)
Taxation
-
-
-
Profit/(loss) for the year from continuing activities
50
(1,667)
(1,617)
Loss for the year from discontinued operations
-
Loss for the year
(1,617)
Assets and liabilities
Segment assets
1,132
92
1,224
Segment liabilities
(828)
(139)
(967)
Total net assets
(304)
(47)
257
Other segment information
Capital expenditure
Property, plant & equipment
9
4
13
Depreciation
74
4
78


 

 

Restaurants
Head Office
Total Group
£'000
£'000
£'000
Year ended 30 September 2009
Revenue
Sales to external customers
2,470
-
2,470
Result
Operating loss before interest and tax
(244)
(451)
(695)
Net finance (cost) income
(6)
22
16
Loss before tax
(250)
(429)
(679)
Taxation
26
-
26
Loss for the year from continuing operations
(224)
(429)
(653)
Loss for the year from discontinued operations
(405)
Loss for the year
(1,058)
Assets and liabilities
Segment assets
2,069
649
2,718
Segment liabilities
(878)
(106)
(984)
Total net assets
1,191
543
1,734
Other segment information
Capital expenditure
Property, plant & equipment
125
2
127
Depreciation
53
-
53


 

 

4.      Administrative expenses

 

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Depreciation
78
53
Loss on disposal of property, plant and equipment
-
13
Impairment of goodwill
998
-
Staff costs
1,771
1,476
Operating costs
1,074
638
Operating lease rentals
496
328
4,417
2,508


 

 

5.      Auditors' remuneration

 

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Audit fees:
- statutory audit of the Group accounts
6
11
- statutory audit of the company's subsidiaries
9
23
15
34


 

 

6.      Other operating income

 

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Rent received
10
-
10
-


 

 

7.      Finance income and costs

 

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Bank interest receivable
3
26
Interest payable on bank loans
(1)
(10)
2
16


 

 

8.            Directors' emoluments

 

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Emoluments for qualifying services
495
351
Pension contributions
11
11
Share based payments
-
6
506
368
The above includes amounts paid to the highest paid director as follows:-
Emoluments for qualifying services
165
110
Pension contributions
11
11
Share based payments
-
6
176
127


 

No directors exercised share options during the year (2009: nil)

 

 

9.            Employees and staff costs

 

The average number of employees was as follows:

18 months ended
31 March
2011
Year ended
30 September 2009
No.
No.
Management
4
4
Restaurants
67
73
71
77


 

Staff costs for the above employees were as follows:

 

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Wages and salaries
1,771
1,415
Social security costs
63
44
Pension contributions
11
11
Share based payments
-
6
1,845
1,476


 

The pension contributions were made to the personal pension scheme of a director of the company. 

 

 

10.          Taxation

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Current tax charge
-
-
Adjustment in respect of prior years
-
26
Current tax credit
-
26
Factors affecting the tax charge for the period
Loss on ordinary activities before taxation
(1,617)
(1,058)
Loss on ordinary activities before taxation multiplied by standard rate of corporation tax of 28% (2009: 28%)
(453)
(296)
Effects of:
Temporary timing differences
6
6
Non deductible expenses
28
(78)
Depreciation in excess of capital allowances
10
2
Unutilised tax losses
130
179
Impairment of goodwill
279
187
Current tax charge
-
-


 

The Group has approximately £4.0m (2009: £2.6m) of trading losses to carry forward and offset against future trading profits.

 

 

11.          Loss per share

 

18 months ended
31 March
2011
Year ended
30 September 2009
Basic
Loss from continuing activities (£'000)
(1,617)
(653)
Loss from discontinuing activities (£'000)
-
(405)
(1,617)
(1,058)
Number of shares
16,806,004
13,079,850
Basic loss per share (p)
From continuing operations
(9.6)p
(5.0)p
From discontinuing operations
-
(3.1)p
(9.6)p
(8.1)p


 

There was no dilutive effect from the share options outstanding during the year.

 

 

12.          Goodwill

 

Note
2009
£'000
Cost
At 1 October 2009
2,137
At 31 March 2011
2,137
Impairment
At 1 October 2009
(664)
Impairment charge
(998)
At 30 September 2009
(1,662)
Net book value
At 31 March 2011
475
At 30 September 2009
1,473


 

 

13.          Property, plant and equipment

 

GROUP

 

Leasehold buildings
Fixtures
& Fittings
Motor Vehicles
Total
£'000
£'000
£'000
£'000
Cost
At 1 October 2008
311
626
7
944
Additions
81
46
-
127
Disposals
(33)
(320)
-
(353)
At 30 September 2009
359
352
7
718
Additions
-
13
-
13
Disposals
-
-
-
-
At 31 March 2011
359
365
7
731
Accumulated depreciation
At 1 October 2008
159
303
2
464
Charge for the year
20
32
1
53
On disposal
(11)
(145)
-
(156)
At 30 September 2009
168
190
3
361
Charge for the period
29
48
1
78
On disposal
-
-
-
-
At 31 March 2011
197
238
4
439
Net book value
At 31 March 2011
162
127
3
292
At 30 September 2009
191
162
4
357


 

COMPANY

 

Fixtures
& Fittings
£'000
Cost
At 1 October 2008
-
Additions
2
At 30 September 2009
2
Additions
4
At 31 March 2011
6
Accumulated depreciation
At 1 October 2008
-
Charge for the year
-
At 30 September 2009
-
Charge for the period
4
At 31 March 2011
4
Net book value
At 31 March 2011
2
At 31 March 2011
2


 

 

14.          Investments - available for sale

 

COMPANY

Subsidiary undertakings
Total
£'000
£'000
Cost and net book value
At 1 October 2009
880
880
Impairment of investment
(880)
(880)
At 31 March 2011
-
-


 

Details of the investments in which the Company directly or indirectly holds 20% or more of the nominal value of any class of share capital are as follows:

 

Name of company
Proportion held
Direct or indirect holding
Nature of business
Country of registration
Chandan Ltd
100%
Direct
Restaurant
England & Wales
Rice & Spice Ltd
100%
Indirect
Restaurant
England & Wales
Mela Redhill Ltd
100%
Indirect
Restaurant
England & Wales

 

The registered office of each company is:

 

Name of company
Registered office
Chandan Ltd
152-156 Shaftesbury Avenue, London, WC2H 8HL
Rice & Spice Ltd
2 Denman Street, London, W1V 7RH
Mela Redhill Ltd
152-156 Shaftesbury Avenue, London, WC2H 8HL

 

 

15.          Inventories   

                                                                 

Group
Company
2011
2009
2011
2009
£'000
£'000
£'000
£'000
Inventories
20
20
-
-
20
20
-
-


 

 

16.          Cash and cash equivalents   

                                                                 

Group
Company
2011
2009
2011
2009
£'000
£'000
£'000
£'000
Cash at bank and in hand
142
41
88
36
Short-term bank deposit
-
609
-
609
142
650
88
645


 

Cash, cash equivalents and bank overdrafts include the following for the purposes of the cash flow statement:

 

Group
Company
2011
2009
2011
2009
£'000
£'000
£'000
£'000
Cash and cash equivalents
142
650
88
645
Bank overdraft
(8)
(102)
-
-
134
548
88
645


 

 

17.          Discontinued operations

 

Discontinued operations relates to Param Consultancy Limited which went into administration on 30 June 2009.

 

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Revenue
-
299
Expenses
-
(454)
Loss before taxation
-
(155)
Income tax expense
-
-
Loss from discontinued operations for the year
-
(155)
Impairment of goodwill
-
(665)
Gain on disposal of investment
-
415
Loss from discontinued operations
-
(405)


 

Cash flows from discontinued operations included in the consolidated cash flow statements are as follows:

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Net cash flow from operating activities
-
58
Net cash flow from financing activities
-
(31)
Total cash flows
-
27


The net assets of Param Consultancy Limited at the date the company went into administration on 30 June     2009 were as follows:

18 months ended
31 March
2011
Year ended
30 September 2009
£'000
£'000
Property, plant and equipment
-
168
Inventories
-
-
Trade and other receivables
-
29
Bank and cash
-
(45)
Trade and other payables
-
(697)
-
(545)
Consideration
-
-
Gain on disposal
-
(545)


 

 

18.          Trade and other receivables

Group
Company
2011
2009
2011
2009
£'000
£'000
£'000
£'000
Trade receivables
9
5
-
-
Amounts due from subsidiary undertakings
-
-
303
588
Other receivables
84
113
2
3
Prepayments and accrued income
202
100
-
4
295
218
305
595


 

Included in other receivables are amounts of £84,000 (2009: £84,000) due after more than one year.

 

 

19.          Trade and other payables

Group
Company
2011
2009
2011
2009
£'000
£'000
£'000
£'000
Trade payables
378
253
2
4
Amounts due to group undertakings
-
-
-
-
Taxation and social security
133
149
14
27
Other payables
67
35
33
-
Accruals and deferred income
177
116
90
75
755
553
139
106


 

 

20.          Financial liabilities - borrowings

Group
Company
2011
2009
2011
2009
£'000
£'000
£'000
£'000
Current:
Bank overdrafts
8
102
-
-
Bank loans
-
104
-
-
Obligations under finance leases
11
10
-
-
19
216
-
-
Non current:
-
-
Bank loans
193
166
-
-
Obligations under finance leases
-
24
-
-
193
190
-
-


 

The maturity date of the Group's financial liabilities is provided in note 23.

 

The bank loans are secured against the assets of the subsidiary undertaking to which they relate.  Interest on the loans is charged at base rate plus a margin of between 1.75 per cent and 2.5 per cent per annum. 

 

 

21.          Share capital

 

Group and Company
2011
2009
£'000
£'000
Authorised
200,000,000 ordinary shares of 10p each
-
20,000
200,000,000 ordinary shares of 0.5p each
1,000
-
200,000,000 ordinary shares of 9.5p each
19,000
-
20,000
20,000
Issued and fully paid
13,079,850 ordinary shares of 10p each
-
1,308
18,658,844 ordinary shares of 0.5p each
93
-
13,079,850 deferred shares of 9.5p each
1,243
-
1,336
1,308


 

All ordinary shares rank equally in respect of shareholders' rights.

 

At a General Meeting held on 3 February 2010 the shareholders approved a sub-division of the shares, whereby each issued share of 10p was subdivided into one ordinary share of 0.5p and one deferred share of 9.5p.  The restricted rights attaching to the deferred shares are such that the deferred shares have no economic value.

 

On 28 April 2010,  5,578,994 ordinary shares were issued for cash at 2.5p each.

 

 

22.          Share options

 

The following share options have been granted by the Company:

 

Date of grant
Number of ordinary shares under option
Exercise price
Exercise period
08/02/2007
28/01/2009
28/01/2009
847,916
353,020
130,799
45p
45p
26p
5 years
5 years
5 years

 

No options were exercised or lapsed during the period.

 

The fair value of equity settled share options granted is estimated at the date of grant using a Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted.  The following table lists the inputs to the model:

 

Dividend yield                                                                            0%

Weighted average exercise price                                          43p

Weighted average share price                                               11.6p

Expected share price volatility                                                                35%

Risk free interest rate                                                              4.34%

Expected life of options                                                           5 years

 

The expense recognised by the Group for share based payments during the period ended 31 March 2011 was nil (2009: £6,430).

 

 

23.          Financial Instruments

 

Financial risk management

The Group's activities expose the Group to a number of risks including interest rate risk, credit risk and liquidity risk.  The Board manages these risks through a risk management programme. The fair value of the group's assets and liabilities at 31 March 2011 are not materially different from their book value.

 

Interest rate risk

The table below shows the Group's financial assets and liabilities split by those bearing floating rates and those that are non interest bearing.

 

23.    Financial instruments (continued)

 

Financial assets
Floating
rate
Non interest bearing
Total
£'000
£'000
£'000
2011
Cash and cash equivalents
142
-
142
Trade receivables
-
9
9
Other receivables
-
84
84
Prepayments and accrued income
-
202
202
142
295
437
2009
Cash and cash equivalents
650
-
650
Trade receivables
-
5
5
Other receivables
-
113
113
Prepayments and accrued income
-
100
100
650
218
868


 

Financial liabilities
Fixed
rate
Floating
rate
Non interest bearing
Total
£'000
£'000
£'000
£'000
2011
Bank overdraft
-
8
-
8
Bank loans
-
193
-
193
Obligations under finance leases
11
-
-
11
Trade payables
-
-
378
378
Taxation and social security
-
-
133
133
Other payables
-
-
67
67
Accruals and deferred income
-
-
177
177
11
201
755
967
2009
Bank overdraft
-
102
-
102
Bank loans
-
270
-
270
Obligations under finance leases
34
-
-
34
Trade payables
-
-
253
253
Taxation and social security
-
-
149
149
Other payables
-
-
35
35
Accruals and deferred income
-
-
116
116
34
372
553
959


                                                                                    

 

23.    Financial instruments (continued)

 

Credit risk

The Group monitors credit risk on an on-going basis and manages risk by concentrating on trading and placing bank deposits with reliable counterparties. The Group has no significant concentration of credit risk associated with trading counterparties. Credit risk predominantly arises from cash and cash equivalents. 

 

Liquidity risk

The Group seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.  All cash and cash equivalents are immediately accessible.   All of the Group's financial assets are recoverable within the next six months.

 

The maturity dates of the Group's financial liabilities are shown below and are based on the period outstanding at the balance sheet date up to the contractual maturity date.

 

Less than
6 months
Between
6 months and 1 year
Between
1 and 5 years
Total
2011
£'000
£'000
£'000
£'000
Bank overdraft
8
-
-
8
Bank loans
69
39
85
193
Finance leases
5
5
1
11
Trade payables
378
-
-
378
Taxation and social security
133
-
-
133
Other payables
67
-
-
67
Accruals and deferred income
177
-
-
177
837
44
86
967


 

 

Less than
6 months
Between
6 months and 1 year
Between
1 and 5 years
Total
2009
£'000
£'000
£'000
£'000
Bank overdraft
102
-
-
102
Bank loans
52
52
166
270
Finance leases
5
5
24
34
Trade payables
253
-
-
253
Taxation and social security
149
-
-
149
Other payables
35
-
-
35
Accruals and deferred income
116
-
-
116
712
57
190
959


 

 

 

 

 

24.          Cash flows from operating activities

 

         GROUP

Period ended
31 March
Year ended
30 September
2011
2009
£'000
£'000
Loss on ordinary activities before tax - continuing operations
(1,617)
(679)
Finance income
(3)
(26)
Finance costs
1
10
Depreciation of property, plant and equipment
78
53
Loss on disposal of property, plant and equipment
-
13
Impairment of goodwill
998
-
Reverse provision for liabilities and charges
(25)
-
Share based payments
-
6
Operating cash flows before movements in working capital
(568)
(623)
Decrease in inventories
-
6
Decrease in trade and other receivables
(77)
41
Increase/(decrease) in trade and other payables
202
105
Cash flows from operating activities - continuing operations
(443)
(471)
Cash flows from operating activities - discontinued operations
-
58
Cash flows from operating activities
(443)
(413)


 

         COMPANY                                                                  

 

Period ended
31 March
Year ended
30 September
2011
2 009
£'000
£'000
Loss on ordinary activities before tax
(1,900)
(468)
Share based payments
-
6
Finance income
(3)
(23)
Depreciation of property, plant and equipment
4
-
Impairment of investment in subsidiary undertakings
880
-
Impairment of loans to subsidiary undertakings
351
-
Operating cash flows before movements in working capital
(668)
(485)
Decrease in trade and other receivables
5
1
Increase/(decrease) in trade and other payables
33
(166)
Cash flows from operating activities
(630)
(650)


 

25.          Cash and cash equivalents

 

Group
Company
2011
2009
2011
2009
£'000
£'000
£'000
£'000
Cash at bank and in hand
142
650
88
645
Bank overdraft
(8)
(102)
-
134
548
88
645


 

26.          Related party transactions

 

During the period, the Group purchased supplies from Ghandi Imbibe Limited totalling £27,301    (2009: £92,414).  The amount owed to Ghandi Imbibe Limited at 31 March 2011 was £nil (2009: £17,294).  Dinesh Mody, a director of Chandan Limited and Rice & Spice Limited, has a controlling interest in this company.

 

During the period, the Group purchased supplies from Ghandi Oriental Foods Limited totalling £150,095 (2009: £104,762).  The amount owed to Ghandi Oriental Foods Limited at 31 March 2011 was £24,476 (2009: £18,698).  Dinesh Mody, a director of Chandan Limited and Rice & Spice Limited, has a controlling interest in this company.

 

During the period, the Group received marketing services from SHP Marketing Solutions Limited amounting to £7,545 (2009: £30,615). No amounts were outstanding at the period end. The wife of one of the directors is a director of SHP Marketing Solutions Limited.

 

27.          Operating lease commitments

 

The Group has the following annual commitments under operating leases:

Group
2011
2009
£'000
£'000
Land and Buildings:
Expiring in:
one to five years
-
-
over five years
331
275


 

28.          Post balance sheet events

 

On 15 July 2011 the Group entered into an agreement for the sale of its entire interest in Chandan Limited and its subsidiaries, including all the inter company indebtedness, to Swadha Limited for a total consideration of £250,000 payable as to £150,000 in cash and £100,000 in 78 equal weekly instalments.  The sale was completed on 1 September 2011.  Kuldeep Singh who was a director of the Company until 14 April 2011 is a director of Swadha Limited.

 

This information is provided by RNS

The company news service from the London Stock Exchange

 
  END
 

 
FR UBOVRAOAKUAR