TIDMIRGP
RNS Number : 3665J
Indian Restaurants Group PLC
29 March 2010
?
INDIAN RESTAURANTS GROUP PLC
(AIM: IRGP)
Final results for the year ended 30 September 2009
Chairman's Statement
I am pleased to report Indian Restaurant Group plc's ("IRGP" or the "Group")
results for the year ended 30 September 2009.
The Group through its Indian restaurants generated revenues of GBP2.47 million
in the year to 30 September 2009 compared to revenues of GBP1.10 million in the
corresponding previous year. It should be noted that whilst the reported revenue
is significantly up year on year the comparative figure only includes revenues
for the group from February 2008 being the acquisition date. It has been a
rather difficult year and in line with the other competitors in the restaurant
sector we have had to increase our promotional activity quite substantially to
stimulate demand against a background of tough trading conditions. In a slowing
economy, the promotional activities have helped us in increasing brand awareness
and also aim to encourage customer repeat visits. The Group made a loss before
tax of GBP0.68 million, compared with a loss before tax of GBP0.42 million in
the previous period. Loss per share for the year amounted to 5.0 pence, compared
with a loss of 3.6 pence per share in the previous year. As at 30 September 2009
the Group had net assets of GBP1.73 million, versus GBP2.79 million for the
previous year. The cash position for the Group at the year-end stood at GBP0.65
million.
As previously reported our 3 Monkeys restaurant based at Herne Hill had been
underperforming. Unfortunately, despite the efforts made by the Group in terms
of additional resources being deployed and refurbishing the restaurant,
unfortunately the underperformance continued. Therefore, we were left with no
choice but to shut it down. 3 Monkeys was operated through a standalone company
called Param Consultancy Limited and this company was put into administration in
July 2009. The Group has incurred a loss on disposal of Param Consultancy
Limited of GBP405,000 and this is reflected in our financial results.
Our new restaurant Mela which is situated in Redhill, Surrey was opened in
December 2008 its business continues to make slow progress but is operating
below capacity. The economic downturn seems to have had a much more adverse
impact on business in the suburbs as opposed to central London. We have made
attempted to counteract this by making changes to the model by incorporating
local tastes in the menu and also offer a takeaway service however these
initiatives have to date had limited success. Management have also been
targeting the corporate market to increase revenues. It is still early days
for Mela but we are closely monitoring the performance of this unit.
Clearly during a period of economic recession and depressed consumer confidence
it is very important that we manage our costs effectively and from an
operational perspective our focus continues to be on efficiency improvements in
the execution of our restaurant activities. Manpower costs are a large part of
our costs we have been focussing on better utilisation of manpower to relect the
fluctuations in our business demand. The weakness of Sterling continues to
impact us adversely through higher costs of the produce which we are finding it
difficult to pass on these costs to our customers through increases in pricing.
Given the difficult market conditions we decided not to expand activities during
the year. In January we announced that each of the issued Existing Ordinary
Shares with a nominal value of 10 pence would be sub-divided into one new
ordinary share of 0.5 pence and one deferred share of 9.5 pence. This split
would enable the company to raise additional equity to expand the business as
and when it becomes appropriate.
Outlook
The new financial year had started somewhat slowly as we were adversely affected
by the unusually cold and snowy weather. Nevertheless we have confidence in our
product and believe as economic conditions stabilise we are well placed to
deliver an improved trading performance.
Haresh Kanabar
Chairman
29 March 2010
+-----------------------------------+-----------------------------------+
| Contacts: | |
+-----------------------------------+-----------------------------------+
| | |
+-----------------------------------+-----------------------------------+
| Indian Restaurant Group plc | www.indianrestaurantsgroup.com |
+-----------------------------------+-----------------------------------+
| Haresh Kanabar, Chairman | +44 (0) 207 432 3278 |
+-----------------------------------+-----------------------------------+
| Amit Pau, Chief Executive | +44 (0) 207 432 3278 |
+-----------------------------------+-----------------------------------+
| | |
+-----------------------------------+-----------------------------------+
| WH Ireland Limited | www.wh-ireland.co.uk |
+-----------------------------------+-----------------------------------+
| Mike Coe / Marc Davies | +44 (0) 117 945 3470 |
+-----------------------------------+-----------------------------------+
consolidated income statement
for the year ended 30 september 2009
+-----------------------------------+------+-----------+-----------+
| | | Year | Year |
| | | ended | ended |
| | | 30 | 30 |
| | | September | September |
+-----------------------------------+------+-----------+-----------+
| |Note | 2009 | 2008 |
+-----------------------------------+------+-----------+-----------+
| | | GBP'000 | GBP'000 |
+-----------------------------------+------+-----------+-----------+
| | | | Restated |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Revenue | | 2,470 | 1,108 |
+-----------------------------------+------+-----------+-----------+
| Cost of sales | | (657) | (200) |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| gross profit | | 1,813 | 908 |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Administrative expenses | | (2,508) | (1,433) |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Operating loss | | (695) | (525) |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Finance income | | 26 | 117 |
+-----------------------------------+------+-----------+-----------+
| Finance costs | | (10) | (12) |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Loss on ordinary activities | | (679) | (420) |
| before tax | | | |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Tax expense | | 26 | - |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Loss for the year from continuing | | (653) | (420) |
| activities | | | |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Discontinued operations | | | |
+-----------------------------------+------+-----------+-----------+
| Loss for the year from | | (405) | (72) |
| discontinued operations | | | |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Loss for the year | | (1,058) | (492) |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| Basic and diluted loss per share | | | |
+-----------------------------------+------+-----------+-----------+
| From continuing operations | 3 | (5.0)p | (3.6)p |
+-----------------------------------+------+-----------+-----------+
| From discontinuing operations | 3 | (3.1)p | (0.6)p |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| | | (8.1)p | (4.2)p |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
| | | | |
+-----------------------------------+------+-----------+-----------+
CONSOLIDATED balance sheet
AS AT 30 sEPTEMBER 2009
+---------------------------------+----+-----------+-----------+
| | | As at | As at |
| | | 30 | 30 |
| | | September | September |
+---------------------------------+----+-----------+-----------+
| | | 2009 | 2008 |
+---------------------------------+----+-----------+-----------+
| | | GBP'000 | GBP'000 |
+---------------------------------+----+-----------+-----------+
| ASSETS | | | |
+---------------------------------+----+-----------+-----------+
| Non-current assets | | | |
+---------------------------------+----+-----------+-----------+
| Goodwill | | 1,473 | 2,137 |
+---------------------------------+----+-----------+-----------+
| Property, plant and equipment | | 357 | 480 |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| | | 1,830 | 2,617 |
+---------------------------------+----+-----------+-----------+
| Current assets | | | |
+---------------------------------+----+-----------+-----------+
| Inventories | | 20 | 26 |
+---------------------------------+----+-----------+-----------+
| Trade and other receivables | | 218 | 318 |
+---------------------------------+----+-----------+-----------+
| Cash and cash equivalents | | 650 | 1,372 |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| | | 888 | 1,716 |
+---------------------------------+----+-----------+-----------+
| LIABILITIES | | | |
+---------------------------------+----+-----------+-----------+
| Current liabilities | | | |
+---------------------------------+----+-----------+-----------+
| Trade and other payables | | (553) | (720) |
+---------------------------------+----+-----------+-----------+
| Financial liabilities - | | (216) | (420) |
| borrowings | | | |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| | | (769) | (1,140) |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| Net current assets | | 119 | 576 |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| Non-current liabilities | | | |
+---------------------------------+----+-----------+-----------+
| Financial liabilities - | | (190) | (407) |
| borrowings | | | |
+---------------------------------+----+-----------+-----------+
| Provisions for other | | (25) | - |
| liabilities and charges | | | |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| | | (215) | (407) |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| NET ASSETS | | 1,734 | 2,786 |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| SHAREHOLDERS' EQUITY | | | |
+---------------------------------+----+-----------+-----------+
| Called up share capital - | | 1,308 | 1,308 |
| equity | | | |
+---------------------------------+----+-----------+-----------+
| Share premium account | | 3,451 | 3,451 |
+---------------------------------+----+-----------+-----------+
| Share based payments reserve | | 139 | 133 |
+---------------------------------+----+-----------+-----------+
| Retained earnings | | (3,164) | (2,106) |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| TOTAL EQUITY | | 1,734 | 2,786 |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
| | | | |
+---------------------------------+----+-----------+-----------+
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 SEPTEMBER 2009
+-----------------------------------+---+-----------+-----------+
| | | Year | Year |
| | | ended | ended |
| | | 30 | 30 |
| | | September | September |
+-----------------------------------+---+-----------+-----------+
| | | 2009 | 2008 |
+-----------------------------------+---+-----------+-----------+
| | | GBP'000 | GBP'000 |
+-----------------------------------+---+-----------+-----------+
| | | | Restated |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| Net cash flow from operating | | (413) | (653) |
| activities | | | |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| Cash flows from investing | | | |
| activities | | | |
+-----------------------------------+---+-----------+-----------+
| Purchase of property, plant and | | (127) | (95) |
| equipment | | | |
+-----------------------------------+---+-----------+-----------+
| Disposal/acquisition of | | 45 | (503) |
| subsidiaries, including overdraft | | | |
+-----------------------------------+---+-----------+-----------+
| Interest received | | 26 | 117 |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| Net cash used in investing | | | |
| activities - continuing | | (56) | (481) |
| operations | | | |
+-----------------------------------+---+-----------+-----------+
| Net cash used in investing | | | |
| activities - discontinued | | - | - |
| operations | | | |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| Net cash used in investing | | (56) | (481) |
| activities | | | |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| Cash flows from financing | | | |
| activities | | | |
+-----------------------------------+---+-----------+-----------+
| Share issue costs | | - | (129) |
+-----------------------------------+---+-----------+-----------+
| Repayment of bank loans and | | (103) | (67) |
| finance leases | | | |
+-----------------------------------+---+-----------+-----------+
| Income tax paid | | - | (22) |
+-----------------------------------+---+-----------+-----------+
| Interest paid | | (10) | (25) |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| Net cash used in financing | | | |
| activities - continuing | | (113) | (243) |
| operations | | | |
+-----------------------------------+---+-----------+-----------+
| Net cash used in financing | | | |
| activities - discontinued | | (31) | - |
| activities | | | |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| Net cash used in financing | | (144) | (243) |
| activities | | | |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| Decrease in cash and cash | | (613) | (1,377) |
| equivalents | | | |
+-----------------------------------+---+-----------+-----------+
| Cash and cash equivalents at | | 1,161 | 2,538 |
| start of year | | | |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| Cash and cash equivalents at end | | 548 | 1,161 |
| of year | | | |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
| | | | |
+-----------------------------------+---+-----------+-----------+
consolidated Statement of changes in equity
for the year ended 30 september 2009
+-------------------------+---------+---------+----------+----------+---------+
| | | | Share | | |
| | Share | | | | |
| | capital | Share | based | Retained | |
| | - | premium | payments | earnings | Total |
| | equity | | reserve | | |
+-------------------------+---------+---------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
| At 1 October 2007 | 948 | 2,991 | 99 | (1,614) | 2,424 |
+-------------------------+---------+---------+----------+----------+---------+
| Shares issued in the | 360 | 589 | - | - | 949 |
| year | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
| Share based payments | - | - | 34 | - | 34 |
+-------------------------+---------+---------+----------+----------+---------+
| Expenses on issue of | - | (129) | - | - | (129) |
| shares | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
| Loss for the year | - | - | - | (492) | (492) |
| attributable to equity | | | | | |
| interests | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
| At 1 October 2008 | 1,308 | 3,451 | 133 | (2,106) | 2,786 |
+-------------------------+---------+---------+----------+----------+---------+
| Share based payments | - | - | 6 | - | 6 |
+-------------------------+---------+---------+----------+----------+---------+
| Loss for the year | - | - | - | (1,058) | (1,058) |
| attributable to equity | | | | | |
| interests | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
| At 30 September 2009 | 1,308 | 3,451 | 139 | (3,164) | 1,734 |
+-------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+---------+---------+----------+----------+---------+
COMPANY
+-------------------------+----------+---------+----------+----------+---------+
| | | | Share | | |
| | Share | | | | |
| | capital- | Share | based | Retained | |
| | equity | premium | payments | earnings | Total |
| | | | reserve | | |
+-------------------------+----------+---------+----------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------+----------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+----------+---------+----------+----------+---------+
| At 1 October 2007 | 948 | 2,991 | 99 | (1,614) | 2,424 |
+-------------------------+----------+---------+----------+----------+---------+
| Shares issued in the | 360 | 589 | - | - | 949 |
| year | | | | | |
+-------------------------+----------+---------+----------+----------+---------+
| Share based payments | - | - | 34 | - | 34 |
+-------------------------+----------+---------+----------+----------+---------+
| Expenses on issue of | - | (129) | - | - | (129) |
| shares | | | | | |
+-------------------------+----------+---------+----------+----------+---------+
| Loss for the year | - | - | - | (326) | (326) |
| attributable to equity | | | | | |
| interests | | | | | |
+-------------------------+----------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+----------+---------+----------+----------+---------+
| At 1 October 2008 | 1,308 | 3,451 | 133 | (1,940) | 2,952 |
+-------------------------+----------+---------+----------+----------+---------+
| Share based payments | - | - | 6 | | 6 |
| | | | | - | |
+-------------------------+----------+---------+----------+----------+---------+
| Loss for the year | - | - | - | (942) | (942) |
| attributable to equity | | | | | |
| interests | | | | | |
+-------------------------+----------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+----------+---------+----------+----------+---------+
| At 30 September 2009 | 1,308 | 3,451 | 139 | (2,882) | 2,016 |
+-------------------------+----------+---------+----------+----------+---------+
| | | | | | |
+-------------------------+----------+---------+----------+----------+---------+
ABBREVIATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2009
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 8-10 New Fetter Lane, London EC4A 1RS.
The consolidated and the company's financial statements for the year ended 30
September 2009 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.
The comparative results for the year ended 30 September 2008 have been restated
to show the impact of discontinued operations.
New Standards and Interpretations
The IASB and IFRIC have issued the following standards and interpretations which
were in issue but not in force at 30 September 2009:
International Accounting standards (IAS/IFRSs)
IFRS 2 Share Based Payments (June 2009)
IFRS 3 Business Combinations (revised 2008)
IFRS 5 Non current assets held for sale and discontinued operations (April
2009)
IFRS 7 Financial Instruments: Disclosures (revised March 2009)
IFRS 8 Operating segments (April 2009)
IAS 1 Presentation of financial statements (April 2009)
IAS 7 Statement of Cash Flows (April 2009)
IAS 16 Property, Plant and Equipment (May 2008)
IAS 17 Leases (April 2009)
IAS 19 Employee Benefits (May 2008)
IAS 20 Government Grants and Disclosure of Government Assistance (May
2008)
IAS 23 Borrowing Costs (May 2008)
IAS 27 Consolidated and Separate Financial Statements (May 2008)
IAS 28 Investments in Associates (May 2008)
IAS 29 Financial Reporting in Hyperinflationary Economies (May 2008)
IAS 31 Interests in Joint Ventures (May 2008)
IAS 32 Financial Instruments: Presentation (2009)
IAS 36 Impairment of Assets (April 2009)
IAS 38 Intangible Assets (April 2009)
IAS 39 Financial Instruments: Recognition and Measurement (April 2009)
IAS 40 Investment Property (May 2008)
The directors anticipate that the adoption of these Standards and
Interpretations in future periods will have no material impact on the financial
statements of the Group when the relevant standards and interpretations come
into effect, except for IAS 1 Presentation of Financial Statements. IAS 1 will
have no quantitative effect but may impact disclosure and format that needs to
be followed. The directors do not anticipate the early adoption of any of the
above standards.
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 basis as,
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 30 September
2009. 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.
Business combinations
The Group adopts the purchase method in accounting for the acquisition of
subsidiaries. On acquisition the cost is measured at the fair value of the
assets given, plus equity instruments issued and liabilities incurred or assumed
at the date of exchange plus any costs directly attributable to the acquisition.
The assets acquired and liabilities and contingent liabilities assumed in a
business combination are measured at their fair value at the date of
acquisition. Any excess of the fair value of the consideration over the fair
value of the identifiable net assets acquired is recorded as goodwill.
Any deficiency of the fair value of the consideration below the fair value of
identifiable net assets acquired is credited to the income statement in the
period of the acquisition.
The results of subsidiary undertakings acquired or disposed of during the year
are included in the consolidated income statement from the effective date of
acquisition or up to the effective date of disposal.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used by
the group. Inter-company transactions and balances between group companies are
eliminated.
Critical accounting estimates and judgments
The preparation of financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of the Group's accounting policies with respect to the carrying
amounts of assets and liabilities at the date of the financial statements, the
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
year. The judgements, estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, including current and expected economic
conditions. Although these judgements, estimates and associated assumptions are
based on management's best knowledge of current events and circumstances, the
actual results may differ. Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are recognised in the year
in which the estimate is revised and in any future years affected.
The judgements, estimates and assumptions which are of most significance to the
Group are detailed below:
Goodwill
The Group tests goodwill for impairment on an annual basis or more frequently if
there are indications that the amount may be impaired. The impairment analysis
for such assets is principally based upon discounted estimated future cash flows
based on value in use calculations. Such an analysis includes an estimation of
the future anticipated results and cash flows, annual growth rates and the
appropriate discount rates.
Valuation of share based payments
The charge for share based payments is calculated in accordance with the
methodology described in note 20. The model requires highly subjective
assumptions to be made including the future volatility of the Company's share
price, expected dividend yield and risk-free interest rates.
Segmental Reporting
A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different
from those of other business segments. A geographical segment is engaged in
providing products or services within a particular economic environment that is
subject to risks and returns that are different from those of segments operating
in other economic environments.
The Group's primary reporting format is by business segment and its secondary
format is by geographical segment.
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value
of the company's share of the net identifiable assets of the acquired subsidiary
at the date of acquisition. Goodwill is included in intangible assets and is
tested annually for impairment or when there is an indication of impairment. Any
impairment is recognised immediately in the income statement and is not
subsequently reversed.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and any impairment losses.
The charge for depreciation is calculated to write down the cost of tangible
fixed assets to their estimated residual values over their expected useful
lives, as follows:
Leasehold premises over the term
of the lease
Plant and machinery 15% reducing
balance
Fixtures and fittings 15%
reducing balance
Motor vehicles 25%
reducing balance
Impairment provisions are made where the carrying value of tangible fixed assets
exceeds the recoverable amount.
Revenue recognition
Revenue represents the fair value of the consideration received or receivable,
net of Value Added Tax, for goods sold and services provided to customers after
deducting discounts. Revenue is recognised when the significant risks and
rewards of ownership are transferred.
Deferred taxation
Deferred taxation is provided in full using the liability method on temporary
differences between the tax bases of assets and liabilities and their carrying
amounts in the consolidated financial statements. Deferred tax is determined
using tax rates that have been enacted or substantially enacted by the balance
sheet date and are expected to apply when the related deferred tax asset is
realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future
taxable profit will be available against which the temporary differences can be
utilised.
Leased assets
Expenditure on operating leases is charged to the income statement on a basis
representative of the benefit derived from the asset, normally on a straight
line basis over the lease period.
Where fixed assets are financed by financing arrangements which give rights
approximating to ownership they are treated as if they had been purchased
outright at their fair value and the corresponding commitments are shown in the
balance sheet as obligations under finance leases and hire purchase contracts.
Depreciation of fixed assets acquired under finance leases and hire purchase
contracts is calculated to write off the attributed cost over the shorter of the
lease or contract term and their estimated useful lives by equal annual
instalments. The excess of the total rentals over the amount capitalised is
treated as interest which is charged to the profit and loss account in
proportion to the amounts outstanding under the lease and hire purchase
contracts.
Share based payments
The Company operates an employee share scheme under which it makes
equity-settled share based payments to certain employees. For share based
payments to employees of the Company, the fair value is determined at the date
of grant using a Black Scholes model, and is expensed on a straight line basis
together with a corresponding increase in equity over the vesting period, based
on the group's estimate of the number of shares that will vest.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with
banks, other short term highly liquid funds with original maturities of three
months or less and bank overdrafts. Bank overdrafts are shown within borrowing
in current liabilities on the balance sheet.
Borrowing costs
All borrowing costs are recognised in the income statement for the period in
which they are incurred.
Investments available for sale
Investments classified as available for sale are initially recorded at fair
value including transaction costs. Quoted investments are held at fair value
and measured either at bid price or latest traded price, depending on convention
of the exchange on which the investment is quoted. Such instruments are
subsequently measured at fair value with gains and losses being recognised
directly in equity until the instrument is disposed of or is determined to be
impaired, at which time the cumulative gain or loss previously recognised in
equity is recycled to the income statement and recognised in profit or loss for
the period. Impairment losses are recognised in the Income Statement when there
is objective evidence of impairment.
Financial instruments
Financial assets and liabilities are recognised in the balance sheet when the
Group becomes party to the contractual provisions of the instrument.
Trade and other receivables
Trade receivables are measured at cost less any provision necessary when there
is objective evidence that the group will not be able to collect all amounts
due.
Trade and other payables
Trade and other payables are not interest bearing and are measured at original
invoice amount.
inventories
Inventories are stated at the lower of cost or net realisable value.
3. Loss per share
+--+--------------------------------------+------------+----------+------------+
| | | 30 | | 30 |
| | | September | | September |
| | | 2009 | | 2008 |
+--+--------------------------------------+------------+----------+------------+
| | | | | |
+--+--------------------------------------+------------+----------+------------+
| | Basic | | | |
+--+--------------------------------------+------------+----------+------------+
| | Loss from continuing activities | (653) | | (420) |
| | (GBP'000) | | | |
+--+--------------------------------------+------------+----------+------------+
| | Loss from discontinuing activities | (405) | | (72) |
| | (GBP'000) | | | |
+--+--------------------------------------+------------+----------+------------+
| | | | | |
+--+--------------------------------------+------------+----------+------------+
| | | (1,058) | | (492) |
+--+--------------------------------------+------------+----------+------------+
| | | | | |
+--+--------------------------------------+------------+----------+------------+
| | Number of shares | 13,079,850 | | 11,591,964 |
+--+--------------------------------------+------------+----------+------------+
| | | | | |
+--+--------------------------------------+------------+----------+------------+
| | Basic loss per share (p) | | | |
+--+--------------------------------------+------------+----------+------------+
| | From continuing operations | (5.0)p | | (3.6)p |
+--+--------------------------------------+------------+----------+------------+
| | From discontinuing operations | (3.1)p | | (0.6)p |
+--+--------------------------------------+------------+----------+------------+
| | | | | |
+--+--------------------------------------+------------+----------+------------+
| | | (8.1)p | | (4.2)p |
+--+--------------------------------------+------------+----------+------------+
| | | | | |
+--+--------------------------------------+------------+----------+------------+
| | | | | |
+--+--------------------------------------+------------+----------+------------+
There was no dilutive effect from the share options outstanding during the year.
4. Copies of the 2009 Annual Report and Accounts will be posted to
shareholders shortly and will be available on the Company's website at
www.indiaoutsourcingservices.com. Further copies may be obtained by contacting
the Company Secretary at Indian Restaurants Group plc, Queens House, 1 Leicester
Place, London WC2H 7BP.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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