REG - Restaurant Group PLC - Interim Results <Origin Href="QuoteRef">RTN.L</Origin> - Part 2
29/10/2014 16:07
- Part 2: For the preceding part double click ID:nRSc2914Qa
respect of this disposal and the resulting profit on disposal of £6.9m, net of costs, is reported as a non-trading item in the 26 weeks ended 29 June 2014. The net proceeds of the disposal were distributed by way of a special dividend of 3.45 pence per share on 9 July 2014. Following the disposal, TRG's only remaining interest in the residual business is a £4m loan note which has been fully provided against as a result of a detailed review of the trading
performance of the business.
There were no non-trading items in the 26 weeks ended 30 June 2013 or the 52 weeks ended 29 December 2013.
3 Tax
The tax charge has been calculated by reference to the expected effective current and deferred tax rates for the full financial year to 28 December 2014 applied against the profit before tax for the period ended 29 June 2014. The full year effective tax charge on the underlying trading profit is estimated to be 23.8% (2013: 22.7%).
The Finance Act 2012 introduced a reduction in the main rate of corporation tax from April 2014 from 23% to 21% resulting in a blended rate of 21.5% being used to calculate the estimated tax liability for the 52 weeks ended 28 December 2014. A further rate reduction to 20% from April 2015 was substantively enacted on 2 July 2013 therefore the deferred tax provision at the balance sheet date has been calculated at 20%.
4 Earnings per share
26 weeks ended 29 June 2014 26 weeks ended 30 June 2013 52 weeks ended 29 December 2013
Earnings Weighted average number of shares Per-share amount Earnings Weighted average number of shares Per-share amount Earnings Weighted average number of shares Per-share amount
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (audited) (audited) (audited)
£'000 millions pence £'000 millions pence £'000 millions pence
Basic earnings per share 32,569 200.6 16.23 22,360 200.4 11.16 56,190 200.5 28.02
Effect of dilutive options - 0.4 (0.02) - 0.4 (0.02) - 0.4 (0.05)
Diluted earnings per share 32,569 201.0 16.21 22,360 200.8 11.14 56,190 200.9 27.97
Basic earnings per share 32,569 200.6 16.23 22,360 200.4 11.16 56,190 200.5 28.02
Effect of non-trading items (6,892) - (3.43) - - - - - -
Earnings per share - trading business 25,677 200.6 12.80 22,360 200.4 11.16 56,190 200.5 28.02
5 Dividends
Following approval at the Annual General Meeting on 15 May 2014, the final dividend in respect of 2013 of 8.75p per share, totalling £17.4m, was paid to shareholders on 9 July 2014. In addition, a special dividend of 3.45p per share, totalling £7.0m, was paid following the disposal of part of the investment in the Living Ventures Group and the £7m cash proceeds received (see note 2).
The Directors have declared an interim dividend of 6.10p per share which will be paid on 9 October 2014 to ordinary shareholders on the register at close of business on 12 September 2014. In accordance with IAS 10, this will be recognised in the reserves of the Group in the second half of the year.
6 Reconciliation of profit before tax to cash generated from operations
26 weeks ended 29 June 2014 26 weeks ended 30 June 2013 52 weeks ended 29 December 2013
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Profit before tax 40,570 30,014 72,685
Net finance charges 1,152 1,111 2,231
Disposal of investment in associate (6,862) - -
Share-based payments 1,522 2,013 2,947
Depreciation 18,350 15,756 32,875
Decrease / (increase) in stocks 401 804 (213)
Decrease in debtors 2,457 4,385 21
(Decrease) / increase in creditors (7,990) (6,982) 6,292
Cash generated from operations 49,600 47,101 116,838
7 Bank loans
The Group has a committed bank facility of £140m in place until October 2016. During the 26 weeks ended 29 June 2014, the Group reduced its draw down under this facility by £16.0m (26 weeks ended 30 June 2013: reduction of £19.0m, 52 weeks ended 29 December 2013: no change).
8 Share capital
Share capital at 29 June 2014 amounted to £56.4m. The number of shares allotted, called up and fully paid remained at 200,647,143 as no share options were exercised in the 26 weeks to 29 June 2014.
9 Related party transactions
BH Restaurants Limited (formerly Living Ventures Restaurants Group Limited) was a related party to The Restaurant Group plc through the Group's 37.4% holding until 17 April 2014 when the Group disposed of it's interest in the company. In the 26 weeks ended 29 June 2014, the Group received £7.0m cash and £0.1m of loan note interest, all of which was recognised in the income statement (26 weeks ended 30 June 2013: £0.1m of interest all of which was recognised in the income statement, 52 weeks ended 29
December 2013: £0.2m of interest all of which was recognised in the income statement). For more details, see note 2.
10 Contingent liabilities
There were no significant changes in the nature and size of contingent liabilities at 29 June 2014 to those reported in the Annual Report and Accounts for the 52 weeks ended 29 December 2013.
INDEPENDENT REVIEW REPORT TO THE RESTAURANT GROUP PLC
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the 26 weeks ended 29 June
2014 which comprises the consolidated income statement, the consolidated
statement of changes in equity, the consolidated balance sheet, the
consolidated cash flow statement and related notes 1 to 10. We have read the
other information contained in the half-yearly financial report and considered
whether it contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity"
issued by the Auditing Practices Board. Our work has been undertaken so that
we might state to the company those matters we are required to state to it in
an independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our review work, for this report, or for the conclusions
we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in the accounting policies, the annual financial statements of
the Group are prepared in accordance with IFRSs as adopted by the European
Union. The condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with International Accounting
Standard 34, "Interim Financial Reporting," as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the 26 weeks ended 29 June 2014 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditor
London, UK
29 August 2014
This information is provided by RNS
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