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TAST - Tasty News Story

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Sector
Consumer Cyclicals
Size
Micro Cap
Market Cap £3.03m
Enterprise Value £115k
Revenue £44.6m
Position in Universe 1717th / 1809

Preliminary Results

Mon 31st March, 2014 7:00am
RNS Number : 5111D
Tasty PLC
31 March 2014
 



Tasty plc

 

Preliminary results for the 52 weeks ended 29 December 2013

 

Highlights:

 

*        Revenue up 20% to £23,192,000 (2012 - £19,315,000)

 

*        Gross profit up 34% to £2,806,000 (2012 - £2,094,000)

 

*        Statutory pre-tax profit of £1,742,000 (2012 - £1,552,000)

 

*        Five new Wildwood and Wildwood Kitchen restaurants opened in the year

 

*        Further new units opened in early 2014 with a number of other sites in the pipeline

 

 

 

Enquiries

 

Tasty plc                                                               Tel: 020 7637 1166

Jonny Plant, Chief Executive

 

Cenkos Securities                                               Tel: 020 7397 8927

Bobbie Hilliam

Harry Pardoe

 

 

Chairman's Statement


I am pleased to be reporting on the Group's profitable results of £1,442,000  (January 2012 - £1,277,000).  The results are for the 52 week period ended 29 December 2013 and a comparative of the 52 week period ended 30 December 2012.

 

Results


Revenue for the year was up 20% on last year to £23,192,000  (2012 - £19,315,000).  Operating profit before pre-opening costs and non-trading items was up 30% on last year at £2,301,000 (2012 - £1,773,000 ).  Pre-opening costs for the period totalled £259,000 (2012 - £403,000).

The overall statutory pre-tax profit was up by some 12% at £1,742,000 (2012 - £1,552,000).

The Board does not recommend the payment of a dividend at this stage of the Group's development.

 

Openings

Five new Wildwood and Wildwood Kitchen restaurants were opened during the year: Didcot opening in March, South Woodford and Newmarket in April followed by Barnes and Peterborough which opened in July and October respectively.

 

Since the year end a further Wildwood Kitchen has opened in Oakham.  Wildwood Salisbury opened in March 2014 and a number of other sites are already in the pipeline, at various stages of completion and negotiation.

 

Cash flows


Net cash outflow for the period before financing was £1,531,000 (2012 - £1,370,000).  This is largely represented by capital expenditure on the expansion of the business through the opening of the above sites. Cash flows from operating activities increased to £3,238,000 (2012 - £2,398,000). 

During the period the Group's bank facility was increased to £4,000,000 (£1,000,000 term loan and £3,000,000 revolving facility), from £2,500,000.  As at 29 December the £1,000,000 term loan (2012 - £1,000,000) was fully drawn down.   The Company raised £3,461,000 from the issue of new shares in October through a share placing and the exercise of Directors' options.

Cash and cash equivalents held at the end of the period were £3,407,000 (2012 - £1,611,000).

 

Review of the business


The Group delivered a strong performance in 2013, with an improvement in gross margin and a 20%  and 12% increase respectively in revenues and profit. 

The Group continued its expansion during the year, adding 5 new sites to the estate.  The rate of development will accelerate in the medium term, with the Group securing funding through the share placing and increased banking facilities during the period.  Openings in the coming 12 months will expand the UK geographical footprint of the estate.

At the end of the period the Group operated 28 restaurants.  Currently, the Group has 31 restaurants in operation - 6 DimTs, 24 Wildwoods and Wildwood Kitchens and 1 other.


Pre-opening costs and accounting adjustments


Pre-opening costs have been highlighted in the income statement as these costs represent revenue expenses, such as rent, rates and training costs, which are necessarily incurred in the period before a new unit is opened, but which are specific to the opening of that unit and not part of the Group's normal ongoing trading performance.

The Group recognises a number of charges in the accounts which arise under accounting rules which have no transactional cash impact.  These charges include rent free periods (included in pre-opening costs) and share based payments.

 

Staff


As ever, it is our dedicated staff that have contributed significantly throughout the year to the Group's much improved performance, and I would like to take this opportunity of thanking them again for their hard work and effort.

Current Trading


Since the year end trading has been in line with expectations.

 

Keith Lassman

Chairman

31 March 2014

Strategic Report

 

Business review and key performance indicators


Revenue for the 52 week period increased 20% on last year to £23,192,000 (2012 - £19,315,000).  Operating profit before pre-opening costs and non-operating items was £2,301,000 (2012 - £1,773,000).  Pre-opening costs for the period totalled £259,000 (2012 - £403,000). The overall statutory pre-tax profit was £1,742,000 (2012 - £1,552,000).

The Directors utilise a large number of detailed performance indicators which are used to manage the business but, as with most businesses, the focus in the Income Statement at the top level is on sales, margins and overheads compared to budget and the previous year. In the balance sheet the focus is on managing working capital.

The Directors recognise the importance of customer relations and staff are extensively trained in this regard.  Performance is monitored by reference to the results of regular mystery diner visits and staff bonuses are calculated with the results and comments arising from these visits and other customer feedback.

Principal uncertainties and risks

Economic conditions

There have been a number of encouraging signs regarding the UK economic outlook.  However there still remains a high level of uncertainty.  Deterioration in consumer confidence due to future economic conditions could have a detrimental impact on the Group in terms of footfall and sales.  This risk is mitigated by the positioning of the Group's brands, which is within the affordable segment of the casual dining market.  Continued focus on customer relations and targeted and adaptable marketing initiatives help the Group retain and drive sales where footfall declines.

Input cost inflation

The Group's key variable inputs are the cost of food and labour, both of which face inflationary pressures in the medium term.  The Group monitors its food supply chain closely, regularly reviewing food costs and implementing a variety of strategies to mitigate the impact of increases.  Labour cost pressures which are outside of the control of the Group, such as the recently introduced auto enrolment pension costs and minimum wage increases, are suffered by the Group and competitors.  However, labour costs are regularly monitored and on-going initiatives are used to reduce the impact of such pressures.

Strategic risks

The acquisition of suitable and well located quality sites in order to continue the Group's expansion is proving to be demanding.  The Group has a strong and experienced property acquisition team with good relationships with external agents and advisers.

On behalf of the Board.


Jonny Plant
Joint Chief Executive Officer

31 March 2014

 

 

Consolidated Statement of Comprehensive Income for the 52 weeks ended 29 December 2013

 

 

 

 

2013

 

 

2012

 

 

 

 

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

23,192

 

19,315

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

(20,386)

 

(17,221)

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

2,806

 

2,094

 

 

 

 

 

 

 

 

 

 

 

Administrative costs

 

 

(944)

 

(480)

 

 

 

 

 

 

 

 

 

 

 

Operating profit excluding non-trading items and pre-opening costs

 

2,301

 

1,773

 

 

 

Pre-opening costs

 

(259)

 

(403)

 

 

 

Non-trading items

 

(180)

 

244

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1,862

 

1,614

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

14

 

6

 

 

 

Finance expense

 

 

(134)

 

(68)

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

1,742

 

1,552

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(300)

 

(275)

 

 

 

 

 

 

 

 

 

 

 

Profit and total comprehensive income for the period attributable to shareholders

 

1,442

 

1,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

Basic

 

2.95p

 

2.67p

 

 

 

Diluted

 

 

2.90p

 

2.61p

 

 

  

Consolidated statement of changes in equity as at 29 December 2013

 

 

 

Share capital

Share premium

Merger reserve

Retained deficit

Total

 

 

 

£'000

£'000

£'000

£'000

£'000

 

 

 






 

 

Balance at 1 January 2012

4,784

10,350

992

(5,127)

10,999

 

 

 

 

 

 

 

 

 

 

Issue of ordinary shares

6

9

 

 

15

 

 

Total comprehensive income for the period

 

 

 

1,277

1,277

 

 

Share based payments

 

 

 

 

56

56

 

 

 

 

 

 

 

 

 

 

Balance at 30 December 2012

4,790

10,359

992

(3,794)

12,347

 

 

 

 

 

 

 

 

 

 

Issue of ordinary shares

503

2,958

 

 

3,461

 

 

Total comprehensive income for the period

 

 

 

1,442

1,442

 

 

Share based payments

 

 

 

 

195

195

 

 

 

 

 

 

 

 

 

 

Balance at 29 December 2013

5,293

13,317

992

(2,157)

17,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Consolidated balance sheet at 29 December 2013

 

 

 

 

2013

 

 

2012

 

 

 

 

 

£'000

 

£'000

 

 

 

Non-current assets






 

 

Intangible assets


446


448


 

 

Property, plant and equipment


15,384


11,791


 

 

Pre-paid operating lease charges


1,895


1,747


 

 

Deferred tax asset


-


185


 

 

Other non-current assets


381


486


 

 



18,106


14,657


 

 







 

 

Current assets






 

 

Inventories


811


689


 

 

Trade and other receivables


1,350


1,107


 

 

Pre-paid operating lease charges


152


87


 

 

Cash and cash equivalents


3,407


1,611


 

 



5,720


3,494


 

 

 

 






 

 

Total assets


23,826


18,151


 

 







 

 

Current liabilities






 

 

Trade and other payables


(5,009)


(4,523)


 

 

Borrowings


(250)


(1,000)


 

 



(5,259)


(5,523)


 

 







 

 

Non-current liabilities






 

 

Provisions


(65)


(75)


 

 

Lease incentives


(192)


(206)


 

 

Deferred tax liability


(115)


-


 

 

Long-term borrowings


(750)


-


 

 



(1,122)


(281)


 

 

 

 






 

 

Total liabilities


(6,381)


(5,804)


 

 







 

 

Total net assets


17,445


12,347


 

 







 

 

Equity






 

 

Share capital


5,293


4,790


 

 

Share premium


13,317


10,359


 

 

Merger reserve


992


992


 

 

Retained deficit


(2,157)


(3,794)


 

 

Total equity


17,445


12,347


 

 

  

Consolidated cash flow statement for the 52 weeks ended 29 December 2013

 

 

 

 

2013

 

 

2012

 

 

 

 

 

£'000

 

£'000

 

 

 






 

 

 

Operating activities





 

 

 

Cash generated from operations


3,238


2,398

 

 

 

Corporation tax paid


-


-

 

 

 

Net cash inflow from operating activities


3,238


2,398

 

 

 






 

 

 






 

 

 

Investing activities





 

 

 

Purchase of property, plant and equipment


(4,783)


(3,774)

 

 

 

Interest received


14


6

 

 

 

Net cash flows used in investing activities


(4,769)


(3,768)

 

 

 






 

 

 






 

 

 

Financing activities





 

 

 

Net proceeds from issues of ordinary shares


3,461


15

 

 

 

Bank loan receipt


1,500


1,500

 

 

 

Bank loan repayment


(1,500)


(500)

 

 

 

Interest paid


(134)


(42)

 

 

 

Net cash flows used in financing activities


3,327


973

 

 

 






 

 

 






 

 

 

Net increase in cash and cash equivalents


1,796


(397)

 

 

 






 

 

 

Cash and cash equivalents as at 30 December 2012


1,611


2,008

 

 

 






 

 

 






 

 

 

Cash and cash equivalents as at 29 December 2013


3,407


1,611

 

 

 

  


Notes to the preliminary announcement

 

1      Basis of preparation

The financial information in these preliminary results has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). They are presented in pounds sterling, rounded to the nearest thousand. The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Company's 2012 Report and Accounts.

 

The financial information set out in this announcement does not constitute the Company's statutory accounts for the 52 weeks ended 29 December 2013 or the 52 weeks ended 30 December 2012. Statutory accounts for the 52 weeks ended 29 December 2013 and the 52 weeks ended 30 December 2012 have been reported on by the Independent Auditors. The Independent Auditors' Report on the Annual Report and Financial Statement for both periods was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

The Annual Report and Financial Statements for 2012 have been filed with the Registrar of Companies. The statutory accounts for the 52 weeks ended 29 December 2013 will be delivered to the Registrar in due course.

 

2      Revenue

The revenue for the Group is wholly attributable to one operating segment (operating restaurants) and arises solely in one geographical segment (United Kingdom). 

3      Operating profit

 

 

 

 

 

 

2013

 

 

2012

 

 

 

This has been arrived at after charging


 

£'000

 

£'000

 

 

 







 

 

 

Staff costs

 

 

8,115

 

6,954

 

 

 

Share based payments

 

 

195

 

56

 

 

 

Operating lease rentals

 

 

2,630

 

2,304

 

 

 

Amortisation of intangible assets

 

 

2

 

2

 

 

 

Depreciation

 

 

1,122

 

830

 

 

 

Loss on disposal

 

 

83

 

-

 

 

 

Auditor remuneration:

 

 

 

 

 

 

 

 

Audit fee          - Parent Company

 

 

8

 

8

 

 

 

                           - Group financial statements

 

 

8

 

10

 

 

 

                           - Subsidiary undertaking

 

 

17

 

20

 

 

 

Other services - Taxation

 

 

6

 

7

 

 

 

                           - Other

 

 

24

 

10

 

 

 

4      Finance expense

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

 

 





 

 

 

Loan interest payable

 

 

134

 

68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

134

 

68

 

 

 

5      Employees

 

 

 

 

 

 

2013

 

 

2012

 

 

 

Staff costs (including directors) consist of


 

£'000

 

£'000

 

 

 







 

 

 

Wages and salaries

 

 

7,520

 

6,426

 

 

 

Social security costs

 

 

564

 

501

 

 

 

Other pension costs

 

 

31

 

27

 

 

 

Equity settled share based payment expense

 

 

195

 

56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,310

 

7,010

 

 

 

The average number of persons, including executive directors, employed by the Group during the period was 506, of which 498 were restaurant staff and 8 were administration staff, (2012 - 453 of which 444 were restaurant staff and 9 were administration staff).  No staff are employed by the Company.

Of the total staff costs £7,566,000 was classified as cost of sales (2012 - £6,396,000) and £744,000 as administrative expenses (2012 - £614,000). 

6      Income tax expense

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

 

 





 

 

 

UK Corporation tax

 

 

 

 

 

 

 

 

Current tax on profits for the period

 

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Total current tax

 

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax

 

 

 

 

 

 

 

 

Utilisation of tax losses

 

 

(173)

 

(120)

 

 

 

Origination and reversal of temporary differences

 

 

(127)

 

(110)

 

 

 

Impact of change in future rate of taxation

 

 

-

 

(45)

 

 

 

 

 

 

 

 

 

 

 

 

Total deferred tax

 

 

(300)

 

(275)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income tax charge

 

 

(300)

 

(275)

 

 

 

The tax charge for the period is higher than the standard rate of corporation tax in the UK.  The differences are explained below:

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

 

 





 

 

 

Profit before tax

 

 

1,742

 

1,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax on profit at the ordinary rate of corporation

 

 

 

 

 

 

 

 

tax in UK of 23.25% (2012 - 24.5%)

 

 

405

 

380

 

 

 

 

 

 

 

 

 

 

 

 

Effects of

 

 

 

 

 

 

 

 

Expenses not deductible for tax

 

 

8

 

47

 

 

 

Depreciation on ineligible fixed assets

 

 

63

 

-

 

 

 

Utilisation of tax losses

 

 

(176)

 

(152)

 

 

 

 

 

 

 

 

 

 

 

 

Total tax charge

 

 

300

 

275

 

 

 

7      Earnings per share

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

pence

 

pence

 

 

 

 

 





 

 

 

Basic earnings per ordinary share

 

 

2.95

 

2.67

 

 

 

Diluted earnings per ordinary share

 

 

2.90

 

2.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 

 

 

Number '000

 

Number '000

 

 


Earnings per share have been calculated using the numbers shown below:

 








 

Weighted average ordinary shares (basic)

 

 

48,896

 

47,841

 

 

 

Weighted average ordinary shares (diluted)

 

 

49,734

 

48,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 

 

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the financial period

 

 

1,442

 

1,277

 

 

 

95,000 share options have been excluded when calculating the diluted EPS as they were anti-dilutive (2012 - 2,015,000).

  

8      Dividend

No final dividend has been proposed by the Directors (2012 - nil).

 

9      Intangibles

 

 

 

 

 

 

Trademarks

 

Goodwill

 

Total

 

 

 

 


 

£'000

£'000

£'000

 

 

 







 

 

 

At 1 January 2012



9

441

450

 

 

 




 

 

 

 

 

 

Amortisation of trademarks



(2)

-

(2)

 

 

 




 

 

 

 

 

 

At 30 December 2012



7

441

448

 

 

 




 

 

 

 

 

 

Amortisation of trademarks



(2)

-

(2)

 

 

 




 

 

 

 

 

 

At 29 December 2013



5

441

446

 

 



The recoverable amount of goodwill has been determined on a value in use basis.  This has been based on the performance of the units since they were acquired and management's forecasts, which assume the sites will perform at least as well as the market generally.  The forecast cash flows are discounted at a rate of 10%.

 

10   Property, plant and equipment

 

 

 

 

 

Leasehold improvements

 

Property plant and equipment

 

Restaurants under construction

 

Total

 

 

 

Group


£'000

£'000

£'000

£'000

 

 

 







 

 

 

Cost






 

 

 

At 1 January 2012


9,002

3,012

487

12,501

 

 

 

Additions


2,389

1,342

44

3,775

 

 

 

Transfers


386

9

(395)

-

 

 

 



 

 

 

 

 

 

 

At 30 December 2012


11,777

4,363

136

16,276

 

 

 



 

 

 

 

 

 

 

Additions


3,299

1,161

323

4,783

 

 

 

Disposals


(37)

(142)

(25)

(204)

 

 

 

Transfers


89

47

(136)

-

 

 

 



 

 

 

 

 

 

 

At 29 December 2013


15,128

5,429

298

20,855

 

 

 



 

 

 

 

 

 

 



 

 

 

 

 

 

 

Depreciation


 

 

 

 

 

 

 

At 1 January 2012


2,810

1,145

-

3,955

 

 

 

Provided for the period


392

438

-

830

 

 

 

Impairment reversal


(300)

-

-

(300)

 

 

 



 

 

 

 

 

 

 

At 30 December 2012


2,902

1,583

-

4,485

 

 

 



 

 

 

 

 

 

 

Provided for the period


618

504

-

1,122

 

 

 

Disposals


(37)

(84)

-

(121)

 

 

 

Impairment reversal


(15)

-

-

(15)

 

 

 



 

 

 

 

 

 

 

At 29 December 2013


3,468

2,003

-

5,471

 

 

 



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

 

 

 

 

 

Net book value


 

 

 

 

 

 

 

At 29 December 2013


11,660

3,426

298

15,384

 

 

 



 

 

 

 

 

 

 

At 30 December 2012


8,875

2,780

136

11,791

 

 

 

11   Prepaid operating leases

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

 

 





 

 

 

Held within current assets

 

 

152

 

87

 

 

 

Held within non-current assets

 

 

1,895

 

1,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,047

 

1,834

 

 


Prepaid operating leases represent lease premiums paid on the acquisition of sites, amortised evenly over the lease term.

 

12   Inventories

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

 

 





 

 

 

Raw materials and consumables

 

 

389

 

342

 

 

 

Crockery and utensils

 

 

422

 

347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

811

 

689

 

 


In the Directors' opinion there is no material difference between the replacement cost of stocks and the amounts stated above.  Inventory purchased and recognised as an expense in the period is £5,242,000 (2012 - £4,809,000).

 

13   Trade and other receivables

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

Group

 

 

 

 

 

 

 

 

Trade receivables

 

 

170

 

226

 

 

 

Prepayments and other receivables

 

 

1,561

 

1,367

 

 

 

 

 

 

 

 

 

 

 

 

Total trade and other receivables

 

 

1,731

 

1,593

 

 

 

 

 

 

 

 

 

 

 

 

Less non-current portion

 

 

(381)

 

(486)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,350

 

1,107

 

 

 

 

 





 

 

 

 

 

 

 

 

 

 

 

 

14   Trade and other payables

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

 

 





 

 

 

Trade payables

 

 

2,178

 

2,017

 

 

 

Taxation and social security

 

 

724

 

882

 

 

 

Accruals and deferred income

 

 

1,845

 

1,285

 

 

 

Other payables

 

 

262

 

339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,009

 

4,523

 

 

 

15   Provisions

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

 

 





 

 

 

At 30 December 2012

 

 

75

 

85

 

 

 

Utilisation in period

 

 

(10)

 

(10)

 

 

 

 

 

 

 

 

 

 

 

 

 At 29 December 2013

 

 

65

 

75

 

 

 

16   Deferred tax

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

 

 





 

 

 

At 30 December 2012

 

 

185

 

460

 

 

 

Charge to the Statement of comprehensive income

 

 

(300)

 

(275)

 

 

 

 

 

 

(115)

 

185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accelerated capital allowances

 

 

(551)

 

(427)

 

 

 

Tax losses carried forward

 

 

436

 

612

 

 

 

 At 29 December 2013

 

 

(115)

 

185

 

 



17   Borrowings

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

Current

 

 

 

 

 

 

 

 

Secured bank borrowings

 

 

250

 

1,000

 

 

 

 

 

 

250

 

1,000

 

 

 

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

 

Secured bank borrowings

 

 

750

 

-

 

 

 

 

 

 

750

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,000

 

1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maturity of secured bank borrowings

 

 

 

 

 

 

 

 

Due within one year

 

 

250

 

1,000

 

 

 

Due In more than one year but less than two years

 

 

500

 

-

 

 

 

Due In more than two years but less than five years

 

 

250

 

-

 

 

 

 

 

 

1,000

 

1,000

 

 


Bank borrowings comprise of a term loan.  The Group has an additional committed facility of £3,000,000 of which £nil was drawn down at the balance sheet date.  There were no instances of default, including covenant terms, in either the current or prior period. 

 

18   Share capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Number

 

£'000

 

 

 

Issued, called up and fully paid:

 

 

 

 

 

 

 

 

At 1 January 2012

 

 

47,836,614

 

4,784

 

 

 

Exercise of share options

 

 

66,335

 

6

 

 

 

 

 

 

 

 

 

 

 

 

At 30 December 2012

 

 

47,902,949

 

4,790

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of share options

 

 

2,514,152

 

252

 

 

 

Share placement

 

 

2,510,000

 

251

 

 

 

 

 

 

 

 

 

 

 

 

 At 29 December 2013

 

 

52,927,101

 

5,293

 

 


 

19   Reserves

Share capital comprises of the nominal value of the issued shares.

Share premium reserve is the amount subscribed in excess of the nominal value of shares net of issue costs (2013 - £175,000). 

Cumulative gains and losses recognised in the income statement are shown in the Retained deficit reserves, together with other items taken direct to equity.

The Merger reserve is the difference between the nominal value of shares issued and the nominal value of shares acquired on merger. 

 

20   Capital commitments

At the balance sheet date the Group and the Company had no Capital Commitments which were contracted but not provided for (2012 - £nil). Capital commitments relate to committed expenditure in respect of restaurants under construction.

 

21   Operating lease commitments

The total future value of minimum lease payments under non-cancellable operating leases are shown below.  The receipts are from sub-tenants on contractual sub-leases, the net position represents the cash liability of the Group.

 

 

 

 

 

 

2013

 

 

2012

 

 

 

 


 

£'000

 

£'000

 

 

 

 

 





 

 

 

Within one year: payments

 


2,756

 

2,659

 

 

 

Within one year: receipts

 

 

(230)

 

(330)

 

 

 

 

 

 

2,526

 

2,329

 

 

 

 






 

 

 

Within two to five years: payments

 


10,953

 

10,603

 

 

 

Within two to five years: receipts

 

 

(920)

 

(1,318)

 

 

 

 

 

 

10,033

 

9,285

 

 

 

 






 

 

 

Over five years: payments

 


31,500

 

30,941

 

 

 

Over five years: receipts

 


(4,086)

 

(3,850)

 

 

 

 

 

 

27,414

 

27,091

 

 

 

 






 

 

 

 

 

 

39,973

 

38,705

 

 

 

22   Pensions

The Group, last year, made contributions of £nil to the personal pension plan of any Director. The total amount paid during the period was £nil.  During the year the Group made contributions to employee pensions of £31,000 (2012 - £27,000).

 

23   Share based payments

 

 

 

 

 

Weighted average exercise price

 

Number

 

 

 

 


 

(pence)

 

'000

 

 

 







 

 

 

At 1 January 2012



44.2

 

4,174

 

 

 




 

 

 

 

 

 

Exercised



23.1

 

66

 

 

 




 

 

 

 

 

 

At 30 December 2012



44.2

 

4,108

 

 

 




 

 

 

 

 

 

Exercised



44.6

 

2,514

 

 

 




 

 

 

 

 

 

At 29 December 2013



41.0

 

1,594

 

 

 







 

 

The exercise price of options outstanding at the end of the period ranged between 18p and 87.5p (2012 - 18p and 87.5p) and their weighted average remaining contractual life was 4 years (2012 - 6 years).

Of the total number of options outstanding at the end of period 1,593,992 (2012 - 2,341,605) had vested and were exercisable at the end of the period.

The market price of the Company's ordinary shares as at 29 December 2013 was 125p and the range during the financial year was from 50p to 125p.

In the current period, 2,514,152 (2012 - 66,335) options were exercised. The weighted average share price at the date of exercise was 100p (2012 - 57.5p).

No options have been granted during the period (2012 - nil).

During the period the Remuneration Committee committed to granting a number of options or option equivalent incentive schemes to the Directors.  The exercise price of the options granted will be £1.00 with the options being exercisable subject to the share price of the Company having a closing mid-market value of £1.50 for fifteen consecutive trading days.

 

 

 

 

 

 

 

 

 

 

J Plant

 

 

 

 

500,000

 

 

 

S Kaye

 

 

 

 

500,000

 

 

 

A Kaye

 

 

 

 

500,000

 

 

 

 

 

 

 

 

 

 

 

 

New options commitment 

 

 

 

 

1,500,000

 

 

 

24   Financial instruments

In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments.  This note describes the Group's objectives, policies and processes for managing those risks and the methods used to measure them.  Further quantitative information in respect of these risks is presented throughout these financial statements. 

The Group is exposed through its operations to the following financial risks: 

·     Credit risk

·     Interest rate risk

·     Liquidity risk

 
The Group does not have any material exposure to currency risk or other market price risk. 

There have been no substantive changes in the Group's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note. 

Principal financial instruments 

The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:- 

·     loans and borrowings

·     trade receivables

·     cash and cash equivalents

·     trade and other payables 

 

General objectives, policies and processes 

The Board has overall responsibility for the determination of the Group's risk management objectives and policies. 

The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group's competitiveness and flexibility.  Further details regarding these policies are set out below 

Credit risk 

Credit risk is the risk of the financial loss to the Group if a customer or a counterparty to a financial instrument fails to meet its contractual obligations.  The Group is mainly exposed to credit risk from rebates from suppliers. 

The Group's principal financial assets are cash and trade receivables.  There is minimal credit risk associated with the Group's cash balances.  Cash balances are all held with recognised financial institutions.  Trade receivables arise in respect of rebates from a major supplier and therefore they are largely offset by trade payables.  As such the net amounts receivable form an insignificant part of the Group's business model and therefore the credit risk associated with them is also insignificant to the Group as a whole.

Liquidity risk 

Liquidity risk arises from the Group's management of working capital.  It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. 

The Group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. 

The Group seeks to manage its financial risk to ensure that sufficient liquidity is available to meet foreseeable needs both in the short and long term.  The Board consider detailed cashflow forecasts together with future obligations from capital projects in progress and the resulting impact on its cash balances. 

Interest rate risk 

The Group seeks to minimise interest costs by regularly reviewing cash balances. 

Interest rate risk arises from the Group's use of interest bearing financial instruments.  This is the risk that the future cash flows of the financial instrument will fluctuate because of changes in the interest rates. 

The Group is exposed to cash flow interest rate risk from long term borrowings at variable rate.  The Group does not seek to fix interest rates on these borrowings because the Board considers the exposure to the interest rate risk to be acceptable.  

Surplus funds are invested in interest bearing, instant access bank accounts.  The Group also holds short term deposit accounts in relation to tenant deposits received on sublet sites.

Loans and borrowings 

During the year the Group extend the loan facility with Barclays Bank Plc.  Under the terms of the facility the Group may borrow up to a maximum of £3.0m on a flexible loan terms and £1.0m on a 3 year fixed term.  Interest on this facility is charged at 2.95% above LIBOR plus a variable charge for mandatory associated costs of the lender for all amounts drawn down, with a 1.48% charge on any amounts of the facility that is not drawn down.  

At 29 December 2013 if the Bank of England base rate had been 1% higher / lower with all other variables held constant this would not have resulted in any significant variance in the profit or loss or net assets of the Group. 

The bank loans are secured by a legal charge over the issued share capital of the Group companies, a legal charge over all the Group's trading sites, and a cross guarantee between Group companies. 

Capital disclosures 

The Group considers its capital to comprise the ordinary share capital, share premium and retained earnings. 

The Group's objective when maintaining capital is to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders. 

The Group manages its capital structure and makes adjustments to it in the light of strategic plans.  In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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