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GRM Gourmet Hldgs

17.00
0.00 (0.00%)
14 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Gourmet Hldgs LSE:GRM London Ordinary Share GB00B0NYFG99 ORD 4P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 17.00 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Preliminary results

14/09/2007 8:45am

UK Regulatory


RNS Number:8599D
Gourmet Holdings PLC
14 September 2007






Gourmet Holdings plc
Preliminary results for the 52 weeks ended 24 June 2007



Gourmet Holdings plc, the owner and operator of Richoux restaurants today
announces its 2007 preliminary results.


                                                               52 weeks ended    52 weeks ended
                                                                 24 June 2007      25 June 2006
                                                                                     (restated)

                                                                           #m                #m

Turnover                                                                10.02             10.24
Gross profit                                                             1.22              0.89
Operating profit/(loss) before trading exceptional items                 0.47            (0.05)
Loss before taxation                                                   (2.85)            (1.50)



Key points:



Strategic review

  * New board focussed on driving Richoux brand.
  * Aim to acquire/develop one or more complementary concepts in cafe/
    patisserie space.
  * Focus on operational improvements to current business.



Results

  * Increased turnover and operating profit at Richoux.
  * Disposal of all pub restaurants completed.
  * Cash of #5.53 million at year end.



Neil Blows, Chairman of Gourmet Holdings plc said:



"As a result of the business restructuring undertaken by the previous board, we
are in a strong position to enhance the Richoux brand and acquire/develop one or
more complementary cafe/patisserie concepts in order to drive the business
forward."





Enquiries

Gourmet Holdings plc
Neil Blows, Chairman                                (020) 7491 3791

College Hill
Matthew Smallwood                                   (020) 7457 2020
Justine Warren

Arbuthnot Securities                                (020) 7012 2000

Nick Marsh
Paul Vanstone




Introduction

Following disappointing trade at the Bel and the Dragon sites and the Company's
other non-branded pub restaurants, the previous board of Gourmet took the
decision to dispose of these sites. This was in line with its strategic aim to
simplify the business and focus upon the existing Richoux offering, which
continues to deliver a strong, cash generative performance.



The new board believes that further refinement to the existing Richoux brand
along with the acquisition/development of one or more cafe/patisserie concepts
in central London will create shareholder value and will be the principal focus
of Gourmet.



The new board intends to further streamline operational costs including
establishing a central kitchen, which will produce cost effective synergies for
Richoux and any new concept we introduce.



Results

Group turnover from our operations for the 52 week period ended 24 June 2007
decreased to #10.02 million (2006: #10.24 million) reflecting the disposals
during the period. Gross profit was #1.22 million (2006: #0.89 million).
Administrative expenses (before amortisation and trading exceptional items) of
#0.69 million (2006 restated: #0.84 million) were in line with expectations
following the Board's decision to reduce its administrative cost base.



The trading exceptional items of #0.71 million are; #0.30 million in respect of
an FRS12 onerous lease provision in respect of the Highwayman, #0.27 million
impairment provision in respect of the tangible and intangible fixed assets of
the Highwayman, which has now been disposed, #0.11 million of bad debts written
off in respect of the non-completion of a business transfer, and #0.03 million
of professional and other reorganisation costs.



The net loss on disposal of fixed assets of #0.22 million are; #0.33 million
loss on the disposal of the Group's two unbranded pub restaurants in December
2006, #0.15 million profit on the disposal of the rotunda at one of the Bel and
the Dragon pub restaurants, and #0.04 million loss on the disposal of other
tangible fixed assets.



The loss on disposal of discontinued operations of #2.10 million arose on the
disposal of BDC Holdings, which holds the Bel and the Dragon chain of four
restaurants to Ultimate Leisure PLC on 15 June 2007.



The Directors are not recommending the payment of a dividend.





Operations



Richoux

Richoux had a successful year, and for the second year running has recorded an
increase in profit at the restaurant operating level. A committed and stable
management team continue to operate the Richoux restaurants.



As announced in our interim statement in March 2007, a new franchise has been
signed to develop a Richoux restaurant in Egypt and we have received net other
operating income of #0.06 million in respect of this.



We aim to further enhance the Richoux brand through menu development and
concentrating on our core operational skills to improve performance.

Pub restaurants

In September last year, the Board announced that, following a strategic review,
it had put in place a sale process for the Group's entire pub restaurant
operation. I am pleased to announce that this process has now been completed, on
22 December 2006 with the disposal of the two unbranded pub restaurants the
Talkhouse in Stanton St John, near Oxford and the Five Bells in Stanbridge,
Hertfordshire. Then on 15 June 2007 the disposal of the four Bel and the Dragon
pub restaurants, and then on 10 September 2007 the disposal of the final pub
restaurant the Highwayman in Checkendon, Oxfordshire.





Outlook

Following the sale of all the Group's pub restaurants and the successful
restructuring of the Company, our principal priorities are to concentrate on the
core business of Richoux restaurants, acquire/develop one or more complementary
cafe/patisserie concepts and roll out units across central London. There is also
the intention to appoint a Chief Operating Officer in due course.



I would like to take this opportunity of thanking the outgoing board for their
efforts in successfully restructuring the business and for the service they gave
to the Company.



I am delighted that Richard Scott is staying on with us on a consultancy basis
until the end of December 2007.




Neil Blows
Chairman




Gourmet Holdings plc
Consolidated profit and loss account
for the 52 week period ended 24 June 2007


                                                                52 week                               52 week
                                                           period ended                          period ended
                                                                24 June                               25 June
                                                                   2007                                  2006

                                                                                                   (restated)
                            Notes  Continuing  Discontinued       Total  Continuing  Discontinued       Total
                                        #'000         #'000       #'000       #'000         #'000       #'000

Turnover                                4,739         5,284      10,023       4,467         5,773      10,240
Cost of sales:
Excluding pre-opening                 (4,006)       (4,768)     (8,774)     (3,908)       (5,440)     (9,348)
costs
Pre-opening costs           4            (28)             -        (28)           -             -           -
                                      (4,034)       (4,768)     (8,802)     (3,908)       (5,440)     (9,348)
Gross profit                              705           516       1,221         559           333         892
Administrative expenses:
Administrative expenses                 (693)             -       (693)       (842)             -       (842)
Amortisation                             (19)          (98)       (117)        (19)          (78)        (97)
                                        (712)          (98)       (810)       (861)          (78)       (939)
Other operating income      5              58             -          58           -             -           -
Operating profit/(loss)                    51           418         469       (302)           255        (47)
before trading
exceptional items
Trading exceptional         6            (25)         (688)       (713)       (339)         (830)     (1,169)
items
Operating profit/(loss)                    26         (270)       (244)       (641)         (575)     (1,216)
after trading
exceptional items
Net loss on disposal of                  (31)         (186)       (217)           -          (15)        (15)
fixed assets
Loss on sale of             9               -       (2,095)     (2,095)           -             -           -
discontinued operation
Loss on ordinary                          (5)       (2,551)     (2,556)       (641)         (590)     (1,231)
activities before
interest
Interest receivable                                                 110                                    73
Interest payable and                                              (406)                                 (338)
similar charges
Loss on ordinary                                                (2,852)                               (1,496)
activities before
taxation
Taxation on loss on                                                (11)                                     -
ordinary activities
Loss for the financial                                          (2,863)                               (1,496)
period
Loss per share              7                                   (8.4)p                                (5.4)p

                           
Diluted loss per share      7                                    (8.4)p                                (5.4)p

                            





There are no differences between the historic cost profit and that recorded in
the profit and loss account (2006: #nil).



The consolidated profit and loss account for the 52 week period ended 25 June
2006 has been restated to reflect the adoption of FRS20 "Share based payments".




Gourmet Holdings plc
Consolidated balance sheet
at 24 June 2007



                                                                        24 June 2007              25 June 2006
                                                                #'000          #'000        #'000        #'000

Fixed assets

Intangible assets                                                                251                     2,101
Tangible assets                                                                1,991                    11,820
                                                                               2,242                    13,921
Current assets

Stocks                                                             69                         210
Debtors                                                           482                         601
Cash at bank and in hand                                        5,534                       3,010
                                                                6,085                       3,821
Creditors: amounts falling due within one year                (2,068)                     (2,842)
Net current assets                                                             4,017                       979

Total assets less current liabilities                                          6,259                    14,900
Creditors: amounts falling due after more than
one year
                                                                                   -                   (5,789)
Net assets                                                                     6,259                     9,111

Capital and reserves

Equity share capital                                                           1,370                     1,368
Share premium account                                                          8,769                     8,763
Warrants reserve                                                                  50                        50
Profit and loss account                                                      (3,930)                   (1,070)
Shareholders' funds                                                            6,259                     9,111






Gourmet Holdings plc
Consolidated cash flow statement
for the 52 week period ended 24 June 2007


                                                            Note                52 week         52 week
                                                                                 period          period
                                                                                  ended           ended
                                                                                24 June         25 June
                                                                                   2007            2006
                                                                                  #'000           #'000
Cash inflow/(outflow) from operating activities                 11                  826            (91)
Returns on investments and servicing of finance                                   (342)           (289)
Taxation                                                                           (11)               -
Capital expenditure and financial investment                                       (52)           (517)
Acquisitions and disposals                                                        8,183         (2,874)
Cash inflow/(outflow) before financing                                            8,604         (3,771)
Financing                                                                       (6,080)           5,656
Increase in cash in the period                                                    2,524           1,885



Reconciliation of net cash flow to movement in net funds
For the 52 week period ended 24 June 2007


                                                                                  52 week       52 week
                                                                                   period        period
                                                                                    ended         ended
                                                                                  24 June       25 June
                                                                                     2007          2006
                                                                                    #'000         #'000
Increase in cash in the period                                                      2,524         1,885
Cash outflow/(inflow) from changes in debt and lease financing                      6,088       (1,398)
Change in net funds resulting from cash flows                                       8,612           487
Loans and finance leases acquired with subsidiary undertakings                          -         (750)
Movement in net funds/(debt) in the period                                          8,612         (263)
Net debt at the start of the period                                               (3,079)       (2,816)
Net funds/(debt) at the end of the period                                           5,533       (3,079)


Gourmet Holdings plc
Consolidated statement of total recognised gains and losses
for the 52 week period ended 24 June 2007


                                                                             52 week          52 week
                                                                              period           period
                                                                               ended            ended
                                                                             24 June          25 June
                                                                                2007             2006
                                                                                           (restated)
                                                                               #'000            #'000

Loss for the financial period                                                (2,863)          (1,496)

Gain on redemption of preference shares                                            -              408

Reduction in share premium                                                         -            7,411

Total recognised gains and losses relating to the
financial period
                                                                             (2,863)            6,323



The consolidated statement of total recognised gains and losses for the 52 week
period ended 25 June 2006 has been restated to reflect the adoption of FRS20 "
Share based payments".



Reconciliation of movement in shareholders' funds
for the 52 week period ended 24 June 2007

                                                                            52 week         52 week
                                                                             period          period
                                                                              ended           ended
                                                                            24 June         25 June
                                                                               2007            2006
                                                                                         (restated)
                                                                              #'000           #'000

Loss for the financial period                                               (2,863)         (1,496)

New share capital subscribed (net of issue costs)                                 8           4,938

Redemption of preference shares                                                   -             408

Credit in respect of share options                                                3              24

Net (reduction)/increase in shareholder's funds                             (2,852)           3,874

Opening shareholders' funds                                                   9,111           5,237

Closing shareholders' funds                                                   6,259           9,111




The reconciliation of movement in shareholders' funds for the 52 week period
ended 25 June 2006 has been restated to reflect the adoption of FRS20 "Share
based payments".






Notes



 1. The financial information for the 52 week period ended 24 June 2007 has been
    prepared in accordance with the company's accounting policies as disclosed
    in the financial statements for the period ended 25 June 2006, except for
    the adoption of FRS20 'Share based payments', in line with that standard's
    effective date. FRS20 requires a charge to be recognised in staff costs
    based on the fair value of options granted to employees. This fair value is
    established at the date of grant and recognised over the option vesting
    period. Adjustment is made to the charge recognised based on an assessment
    of whether non-market vesting conditions will be met. The comparative
    figures have been restated to reflect this change in policy. The effect of
    the adoption of FRS20 is discussed in note 10.



2.       The financial information set out above does not constitute the
Company's statutory accounts for the years ended 25 June 2006 or 24 June 2007
but it is derived from those accounts. Statutory accounts for 25 June 2006 have
been delivered to the Registrar of Companies and those for 24 June 2007 will be
delivered following the Company's Annual General Meeting. The auditors have
reported on those accounts; their reports were unqualified and did not contain
statements under section 237(2) or (3) of the Companies Act 1985.



3.       The consolidated financial statements include the financial statements
of the Company and its subsidiary undertakings made up to 24 June 2007.



The results of all subsidiary undertakings are consolidated. Intra-group sales
are fully eliminated on consolidation.



4.       Pre-opening costs

Property rentals and related costs together with promotional and training costs
incurred up to the date of the opening of a new or refurbished restaurant are
written off to the profit and loss account in the year in which they are
incurred.



5.       Other operating income

Other operating income includes franchise fees, net of all associated costs and
charges, derived from the Middle East. Initial license fees are recognised at
the time the license is granted, ongoing income is recognised in line with
performance.



6.       Trading exceptional items

The trading exceptional charge of #713,000 comprises #303,000 FRS12 provision
for an onerous lease for the Highwayman in Oxfordshire (the provision is based
on the surrender of the leasehold interest and the payment of a reverse premium
of #260,000 and costs of #43,000, this pub restaurant was disposed of on 10
September 2007), #271,000 impairment provision in respect of the tangible and
intangible fixed assets of the Highwayman in Oxfordshire, the impairment
provision has been based on the net realisable value of the assets in question,
#113,000 bad debts write off in respect of the non-completion of a business
transfer, #26,000 for professional and other reorganisation costs.



7.       Loss per share

The loss per share is calculated by reference to the loss after taxation and the
weighted average number of ordinary shares in issue during the period of
34,209,687 (2006 restated: 27,784,505).



The loss per share for both the basic and fully diluted loss per share is
calculated on the basis of a loss for the period of #2,863,000 (2006 restated:
#1,496,000).



The diluted loss per share is calculated by reference to the loss after taxation
and the weighted average number of ordinary shares and share options in issue
during the period of 34,231,493 (2006: 27,889,358). Share options and warrants
not included in the diluted calculations as per the requirements of FRS14 (as
they are anti-dilutive) totalled 494,319 (2006: 721,522).



8.       No dividend is proposed.



9.       Disposal of BDC Holdings Limited

On the 15 June 2007 the Company disposed of the entire share capital of BDC
Holdings Limited (and its subsidiary companies) and Bel and the Dragon (Hampton
Court) Limited (formerly Gourmet Trading Limited) for #8,750,000 (adjusted for
the repayment of an inter company loan of #2,408,000 and working capital of
#124,000). The fair value of the consideration received for the share capital of
the companies was:


                                                      Book value at date
                                                             of disposal
Group                                                              #'000

Intangible fixed assets                                            1,717
Tangible fixed assets                                              8,985
Stock                                                                 85
Debtors                                                              114
Cash and overdrafts                                                    3
Liabilities                                                        (623)
Net assets                                                        10,281
Costs of disposal                                                    440
Sale proceeds                                                    (8,626)
Loss on disposal                                                   2,095


10. Impact of FRS20

The adoption of FRS20 has no effect on net assets at any reporting date as the
credit/charge to the profit and loss account is offset by an equal and opposite
charge/credit recognised directly in reserves.



The loss after taxation for the 52 week period ended 25 June 2006 was increased
by #24,000 as a result of FRS20, leading to an increase in the loss per share of
0.1p.




11. Reconciliation of operating loss to operating cash flows


                                                                52 week           52 week
                                                                 period            period
                                                                  ended             ended
                                                                24 June           25 June
                                                                   2007              2006
                                                                  #'000             #'000
Operating loss                                                    (244)           (1,216)
Depreciation charge                                                 423               419
Amortisation charge                                                 117                97
Impairment of intangible fixed assets                                 5                 -
Impairment of tangible fixed assets                                 266               450
Decrease in stocks                                                   56                22
Decrease/(increase) in debtors                                        5              (15)
Increase in creditors                                               195               128
Equity settled share based payments                                   3                24
Net cash inflow/(outflow) from operating                            826              (91)
activities



                                    - ENDS -


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

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