Interim Results

 

TIDMIRC 
 
RNS Number : 5351S 
Individual Restaurant Company PLC 
13 September 2010 
 

Individual Restaurant Company plc 
("IRC" or "the Group") 
 
Interim results (unaudited) for the Six Months ended 4 July 2010 
Individual Restaurant Company Plc ("IRC" or "the Group"), a leading operator of 
33 restaurants throughout the UK which trade under the Piccolino (22) and 
Restaurant Bar & Grill (11) formats, today announces its unaudited interim 
results for the six months ended 4 July 2010. 
 
Trading performance 
·                  Revenue was GBP24.6m (2009: GBP25.1m) 
·                  Group EBITDA of GBP0.7m (2009: GBP1.3m) 
·                  Restaurant EBITDA was GBP2.7m (2009: GBP3.3m) 
 
Operations 
·                  Both brands continue to trade well on a national basis 
·                  Continued development of food offering 
 
 Financially strong 
·                  Successful refinancing of Group's GBP18.5m loan facility; 
agreement to extend the term of the loan to January 2013 and cancellation of the 
amortising facility 
·                  Net debt reduced to GBP15.0m (2009:  GBP16.4m) 
·                  Banking headroom of GBP3.5m available at the half year end 
 
Current trading and outlook 
·                  Revenue for the first ten weeks of the second half of the 
year generally in growth 
 
 
 Steven Walker, Chief Executive said: 
"I have been pleased by the return to revenue growth generally experienced over 
the past five months (excluding the Football World Cup month of June) and I 
remain confident in the inherent strength of both of our brands.  The task now 
is to find a way that the group can capitalize on this inherent strength, 
bearing in mind the current funding constraints on expansion capital." 
13 September 2010 
Enquiries: 
+---------------------------------+---------------------------------+ 
| Individual Restaurant Company   |                                 | 
| Plc                             |                                 | 
+---------------------------------+---------------------------------+ 
| Steven Walker, Chief Executive  | 020 7457 2020 (today)           | 
|                                 |                                 | 
+---------------------------------+---------------------------------+ 
| Vernon Lord, Finance Director   | 0161 839 5511 (thereafter)      | 
+---------------------------------+---------------------------------+ 
|                                 |                                 | 
+---------------------------------+---------------------------------+ 
| Altium                          |                                 | 
+---------------------------------+---------------------------------+ 
| Paul Lines                      | 0845 505 4343                   | 
+---------------------------------+---------------------------------+ 
| Adam Sivner                     |                                 | 
+---------------------------------+---------------------------------+ 
|                                 |                                 | 
+---------------------------------+---------------------------------+ 
| College Hill                    | 020 7457 2020                   | 
+---------------------------------+---------------------------------+ 
| Matthew Smallwood               |                                 | 
+---------------------------------+---------------------------------+ 
| Jamie Ramsay                    |                                 | 
+---------------------------------+---------------------------------+ 
 
Chairman's statement 
Introduction 
 
Individual Restaurant Company plc ("IRC" or "the Group"), a leading restaurant 
operator of 33 premium casual dining restaurants throughout the UK which trade 
under the Piccolino (22) and Restaurant Bar and Grill (11) brands, announces its 
unaudited interim results for the six months ended 4 July 2010 as follows. 
 
Results 
 
In the six months ended 4 July 2010 revenue was GBP24.6m (2009: GBP25.1m). The 
GBP0.5m decline in revenue was due to the severe weather conditions at the 
beginning of the period and the adverse effect of the Football World Cup at the 
end of the period which was greater than anticipated, as previously reported. 
Of the restaurant EBITDA(*) decline of GBP0.6m to GBP2.7m (2009: GBP3.3m) 
GBP0.4m was accounted for by the revenue decline due to the factors set out 
above with gross margins being maintained year on year at 73.4%.  The balancing 
GBP0.2m shortfall in restaurant EBITDA(*) principally resulted from increased 
site payroll costs driven by changes to the rules defining national minimum wage 
in October 2009. 
Central costs were in line with the prior year at GBP2.0m (2009: GBP2.0m). 
Group EBITDA in the period was GBP0.7m (2009: GBP1.3m). 
Depreciation in the period was GBP1.6m (2009: GBP1.5m).  Capital expenditure, 
which is weighted to the first half of the year, was in line with the prior year 
at GBP0.8m (2009: GBP0.8m).  The high quality of each initial fit out always 
results in depreciation being higher than maintenance capital. 
Finance costs increased by GBP0.2m to GBP0.4m (2009: GBP0.2m) as a result of the 
renegotiated banking agreement in 2009 and resultant change in interest rates 
from base rate plus 1.5% to LIBOR plus 3.5% reported last year. 
The loss after adjustments for taxation for the period was GBP2.5m (2009: 
GBP0.8m). This loss was GBP1.7m higher than 2009 with GBP1.3m of the loss 
resulting from the full impairment of the assets of Restaurant Bar & Grill 
Glasgow, in agreement with our auditors. 
 
Cash flow and balance sheet 
 
Net debt has reduced by GBP1.4m since June 2009 to GBP15.0m (2009: GBP16.4m) 
with GBP3.5m of headroom available on the facility.  In the period the Group 
successfully refinanced the loan facility which resulted in the facility 
becoming non-amortising (under the previous facility amortisation payments 
totalling GBP2.0m and GBP2.5m were due in 2010 and 2011 respectively). The term 
of the facility has also been extended 12 months to January 2013. 
Piccolino and Restaurant Bar and Grill brands 
 
The Board has always believed the success of a restaurant is determined by the 
quality of its people, food, customer service and cleanliness. Systems and 
controls are in place to measure these four key performance indicators. These 
are reviewed alongside financial indicators on a site by site basis. The Board 
remains pleased with the performance of the Group in all four of these areas, 
although it is always looking to improve. 
In the period there has been a significant investment in our people. To enhance 
training of our front of house people we have appointed "in-house" trainers in 
each restaurant. 
In 2010 the Group has focused heavily on the area of customer service. Every 
restaurant now has a computerized reservation system which is linked to a 
central database. With 32,000 customers dining in our restaurants each week we 
now have a greater understanding of who those customers are, what they eat and 
drink and, as a result, we are increasingly able to tailor the customer 
experience to the needs of the individual guest. 
Across both brands we have continued to develop the food offering. In the city 
centre Bar and Grill restaurants the tandoor section of the menu, introduced 
following the installation of tandoor ovens, has proved very popular. In the 
Piccolino brand we continue to develop the menu to educate our customers to the 
fact all the food is made on the premises. 
Operational systems have been upgraded following the roll out of a new employee 
management system. This system has streamlined many of the administration 
functions associated with labour scheduling, payroll processing and personnel 
records maintenance. 
The property team has invested a great deal of time working with various 
licensing authorities to secure a significant number of new outside covers. 
 
Current trading and outlook 
 
Traditionally the Group's earnings have been heavily weighted towards the second 
half of the year and 2010 will be no exception. The Board believes trading 
conditions across the period will be at least in line with those experienced in 
2009. This belief is supported by recent revenue trends and the Board's 
confidence that the planned increases in minimum wage can be absorbed. 
The Board remains confident in both the Group's brands and business models and 
is focused on finding the best way forward for the Group given current funding 
constraints on expansion capital. 
 
Robert Breare 
Chairman 
 
 13 September 2010 
 
 
(*) Restaurant EBITDA is defined as EBITDA generated by restaurants before 
central costs 
 
 
+--------------------------------+------+-------------+-------------+-----------+ 
| Consolidated income statement  |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |    6 months |    6 months |        12 | 
|                                |      |             |             |    months | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |       ended |       ended |     ended | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |     4 July  |     28 June |        31 | 
|                                |      |        2010 |       2009  |  December | 
|                                |      |             |             |      2009 | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                | Note | (unaudited) | (unaudited) | (audited) | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |     GBP'000 |     GBP'000 |   GBP'000 | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Revenue                        |      |      24,607 |      25,146 |    53,349 | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Cost of sales                  |      |     (6,553) |     (6,665) |  (13,630) | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Gross profit                   |      |      18,054 |      18,481 |    39,719 | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Other operating expenses       |      |    (18,974) |    (18,700) |  (37,772) | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Operating (loss)/profit before |      |       (920) |       (219) |     1,947 | 
| exceptional costs              |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Impairment of non-current      |    4 |     (1,289) |           - |         - | 
| assets                         |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Business restructuring costs   |      |           - |       (346) |     (859) | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Increase in provision for      |      |           - |           - |   (1,200) | 
| onerous leases                 |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Share based payment charge     |      |        (54) |        (54) |     (108) | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Operating loss                 |      |     (2,263) |       (619) |     (220) | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Finance cost                   |      |       (456) |       (219) |     (652) | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Loss before taxation           |      |     (2,719) |       (838) |     (872) | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Income tax                     |    5 |         194 |           - |        66 | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Loss from continuing           |      |     (2,525) |       (838) |     (806) | 
| operations                     |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Loss attributable to equity    |      |     (2,525) |       (838) |     (806) | 
| holders of parent              |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Earnings per share from total  |      |             |             |           | 
| and continuing                 |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| operations:                    |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Basic                          |    6 |      (4.2)p |      (2.1)p |    (1.6)p | 
+--------------------------------+------+-------------+-------------+-----------+ 
| Diluted                        |    6 |      (4.2)p |      (2.1)p |    (1.6)p | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
|                                |      |             |             |           | 
+--------------------------------+------+-------------+-------------+-----------+ 
 
+---------------------------------+----+-------------+-------------+-----------+ 
| Consolidated statement of comprehensive income                               | 
+------------------------------------------------------------------------------+ 
|                                                                              | 
+------------------------------------------------------------------------------+ 
|                                 |    |       July  |        June |  December | 
+---------------------------------+----+-------------+-------------+-----------+ 
|                                 |    |        2010 |        2009 |      2009 | 
+---------------------------------+----+-------------+-------------+-----------+ 
|                                 |    | (unaudited) | (unaudited) | (audited) | 
+---------------------------------+----+-------------+-------------+-----------+ 
|                                 |    |     GBP'000 |     GBP'000 |   GBP'000 | 
+---------------------------------+----+-------------+-------------+-----------+ 
|                                 |    |             |             |           | 
+---------------------------------+----+-------------+-------------+-----------+ 
| Loss for the period             |    |     (2,525) |       (838) |     (806) | 
+---------------------------------+----+-------------+-------------+-----------+ 
|                                 |    |             |             |           | 
+---------------------------------+----+-------------+-------------+-----------+ 
| Total comprehensive income for  |    |     (2,525) |       (838) |     (806) | 
| the period                      |    |             |             |           | 
+---------------------------------+----+-------------+-------------+-----------+ 
|                                 |    |             |             |           | 
+---------------------------------+----+-------------+-------------+-----------+ 
|                                 |    |             |             |           | 
+---------------------------------+----+-------------+-------------+-----------+ 
| Attributable to equity holders  |    |     (2,525) |       (838) |     (806) | 
| of the parent                   |    |             |             |           | 
+---------------------------------+----+-------------+-------------+-----------+ 
 
 
 
+--------------------------------+---+-------------+-------------+------------+ 
| Consolidated statement of financial position                                | 
+-----------------------------------------------------------------------------+ 
|                                |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   |      4 July |     28 June |         31 | 
|                                |   |        2010 |        2009 |   December | 
|                                |   |             |             |       2009 | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   | (unaudited) | (unaudited) |  (audited) | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   |     GBP'000 |     GBP'000 |    GBP'000 | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Assets                         |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Non current assets             |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Property, plant and equipment  |   |      33,742 |      36,209 |     35,857 | 
+--------------------------------+---+-------------+-------------+------------+ 
| Intangible assets              |   |      38,647 |      38,647 |     38,647 | 
+--------------------------------+---+-------------+-------------+------------+ 
| Total non current assets       |   |      72,389 |      74,856 |     74,504 | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Current assets                 |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Inventories                    |   |         940 |         895 |        987 | 
+--------------------------------+---+-------------+-------------+------------+ 
| Trade and other receivables    |   |       3,938 |       3,435 |      3,105 | 
+--------------------------------+---+-------------+-------------+------------+ 
| Cash and cash equivalents      |   |       3,539 |       2,096 |      6,121 | 
+--------------------------------+---+-------------+-------------+------------+ 
| Total current assets           |   |       8,417 |       6,426 |     10,213 | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Total assets                   |   |      80,806 |      81,282 |     84,717 | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Liabilities                    |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Current liabilities            |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Trade and other payables       |   |    (10,939) |    (12,269) |   (11,970) | 
+--------------------------------+---+-------------+-------------+------------+ 
| Derivative financial           |   |        (61) |           - |          - | 
| instrument                     |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Provisions                     |   |       (430) |       (177) |      (430) | 
+--------------------------------+---+-------------+-------------+------------+ 
| Short term borrowings          |   |           - |     (1,500) |    (2,000) | 
+--------------------------------+---+-------------+-------------+------------+ 
| Total current liabilities      |   |    (11,430) |    (13,946) |   (14,400) | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Non current liabilities        |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Long term borrowings           |   |    (18,500) |    (17,000) |   (16,500) | 
+--------------------------------+---+-------------+-------------+------------+ 
| Provisions                     |   |       (930) |       (364) |    (1,206) | 
+--------------------------------+---+-------------+-------------+------------+ 
| Deferred taxation              |   |     (9,447) |     (9,707) |    (9,641) | 
+--------------------------------+---+-------------+-------------+------------+ 
| Total non current liabilities  |   |    (28,877) |    (27,071) |   (27,347) | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Total liabilities              |   |    (40,307) |    (41,017) |   (41,747) | 
+--------------------------------+---+-------------+-------------+------------+ 
|                                |   |             |             |            | 
+--------------------------------+---+-------------+-------------+------------+ 
| Net assets                     |   |      40,499 |      40,265 |     42,970 | 
+--------------------------------+---+-------------+-------------+------------+ 
 
Consolidated statement of financial position (continued) 
+------------------------------+-------------+-------------+-----------+ 
|                              |      4 July |          28 |        31 | 
|                              |        2010 |        June |  December | 
|                              |             |        2009 |      2009 | 
+------------------------------+-------------+-------------+-----------+ 
|                              | (unaudited) | (unaudited) | (audited) | 
+------------------------------+-------------+-------------+-----------+ 
|                              |     GBP'000 |     GBP'000 |   GBP'000 | 
+------------------------------+-------------+-------------+-----------+ 
|                              |             |             |           | 
+------------------------------+-------------+-------------+-----------+ 
| Equity attributable to       |             |             |           | 
| equity shareholders of the   |             |             |           | 
| parent                       |             |             |           | 
+------------------------------+-------------+-------------+-----------+ 
| Share capital                | 2,982       | 1,975       | 2,982     | 
+------------------------------+-------------+-------------+-----------+ 
| Share premium account        | 13,275      | 11,663      | 13,275    | 
+------------------------------+-------------+-------------+-----------+ 
| Capital redemption reserve   | 11,851      | 11,851      | 11,851    | 
+------------------------------+-------------+-------------+-----------+ 
| Merger reserve               | 22,034      | 22,034      | 22,034    | 
+------------------------------+-------------+-------------+-----------+ 
| Shares to be issued          | 378         | 270         | 324       | 
+------------------------------+-------------+-------------+-----------+ 
| Retained earnings            | (10,021)    | (7,528)     | (7,496)   | 
+------------------------------+-------------+-------------+-----------+ 
| Total equity                 | 40,499      | 40,265      | 42,970    | 
+------------------------------+-------------+-------------+-----------+ 
 
 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Consolidated statement of changes in equity                                       | 
+-----------------------------------------------------------------------------------+ 
|                                                                                   | 
+-----------------------------------------------------------------------------------+ 
|                        |     |          |          |  Shares |   Profit |         | 
|                        |     |    Share |    Other |   to be |      and |   Total | 
|                        |     |  capital | reserves |  issued |     loss |         | 
|                        |     |          |          |         |  account |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
|                        |     |  GBP'000 |  GBP'000 | GBP'000 |  GBP'000 | GBP'000 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
|                        |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| At 1 January 2009      |     |   13,826 |   33,697 |     216 |  (6,690) |  41,049 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Share based payments   |     |        - |        - |      54 |        - |      54 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Deferred shares        |     | (11,851) |   11,851 |       - |        - |       - | 
| purchased              |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Transactions with      |     | (11,851) |   11,851 |      54 |        - |      54 | 
| owners                 |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Loss and total         |     |          |          |         |          |         | 
| comprehensive          |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| income for the period  |     |        - |        - |       - |    (838) |   (838) | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| At 28 June 2009        |     |    1,975 |   45,548 |     270 |  (7,528) |  40,265 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
|                        |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
|                        |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| At 1 January 2009      |     |   13,826 |   33,697 |     216 |  (6,690) |  41,049 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Share based payments   |     |        - |        - |     108 |        - |     108 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Shares issued          |     |    1,007 |    1,612 |       - |        - |   2,619 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Deferred shares        |     | (11,851) |   11,851 |       - |        - |       - | 
| purchased              |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Transactions with      |     | (10,844) |   13,463 |     108 |        - |   2,727 | 
| owners                 |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Loss and total         |     |          |          |         |          |         | 
| comprehensive          |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| income for the period  |     |        - |        - |       - |    (806) |   (806) | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| At 31 December 2009    |     |    2,982 |   47,160 |     324 |  (7,496) |  42,970 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
|                        |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
|                        |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| At 1 January 2010      |     |    2,982 |   47,160 |     324 |  (7,496) |  42,970 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Share based payments   |     |        - |        - |      54 |        - |      54 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Transactions with      |     |        - |        - |      54 |        - |      54 | 
| owners                 |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| Loss and total         |     |          |          |         |          |         | 
| comprehensive          |     |          |          |         |          |         | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| income for the period  |     |        - |        - |       - |  (2,525) | (2,525) | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
| At 2010                |     |    2,982 |   47,160 |     378 | (10,021) |  40,499 | 
+------------------------+-----+----------+----------+---------+----------+---------+ 
 
 
Other reserves represent the share premium account, the merger reserve and the 
capital redemption reserve. 
 
 
+---------------------------------------+-------------+-------------+-----------+ 
| Consolidated statement of cash flows                                          | 
+-------------------------------------------------------------------------------+ 
|                                                                               | 
+-------------------------------------------------------------------------------+ 
|                                       |    6 months |           6 | 12 months | 
|                                       |       ended |      months |     ended | 
|                                       |             |       ended |           | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |      4 July |     28 June |        31 | 
|                                       |        2010 |        2009 |  December | 
|                                       |             |             |      2009 | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       | (unaudited) | (unaudited) | (audited) | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |     GBP'000 |     GBP'000 |   GBP'000 | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Cash flow from operating activities   |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Loss after taxation                   |     (2,525) |       (838) |     (806) | 
+---------------------------------------+-------------+-------------+-----------+ 
| Adjustments for:                      |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Depreciation, impairment and          |       2,910 |       1,547 |     3,062 | 
| amortisation charges                  |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Share based payment charge            |          54 |          54 |       108 | 
+---------------------------------------+-------------+-------------+-----------+ 
| Interest expense                      |         456 |         219 |       652 | 
+---------------------------------------+-------------+-------------+-----------+ 
| Movement in deferred tax provision    |       (194) |           - |      (66) | 
+---------------------------------------+-------------+-------------+-----------+ 
| Movement in provisions                |       (276) |       (136) |       959 | 
+---------------------------------------+-------------+-------------+-----------+ 
| Increase in trade and other           |       (785) |       (953) |     (665) | 
| receivables                           |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Decrease in inventories               |          45 |         162 |        72 | 
+---------------------------------------+-------------+-------------+-----------+ 
| (Decrease) / increase in trade        |     (1,086) |         433 |        65 | 
| payables                              |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Net cash from operating activities    |     (1,401) |         488 |     3,381 | 
+---------------------------------------+-------------+-------------+-----------+ 
| Interest paid                         |       (386) |       (231) |     (655) | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Net cash (used in)/generated by       |     (1,787) |         257 |     2,726 | 
| operating activities                  |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Cash flows from investing activities  |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Purchase of property, plant and       |       (795) |       (847) |   (1,910) | 
| equipment                             |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Net cash used in investing activities |       (795) |       (847) |   (1,910) | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Cash flows from financing activities  |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Proceeds from issue of share capital  |           - |           - |     2,619 | 
+---------------------------------------+-------------+-------------+-----------+ 
| Proceeds from long term borrowings    |           - |      18,500 |         - | 
+---------------------------------------+-------------+-------------+-----------+ 
| Repayment of loans                    |             |    (18,500) |         - | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Net (decrease) / increase in cash     |             |             |     2,619 | 
| from financing activities             |           - |           - |           | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Net (decrease)/increase in cash and   |     (2,582) |       (590) |     3,435 | 
| cash equivalents                      |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Cash and cash equivalents at          |       6,121 |       2,686 |     2,686 | 
| beginning of period                   |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
|                                       |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
| Cash and cash equivalents at end of   |       3,539 |       2,096 |     6,121 | 
| period                                |             |             |           | 
+---------------------------------------+-------------+-------------+-----------+ 
 
Notes to the interim report 
 
1          Nature of operations and general information 
 
Individual Restaurant Company plc and its subsidiaries (the Group) principal 
activities are those of restaurateurs. Individual Restaurant Company plc is the 
Group's ultimate parent company. 
 
Individual Restaurant Company Plc is the Group's ultimate parent company.  It is 
a company incorporated in the United Kingdom under the Companies Act 2006 with 
registration number 4026693.  The company is domiciled in the United Kingdom and 
has its registered office at 4th Floor, Ridgefield House, 14 John Dalton Street, 
Manchester, M2 6JR.  The company's shares are listed on the Alternative 
Investment Market of the London Stock Exchange. 
 
The financial information for the year ended 31 December 2009 set out in this 
interim report does not constitute statutory accounts as defined in Section 434 
of the Companies Act 2006.  The Group's statutory financial statements for the 
year ended 31 December 2009 have been filed with the Registrar of Companies. 
The auditor's report on those financial statements was unqualified and did not 
contain statements under Section 498(2) or 498(3) of the Companies Act 2006. 
 
The interim report is presented in Pounds Sterling (GBP) and all values are 
rounded to the nearest thousand pounds (GBP'000) except where stated otherwise. 
 
The interim report was approved by the Board on 10 September 2010. 
 
2          Basis of preparation 
 
This interim report is for the six months to 2010.  It has been prepared in 
accordance with the recognition and measurement requirements of those IFRS 
(International Financial Reporting Standards) as adopted by the EU, which are 
applicable to the financial statements for the period ended 
31 December 2009.  It does not include all of the information required for full 
annual financial statements, and should be read in conjunction with the 
consolidated financial statements of the Group for the period ended 31 December 
2009. 
 
These financial statements have been prepared using the measurement basis 
specified by IFRS for each type of asset, liability, income and expense. 
 
The amounts included in these statements may therefore change as a result of 
subsequent amendments to IFRS or for new standards issued after the balance 
sheet date. 
 
This interim report has been prepared in accordance with the accounting policies 
set out in the statutory accounts for the period to 31 December 2009. The 
Directors do not consider that there will be a change in accounting policies for 
the period to 31 December 2010, except for the adoption of improvements to 
IFRS's 2009. The accounting policies have been applied consistently throughout 
the Group for the preparation of this interim report. 
 
3          Principal risks affecting the group 
The Directors consider that the principal risks and uncertainties affecting the 
business remain unchanged from those discussed in page 11 of their report in the 
financial statements for the period to 31 December 2009.  In particular they 
consider that two of those risks, namely; 
 
·      Adverse economic conditions and decline in consumer confidence in the UK. 
·      Increases in prices of key raw materials, wages and overheads (including 
utilities). 
 
have increased in likelihood as a result of the impact of the economic downturn, 
and the Board continues to address the risk. 
 
4          Impairment of non-current assets 
During the period an impairment of GBP1,289,000 has been recognised.  This 
represents a full impairment of the assets of the Glasgow Bar and Grill 
restaurant. 
5          Taxation 
The taxation relates entirely to movements in deferred tax in each period and 
there were no amounts in relation to corporation tax. 
 
6          Earnings per share 
The calculation of earnings per share (basic and diluted) is based on Group 
profit after taxation and the weighted number of ordinary shares. 
 
+-----------------------------------------+----------+----------+--------+ 
|                                         |    6 months ended 4 July     | 
|                                         |            2010              | 
+-----------------------------------------+------------------------------+ 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
|                                         |          | Weighted |    Per | 
|                                         |          |  average |  share | 
|                                         |          |   number |        | 
|                                         | Earnings |       of |        | 
|                                         |          |   shares |        | 
+-----------------------------------------+----------+----------+--------+ 
|                                         |  GBP'000 |     '000 |  Pence | 
+-----------------------------------------+----------+----------+--------+ 
|                                         |          |          |        | 
+-----------------------------------------+----------+----------+--------+ 
| Basic and diluted EPS                   |  (2,525) |   59,648 |  (4.2) | 
+-----------------------------------------+----------+----------+--------+ 
 
+-----------------------------------------+----------+----------+--------+ 
|                                         |   6 months ended 28 June     | 
|                                         |            2009              | 
+-----------------------------------------+------------------------------+ 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
|                                         |          | Weighted |    Per | 
|                                         |          |  average |  share | 
|                                         |          |   number |        | 
|                                         | Earnings |       of |        | 
|                                         |          |   shares |        | 
+-----------------------------------------+----------+----------+--------+ 
|                                         |  GBP'000 |     '000 |  Pence | 
+-----------------------------------------+----------+----------+--------+ 
|                                         |          |          |        | 
+-----------------------------------------+----------+----------+--------+ 
| Basic and diluted EPS                   |    (838) |   39,502 |  (2.1) | 
+-----------------------------------------+----------+----------+--------+ 
 
+-----------------------------------------+----------+----------+--------+ 
|                                         | 12 months ended 31 December  | 
|                                         |            2009              | 
+-----------------------------------------+------------------------------+ 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
|                                         |          | Weighted |    Per | 
|                                         |          |  average |  share | 
|                                         |          |   number |        | 
|                                         | Earnings |       of |        | 
|                                         |          |   shares |        | 
+-----------------------------------------+----------+----------+--------+ 
|                                         |          |          |        | 
+-----------------------------------------+----------+----------+--------+ 
|                                         |  GBP'000 |     '000 |  Pence | 
+-----------------------------------------+----------+----------+--------+ 
|                                         |          |          |        | 
+-----------------------------------------+----------+----------+--------+ 
| Basic and diluted EPS                   |    (806) |   49,161 |  (1.6) | 
+-----------------------------------------+----------+----------+--------+ 
 
The outstanding options at each date do not have a dilutive effect on the 
weighted average number of shares as the exercise price of the options during 
the year exceeded the average market price of ordinary shares. 
7          Copies of interim report 
Copies of the interim report are available from the Company Secretary, 
Individual Restaurant Company Plc, 4th Floor, Ridgefield House, 14 John Dalton 
Street, Manchester M2 6JR. 
 
Independent review report to Individual Restaurant Company Plc 
 
 
Introduction 
 
We have been engaged by the company to review the financial information in the 
half-yearly financial report for the six months ended 4 July 2010 which 
comprises the consolidated income statement, consolidated statement of 
comprehensive income, consolidated statement of financial position, consolidated 
statement of changes in equity, consolidated statement of cash flows and the 
related explanatory notes. We have read the other information contained in the 
half yearly financial report which comprises only the highlights and Chairman's 
statement 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 guidance contained 
in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information 
performed by the Independent Auditor of the Entity'. Our review work has been 
undertaken so that we might state to the company those matters we are required 
to state to them in a 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 
conclusion we have formed. 
 
Directors' responsibilities 
 
The half-yearly financial report is the responsibility of, and has been approved 
by, the directors. The AIM rules of the London Stock Exchange require that the 
accounting policies and presentation applied to the financial information in the 
half-yearly financial report are consistent with those which will be adopted in 
the annual accounts having regard to the accounting standards applicable for 
such accounts. 
 
As disclosed in Note 2, the annual financial statements of the group are 
prepared in accordance with IFRSs as adopted by the European Union. The 
financial information in the half-yearly financial report has been prepared in 
accordance with the basis of preparation in Note 2. 
 
Our responsibility 
 
Our responsibility is to express to the Company a conclusion on the financial 
information 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 enquiries, 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 financial information in the half-yearly financial report for the six 
months ended 4 July 2010 is not prepared, in all material respects, in 
accordance with the basis of accounting described in Note 2. 
 
GRANT THORNTON UK LLP 
 AUDITOR 
LIVERPOOL 
 
 10 September 2010 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR VBLFFBKFZBBK