![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Food & Drink Gp | LSE:FDG | London | Ordinary Share | GB00B0WYV516 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 9.85 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:4129N Food & Drink Group (The) PLC 07 December 2006 THE FOOD & DRINK GROUP PLC ("FDG" or "the Group") Preliminary Results for the 52 weeks ended 23 September 2006 The Food & Drink Group PLC, the London focussed licensed retailer and operator of 27 bars, announces record results for the 52 weeks ended 23 September 2006. HIGHLIGHTS * Sales increased 53% to #20.3m (2005: #13.3m) * Like for like sales from the core bar business increased by 4.5% * Gross margin increased to 75.2% (2005: 74.3%) * Overall EBITDA improved 134% to #2.7m (2005: #1.2m) * Profit before tax, pre exceptionals* and amortisation of goodwill, rose 204% to #1.3m (2005: #0.4m) * Six-fold increase in earnings per share, pre amortisation of goodwill, to 29p (2005: 4p) * Proposed maiden dividend of 1.0p * All acquisitions fully integrated and performing ahead of expectations * Current trading is good with like-for-like sales up 5.6% in first 10 weeks of new financial year * for the purposes of the highlights, exceptionals relate to reorganisation costs and profit/loss of disposals. Stephen Thomas, Chairman of The Food & Drink Group PLC, commented: "This is another creditable performance from the Group as a whole with all three divisions trading well. Trading in the current year is encouraging and the Group is in a strong position to take advantage of new site opportunities and continued sector consolidation." 7 December 2006 ENQUIRIES: The Food & Drink Group PLC Tel: 020 7349 4440 Stephen Thomas, Chairman James Kowszun, Chief Executive Today: 020 7457 2020 College Hill Justine Warren /Jamie Ramsay Tel: 020 7457 2020 CHAIRMAN'S STATEMENT Introduction The financial year ended 23 September 2006 ("Financial Year") was a successful period for The Food & Drink Group plc. Trading improved throughout the year as our investment programme and operational improvement initiatives took effect. In addition to a strong performance from the core estate, the integration of both Henry J Bean's and the "The" bars has fully met internal expectations. As a result, we were able to positively update the market towards the end of the financial year. These results further exceed management's expectations and demonstrate the success of The Food & Drink Group's strategy. Financial Review Sales in the Financial Year increased by 53% to #20.3m (2005: #13.3m), benefiting from a full year's contribution from Henry J Bean's and Brodies, and supplemented by the acquisition of two "The" bars in March. In addition, like-for-like sales from our core bar business increased by 4.5%. Group gross margin has increased once again, to 75.2% (2005: 74.3%). This increase has been driven principally by better drink margins as a result of positive changes to the sales mix and further progress with our supplier relationships, offset by a small reduction in food gross margin resulting from increasing product costs not passed on to consumers. We have addressed this issue by successfully re-tendering all of our major food supply contracts and by focusing more closely on improving efficiency within site kitchens. Profit conversion improved significantly. Proactive management of the property portfolio, both in the disposals announced at the end of 2004-05 and the acquisitions completed since, have improved the Group's operating margins. Wage control has also improved, resulting in a 1.7% point reduction in costs when measured as a percentage of sales. This has been delivered principally through the better utilisation of labour planning tools implemented as part of our back-of-house systems last year. Fixed site costs have reduced as a percentage of sales primarily as a result of the acquisition of larger, more profitable premises. However, at the same time, site variable costs have increased by 0.4% points as a result of increased spend on sales building activity and entertainment. Overall, site EBITDA margin has improved by more than 2.5% points and with continued tight control of central costs reducing the central administrative cost burden to 6.6% of sales (2005: 8.8%), overall EBITDA has improved by 134% to #2.7m (2005: #1.2m) and EBITDA margin has increased to 13.4% (2005: 8.8%). This excellent performance demonstrates the operational gearing inherent within the Group, where the central infrastructure is in place to manage significant further site expansion without a material increase in the central cost base. Depreciation increased to #0.8m (2005: #0.6m) in the year but has marginally reduced as a percentage of sales. We have now substantially completed a four year programme of correcting previous under-investment in the trading sites, where we have implemented long-term solutions that are now reducing on-going maintenance capital expenditure. With the final accounting for the various acquisitions over the last 12 months, the annual amortisation of goodwill charge has risen to #0.5m (2005: #0.2m). Operating profit on ordinary activities before interest and taxation has risen more than six times to #1.3m (2005: #0.2m). Within operating profit is a previously announced exceptional charge of #150,000 relating to the completion of the integration of Henry J Bean's. The other one-off item within this year's accounts is the #0.4m profit on disposal relating to the surrender of the lease at Jamies, Philpot Lane. Excluding both of these one-off items and amortisation of goodwill, pre-tax profit has risen by 204% to #1.3m (2005: #0.4m), despite a significant increase in interest payable to #0.7m (2005: #0.2m) resulting from the 100% debt-funding of the acquisition of Henry J Bean's last year. The Group incurred a small tax charge in the year of #26,000, representing withholding tax on paid on the international Henry J Bean's franchise income. The Group has generated earnings per share of 18.0p, up from zero in 2005. Excluding the impact of the amortisation of goodwill, this rises to 29.0p representing a six-fold increase on last year (2005: 4.0p). The Board intends to pay its first dividend and is recommending a final net dividend of 1p per share. This will be payable on 16 March 2007 to shareholders on the register on 16 February 2007. The Group spent #1.1m during the Financial Year on capital projects and site acquisitions, funded in part by the surrender of the lease at Jamies Philpot Lane for net proceeds of #0.7m, resulting in a net cash outflow from capital expenditure and investment of only #0.4m. At the year end, net debt was #8.1m (2005: #9.2m). Gearing has consequently reduced substantially to 102% (2005: 129%) and the ratio of debt:EBITDA has fallen to less than 3.0 times. The funds generated by the disposals of Camden and Canyon after the year end have further reduced gearing to around 80%. Tangible fixed assets are valued at #10.9m, representing the net book value of our leasehold trading properties. This tangible fixed asset value represents a multiple of less than 2.8 times the EBITDA generated from these sites, which gives substantial comfort as to the manageable underlying level of financial gearing within the business. Henry J Bean's Henry J Bean's performance has been encouraging with total sales of #5.2m (including a strong year of franchise performance), underpinned by a like-for-like sales increase from the UK managed sites of 4.9% and a percentage point improvement in gross margin. The gross margin enhancement has been seen in both food and drink sales and delivered through improvements in efficiency and the supply-chain rather than via price increases. However, this has not yet flowed through into an improvement in EBITDA as we have deliberately reinvested in both labour and variable costs at the sites to reverse the squeeze that occurred in the period immediately prior to purchase of the business. The benefits of this reinvestment are now being seen as all three core sites are building on the strong performance in the second half, with strong like-for-like sales growth continuing in the new financial year. Acquired in September 2005, we refrained from altering the Henry J Bean's template until after the critical Christmas period, simply installing our group-wide controls and procedures. Prior to commencing a roll-out, a comprehensive review of the brand and operational template was undertaken, which assessed each aspect of the brand's operation. Much of the work to date has focussed on re-instating a culture of excellence based upon training and development within the sites. Key operational improvements include a review of the cocktail menu, wine and beer stocking policies and the introduction of table service. These changes have improved efficiency and have given us the drivers to deliver further sales growth. Further changes will be implemented in the current financial year including a modernisation of the brand identity, a fundamental review of the food offer and a roll-out of the new sound and visual media system that is being trialled at the flagship site in Chelsea. At the time of the acquisition a brand overview was completed which concluded that three of the five managed sites in the UK fitted the brand well, namely Chelsea, Manchester and Bristol. Since the year end Camden has been sold and Birmingham has recently been de-branded. The growth potential for the Henry J Bean's brand is substantial. Prior to commencing the expansion of the brand, we have committed significant resource to ensure that we have optimal brand and operational templates in place. This work is substantially complete and early stage implementation has already delivered benefits to the current sites, with more still to come. However, the material growth prospects for the brand come from the ability to roll out to key locations in the UK, and internationally, through franchising. We are currently in the process of securing sites for the first phase of this brand expansion and look forward to providing a more substantive update in the near future. We acquired two "The" bars in Chelmsford and Wimbledon in March 2006 intending to convert these to Henry J Bean's. However since acquisition, we have made substantial improvements to the operations at both sites, in terms of reduced costs, improved efficiency and the nature of the offer delivered to customers. Both sites are already delivering a very attractive return on capital, significantly above our original expectation. With our key investment criteria continuing to be cash return on cash capital employed, we have consequently decided not to convert these sites into Henry J Bean's. We believe that better returns can be achieved by investing the money elsewhere in the Group and will now only perform minor improvement projects at each site in the new financial year. Bars The bars division, which consists of 13 sites, has performed strongly this year with excellent like-for-like sales growth of 6.5% supplemented by a full-year's contribution from the two Brodies and the addition of the two "The" bars in March. Total sales have grown by 38% to #9.3m. EBITDA margin has also improved, by nearly a full percentage point, resulting in a 45.7% increase in EBITDA. As in previous years, action plans for the business are based on site-specific needs, rather than generic, broad-brush programmes. Performance improvement at Brodies, Canary Wharf, and Polka in Soho are particularly pleasing. Both sites have seen EBITDA margin improve by more than 10 percentage points, through a balance of sales-driving activity, staff training and rigorous cost control. The Common Room in Wimbledon has also just achieved its fourth consecutive year of like-for-like sales growth, improving EBITDA delivery once again, despite a significant increase in both rent and rates in the previous year. Material capital investment projects within the bars were limited to two sites this year. We invested in extending the bar and outside trading facilities at Jamies, Canary Wharf before the critical summer trading period. This site subsequently delivered a record week's trading and has continued to perform consistently well throughout the year. We also converted Brodies, Paternoster Square into a new bar called "The Saint" which reopened in May. We are delighted with the performance of this site. Despite a substantial increase in the trading competition in the immediate vicinity of the bar, sales are 30% ahead of the prior year comparatives in the six months since reopening. Operational focus remains on the ongoing improvement and evolution of these sites. Specific plans in the current year include upgrading the food offer and improving our delivery of quality cocktails. Capital plans for the current financial year include projects at the Jamies sites in Bishopsgate and Charlotte Street together with minor refurbishments to Jamies, Ludgate Hill and the two " The" bars in Wimbledon and Chelmsford. City Bars The nine City wine bars are a mature and cash generative business that deliver an excellent return on capital. Sales are driven more by the occupancy levels of immediately adjacent office space than by general economic factors and consequently can have uneven year-to-year performance, whilst remaining extremely profitable. Following the disposal of three sites in the prior year and the surrender and short-term occupancy of Jamies, Philpot Lane, total sales declined 18.3% to #4.1m, with like-for-like sales showing a small 0.8% decline. However, a small improvement in gross margin coupled with excellent wage control has generated a 1.8% point improvement in EBITDA margin that has more than offset the like-for-like decline in sales. Several sites suffered during the World Cup and the hot weather in early summer but this was offset by strong performance at other sites, notably the Pavilion at Finsbury Circus. We successfully reached agreement with the landlords for the creation of an outside trading area at The Orangery in Cutlers Gardens which has proved to be popular with customers. Operational activity within the City Bars remains focused on the consistent delivery of excellent customer service. We will continue to focus on ensuring that the food offer is simplified but improved and we have successfully increased the level of resource dedicated to the corporate events market. We are planning two capital projects in the new financial year for the City Bars - the major refurbishment of Jamies, Groveland Court and the conversion of the former restaurant at Hodgsons, Chancery Lane into a flexible dedicated function and events space. Restaurant Our last remaining restaurant, Canyon in Richmond was identified as non-core some time ago. We have now exchanged contracts to sell the site for #1.2m, with completion scheduled for 2 January 2007. This will result in a profit on disposal of approximately #0.5m and the sale proceeds will be used to fund the on-going expansion of the Group's core bar business. The Smoking Ban As has been well publicised, smoking is due to be banned in bars and restaurants in England in July 2007. Whilst the transition in customer behaviour, from a smoking to a smoke-free environment will provide a period of uncertainty for the industry, we believe that the outcome will be positive for the Group. Food sales already account for 27% of our total revenue and we will be increasing focus on upgrading our food offer in the new financial year. This strong food focus, coupled with the specific nature of the occasions for which customers use our sites shields us from many of the risks associated with a smoking ban and exposes us to the potential upside. However, from a property perspective, we are also looking at the most effective ways in which we can maximise choice for customers within the new legislation. We are investing in a number of improvements to our outside trading spaces to exploit these opportunities. 50% of our current estate has outside trading space. Management and Employees This year has seen a restructuring of the central support team, preparing the Group for the next exciting stage of its development and strengthening several key functions in the process. After joining the business earlier in the year, Ray McClymont joined the Board as Chief Operating Officer in August 2006. Ray has the key task of managing the operational challenges created as a result of our continued growth and achievement of critical mass. His team has been strengthened with key new roles in Food Development, Training and Events Management and we are already seeing the positive impact of these appointments. Our approach to training and development of site staff has become more structured in the last 12 months. At present, two thirds of our general and assistant managers are "home grown", having been promoted into their current role from within the business. Whilst we aspire to this ratio rising higher in the future, it is already a good result and enables us to ensure that standards and culture are maintained and developed within our operations. It was with great sadness that the Group had to say farewell to our senior independent non-executive director, David Pickard, who retired from the Board at the end of the financial year. David has been a superb asset to the business and will be missed. We wish David well in his retirement and thank him for his service and support over the years. To maintain the correct corporate governance, the Board has appointed Christopher Poil to replace David as senior independent non-executive director. Current Trading and Prospects Since the year-end, the business has continued to improve and performance is strong. With 10 weeks of the new financial year completed, like-for-like sales are 5.6% ahead of last year. Encouragingly, all three divisions of the Group are delivering positive sales performance. With the increased resource we have focused on functions and event management the early signs are that confirmed bookings for the Christmas trading period are substantially ahead of last year. The Group has the team, trading concepts and funding structure in place to continue to deliver continued growth into the future and the Board looks forward with confidence. Stephen Thomas Chairman The Food & Drink Group plc 7 December 2006 The Food & Drink Group PLC Consolidated Profit & Loss Account for the 52 weeks ended 23 September 2006 52 weeks 23 52 weeks 24 September 2006 September 2005 #'000 #'000 Turnover 20,313 13,273 Cost of Sales (5,032) (3,407) Gross Profit 15,281 9,866 Administrative expenses (13,929) (9,519) excluding Exceptional expenses Exceptional administrative expenses Reorganisation (150) (200) Total Administrative expenses (14,079) (9,719) Operating Profit 1,202 147 Other Operating Income 60 35 Operating Profit on ordinary activities 1,262 182 before interest and taxation Profit / (loss) on disposal 373 (12) Interest receivable and similar income 8 5 Interest payable and similar charges (715) (194) Profit / (loss) on ordinary activities before tax 928 (19) Taxation on profit / (loss) on ordinary activities (26) 0 Profit / (loss) for the financial period 902 (19) Dividends 0 0 Amounts transferred to / (from) reserves 902 (19) Earnings / (loss) per share Basic 18.00 p (0.38) p Diluted 17.30 p (0.38) p The Food & Drink Group PLC Consolidated Balance Sheet As at 23 September As at 24 September 2006 2005 #000's #000's FIXED ASSETS Intangible assets 8,959 7,941 Tangible assets 10,893 10,703 19,852 18,644 CURRENT ASSETS Stocks 335 303 Deferred Tax 684 234 Debtors 2,862 2,322 Cash at bank and in hand 735 540 4,616 3,399 CREDITORS:amounts falling due within (7,780) (6,666) one year NET CURRENT LIABILITIES (3,164) (3,267) TOTAL ASSETS LESS CURRENT LIABILITIES 16,688 15,377 CREDITORS:amounts falling due after (7,375) (8,250) more than one year PROVISIONS FOR LIABILITIES AND CHARGES (1,309) 8,004 7,127 CAPITAL & RESERVES Called up share capital 50 5,457 Share premium account 6,022 8,104 Merger reserve 0 2,060 Capital redemption reserve 0 5,440 Other reserve 0 (54) Profit and Loss account 1,932 (13,880) SHAREHOLDERS' FUNDS 8,004 7,127 The Food & Drink Group PLC Consolidated Cash Flow Statement for the Period ended 23 September 2006 52 Weeks 52 Weeks ended ended 23 September 2006 24 September 2005 Note #'000 #'000 #'000 #'000 Net cash inflow from operating 1 2,213 1,046 activities Returns on investment & servicing of finance Interest Received 8 5 Interest Paid (715) (194) (707) (189) Taxation (26) - Capital Expenditure & Financial Investment Acquisition of Fixed Assets (1,104) (1,036) Net Proceeds from sale of tangible fixed 719 182 assets Purchase of subsidiary undertakings 0 (7,828) Cash acquired with subsidiary 0 165 Net cash outflow from capital (385) (8,517) expenditure and financial investment Net cash inflow / (outflow) before 1,121 (7,660) management of liquid resources Financing Cost of issue of new share capital (25) - New short term borrowing 0 1,500 Repayment of short term borrowing 0 (608) New long term borrowing 0 8,250 Repayment of long term borrowing (875) (1,132) (900) 8,010 Increase in Cash 2 195 350 The Food & Drink Group PLC NOTES 1 Net cash inflow from operating activities 23 September 25 September 2006 2005 #'000 #'000 Operating profit for period 1,262 182 Amortisation of Goodwill 549 220 Depreciation 759 560 (Increase) in stock (32) (39) (Increase) in debtors (540) (692) Increase in creditors 215 815 Net cash inflow from operating activities 2,213 1,046 2 Reconciliation of net cash flow to movement in net debt 23 September 25 September 2006 2005 #'000 #'000 Increase in cash in the period 195 350 Net cash outflow /(inflow) from repayment 875 (8,010) of loan Movement in net debt in the year 1,070 (7,660) Net debt at start of period (9,210) (1,550) Net debt at end of period (8,140) (9,210) 3 Analysis of changes in net debt At 25 September Cash flow At 23 September 2005 2006 #'000 #'000 #'000 Cash at bank and in hand 540 195 735 Loans due before one year (1,500) - (1,500) Loans due after one year (8,250) 875 (7,375) Total net debt (9,210) 1,070 (8,140) 4 Nature of Preliminary Announcement This preliminary results statement has been prepared on the basis of the same accounting policies as those set in the financial statements for the period ended 24 September 2005, The financial information contained in this statement does not constitute accounts as defined in section 240 of the Companies Act 1985. The summarised balance sheet at 23 September 2006 and the summarised profit and loss account, summarised cashflow statement and associated notes for the year ended have been extracted from the Group's 2006 financial statements. Those financial statements have not yet been delivered to the Registrar of Companies. The financial information for the period 24 September 2005 is an abridged version of the Group's financial statements for the period which contained an unqualified audit report and which have been filed with the Registrar of Companies. The report and account for the period ended 23 September 2006 will be hosted to shareholders in the first week of February 2007 and will be available for at least one month free of charge at the registered office; 195-197 Kings Road, Chelsea, London, SW3 5ED and at the Group's website: www.foodanddrinkgroup.co.uk 5 Share Capital As at 6 December 2006 the total number of voting rights in respect of the Group's ordinary shares of 1p each is 5,005,497. 6 Earnings per Share 2006 2005 Earnings weighted per share Earnings weighted per share average number amount pence average amount pence of shares number of shares Basic earnings/ (loss) per share Earnings attributable to ordinary shareholders 902,000 5,005,497 18.0 (19,000) 5,000,000 (0.4) Dilutive effect of securities Options 196,608 0 Diluted earnings/ (loss) per share 902,000 5,202,105 17.3 (19,000) 5,000,000 (0.4) Adjusted Earnings per share Earnings attributable to ordinary shareholders 902,000 5,005,497 (19,000) 5,000,000 Amortisation of goodwill 549,000 220,000 Earnings before goodwill 1,451,000 5,005,497 29.0 201,000 5,000,000 4.0 This information is provided by RNS The company news service from the London Stock Exchange END FR UNOURNKRURUA
1 Year The Food & Drink Group Chart |
1 Month The Food & Drink Group Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions