TIDMIRC
RNS Number : 3598K
Individual Restaurant Company PLC
19 April 2010
Individual Restaurant Company plc
Preliminary results for the year ended 31 December 2009
Highlights
Audited results for the 12 months ended 31 December 2009.
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 preliminary results for the
year ended 31 December 2009.
Another resilient performance
· Revenues increased by 1.7% to GBP53.3m (2008: GBP52.5m)
· Average EBITDA per restaurant before central costs of GBP266k
(2008: GBP279k)
· Group EBITDA of GBP5.0m (2008: GBP5.3m)
· Clean* profit before tax of GBP1.3m (2008: GBP1.8m)
· Over the year achieved cost savings of GBP2.1m including
central cost savings of GBP0.4m
Operations and expansion
· Both brands continue to trade well on a national basis
· New openings will recommence when trading conditions allow
Financially strong
· Successful renegotiation of GBP18.5m banking facility in June
2009
· Successful GBP2.6m equity fundraising
· Net debt reduced to GBP12.4m (2008: GBP15.8m)
· Banking headroom of GBP6.1m available at the year end
· Interest covered eight times by EBITDA (2008: five times)
· Banking covenants passed comfortably
· Successful post year end agreement to extend the term of the
Group's loan facility to January 2013 and cancelling the amortising facility
Current trading
· Trading performance for the first eight weeks of the current
year is ahead of last year
*Clean is defined as before non trading costs
Steven Walker, Chief Executive said:
"I am pleased to announce another set of robust results in what has proved to be
a challenging year. The Group's performance is all the more creditable in that
we intentionally refrained from mass discounting evident elsewhere across our
industry. Whilst still offering value for money to our customers, this has
served to protect margins and maintain the brand value of our premium casual
dining concepts.
"The measures we have taken to refinance the business over recent months leave
us well placed to progress with our expansion plans when the time is right. We
have had an encouraging start to trading in the initial weeks of the year and
remain confident of the future prospects for the Group."
19 April 2010
Enquiries:
+---------------------------------+---------------------------------+
| Individual Restaurant Company | |
| Plc | |
+---------------------------------+---------------------------------+
| Steven Walker, Chief Executive | 020 7457 2020 (today) |
| | |
+---------------------------------+---------------------------------+
| Vernon Lord, Finance Director | 0161 839 5511 (thereafter) |
+---------------------------------+---------------------------------+
| | |
+---------------------------------+---------------------------------+
| Altium | |
+---------------------------------+---------------------------------+
| Mike Fletcher | 0845 505 4343 |
+---------------------------------+---------------------------------+
| David Foreman | |
+---------------------------------+---------------------------------+
| | |
+---------------------------------+---------------------------------+
| College Hill | 020 7457 2020 |
+---------------------------------+---------------------------------+
| Justine Warren | |
+---------------------------------+---------------------------------+
| Matthew Smallwood | |
+---------------------------------+---------------------------------+
Chairman's statement
Introduction
Individual Restaurant Company plc ("IRC" or "the Group"), a leading restaurant
operator with 33 premium casual dining restaurants throughout the UK which trade
under the Piccolino (22) and Restaurant Bar & Grill (11) brands, announces its
audited results for the 12 months ended 31 December 2009.
As anticipated, trading conditions continued to be challenging in 2009.
However, against this backdrop the Group is pleased to announce profit before
tax (before non trading costs) for the year of GBP1.3m which was ahead of market
consensus.
Net debt reduced in the year by GBP3.4m down to GBP12.4m (2008: GBP15.8m). As a
multiple of EBITDA (before non trading costs), the year end net debt was just
below 2.5 times compared with 3.0 times in 2008.
Financial performance
Revenues have increased across the Group by GBP0.9m (1.7%) to GBP53.3m (2008:
GBP52.5m). Restaurant EBITDA* decreased across the Group by GBP0.7m to GBP8.8m
(2008: GBP9.5m). This was partially offset by central cost savings of GBP0.4m.
As a result EBITDA for the year of GBP5.0m was down GBP0.3m on 2008.
In anticipation of a challenging economic environment in 2009, the Group
implemented a cost saving programme which achieved annual savings of GBP2.1m,
GBP0.1m ahead of target, including the GBP0.4m of central cost savings referred
to above.
The gross margin for the period remained in line with 2008. Both Restaurant Bar
& Grill and Piccolino offer customers excellent value for money. This is
verified by the regular comparative pricing surveys which the Group undertakes
in respect of other leading casual dining restaurant brands. As previously
reported, the Group has taken a strategic decision to refrain from entering the
mass discounting market which has been widely practised across the restaurant
sector. Tactical promotions have occasionally been implemented to maintain
margins and preserve the brand value of the Group's premium casual dining
concepts. The Board is confident this remains the correct, long term strategy
and will benefit the Group in the future.
Central costs in 2009 were GBP3.8m (2008: GBP4.2m) representing 7.1% of revenue
(2008: 8.0%). Savings were generated primarily from reduced headcount.
Finance cost in the year fell to GBP0.7m (2008: GBP1.0m). The savings resulted
from a lower average net debt level throughout the year combined with a
significant reduction in base rates as, for the first six months of the year the
Group's facility was still tracking the base rate.
Profit before tax and non trading items was GBP1.3m (2008: GBP1.8m). Year on
year profit before tax and non trading items fell GBP0.5m due entirely to an
uplift in the annual depreciation charge from GBP2.6m to GBP3.1m. The uplift in
the depreciation charge was due principally to restaurants opened in 2008.
In the year non trading costs totalled GBP2.2m (2008: GBP0.6m), arising
predominately from two areas: onerous lease provisions totalling GBP1.2m and
business restructuring costs of GBP0.9m. The onerous lease provisions comprised
GBP0.8m relating to the conversion of Wandsworth Piccolino to a Group training
and trialling centre and an increase in the provision on Zinc Birmingham of
GBP0.4m. In the current property market conditions it has proved difficult to
find a suitable buyer for this unit and as a result the two year ongoing cost
provision when the unit was closed in 2007 has been exhausted, necessitating a
new provision for a further two years. Business restructuring costs for the year
of GBP0.9m included closure costs at Wandsworth, bank arrangement fees resulting
from our bank refinancing and costs associated with the successful equity
fundraising completed in July 2009.
There was a tax credit in the year of GBP0.1m (2008: a charge of GBP0.6m) which
resulted from a movement in the deferred tax balance.
After non trading items and tax the Group incurred a loss for the year of
GBP0.8m (2008: profit of GBP0.5m).
Cash flow and Balance Sheet
Net debt reduced in the year by GBP3.4m down to GBP12.4m (2008: GBP15.8m). The
reduction in net debt was driven by two factors. Firstly the Group completed an
equity fundraising of GBP2.6m. As above the costs associated with this are shown
on the consolidated income statement as part of business restructuring costs.
Secondly the Group generates strong cash flow from operations, GBP3.4m in 2009,
which, after interest and maintenance capital expenditure resulted in GBP1.4m of
free cash flow.
With net debt at GBP12.4m, gearing was 29% (2008: 38%). Interest costs of
GBP0.7m were covered by EBITDA generated in the year by a factor of almost eight
times (2008: five times). As a multiple of EBITDA the year end net debt was just
below 2.5 times compared with 3.0 times in 2008. The available headroom on the
banking facility was GBP6.1m compared with GBP2.7m in 2008.
Following the successful equity fundraising, the Group held discussions with its
banking partner and negotiated the cancellation of the planned facility
amortisation of GBP1.0m scheduled for December 2009. Having very comfortably
passed all year end banking covenant tests the Group has held further
discussions with its bank in 2010. As a result of those discussions the loan is
now non-amortising (under the previous facility amortisation payments totalling
GBP2.0m and GBP2.5m were due in 2010 and 2011 respectively) and the term of the
facility has been extended twelve months to January 2013. This new facility is a
positive step for the Group and will allow the Group to return to estate growth
when the timing is right.
Future outlook and current trading
The Group anticipates that trading conditions in 2010 will be as challenging as
2009. In common with most of the industry, trading over the first two weeks of
2010 was affected by the adverse weather conditions which kept many customers at
home. The impact of these conditions was felt most acutely outside of the South
East of England where a disproportionate number of the Group's restaurants are
based.
The first quarter of 2010 has also seen many operators returning to the same
discount-led promotions used in 2009. The Group will continue with its strategy
of avoiding the margin erosion resulting from such policies, concentrating
instead on the quality of its people, food, customer service and restaurant
cleanliness to drive long term financial success.
Pleasingly, despite the impact on sales from the snow and short term challenges
resulting from competitor discounting, trading performance (as measured by
EBITDA) is marginally ahead of last year after the first eight weeks of trading.
This year will see a keen focus on organic growth from the Group's existing
portfolio of restaurants. Likewise, we will maintain our tight grip on cost
control going forward.
Leases have been signed on four sites, Aberdeen, Knutsford, the City of London
and Dorking. The quantum and timing of these openings will be determined by
trading performance, which, as already stated, we expect to remain challenging
in 2010. No new sites will be opened in the first half of 2010.
The Board believes that the Group's results in such a difficult and challenging
year as 2009 demonstrate the robustness of its brands and business models and
remains confident of the future prospects for Individual Restaurant Company.
Robert Breare
Chairman
19 April 2010
*Restaurant EBITDA is defined as EBITDA generated before pre-opening costs and
central costs
Consolidated income statement
+---------------+--------+----------+----------+
| | | Year | Year |
+---------------+--------+----------+----------+
| | | ended | ended |
+---------------+--------+----------+----------+
| | Note | 31 | 31 |
| | | December | December |
+---------------+--------+----------+----------+
| | | 2009 | 2008 |
+---------------+--------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Revenue | | 53,349 | 52,472 |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Cost | | (13,630) | (13,328) |
| of | | | |
| sales | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Gross | | 39,719 | 39,144 |
| profit | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Other | | (37,772) | (36,424) |
| operating | | | |
| expenses | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Operating | | 1,947 | 2,720 |
| result | | | |
| before | | | |
| non-trading | | | |
| costs | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Business | | (859) | - |
| restructuring | | | |
| costs | | | |
+---------------+--------+----------+----------+
| Reversal | | - | 996 |
| of | | | |
| impairment | | | |
| of | | | |
| non-current | | | |
| assets | | | |
+---------------+--------+----------+----------+
| Impairment | | - | (996) |
| of | | | |
| non-current | | | |
| assets | | | |
+---------------+--------+----------+----------+
| Share | | (108) | (108) |
| option | | | |
| charge | | | |
+---------------+--------+----------+----------+
| Increase | | (1,200) | (500) |
| in | | | |
| provision | | | |
| for | | | |
| onerous | | | |
| leases | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Operating | | (220) | 2,112 |
| (loss)/profit | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Finance | | (652) | (957) |
| cost | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| (Loss)/profit | | (872) | 1,155 |
| before | | | |
| taxation | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Income | | 66 | (639) |
| tax | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| (Loss)/Profit | | (806) | 516 |
| from | | | |
| continuing | | | |
| operations | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| (Loss)/Profit | | | |
| for the | | | |
| period | | | |
| attributable | | | |
| to equity | | | |
| holders | | | |
+---------------+--------+----------+----------+
| of | | (806) | 516 |
| parent | | | |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Earnings | 2 | | |
| per | | | |
| share | | | |
| from | | | |
| continuing | | | |
| operations: | | | |
+---------------+--------+----------+----------+
| Basic | | (1.64p) | 1.34p |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
| Diluted | | (1.64p) | 1.34p |
+---------------+--------+----------+----------+
| | | | |
+---------------+--------+----------+----------+
Consolidated statement of comprehensive income
+------------------------------------------+-----+----------+----------+
| | | 2009 | 2008 |
+------------------------------------------+-----+----------+----------+
| | | | |
+------------------------------------------+-----+----------+----------+
| | | GBP'000 | GBP'000 |
+------------------------------------------+-----+----------+----------+
| | | | |
+------------------------------------------+-----+----------+----------+
| (Loss)/profit for the period | | (806) | 516 |
+------------------------------------------+-----+----------+----------+
| | | | |
+------------------------------------------+-----+----------+----------+
| Total comprehensive income to the period | | (806) | 516 |
+------------------------------------------+-----+----------+----------+
| | | | |
+------------------------------------------+-----+----------+----------+
| | | | |
+------------------------------------------+-----+----------+----------+
| Attributable to equity holders of the | | (806) | 516 |
| parent | | | |
+------------------------------------------+-----+----------+----------+
Consolidated statement of financial position
+---------------------------------------+--------+----------+----------+
| | | As at | As at |
+---------------------------------------+--------+----------+----------+
| | | 31 | 31 |
| | | December | December |
+---------------------------------------+--------+----------+----------+
| | | 2009 | 2008 |
+---------------------------------------+--------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------+--------+----------+----------+
| ASSETS | | | |
+---------------------------------------+--------+----------+----------+
| Non-current assets | | | |
+---------------------------------------+--------+----------+----------+
| Property, plant and equipment | | 35,857 | 36,909 |
+---------------------------------------+--------+----------+----------+
| Intangible assets | | 38,647 | 38,647 |
+---------------------------------------+--------+----------+----------+
| Total non current assets | | 74,504 | 75,556 |
+---------------------------------------+--------+----------+----------+
| | | | |
+---------------------------------------+--------+----------+----------+
| Current assets | | | |
+---------------------------------------+--------+----------+----------+
| Inventories | | 987 | 1,059 |
+---------------------------------------+--------+----------+----------+
| Trade and other receivables | | 3,105 | 2,492 |
+---------------------------------------+--------+----------+----------+
| Derivative financial instrument | | - | 7 |
+---------------------------------------+--------+----------+----------+
| Cash and cash equivalents | | 6,121 | 2,686 |
+---------------------------------------+--------+----------+----------+
| Total current assets | | 10,213 | 6,244 |
+---------------------------------------+--------+----------+----------+
| | | | |
+---------------------------------------+--------+----------+----------+
| Total assets | | 84,717 | 81,800 |
+---------------------------------------+--------+----------+----------+
| | | | |
+---------------------------------------+--------+----------+----------+
| LIABILITIES | | | |
+---------------------------------------+--------+----------+----------+
| Current liabilities | | | |
+---------------------------------------+--------+----------+----------+
| Trade and other payables | | (11,970) | (11,867) |
+---------------------------------------+--------+----------+----------+
| Short term borrowings | | (2,000) | (18,500) |
+---------------------------------------+--------+----------+----------+
| Provisions | | (430) | (177) |
+---------------------------------------+--------+----------+----------+
| Total current liabilities | | (14,400) | (30,544) |
+---------------------------------------+--------+----------+----------+
| | | | |
+---------------------------------------+--------+----------+----------+
| Non-current liabilities | | | |
+---------------------------------------+--------+----------+----------+
| Long term borrowings | | (16,500) | - |
+---------------------------------------+--------+----------+----------+
| Provisions | | (1,206) | (500) |
+---------------------------------------+--------+----------+----------+
| Deferred taxation | | (9,641) | (9,707) |
+---------------------------------------+--------+----------+----------+
| Total non current liabilities | | (27,347) | (10,207) |
+---------------------------------------+--------+----------+----------+
| | | | |
+---------------------------------------+--------+----------+----------+
| Total liabilities | | (41,747) | (40,751) |
+---------------------------------------+--------+----------+----------+
| | | | |
+---------------------------------------+--------+----------+----------+
| Net assets | | 42,970 | 41,049 |
+---------------------------------------+--------+----------+----------+
+-----------------------------------------+------+-----------+----------+
| | | As at | As at |
+-----------------------------------------+------+-----------+----------+
| | | 31 | 31 |
| | | December | December |
+-----------------------------------------+------+-----------+----------+
| | | 2009 | 2008 |
+-----------------------------------------+------+-----------+----------+
| | | GBP'000 | GBP'000 |
+-----------------------------------------+------+-----------+----------+
| | | | |
+-----------------------------------------+------+-----------+----------+
| | | | |
+-----------------------------------------+------+-----------+----------+
| | | | |
+-----------------------------------------+------+-----------+----------+
| EQUITY ATTRIBUTABLE TO EQUITY HOLDERS | | | |
+-----------------------------------------+------+-----------+----------+
| OF THE PARENT | | | |
+-----------------------------------------+------+-----------+----------+
| Share capital | | 2,982 | 13,826 |
+-----------------------------------------+------+-----------+----------+
| Share premium account | | 13,275 | 11,663 |
+-----------------------------------------+------+-----------+----------+
| Capital redemption reserve | | 11,851 | - |
+-----------------------------------------+------+-----------+----------+
| Merger reserve | | 22,034 | 22,034 |
+-----------------------------------------+------+-----------+----------+
| Shares to be issued | | 324 | 216 |
+-----------------------------------------+------+-----------+----------+
| Retained earnings | | (7,496) | (6,690) |
+-----------------------------------------+------+-----------+----------+
| Total equity | | 42,970 | 41,049 |
+-----------------------------------------+------+-----------+----------+
| | | | |
+-----------------------------------------+------+-----------+----------+
Consolidated statement of changes in shareholders' equity
+-------------------------+----------+----------+---------+---------+---------+
| | | | Shares | Profit | |
| | Share | Other | to be | and | |
| | capital | reserves | issued | loss | Total |
| | | | | account | |
+-------------------------+----------+----------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------+----------+----------+---------+---------+---------+
| | | | | | |
+-------------------------+----------+----------+---------+---------+---------+
| At 1 January 2008 | 12,409 | 30,866 | 4,356 | (7,206) | 40,425 |
+-------------------------+----------+----------+---------+---------+---------+
| Share based payments | - | - | 108 | - | 108 |
+-------------------------+----------+----------+---------+---------+---------+
| Deferred consideration | 1,417 | 2,831 | (4,248) | - | - |
| shares | | | | | |
+-------------------------+----------+----------+---------+---------+---------+
| Transactions with | 1,417 | 2,831 | (4,140) | - | 108 |
| owners | | | | | |
+-------------------------+----------+----------+---------+---------+---------+
| Profit and total | | | | | |
| comprehensive | | | | | |
+-------------------------+----------+----------+---------+---------+---------+
| income for the period | - | - | - | 516 | 516 |
+-------------------------+----------+----------+---------+---------+---------+
| At 31 December 2008 | 13,826 | 33,697 | 216 | (6,690) | 41,049 |
+-------------------------+----------+----------+---------+---------+---------+
| | | | | | |
+-------------------------+----------+----------+---------+---------+---------+
| | | | | | |
+-------------------------+----------+----------+---------+---------+---------+
| At 1 January 2009 | 13,826 | 33,697 | 216 | (6,690) | 41,049 |
+-------------------------+----------+----------+---------+---------+---------+
| Share based payments | - | - | 108 | - | 108 |
+-------------------------+----------+----------+---------+---------+---------+
| Deferred shares | (11,851) | 11,851 | - | - | - |
| purchased | | | | | |
+-------------------------+----------+----------+---------+---------+---------+
| Shares issued | 1,007 | 1,612 | - | - | 2,619 |
+-------------------------+----------+----------+---------+---------+---------+
| 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 |
+-------------------------+----------+----------+---------+---------+---------+
Other reserves represent the share premium account, the merger reserve and the
capital redemption reserve.
Consolidated cash flow statement
+--------------------------------------+------+-----------+-----------+
| | | Year | Year |
+--------------------------------------+------+-----------+-----------+
| | | ended | ended |
+--------------------------------------+------+-----------+-----------+
| | | 31 | 31 |
| | | December | December |
+--------------------------------------+------+-----------+-----------+
| | | 2009 | 2008 |
+--------------------------------------+------+-----------+-----------+
| | | GBP'000 | GBP'000 |
+--------------------------------------+------+-----------+-----------+
| | | | |
+--------------------------------------+------+-----------+-----------+
| Cash flows from operating activities | | | |
+--------------------------------------+------+-----------+-----------+
| (Loss)/Profit after taxation | | (806) | 516 |
+--------------------------------------+------+-----------+-----------+
| Adjustments for: | | | |
+--------------------------------------+------+-----------+-----------+
| Depreciation, impairment and | | 3,062 | 2,609 |
| amortisation charges | | | |
+--------------------------------------+------+-----------+-----------+
| Share based administrative expense | | 108 | 108 |
+--------------------------------------+------+-----------+-----------+
| Interest expense | | 652 | 957 |
+--------------------------------------+------+-----------+-----------+
| Movement in deferred tax provision | | (66) | 639 |
+--------------------------------------+------+-----------+-----------+
| Movement in provisions | | 959 | 177 |
+--------------------------------------+------+-----------+-----------+
| (Increase) in trade and other | | (665) | (493) |
| receivables | | | |
+--------------------------------------+------+-----------+-----------+
| (Decrease)/increase in inventories | | 72 | (250) |
+--------------------------------------+------+-----------+-----------+
| Increase in trade payables | | 65 | 432 |
+--------------------------------------+------+-----------+-----------+
| | | | |
+--------------------------------------+------+-----------+-----------+
| Cash flow from operations | | 3,381 | 4,695 |
+--------------------------------------+------+-----------+-----------+
| Interest paid | | (655) | (965) |
+--------------------------------------+------+-----------+-----------+
| Net cash from operating activities | | 2,726 | 3,730 |
+--------------------------------------+------+-----------+-----------+
| | | | |
+--------------------------------------+------+-----------+-----------+
| Cash flows from investing activities | | | |
+--------------------------------------+------+-----------+-----------+
| Purchase of property, plant and | | (1,910) | (9,251) |
| equipment | | | |
+--------------------------------------+------+-----------+-----------+
| Purchase of subsidiary | | - | (4,248) |
+--------------------------------------+------+-----------+-----------+
| Net cash used in investing | | (1,910) | (13,499) |
| activities | | | |
+--------------------------------------+------+-----------+-----------+
| | | | |
+--------------------------------------+------+-----------+-----------+
| Cash flows from financing activities | | | |
+--------------------------------------+------+-----------+-----------+
| Proceeds from issue of share capital | | 2,619 | - |
+--------------------------------------+------+-----------+-----------+
| New bank loans raised | | - | 8,000 |
+--------------------------------------+------+-----------+-----------+
| Net cash from financing activities | | 2,619 | 8,000 |
+--------------------------------------+------+-----------+-----------+
| | | | |
+--------------------------------------+------+-----------+-----------+
| Net increase/(decrease) in cash and | | 3,435 | (1,769) |
| cash equivalents | | | |
+--------------------------------------+------+-----------+-----------+
| Cash and cash equivalents at | | 2,686 | 4,455 |
| beginning of year | | | |
+--------------------------------------+------+-----------+-----------+
| Cash and cash equivalents at end of | | 6,121 | 2,686 |
| the year | | | |
+--------------------------------------+------+-----------+-----------+
| | | | |
+--------------------------------------+------+-----------+-----------+
Notes to the financial statements
1 Basis of preliminary statement
The financial information set out above does not constitute the Group's
statutory accounts for the year ended 31 December 2009 but is derived from those
accounts, which are prepared in accordance with International Financial
Reporting Standards.
The financial statements for the year ended 31 December 2009 have not yet been
filed at Companies House, but will be in due course. The auditor has reported on
those accounts; their report was unqualified and did not contain a statement
under section 498 (2) of the Companies Act 2006.
The 2009 statutory accounts are prepared on the basis of the accounting policies
stated in the Consolidated Interim report for the period ended 30 June 2009.
Copies of the June 2009 interim report can be found on the Company's website
at:
www.individualrestaurantcompanyplc.co.uk.
Going concern
The Group has a credit facility of GBP18.5m repayable in January 2012, subject
to annual review. The credit facility is subject to amortisation prior to
maturity. Based on heavily sensitised forecasts to 31 March 2011, the Group will
remain compliant with the covenants.
The directors have prepared heavily sensitised forecasts. Reasonable enquiries
have been made and assumptions taken with regard to cashflow and prudent
sensitivities. The Board is satisfied that should the lower of these estimates
be achieved, the Group will generate sufficient working capital to meet all of
its liabilities through implementing a number of cost saving initiatives which
could be easily implemented should the need arise.
The group has held discussions with the bank in 2010 and has successfully
refinanced the loan facility. The loan is now non-amortising and the term of the
facility has been extended by twelve months to January 2013.
It is the opinion of the Directors that forecasted profit will be achieved and
that the Group will continue to attract customers to its restaurants. In
addition, support from the Group's bankers has been confirmed. Accordingly, the
Directors continue to adopt the going concern basis in preparing the financial
statements.
2 Earnings per share
The calculation of earnings per share (basic and diluted) is based on
(loss)/profit after taxation, and the weighted average number of ordinary
shares.
+----------------------------------+----------+--------------+----------+
| | Year ended 31 December 2009 |
+----------------------------------+------------------------------------+
| | Earnings | Weighted | Per |
| | | average | share |
| | | number of | |
| | | shares | |
+----------------------------------+----------+--------------+----------+
| | GBP'000 | '000 | p |
+----------------------------------+----------+--------------+----------+
| | | | |
+----------------------------------+----------+--------------+----------+
| | | | |
+----------------------------------+----------+--------------+----------+
| Basic and diluted EPS | (806) | 49,161 | (1.64) |
+----------------------------------+----------+--------------+----------+
+----------------------------------+----------+--------------+----------+
| | Year ended 31 December 2008 |
+----------------------------------+------------------------------------+
| | Earnings | Weighted | Per |
| | | average | share |
| | | number of | |
| | | shares | |
+----------------------------------+----------+--------------+----------+
| | GBP'000 | '000 | p |
+----------------------------------+----------+--------------+----------+
| | | | |
+----------------------------------+----------+--------------+----------+
| | | | |
+----------------------------------+----------+--------------+----------+
| Basic and diluted EPS | 516 | 38,490 | 1.34 |
+----------------------------------+----------+--------------+----------+
The outstanding options at 31 December 2009 do not have a dilutive effect on the
weighted average number of shares as the exercise price of options during the
year exceeded the average market price of ordinary shares.
3 Share capital
During the period to 31 December 2009, nil (2008: nil) shares were issued to
satisfy share options previously granted under the employee share option scheme.
Shares issued and authorised for the period to 31 December 2009 may be
summarised as follows:
+--------------+--------------+-----------+----------+
| Authorised | Denomination | Number | Value |
| share | | | |
| capital | | | |
+--------------+--------------+-----------+----------+
| | GBP | '000 | GBP'000 |
+--------------+--------------+-----------+----------+
| Ordinary | | | |
| shares | | | |
+--------------+--------------+-----------+----------+
| As at | 0.35 | 76,273 | 26,696 |
| 1 | | | |
| January | | | |
| 2008 | | | |
| and 31 | | | |
| December | | | |
| 2008 | | | |
+--------------+--------------+-----------+----------+
| Share | 0.05 | 457,641 | - |
| sub-division | | | |
| (6 : 1) | | | |
+--------------+--------------+-----------+----------+
| Conversion | 0.05 | (237,013) | (11,851) |
| to | | | |
| deferred | | | |
| shares | | | |
+--------------+--------------+-----------+----------+
| As at | 0.05 | 296,901 | 14,845 |
| 31 | | | |
| December | | | |
| 2009 | | | |
+--------------+--------------+-----------+----------+
| | | | |
+--------------+--------------+-----------+----------+
| Deferred | | | |
| shares | | | |
+--------------+--------------+-----------+----------+
| As at | - | - | - |
| 1 | | | |
| January | | | |
| 2008 | | | |
| and 31 | | | |
| December | | | |
| 2008 | | | |
+--------------+--------------+-----------+----------+
| Conversion | 0.05 | 237,013 | 11,851 |
| of | | | |
| ordinary | | | |
| shares | | | |
+--------------+--------------+-----------+----------+
| Share | (0.05) | (237,013) | (11,851) |
| cancellation | | | |
+--------------+--------------+-----------+----------+
| As at | - | - | - |
| 31 | | | |
| December | | | |
| 2009 | | | |
+--------------+--------------+-----------+----------+
+---------------+--------------+-----------+----------+
| Allotted | Denomination | Number | Value |
| and | | | |
| fully | | | |
| paid up | | | |
| share | | | |
| capital | | | |
+---------------+--------------+-----------+----------+
| | GBP | '000 | GBP'000 |
+---------------+--------------+-----------+----------+
| Ordinary | | | |
| shares | | | |
+---------------+--------------+-----------+----------+
| As at | 0.35 | 35,456 | 12,409 |
| 1 | | | |
| January | | | |
| 2008 | | | |
+---------------+--------------+-----------+----------+
| Issue | 0.35 | 4,046 | 1,417 |
| of | | | |
| deferred | | | |
| consideration | | | |
| shares | | | |
+---------------+--------------+-----------+----------+
| As at | 0.35 | 39,502 | 13,826 |
| 31 | | | |
| December | | | |
| 2008 | | | |
+---------------+--------------+-----------+----------+
| Share | 0.05 | 237,013 | - |
| sub-division | | | |
| (6 : 1) | | | |
+---------------+--------------+-----------+----------+
| Conversion | 0.05 | (237,013) | (11,851) |
| to | | | |
| deferred | | | |
| shares | | | |
+---------------+--------------+-----------+----------+
| New | 0.05 | 20,146 | 1,007 |
| shares | | | |
| issued | | | |
+---------------+--------------+-----------+----------+
| As at | 0.05 | 59,648 | 2,982 |
| 31 | | | |
| December | | | |
| 2009 | | | |
+---------------+--------------+-----------+----------+
| | | | |
+---------------+--------------+-----------+----------+
| Deferred | | | |
| shares | | | |
+---------------+--------------+-----------+----------+
| As at | - | - | - |
| 1 | | | |
| January | | | |
| 2008 | | | |
| and 31 | | | |
| December | | | |
| 2008 | | | |
+---------------+--------------+-----------+----------+
| Conversion | 0.05 | 237,013 | 11,851 |
| of | | | |
| ordinary | | | |
| shares | | | |
+---------------+--------------+-----------+----------+
| Share | (0.05) | (237,013) | (11,851) |
| cancellation | | | |
+---------------+--------------+-----------+----------+
| As at | - | - | - |
| 31 | | | |
| December | | | |
| 2009 | | | |
+---------------+--------------+-----------+----------+
During the period to 31 December 2008 4,045,713 ordinary shares were issued to
settle the deferred consideration due in respect of the purchase of the entire
capital of Individual Restaurant Company Limited.
At the AGM held on 21 May 2009:
* each of the 36,771,300 authorised but as yet unissued ordinary shares of 35
pence each in the capital of the company were sub-divided into 257,399,100
ordinary shares of 5 pence each
* each of the 39,502,160 issued ordinary shares of 35 pence each were
sub-divided into 39,502,160 ordinary shares of 5 pence each and 237,012,960
deferred shares of 5 pence each.
On 19 June 2009 the company acquired all of the 237,012,960 deferred shares of 5
pence each for GBPnil consideration. These shares were subsequently cancelled.
The resulting reduction in share capital of GBP11,851,000 was transferred to a
share capital redemption reserve on cancellation.
On 9 July 2009 16,195,885 ordinary shares of 5 pence each were allotted
following the open offer of shares announced to shareholders on 22 June 2009.
This represented 100% of the open offer shares available. On the same date a
further 3,950,216 shares were placed with Blackstar (Isle of Man) Limited (in
its capacity as trustee of the Tarsem Singh Dhaliwal EFRBS and as trustee of the
Andrew Simon Pritchard EFRBS).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAXLKFEEEEFF
Individual Rest (LSE:IRC)
Historical Stock Chart
From Oct 2024 to Nov 2024
Individual Rest (LSE:IRC)
Historical Stock Chart
From Nov 2023 to Nov 2024
