TIDMPNB
RNS Number : 7417Z
Pubs 'n' Bars PLC
28 September 2009
Pubs 'n' Bars plc
(AIM: PNB)
("Pubs 'n' Bars" or "the Group")
INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2009
Pubs 'n' Bars, the AIM quoted community pub owner and operator, announces its
unaudited interim results for the period ended 30 June 2009.
The first six months of the current year have been disappointing and show no
improvement over the corresponding period of 2008.
Part of the decline in turnover was due to a change in the mix of pubs. There
were more pubs under management in 2008. Managed houses account for a larger
turnover as tenanted houses only contribute rents and a small amount of beer
sales income. In addition, beer sales to tenants fell from GBP675,000 to
GBP301,000 due to our major supplier entering administration. We have made
arrangements with new suppliers whereby we no longer purchase the beer and then
sell it to our tied tenants, but receive a profit contribution from the supplier
built into the price at which the tenants purchase their beer. Taking these
factors into account, the decline in like for like turnover was 3.05%. Gross
profit margin fell from 68.99% to 66.77%; this was also impacted by the
continued decline in income from gambling machines.
There can be no doubt that the smoking ban continues to adversely affect
traditional community pubs like ours. Together with competition from
supermarkets which, despite government pleas, continue to use alcohol sales as a
loss leader, uncertain weather and no major international football matches to
bring in customers, trading conditions were extremely difficult for the Group.
Current Trading
Trading remains difficult in the second half of the year. We are still being
affected by the factors mentioned above and turnover is currently approximately
3% lower than last year. The decline in like for like sales has been less
pronounced since mid August and although it is too early to call this a
recovery, we are hopeful that the trading climate is improving.
As previously announced on 10 September 2009, administrators have been appointed
to our subsidiary Moorgate Taverns Ltd. This group of ten freeholds was trading
at a loss, there were no parent company guarantees and, as a result, the Group
will save approximately GBP150,000 per annum.
We are continuing to negotiate with our bankers who are showing a great deal of
understanding and the utmost co-operation in these difficult times.
Finally, I would like to thank my colleagues and all members of the staff for
their continued efforts on behalf of the Group.
K. CHAPMAN
Chairman
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2009
+------------------------+-------+----+--+--------------+--------------+--------------+--------------+--------------+
| | | | 6 Mths Ended | | 6 Mths Ended | | Year Ended |
| | | | 30.06.2009 | | 30.06.2008 | | 31.12.2008 |
| | | | (unaudited) | | (unaudited) | | (audited) |
+------------------------+------------+--+ +--------------+--------------+--------------+ +
| | | | | | Restated | | |
| | | | | | (note 10) | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| | Notes | | GBP | | GBP | | GBP |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| REVENUE | | | 10,332,097 | | 11,217,196 | | 22,287,657 |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| Cost of sales | | | (3,433,137) | | (3,478,542) | | (7,413,534) |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| GROSS PROFIT | | | 6,898,960 | | 7,738,654 | | 14,874,123 |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| Administrative | | | | | | | |
| expenses | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| Before exceptional | | | (6,476,574) | | (6,663,863) | | (13,777,550) |
| items | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| Exceptional items | 3 | | 144,410 | | 323,200 | | (7,494,705) |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | (6,332,164) | | (6,340,663) | | (21,272,255) |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| OPERATING PROFIT/(LOSS) | | 566,796 | | 1,397,991 | | (6,398,132) |
+-------------------------------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| Finance cost | | | (1,262,036) | | (1,273,283) | | (2,552,642) |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| Investment income | | | 4,607 | | 3,564 | | 6,094 |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | | | | |
+-------------------------------------+--+--------------+--------------+--------------+--------------+--------------+
| (LOSS)/PROFIT BEFORE TAXATION | (690,633) | | 128,272 | | (8,944,680) |
+----------------------------------------+--------------+--------------+--------------+--------------+--------------+
| | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| Taxation | 4 | | (54,167) | | (113,394) | | 1,379,084 |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| (LOSS)/PROFIT FOR THE PERIOD | | (744,800) | | 14,878 | | (7,565,596) |
+-------------------------------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | | | | |
+-------------------------------------+--+--------------+--------------+--------------+--------------+--------------+
| OTHER COMPREHENSIVE INCOME | | | | | | |
+-------------------------------------+--+--------------+--------------+--------------+--------------+--------------+
| Property revaluation | | - | | - | | (2,658,684) |
+-------------------------------------+--+--------------+--------------+--------------+--------------+--------------+
| Deferred tax arising on | 4 | | - | | - | | 863,245 |
| property revaluation | | | | | | | |
+--------------------------------+----+--+--------------+--------------+--------------+--------------+--------------+
| | | (744,800) | | 14,878 | | (9,361,035) |
+-------------------------------------+--+--------------+--------------+--------------+--------------+--------------+
| | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| EARNINGS PER SHARE - from continuing and total operations | | |
+-------------------------------------------------------------------------------------+--------------+--------------+
| | | | | | | | |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| Basic | 5 | | (1.87)p | | 0.04p | | (18.96)p |
+------------------------+------------+--+--------------+--------------+--------------+--------------+--------------+
| Diluted | 5 | | (1.87)p | | 0.03p | | (18.96)p |
+------------------------+-------+----+--+--------------+--------------+--------------+--------------+--------------+
CONSOLIDATED INTERIM BALANCE SHEET
AS AT 30 JUNE 2009
+------------------------------+--------+--------------+--+---------------+--+---------------+
| | | 6 Mths Ended | | 6 Mths Ended | | Year Ended |
| | | 30.06.2009 | | 30.06.2008 | | 31.12.2008 |
| | | (unaudited) | | (unaudited) | | (audited) |
| | | | | Restated | | |
| | | | | (note 10) | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| | Notes | GBP | | GBP | | GBP |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| ASSETS | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Non-current assets | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Property, plant and | 7 | 41,192,653 | | 49,220,947 | | 41,276,365 |
| equipment | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Intangible fixed assets | 8 | 4,361,972 | | 5,911,487 | | 4,564,533 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Derivative financial | | - | | 65,200 | | - |
| instruments | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Deferred tax assets | | 1,811,960 | | 547,004 | | 1,881,039 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| | | 47,366,585 | | 55,744,638 | | 47,721,937 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Current assets | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Inventories | | 858,514 | | 837,909 | | 764,863 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Trade and other receivables | | 2,889,111 | | 2,914,089 | | 2,176,002 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Cash and cash equivalents | | 94,987 | | 99,783 | | 100,072 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| | | 3,842,612 | | 3,851,781 | | 3,040,937 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| TOTAL ASSETS | | 51,209,197 | | 59,596,419 | | 50,762,874 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| EQUITY AND LIABILITIES | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Capital and reserves | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Ordinary share capital | 9 | 7,965,671 | | 7,965,671 | | 7,965,671 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Share premium account | | 7,192,665 | | 7,192,665 | | 7,192,665 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Revaluation reserve | | 2,203,815 | | 3,999,254 | | 2,203,815 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Share based payment reserve | | 75,300 | | - | | 52,933 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Retained earnings | | (8,618,014) | | (74,195) | | (7,873,214) |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| TOTAL EQUITY | | 8,819,437 | | 19,083,395 | | 9,541,870 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Non-current liabilities | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Long-term borrowings | | - | | 34,226,393 | | - |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Finance lease liabilities | | 139,464 | | 4,152 | | 156,904 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Derivative financial | | 1,230,290 | | - | | 1,374,700 |
| instruments | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Deferred tax liabilities | | 934,157 | | 1,970,757 | | 949,069 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| | | 2,303,911 | | 36,201,302 | | 2,480,673 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Current liabilities | | | | | | |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Trade and other payables | | 4,571,003 | | 3,463,570 | | 3,343,676 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Short-term borrowings | | 35,427,951 | | 823,881 | | 35,330,701 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Current tax payable | | - | | 20,511 | | - |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| Finance lease liabilities | | 86,895 | | 3,760 | | 65,954 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| | | 40,085,849 | | 4,311,722 | | 38,740,331 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
| TOTAL EQUITY AND LIABILITIES | 51,209,197 | | 59,596,419 | | 50,762,874 |
+------------------------------+--------+--------------+--+---------------+--+---------------+
CONSOLIDATED INTERIM CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
+-----------------------------------+-+-+-+-+-+-+------------+--+-------------+--+-------------+
| | | 6 Mths Ended | | 6 Mths | | Year Ended |
| | | 30.06.2009 | | Ended | | 31.12.2008 |
| | | (unaudited) | | 30.06.2008 | | (audited) |
| | | | | (unaudited) | | |
| | | | | Restated | | |
| | | | | (note10) | | |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| | | GBP | | GBP | | GBP |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| Cash flows from operating activities | | | | | |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| (Loss)/Profit before taxation | | (690,633) | | 128,272 | | (8,944,680) |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| Adjustments for: | | | | | | |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| Investment income | | (4,607) | | (3,564) | | (6,094) |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| Interest expense | | 1,262,036 | | 1,273,283 | | 2,552,642 |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| Decrease in value of leasehold | | - | | - | | 5,287,979 |
| properties | | | | | | |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| Derivative financial instrument fair value | 144,410 | | (323,200) | | 1,116,700 |
| adjustment | | | | | |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| Depreciation | | 389,907 | | 349,833 | | 732,410 |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| Increase in inventories | | (93,651) | | (86,292) | | (13,246) |
+-------------------------------------------+---+------------+--+-------------+--+-------------+
| Increase in trade & other receivables | | (713,109) | | (725,545) | | (18,458) |
+-------------------------------------------+---+------------+--+-------------+--+-------------+
| Increase in trade payables | | 938,505 | | 404,890 | | 621,214 |
+-------------------------------------+-------+--------------+--+-------------+--+-------------+
| Amortisation and impairments | | 202,561 | | 295,688 | | 1,642,642 |
+-------------------------------------+-------+--------------+--+-------------+--+-------------+
| Expenses in return for shares | | 22,367 | | - | | 31,000 |
+-------------------------------------+-------+--------------+--+-------------+--+-------------+
| | | | | | | |
+-------------------------------------+-------+--------------+--+-------------+--+-------------+
| Cash generated from operations | | 1,457,786 | | 1,313,365 | | 3,002,109 |
+-------------------------------------+-------+--------------+--+-------------+--+-------------+
| Interest paid | | (1,262,036) | | (1,234,006) | | (2,805,085) |
+-------------------------------------+-------+--------------+--+-------------+--+-------------+
| Tax received | | - | | - | | (31,699) |
+-------------------------------------+-------+--------------+--+-------------+--+-------------+
| | | | | | | |
+-------------------------------------+-------+--------------+--+-------------+--+-------------+
| NET CASH FROM OPERATING ACTIVITIES | 195,750 | | 79,359 | | 165,325 |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| | | | | | | |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| Cash flows from investing activities | | | | | |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| Purchase of tangible fixed assets | | (306,195) | | (553,401) | | (938,059) |
+-----------------------------------------+---+--------------+--+-------------+--+-------------+
| Interest received | | 4,607 | | 3,564 | | 6,094 |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| | | | | | | |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| NET CASH FROM INVESTING ACTIVITIES | (301,588) | | (549,837) | | (931,965) |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| | | | | | |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| Cash flows from financing activities | | | | | |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| Net (repayment)/drawdown of | | (9,453) | | 23,119 | | 13,885 |
| borrowings | | | | | | |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| Payment of finance lease liabilities | | (36,499) | | (1,888) | | (25,635) |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| Dividends paid | | - | | - | | (199,142) |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| Funds raised by sale and lease back of | 40,000 | | - | | 238,693 |
| assets | | | | | |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| | | | | | | |
+---------------------------------------+-----+--------------+--+-------------+--+-------------+
| NET CASH FROM FINANCING ACTIVITIES | (5,952) | | 21,231 | | 27,801 |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| NET DECREASE IN CASH | | | | | |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| AND CASH EQUIVALENTS | | (111,790) | | (449,247) | | (738,839) |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| | | | | | | |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| Cash and cash equivalents at beginning of | (956,683) | | (217,844) | | (217,844) |
| period | | | | | |
+---------------------------------------------+--------------+--+-------------+--+-------------+
| | | | | | | |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| CASH AND CASH EQUIVALENTS AT END | | (1,068,473) | | (667,091) | | (956,683) |
| OF PERIOD | | | | | | |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| REPRESENTED BY: | | | | | | |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| Cash at bank and in hand | | 94,987 | | 99,783 | | 100,072 |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| Bank overdrafts | | (1,163,460) | | (766,874) | | (1,056,755) |
+-----------------------------------+---------+--------------+--+-------------+--+-------------+
| | | (1,068,473) | | (667,091) | | (956,683) |
+-----------------------------------+-+-+-+-+-+-+------------+--+-------------+--+-------------+
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2009
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | Ordinary | Share | Revaluation | Share-Based | Retained | Total |
| | | Share | Premium | Reserve | Payments | Earnings | Equity |
| | | Capital | | | Reserve | | |
+--------------------+--+ + + + + + +
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | GBP | GBP | GBP | GBP | GBP | GBP |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
|Balances at 1 January | 7,965,671 | 7,192,665 | 2,203,815 | 52,933 | (7,873,214) | 9,541,870 |
| 2009 | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| Total comprehensive | | | | | | |
|income for the period | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| Loss for the period | - | - | - | - | (744,800) | (744,800) |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| Transactions with | | | | | | |
| owners, recorded | | | | | | |
| directly in equity | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| Share-based | | - | - | - | 22,367 | - | 22,367 |
| payments | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| Balances at 30 June | 7,965,671 | 7,192,665 | 2,203,815 | 75,300 | (8,618,014) | 8,819,437 |
| 2009 | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | Ordinary | Share | Revaluation | Share-Based | Retained | Total |
| | | Share | Premium | Reserve | Payments | Earnings | Equity |
| | | Capital | | | Reserve | | |
+--------------------+--+ + + + + + +
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | GBP | GBP | GBP | | GBP | GBP |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
|Balances at 1 January | 7,934,671 | 7,192,665 | 3,999,254 | - | (89,073) | 19,037,517 |
| 2008 | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| Total comprehensive | | | | | | |
|income for the period | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| Loss for the | | - | - | - | - | (7,565,596) | (7,565,596) |
| period | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| Other comprehensive | | | | | | |
| income | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| Property | | - | - | (2,658,684) | - | - | (2,658,684) |
| revaluation | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| Deferred tax arising | - | - | 863,245 | - | - | 863,245 |
| on revaluation | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| Total other | - | - | (1,795,439) | - | - | (1,795,439) |
| comprehensive income | | | | | | |
| for the year | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| Total comprehensive | - | - | (1,795,439) | - | (7,565,596) | (9,361,035) |
| income for the year | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| Transactions with | | | | | | |
| owners, recorded | | | | | | |
| directly in equity | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| Dividends paid | | - | - | - | - | (199,142) | (199,142) |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| Share-based | | - | - | - | 52,933 | (19,403) | 33,530 |
| payments | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| Issue of share | | 31,000 | - | - | - | - | 31,000 |
| capital | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| Total transactions | 31,000 | - | - | 52,933 | (218,545) | (134,612) |
| with owners | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| Balances at 31 | 7,965,671 | 7,192,665 | 2,203,815 | 52,933 | (7,873,214) | 9,541,870 |
| December 2008 | | | | | | |
+-----------------------+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
| | | | | | | | |
+--------------------+--+-----------+-----------+-------------+-------------+-------------+-------------+
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
1.ACCOUNTING POLICIES
The interim financial information in this report has been prepared using
accounting policies consistent with International Financial Reporting Standards
(IFRS), as adopted for use in the EU, applied in accordance with the provisions
of the Companies Act 2006. IFRS is subject to amendment and interpretation by
the International Accounting Standards Board (IASB) and the International
Financial Reporting Interpretations Committee (IFRIC) and there is an ongoing
process of review and endorsement by the European Commission. The financial
information has been prepared on the basis of IFRS that the directors expect to
be applicable as at 31 December 2009.
Basis of Preparation
The financial information has been prepared in accordance with applicable
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), under the historical cost
convention as modified by the revaluation of freehold, long leasehold property
and derivative financial instruments. The measurement basis is the historical
cost convention and the principal accounting policies are set out below.
Non-Statutory Accounts
The financial information for the year ended 31 December 2008 set out in this
interim report does not comprise the Group's statutory accounts as defined in
Section 240 of the Companies Act 1985.
The statutory accounts for the year ended 31st December 2008, which were
prepared under IFRS, have been delivered to the Registrar of Companies. The
auditors reported on those accounts; their report was unqualified and did not
contain a statement under either Section 237 of the Companies Act 2006.
These accounts have been prepared in accordance with IAS 34 'Interim Financial
Statements'.
The financial information for the six months ended 30 June 2009 and 30th June
2008 is unaudited.
Going Concern
The interim financial statements have been prepared on a going concern basis
which the Directors believe to be appropriate.
At the 30 June 2009 the Group classified GBP34,264,493 of long term bank as
short term liabilities due to breaches of covenants in the underlying
agreements. The Group is continuing to negotiate with its bankers with regard to
restructuring its facilities and it is likely that this will include increased
interest margins.
The issues impacting the pub sector continue especially the smoking ban, the
credit squeeze and the availability of discounted alcohol at supermarkets.
The Directors have prepared cash flow forecasts for two years from the 31
December 2008 and have taken steps to reduce the Group's net cash outflow. These
projections have been prepared on the basis that the impact of the current
economic downturn has been incorporated in their forecasts. In terms of any
future interest rate changes, the cash projections have been revised to reflect
possible interest rate adjustments. On this basis the Board considers that the
Group will have sufficient funds for the twelve month period from the date of
signing of the interim financial statements.
In view of the significance of the factors outlined above, the Independent
Review Report includes an Emphasis of Matter which refers to the existence of
these uncertainties and their impact on the Group's ability to continue in
operational existence for the foreseeable future.
IFRS effective in 2008/09 but not relevant
A review of IFRIC interpretations were mandatory for the Group's accounting
period, but are not relevant to the operations of the Group.
Standards, amendments and interpretations to existing standards that are not yet
effective and have not been adopted early by the Group
At the date of authorisation of these interim financial statements, certain new
standards, amendments and interpretations to existing standards have been
published but are not yet effective, and have not been adopted early by the
Group. Management anticipates that all of the pronouncements will be adopted in
the Group's accounting policies for the first period beginning after the
effective date of the pronouncements. Information on new standards, amendments
and interpretations that are expected to be relevant to the Group's financial
statements is provided below. Certain other new standards and interpretations
have been issued but are not expected to have a material impact on the Group's
financial statements.
IFRS 3 Business Combinations (Revised 2008) (effective from 1 July 2009)
The standard is applicable for business combinations occurring in reporting
periods beginning on or after 1 July 2009 and will be applied prospectively. The
new standard introduces changes to the accounting requirements for business
combinations, but still requires use of the purchase method, and will have a
significant effect on business combinations occurring in reporting periods
beginning on or after 1 July 2009.
IAS 27 Consolidated and Separate Financial Statements (Revised 2008)
(effective from 1 July 2009)
The revised standard introduces changes to the accounting requirements for the
loss of control of a subsidiary and for changes in the Group's interest in
subsidiaries. Management does not expect the standard to have a material effect
on the Group's financial statements.
Annual Improvements 2009
The IASB has issued Improvements for International Financial Reporting Standards
2009 which became effective in the six months period ending 30June 2009 however,
these amendments are not expected to have a material impact on the Group's
financial statements.
Basis of Consolidation
The financial information incorporates the results of the Company and entities
controlled by the Company (its subsidiaries). Control is achieved where the
Company has the power to govern the financial and operating policies of an
investee entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the period are
included in the consolidated income statement from the effective date of
acquisition or up to the effective date of disposal, as appropriate. Financial
statements of the subsidiaries are prepared to the same year end, 31 December.
Where necessary, adjustments are made to the results of subsidiaries to bring
the accounting policies used into line with those used by the Group.
All intra-Group transactions, balances, income and expenses are eliminated
on consolidation.
Business Combinations and Goodwill
Goodwill on acquisitions comprises the excess of the fair value of the
consideration plus any associated costs for investments in subsidiary
undertakings over the fair value of the net identifiable assets acquired.
Adjustments are made to fair values to bring the accounting policies of acquired
businesses into alignment with those of the Group. The costs of integrating and
reorganising acquired businesses are charged to the income statement post
acquisition.
Goodwill is carried at cost less accumulated impairment losses. Goodwill is
tested for impairment annually. Gains and losses on the disposal of an entity
include the carrying amount of goodwill relating to the entity sold. Negative
goodwill is recognised immediately in the income statement.
Revenue Recognition
Revenue is the value of goods and services sold to third parties as part of the
Group's trading activities, after deducting sales based taxes, coupons and staff
discounts. The majority of revenue comprises beverages as well as food sold in
the Group's outlets. This revenue is recognised at the point of sale to the
customer. Revenue arising from the sale of property is recognised on
unconditional exchange of contracts. Investment income is recognised upon a
receivable basis.
Taxation
The tax expense represents the sum of the tax currently payable and any deferred
tax. The tax currently payable is based on the estimated taxable profit for the
year. Taxable profit differs from net profit as reported in the income statement
because it excludes items of income or expenses that are taxable or deductible
in other years and it further excludes items that are never taxable or
deductible. The Group's liability for current tax is calculated using tax rates
that have been enacted or substantially enacted by the balance sheet date.
Deferred tax is provided in full, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. The deferred tax is
not accounted for if it arises from initial recognition of an asset or liability
in a transaction, other than a business combination, that at the time of the
transaction affects neither accounting nor taxable profit or loss. Deferred tax
is determined using tax rates (and laws) that have been enacted or substantially
enacted by the balance sheet date and are expected to apply when the related
deferred tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future
taxable profit will be
available against which the temporary differences can be utilised.
Deferred tax is provided on temporary differences arising on investments in
subsidiaries, joint ventures and associates, except where the timing of the
reversal of the temporary difference is controlled by the Group and it is
probable that the temporary difference will not reverse in the foreseeable
future.
Share-based Payments
The cost of share-based payment arrangements, whereby employees receive
remuneration in the form of shares or share options, is recognised as an
employee benefit expense in the income statement.
The total expense to be apportioned over the vesting period of the benefit is
determined by reference to the fair value at the date of grant. The assumptions
underlying the number of awards expected to vest are subsequently adjusted for
the effects of non market-based vesting conditions prevailing at the balance
sheet date. Fair value is measured by the use of Black-Scholes option pricing
model and is based on a reasonable expectation of the extent to which
performance criteria will be met.
Property, Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and any
recognised impairment loss. Depreciation is charged so as to write off the costs
of assets, over their estimated useful lives, using the straight-line method, on
the following bases:
Fixtures and fittings 10% straight line
Computers and EPOS 20% straight line
Motor vehicles 25% straight line
Leasehold improvements the shorter of the lease term or five years
The property assets of the Group are stated at revalued amounts, being fair
value at the date of revaluation less accumulated impairment losses. Increases
in the value of revalued assets are recognised in the revaluation reserve except
to the extent they relate to a previous decrease in value which had been charged
to the income statement. Decreases in value are taken to the revaluation reserve
to the extent of any pre-existing surplus on that individual asset; decreases in
excess of any pre-existing surplus are taken to the income statement.
Pub Operating Lease Premiums
Short leasehold property premiums arising on leases of property which are
classified as operating leases under IAS17 are recognised as intangible fixed
assets. They are capitalised at cost and amortised over the finite lease term,
amortisation being recognised under amortisation expenses. The leases are tested
annually for impairment. Any improvements to the short leasehold property are
classified as leasehold improvements under tangible fixed assets.
Impairment
Assets that have an indefinite useful life are not subject to amortisation and
are tested annually for impairment and if events or changes in circumstances
indicate that the carrying amount may not be recoverable. Assets that are
subject to depreciation or amortisation are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be
recoverable. A review for indicators of impairment is performed annually. An
impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset's fair value less costs to sell and value in use. Any impairment charge
is recognised in the income statement in the year in which it occurs. When an
impairment loss, other than an impairment loss on goodwill, subsequently
reverses due to a change in the original estimate, the carrying amount of the
asset is increased to the revised estimate of its recoverable amount, up to the
carrying amount that would have resulted, net of depreciation, had no impairment
loss been recognised for the asset in prior years.
Trade and other receivables
Trade receivables are stated at their original invoiced value, as the interest
that would be recognised from discounting future cash receipts over the short
credit period is not considered to be material. Trade receivables are reduced by
appropriate allowances for estimated irrecoverable amounts. Interest on overdue
trade receivables is recognised as it accrues.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and other short-term
highly liquid deposits with an original maturity at acquisition of three months
or less. Cash held on deposit with an original maturity at acquisition of more
than three months is disclosed as current asset investments. For the purposes of
the cash flow statement, cash and cash equivalents consists of cash and cash
equivalents as defined above, net of bank overdrafts that are repayable on
demand and that are integral to the Group's cash management.
Trade payables
Trade payables are stated at their original invoiced value, as the interest that
would be recognised from discounting future cash payments over the short payment
period is not considered to be material.
Derivative financial instruments
The Group's policy is to hedge a proportion of its variable rate borrowings at
fixed rates of interest. To achieve this, the Group enters into interest rate
swap contracts in which the Group agrees to exchange its variable rate
obligations for fixed rate obligations.
Although not accounted for as being hedge effective, the swaps are held for risk
management purposes and not for trading purposes. These swaps are defined as
cash flow hedges and the fair values are determined by discounting the future
cash flows using the mid point of the sterling yield curve prevailing at the
year end.
Interest-bearing borrowings
Interest-bearing borrowings are stated at amortised cost using the effective
interest method. The effective interest method is a method of calculating the
amortised cost of a financial liability and of allocating interest expense over
the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the
financial liability.
Provisions
Provisions are recognised in the balance sheet when there is a present legal or
constructive obligation as a result of a past event, and it is probable that an
outflow of economic benefits will be required to settle the obligation.
Plant and Equipment Leases
Leases of property, plant and equipment, where the Group has substantially all
the risks and rewards of ownership, are classified as finance leases. Finance
leases are capitalised at the lease's inception at the lower of the fair value
of the leased property and the present value of the minimum lease payments. Each
lease payment is allocated between the liability and finance charges so as to
achieve a constant rate on the finance balance outstanding. The corresponding
rental obligations, net of finance charges, are included in other long-term
payables. The interest element of the finance cost is charged to the income
statement over the lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period. The
property, plant and equipment acquired under finance leases is depreciated over
the shorter of the asset's useful life and the lease term.
Leases where the lessor retains substantially all the risks and rewards of
ownership are classified as operating leases. Payments made under operating
leases (net of any incentives received from the lessor) are charged to the
income statement on a straight-line basis over the period of the lease.
Rental income received under operating leases is credited to the income
statement on a straight line basis over the lease term.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is
determined using the first-in, first-out (FIFO) method. It excludes borrowing
costs. Net realisable value is the estimated selling price in the ordinary
course of business, less applicable variable selling expenses.
Pensions
The Group operates a defined contribution pension plan. The scheme is funded
through payments to insurance companies.
A defined contribution plan is a pension plan under which the Group pays fixed
contributions into a separate entity.
The Group has no legal or constructive obligations to pay further contributions
if the fund does not hold sufficient assets to pay all employees the benefits
relating to employee service in the current and prior periods.
For a defined contribution plan, the Group pays contributions to publicly or
privately administered pension insurance plans on a contractual basis. The Group
has no further payment obligations once the contributions have been paid. The
contributions are recognised as employee benefit expense when they are due.
Exceptional Items
Exceptional items comprise material changes in the values of its freehold, long
leasehold properties and derivative financial instruments and impairments of
operating lease premiums recognised in the income statement, as exceptional
items. This is due to the profits and losses not being directly attributable to
the trading performance of the Group.
Segmental Reporting
The Directors consider that within the one business there are two main types of
income; managed house income and tenanted house income. These are considered to
be part of the same segment.
All income is derived from the within United Kingdom.
2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
The preparation of financial information in conformity with generally accepted
accounting practice requires management to make estimates and judgments that
affect the reported amounts of assets and liabilities as well as the disclosure
of contingent assets and liabilities at the balance sheet date and the reported
amounts of revenues and expenses during the reporting period.
Estimates and judgments are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The significant judgments
made by management in applying the Group's accounting policies and the key
sources of estimation were:
* Impairment of goodwill. Determining whether goodwill is impaired requires an
estimation of the value in use of the cash-generating units to which goodwill
has been allocated. The value in use calculation requires the Group to estimate
the future cash flows expected to arise from the cash-generating unit and a
suitable discount rate in order to calculate the present value.
* Non-depreciation of assets. The Directors believe that the following factors
are relevant to the Group's public house estates, which mitigate the need to
apply depreciation to these assets:
* The Company has a policy of regular maintenance and repair such that the
properties are retained at the previously assessed standard of performance;
* The properties are unlikely to suffer from technical or commercial obsolescence;
* The Company, as a commercial enterprise, has historically recognised disposal
proceeds of similar assets which have not been materially less than their
carrying value.
Therefore the directors consider that it is not necessary to depreciate the
property assets owned.
+----------+-----------------------------------+----------+--+--------+---+--+------------+--+------------+
| 3. | EXCEPTIONAL ITEMS | | | | | | |
+----------+-----------------------------------+----------+-----------+---+---------------+--+------------+
| | | | | | | | |
+----------+-----------------------------------+----------+-----------+---+---------------+--+------------+
| | Group operating profit for the period is stated after the following: | |
+----------+---------------------------------------------------------------------------------+------------+
| | | | 6 Mths | | 6 Mths | | Year |
| | | | Ended | | Ended | | Ended |
| | | | 30.06.2009 | | 30.06.2008 | | 31.12.2008 |
+----------+----------------------------------------------+--+------------+--+------------+--+------------+
| | | | GBP | | GBP | | GBP |
+----------+----------------------------------------------+--+------------+--+------------+--+------------+
| | | | | | | | |
+----------+----------------------------------------------+--+------------+--+------------+--+------------+
| | Impairment of short leasehold property | | - | | - | | 1,090,026 |
+----------+----------------------------------------------+--+------------+--+------------+--+------------+
| | Revaluation deficit on freehold and | | - | | - | | 5,287,979 |
| | long leasehold property | | | | | | |
+----------+----------------------------------------------+--+------------+--+------------+--+------------+
| | Revaluation (surplus)/deficit on | | (144,410) | | (323,200) | | 1,116,700 |
| | derivative Financial instrument | | | | | | |
+----------+----------------------------------------------+--+------------+--+------------+--+------------+
| | | | (144,410) | | (323,200) | | 7,494,705 |
+----------+----------------------------------------------+--+------------+--+------------+--+------------+
| | | | | | | | |
+----------+----------------------------------------------+--+------------+--+------------+--+------------+
| | |
+----------+-----------------------------------+----------+--+--------+---+--+------------+--+------------+
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| 4. | TAXATION | | 6 Mths | | 6 Mths | | Year |
| | | | Ended | | Ended | | Ended |
| | | | 30.06.2009 | | 30.06.2008 | | 31.12.2008 |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | GBP | | GBP | | GBP |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | Current tax charge | | - | | - | | - |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | Deferred tax | | (14,912) | | 67,097 | | (73,262) |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | Deferred tax on revaluations | | - | | 90,496 | | - |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | Deferred tax released on | | - | | - | | (1,480,634) |
| | revaluation | | | | | | |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | Deferred tax released on | | - | | (44,199) | | - |
| | reclassification of short | | | | | | |
| | leasehold property | | | | | | |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | Utilisation of tax losses | | 69,079 | | - | | 174,812 |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | Total tax expense for the periods | | 54,167 | | 113,394 | | (1,379,084) |
| | before other comprehensive income | | | | | | |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | Tax has been calculated using an estimated annual effective rate of 28% (2008 interim: 30%) on |
| | profit before tax. |
+----------+-------------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
| | Tax effects relating to other comprehensive income: |
| | A loss on property revaluation of GBP2,658,684 in the year ended 31st December 2008 gave rise to an |
| | associated deferred tax benefit of GBP863,245. The net loss on revaluation of the Group's |
| | properties, after this deferred tax credit, amounted to GBP1,795,439. |
+----------+-------------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+------------------------------------+----------+------------+----------+------------+----------+-------------+
+----------+--------------------------------------+--+-------------+----------+-------------+--+-------------+
| 5. | EARNINGS PER SHARE | | 6 Mths | | 6 Mths | | Year |
| | | | Ended | | Ended | | Ended |
| | | | 30.06.2009 | | 30.06.2008 | | 31.12.2008 |
+----------+--------------------------------------+--+-------------+----------+-------------+--+-------------+
| | | | GBP | | GBP | | GBP |
+----------+--------------------------------------+--+-------------+----------+-------------+--+-------------+
| | Earnings from Continuing and Total | | | | | |
| | Operations | | | | | |
+----------+-----------------------------------------+-------------+----------+-------------+--+-------------+
| | Earnings for the purpose of basic and | (744,800) | | 14,878 | | (7,565,596) |
| | diluted earnings per share being net | | | | | |
| | profit attributable to equity | | | | | |
| | shareholders | | | | | |
+----------+-----------------------------------------+-------------+----------+-------------+--+-------------+
| | | | | | | | |
+----------+--------------------------------------+--+-------------+----------+-------------+--+-------------+
| | Number of Shares | | | | | | |
+----------+--------------------------------------+--+-------------+----------+-------------+--+-------------+
| | Weighted average number of ordinary | 39,828,355 | | 39,724,739 | | 39,828,355 |
| | shares for the purpose of basic | | | | | |
| | earnings per share | | | | | |
+----------+-----------------------------------------+-------------+----------+-------------+--+-------------+
| | | | | | | | |
+----------+--------------------------------------+--+-------------+----------+-------------+--+-------------+
| | Weighted average number of ordinary | 42,268,226 | | 42,622,425 | | 42,268,226 |
| | shares for the purpose of dilutive | | | | | |
| | earnings per share | | | | | |
+----------+--------------------------------------+--+-------------+----------+-------------+--+-------------+
+----------+---------------------------------------------------------------------+
| | The calculation of diluted earnings per share assumes conversion of |
| | all potentially dilutive ordinary shares, all of which arise from |
| | share options. A calculation is performed to determine the number |
| | of shares that could have been acquired at fair value, based upon |
| | the monetary value of the subscription rights attached to |
| | outstanding share options. |
| | As at 30th June 2009 and 31st December 2008 2,897,686 of shares |
| | under option were not included in the calculations of diluted EPS |
| | because they were anti-dilutive for those periods however could |
| | potentially dilute basic EPS in the future. |
+----------+---------------------------------------------------------------------+
+----+---------------------------------------+----------+----------+----------+----------+----------+----------+----------+
| 6. | DIVIDENDS | | | | | | | |
+----+---------------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | |
+----+---------------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | No dividends were paid or proposed in the last two interim periods. |
+----+--------------------------------------------------------------------------------------------------------------------+
| | |
+----+---------------------------------------+----------+----------+----------+----------+----------+----------+----------+
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| 7. | PROPERTY, PLANT AND | Freehold | Long | Lease-hold | Fixtures | Motor | Total |
| | EQUIPMENT | Land and | Leasehold | Improve-ments | and | Vehicles | |
| | | Buildings | Property | | Fittings | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | GROUP | GBP | GBP | GBP | GBP | GBP | GBP |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | COST/VALUATION | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 1 January 2009 | 38,143,380 | 1,048,633 | 2,956,377 | 3,695,207 | 13,500 | 45,857,097 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | Additions | 112,643 | 2,020 | 161,906 | 29,626 | - | 306,195 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 30 June 2009 | 38,256,023 | 1,050,653 | 3,118,283 | 3,724,833 | 13,500 | 46,163,292 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | DEPRECIATION | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 1 January 2009 | - | - | 2,285,386 | 2,284,146 | 11,200 | 4,580,732 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | Charge for the | - | - | 187,698 | 199,909 | 2,300 | 389,907 |
| | period | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 30 June 2009 | - | - | 2,473,084 | 2,484,055 | 13,500 | 4,970,639 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | NET BOOK VALUE | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 30 June 2009 | 38,256,023 | 1,050,653 | 645,199 | 1,240,778 | - | 41,192,653 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 1 January 2009 | 38,143,380 | 1,048,633 | 670,991 | 1,411,061 | 2,300 | 41,276,365 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | COST/VALUATION | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 1 January 2008 - | 45,558,435 | 1,123,692 | 2,670,995 | 3,501,579 | 11,000 | 52,865,701 |
| | restated | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | Additions | 453,855 | 2,694 | 285,382 | 193,628 | 2,500 | 938,059 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | Deficit | (7,868,910) | (77,753) | - | - | - | (7,946,663) |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 31 December 2008 | 38,143,380 | 1,048,633 | 2,956,377 | 3,695,207 | 13,500 | 45,857,097 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | DEPRECIATION | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 1 January 2008 | - | - | 1,941,984 | 1,895,338 | 11,000 | 3,848,322 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | Charge for the | - | - | 343,402 | 388,808 | 200 | 732,410 |
| | period | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 31 December 2008 | - | - | 2,285,386 | 2,284,146 | 11,200 | 4,580,732 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | NET BOOK VALUE | | | | | | |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 31 December 2008 | 38,143,380 | 1,048,633 | 670,991 | 1,411,061 | 2,300 | 41,276,365 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
| | At 1 January 2008 | 45,558,453 | 1,123,692 | 729,011 | 1,606,241 | - | 49,017,379 |
+----------+---------------------+-------------+-----------+---------------+-----------+----------+-------------+
+----+------------------------------------------------+------------+-----------+------------+
| 8. | INTANGIBLE FIXED ASSETS | Goodwill | Operating | Total |
| | | | Lease | |
| | | | Premiums | |
+----+------------------------------------------------+------------+-----------+------------+
| | | GBP | GBP | GBP |
+----+------------------------------------------------+------------+-----------+------------+
| | COST | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | At 1 January 2009 and 30 June 2009 | 2,224,260 | 8,176,049 | 10,400,309 |
+----+------------------------------------------------+------------+-----------+------------+
| | | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | AMORTISATION AND IMPAIRMENT LOSSES | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | At 1 January 2009 | 585,447 | 5,250,329 | 5,835,776 |
+----+------------------------------------------------+------------+-----------+------------+
| | Amortisation charge | - | 202,561 | 202,561 |
+----+------------------------------------------------+------------+-----------+------------+
| | At 30 June 2009 | 585,447 | 5,452,890 | 6,038,337 |
+----+------------------------------------------------+------------+-----------+------------+
| | | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | NET BOOK VALUE | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | At 30 June 2009 | 1,638,813 | 2,723,159 | 4,361,972 |
+----+------------------------------------------------+------------+-----------+------------+
| | At 1 January 2009 | 1,638,813 | 2,925,720 | 4,564,533 |
+----+------------------------------------------------+------------+-----------+------------+
| | | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | COST | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | At 1 January 2008 and 31 December 2008 | 2,224,260 | 8,176,049 | 10,400,309 |
+----+------------------------------------------------+------------+-----------+------------+
| | | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | AMORTISATION AND IMPAIRMENT LOSSES | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | At 1 January 2008 | 585,447 | 3,607,687 | 4,193,134 |
+----+------------------------------------------------+------------+-----------+------------+
| | Amortisation charge | - | 552,616 | 552,616 |
+----+------------------------------------------------+------------+-----------+------------+
| | Impairment losses | - | 1,090,026 | 1,090,026 |
+----+------------------------------------------------+------------+-----------+------------+
| | At 31 December 2008 | 585,447 | 5,250,329 | 5,835,776 |
+----+------------------------------------------------+------------+-----------+------------+
| | | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | NET BOOK VALUE | | | |
+----+------------------------------------------------+------------+-----------+------------+
| | At 31 December 2008 | 1,638,813 | 2,925,720 | 4,564,533 |
+----+------------------------------------------------+------------+-----------+------------+
| | At 31 December 2007 | 1,638,813 | 4,568,362 | 6,207,175 |
+----+------------------------------------------------+------------+-----------+------------+
| | | | | |
+----+------------------------------------------------+------------+-----------+------------+
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| 9. | SHARE CAPITAL | | 6 Mths | | 6 Mths | | Year |
| | | | Ended | | Ended | | Ended |
| | | | 30.06.2009 | | 30.06.2008 | | 31.12.2008 |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | | | GBP | | GBP | | GBP |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | Authorised: | | | | | | |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | Number of shares | | 50,000,000 | | 50,000,000 | | 50,000,000 |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | Ordinary shares of 20p each | | 10,000,000 | | 10,000,000 | | 10,000,000 |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | | | | | | | |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | Called up, allotted and fully paid: | | | | | | |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | Number of shares | | 39,828,355 | | 39,828,355 | | 39,828,355 |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | Ordinary shares of 20p each | | 7,965,671 | | 7,965,671 | | 7,965,671 |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | | | | | | | |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
| | No shares were issued during the period. |
+----------+---------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+----------------------------------------+---+------------+----------+------------+----------+------------+
+-----+--------------------------+---------------+--------------+---+--------------------+---+---+---+--+---+---+
| 10. | PRIOR YEAR ADJUSTMENTS | | | |
+-----+----------------------------------------------------------------------------------+-----------+--+-------+
| | |
+-----+---------------------------------------------------------------------------------------------------------+
| | As in outlined in note 27 to the annual accounts to 31 December 2008 the Group |
| | undertook a full retrospective restatement to reclassify the premiums arising on short |
| | leaseholds as intangible assets. Leasehold improvements remain classified as tangible |
| | fixed assets. The interim figures to 30th June 2008 have been restated on the same |
| | basis. The impact is as follows, with unbracketed figures being debit entries and |
| | bracketed figures credit entries:- |
+-----+---------------------------------------------------------------------------------------------------------+
| | |
+-----+---------------------------------------------------------------------------------------------------------+
| | Income statement for the six months to 30 June 2008 |
+-----+---------------------------------------------------------------------------------------------------------+
| | | GBP | |
+-----+-------------------------------------------------------------+----------------------------+--------------+
| | | | |
+-----+-------------------------------------------------------------+----------------------------+--------------+
| | Amortisation of operating leases | 295,688 | |
+-----+-------------------------------------------------------------+----------------------------+--------------+
| | Depreciation of leasehold improvements | 157,853 | |
+-----+-------------------------------------------------------------+----------------------------+--------------+
| | Deferred tax | (44,199) | |
+-----+-------------------------------------------------------------+----------------------------+--------------+
| | | | |
+-----+-------------------------------------------------------------+----------------------------+--------------+
| | Net decrease in profit for the period | 409,342 | |
+-----+-------------------------------------------------------------+----------------------------+--------------+
| | | | |
+-----+-------------------------------------------------------------+----------------------------+--------------+
| | The division of the short leasehold property into operating leases and leasehold |
| | improvements has resulted in an amortisation charge of GBP295,688 against the |
| | operating leases and a depreciation charge of GBP157,853 against the leasehold |
| | improvements. There is an associated decrease in the deferred taxation charge of |
| | GBP44,199 due to the increase in the depreciation charge. |
+-----+---------------------------------------------------------------------------------------------------------+
| | | | | |
+-----+------------------------------------------+--------------+----------------------------+--------------+
| | Balance sheet at 30 June 2008 | | | |
+-----+------------------------------------------+--------------+----------------------------+--------------+
| | | Previously | Adjustments | Restated |
| | | stated | | |
+-----+--------------------------+---------------+-------------------------------------------+--------------+
| | | At 30 June | year to | six | |
| | | 2008 | 31 December | months to | At 30 June |
| | | | 2007 | 30 June | 2008 |
| | | | | 2008 | |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | | GBP | GBP | GBP | GBP |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Non current assets | | | | |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Property, plant and | 56,228,421 | (6,849,621) | (157,853) | 49,220,947 |
| | Equipment | | | | |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Operating lease premiums | - | 4,568,362 | (295,688) | 4,272,674 |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Deferred tax assets | 1,596,482 | (1,093,677) | 44,199 | 547,004 |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | | | | | |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Capital and reserves | | | | |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Revaluation reserve | 4,550,775 | (551,521) | - | 3,999,254 |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Retained earnings | 2,932,097 | (2,596,950) | (409,342) | (74,195) |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | | | | | |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Non-current liabilities | | | | |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Deferred tax liabilities | 2,197,225 | (226,468) | - | 1,970,757 |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | | | | | |
+-----+--------------------------+---------------+--------------+----------------------------+--------------+
| | Changes to the restated balance sheet figures are outlined above. The impact to |
| | the opening balances as at 1 January 2008 have been described in the annual |
| | accounts and the impact to the six months to June 2008 in the Interim Statement of |
| | Comprehensive Income section above. |
+-----+-----------------------------------------------------------------------------------------------------+
| | |
+-----+--------------------------+---------------+--------------+---+--------------------+---+---+---+--+---+---+
+-----+---------------------------------------+---------------+-------------+-------------+
| 10. | PRIOR YEAR ADJUSTMENTS - continued | |
+-----+---------------------------------------------------------------------+-------------+
| | | |
+-----+---------------------------------------------------------------------+-------------+
| | Cash Flow statement for the six months ended 30th June 2008 | |
+-----+---------------------------------------------------------------------+-------------+
| | | | | |
+-----+ +---------------+-------------+-------------+
| | | Previously stated | Adjustment | Restated |
+-----+---------------------------------------+---------------------------------------+---------------+-------------+
| | | GBP | GBP | GBP |
+-----+---------------------------------------+---------------+-------------+-------------+
| | Cash flows from operating activities | | |
+-----+-------------------------------------------------------+-------------+-------------+
| | Profit/(Loss) before taxation | 581,813 | (453,541) | 128,272 |
+-----+---------------------------------------+---------------+-------------+-------------+
| | Adjustments for: | | | |
+-----+---------------------------------------+---------------+-------------+-------------+
| | Depreciation | 191,980 | 157,853 | 349,833 |
+-----+---------------------------------------+---------------+-------------+-------------+
| | Amortisation and impairments | - | 295,688 | 295,688 |
+-----+---------------------------------------+---------------+-------------+-------------+
| | | | | |
+-----+---------------------------------------+---------------+-------------+-------------+
| | NET CASH FROM OPERATING ACTIVITIES | 773,793 | - | 773,793 |
+-----+---------------------------------------+---------------+-------------+-------------+
| | | | | |
+-----+---------------------------------------+---------------+-------------+-------------+
| | The impact on the income statement has had an associated impact on the lines |
| | above from the 'cash flows from operating activities' section of the cash flow |
| | statement. |
+-----+-----------------------------------------------------------------------------------+
| | |
+-----+---------------------------------------+---------------+-------------+-------------+
11.CONTINGENT LIABILITIES
The company has provided a cross guarantee to other members of the Group in
respect of Group bank borrowings.
The company's previous nominated supplier of beers, wines, spirits and soft
drinks was Standwood Taverns Limited. The Group has provided guarantees to three
suppliers of Standwood Taverns Limited in respect of liabilities incurred by
Standwood Taverns Limited on the Group's behalf.
At the date of signing the interim financial statements, a claim has been
received from one of the three suppliers for GBP1.1 m. This claim is subject to
a counter claim from Standwood Taverns Limited and it has yet to be established
if any residual claim under the guarantee would be valid.
12.POST BALANCE SHEET EVENTS
On 10 September 2009 the Directors applied to the courts for the appointment of
administrators to Moorgate Taverns Limited, a wholly owned subsidiary of
Pubs'n'Bars Plc with immediate effect.
There are no guarantees from Pubs'n'Bars Plc. to Clydesdale Bank Plc in respect
of Moorgate Taverns Limited's borrowings and the net effect on cashflow will be
an interest saving of approximately GBP150,000 per annum by Pubs'n'Bars Plc. The
book value of the pubs as at 31st December 2008 was GBP8.03m and the debt was
GBP7.08m.
INDEPENDENT REVIEW REPORT TO PUBS 'N' BARS PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2009 which comprises Consolidated Interim Statement of Comprehensive Income,
Consolidated Interim Balance Sheet, Consolidated Interim Cash Flow Statement,
Consolidated Interim Statement of Changes in Equity and related notes. We have
read the other information contained in the half-yearly financial report 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 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. Our work has been
undertaken so that we might state to the Company those matters we are required
to state to them in an independent 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 conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Rules of the Alternative Investment
Market.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRS as adopted by the European Union. The condensed
set of financial statements included in this half-yearly financial report has
been prepared in accordance with International Accounting Standard 34, 'Interim
Financial Reporting' as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly 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 condensed set of financial statements in the half-yearly financial
report for the six months ended 30 June 2009 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union and the Rules of the Alternative Investment Market.
Emphasis of matter - Going concern
In completing our review, we have considered the adequacy of the disclosures
made in note 1 to the interim financial statements concerning the Company's
ability to continue as a going concern.
As stated in note 1 the Company has reclassified GBP34,264,393 of bank loans as
short term liabilities due to breaches of covenants and/or terms and conditions
of the underlying agreements. The Company believes the only variation in the
terms and conditions of these agreements will be a change in the interest
charges. The Company's Directors' forecasts taking the increased interest
charges into account have been prepared showing the Company has sufficient
available funds to meet their day to day working capital requirements for the
foreseeable future.
These conditions indicate the existence of a material uncertainty which may cast
significant doubt about the Company's ability to continue as a going concern.
The interim financial statements do not include the adjustments that would
result if the Group was unable to continue as a going concern.
Kingston Smith LLP
Chartered Accountants and Registered Auditors
Devonshire House
60 Goswell
Road
London EC1M 7AD
These interim results are available to be downloaded from the Company's website
at www.pubsnbars.co.uk
=-END--
Enquiries:
Mel Belligero, Chief Executive
Pubs 'n' Bars plc ` Tel: 020 8228 4800
Stewart Dickson/Paul Shackleton
Daniel Stewart & Company plc Tel: 020 7776 6550
This information is provided by RNS
The company news service from the London Stock Exchange
END
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