2014 also excludes exceptional items.

Transcription

1 Patisserie Holdings plc ( the Group ) Interim results for the 6 months ended 31 March 2015 Patisserie Holdings plc, the leading UK branded café and casual dining group, today reports its interim results for the 6 months ended 31 March Financial summary 6 months ended 6 months ended 31 March 31 March Change m m % Revenue % EBITDA* % Pre-tax profit % Basic earnings per share p 14.7% Diluted earnings per share p 19.7% * EBITDA is calculated as operating profit before depreciation and amortisation and for 31 March 2014 also excludes exceptional items. Highlights Group revenue of 43.7m up by 22.2% (2014: 35.7m) Gross profit of 33.7m up by 22.0% (2014: 27.7m) EBITDA of 8.7m up by 23.1% (2014: 7.1m) Significant growth in pre-tax profit to 7.0m up by 45.0% (2014: 4.8m) Operating cash flows of 8.0m up by 110.5% Diluted earnings per share of 5.46p up by 19.7% (2014: 4.56p) Net cash at 31 March 2015 of 3.0m (2014: 0.2m) 10 new stores opened in the period all funded from operating cash flow 156 trading stores at the period end Luke Johnson, Executive Chairman, said We have delivered another strong set of results in the first half of Sales across all of the different formats in the Group continue to perform well and our brand awareness continues to grow. We have opened 10 new stores since the beginning of the year and trialled several new product launches, such as afternoon tea, all with pleasing results. The Group is well placed for a successful second half of the year and beyond. Enquiries Patisserie Holdings PLC +44 (0) Luke Johnson, Executive Chairman Paul May, Chief Executive Officer Chris Marsh, Finance Director Nomad and Broker Canaccord Genuity Limited +44 (0) Bruce Garrow Peter Stewart Joe Weaving Financial Public Relations Maitland +44 (0) James Devas

2 Chief Executive s Statement Results I am delighted to report a strong set of results for the six months to 31 March During the first half of the year, the Group delivered an increase in revenue of 7.9m or 22.2% to 43.7m (2014: 35.7m over the same period last year). EBITDA was 8.7m, an increase of 1.6m or 23.1% (2014: 7.1m) and pre-tax profit was 7.0m, an increase of 2.2m or 45.0% (2014: 4.8m). Basic earnings per share of 5.50 pence per share represented a 14.7% increase on last year (2014: 4.79 pence per share) and diluted earnings per share was 5.46 pence per share, 19.7% higher than last year (2014: 4.56 pence per share). All of our brands performed very well in the first six months of the year. Revenue from Patisserie Valerie (106 stores) was 28.9m, up 4.6m or 18.8% (2014: 24.3m). We launched several new seasonal products in the period, including a winter menu and afternoon tea, which have all helped drive increases in revenues. We also trialled voucher deals via promotional websites which sold exceptionally well, and due to the strength of our brand, we were able to offer these deals at little or no discount. On the back of our growth in online sales, we developed a new website which went live in January. The website has new features including 360 degree virtual tours of our cafes and a create-a-cake feature which is proving to be very popular. Revenue from our other brands was also encouraging. Druckers (22 stores) and Baker & Spice (4 stores) grew from 8.5m in 2014 to 8.7m in 2015, whilst revenue from Flour Power City (1 site), our wholesale business, grew from 1.0m in 2014 to 1.1m in Revenue from Philpotts (23 stores), a premium sandwich retailer which we acquired in February 2014, was 5.0m. Philpotts is now fully integrated into the Group and is operating with a streamlined backoffice function and is benefiting from the Group s purchasing power. In the 12 months since acquisition, the business has performed ahead of expectations and contributed 1.3m of profit before tax to the Group and is on track to meet our payback hurdle rate set for acquisitions. Estate Development During the period we successfully opened 10 new stores (2014: 8) located across the UK in high-streets and shopping centres and across different formats from brasseries (1), service station (1), counter service (2), concessions (1) and full service (5). All of our new stores were acquired from existing cash and are all performing in line with expectations and trading profitably. All 19 stores opened in the prior financial year continue to trade well and a number of these have already paid back the initial capital outlay, well ahead of the 24 month target. The pipeline for new stores remains healthy. We have identified and secured or are in advanced discussions to secure new sites to enable us to deliver the 20 store target for the year. Notwithstanding our focus on delivering on the organic store rollout, we are continuing to assess selective acquisition opportunities that we believe would be accretive to the Group.

3 Cash flow & balance sheet Cash flow generated from operations was 9.2m (2014: 5.5m) and after interest and tax payments, free cash flows available for investment were 8.0m (2014: 3.8m). We invested 3.6m in capital expenditure (2014: 3.9m) the majority of which was invested in opening new stores. Net cash inflow in the period was 4.4m (2014: 1.3m) and at the end of the period the net cash position was 3.0m (2014: 0.2m). Dividends As previously announced, the Directors continue to anticipate a maiden dividend to be paid in respect of the financial year ending 30 September Current Trading and Outlook We have delivered a strong set of results in the first half of the year and look to continue this performance through the remainder of Trading to date remains encouraging and, with our premium brands, established management team and a strong pipeline for new stores, I am confident that we will deliver another set of positive results in line with the Board s expectations at the year end.

4 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31 MARCH 2015 Notes Continuing operations Six months to 31 March Six months to 31 March Year to 30 September Total Total Total Unaudited Unaudited Audited Revenue 43,683 35,747 76,641 Cost of sales (9,940) (8,094) (17,363) Gross profit 33,743 27,653 59,278 Administration expenses (26,754) (22,314) (48,007) Operating profit before exceptional items 6,989 5,604 12,129 Exceptional items 5 - (265) (858) Operating profit 6,989 5,339 11,271 Finance expense (34) (541) (858) Profit before income tax 6,955 4,798 10,413 Income tax expense 4 (1,460) (1,115) (1,512) Profit after tax and total comprehensive income for the period attributable to equity holders 5,495 3,683 8,901 Earnings per share 7 Basic earnings per share (pence) Diluted earnings per share (pence)

5 CONDENSED CONSOLIDATED BALANCE SHEET 31 MARCH 2015 Notes 31 March 31 March 30 September Unaudited Unaudited Audited ASSETS Non-current assets Intangible assets 17,872 17,897 17,897 Property, plant and equipment 8 30,699 27,363 28,794 48,571 45,260 46,691 Current assets Trade and other receivables 9,964 6,226 10,552 Inventories 4,118 3,160 3,927 Cash and cash equivalents 2, ,060 9,680 14,963 Total assets 65,631 54,940 61,654 EQUITY AND LIABILITIES Equity Capital and reserves attributable to the equity holders Ordinary share capital 9 1, ,000 Share premium 33, ,661 Other reserves (89) - (212) Retained earnings 25,902 15,189 20,407 Total equity 60,474 15,689 54,856 Non-current liabilities Borrowings - 25,771 - Deferred tax 1,746 1,323 1,746 1,746 27,094 1,746 Current liabilities Trade and other payables 3,411 4,451 3,149 Borrowings - 7,462 1,903 Corporation tax ,411 12,157 5,052 Total liabilities 5,157 39,251 6,798 Total equity and liabilities 65,631 54,940 61,654 Registered no

6 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH 2015 Share capital Share premium Merger reserve Capital redemption reserve Share based payment reserve Retained earnings '000 '000 '000 '000 '000 '000 '000 Unaudited As at 30 September ,000 33,661 (312) ,407 54,856 Total Result and total comprehensive income for the period ,495 5,618 Transactions with owners As at 31 March ,000 33,661 (312) ,902 60,474 Unaudited As at 30 September ,506 12, Result and total comprehensive income for ,683 3,683 the period ,189 15,689 Transactions with owners As at 31 March ,189 15,689 Audited As at 30 September ,506 12,006 Result and total comprehensive income for the period ,901 8,901 Transactions with owners Increase in share based payments reserve Shares issues under employee share 41 1, ,000 schemes Reorganisation of share capital 765 (499) (312) Shares issued on listing on AIM , ,753 Cost of issue of equity shares - (858) (858) As at 30 September ,000 33,661 (312) ,407 54,856

7 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31 MARCH 2015 Six months to 31 March Six months to 31 March Year to 30 September Unaudited Unaudited Audited Notes Cash flows from operating activities Profit before income tax 6,955 4,798 10,413 Adjusted by: Depreciation and amortisation 1,724 1,473 3,195 Net finance charges in the consolidated statement of comprehensive income Impairment charge Other non-cash charges Changes in working capital: Inventory (191) (363) (1,130) Trade and other receivables 336 (330) (2,771) Trade and other payables 259 (624) (2,197) Cash generated from operations 9,240 5,495 8,426 Interest paid (34) (276) (858) Income tax paid (1,207) (1,396) (3,124) Net cash generated from operating activities 7,999 3,823 4,444 Cash flows from investing activities Acquisition of subsidiary undertakings - (3,760) (3,869) Purchase of property, plant and equipment (3,602) (3,879) (7,032) Net cash used in investing activities (3,602) (7,639) (10,901) Cash flows from financing activities Proceeds from borrowings - 7,850 7,875 Net proceeds from issue of shares ,895 Repayment of borrowings - (2,703) (35,608) Net cash generated from financing activities - 5,147 6,162 Net increase / (decrease) in cash and cash equivalents 4,397 1,331 (295) Cash and cash equivalents at the beginning of the period (1,419) (1,124) (1,124) Cash and cash equivalents at the end of the period 2, (1,419)

8 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTH ENDED 31 MARCH General information Patisserie Holdings plc (the Company) and its subsidiaries (collectively the Group) operate in the casual dining sector offering cakes, pastries, snacks, meals and hot and cold drinks across the UK. The Company is a public limited company which is listed on the Alternative Investment Market (AIM) of the London Stock Exchange and incorporated and domiciled in England and Wales. The registered office of the Company is Sarehole Road, Birmingham, B28 8DT. This document along with copies of the Annual Report and Accounts may be obtained from the registered office or via the Investor section of the Company s website at www. patisserie-valerie.co.uk 2. Basis of preparation The condensed financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as endorsed by the European Union and in accordance with IAS34 Interim Financial Reporting. The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Group s latest annual audited financial statements. The financial information for the year ended 30 September 2014 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2014 have been filed with the Registrar of Companies. The Independent Auditors Report on the Annual Report and Financial Statements for 2014 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act The condensed financial statements have been prepared under the historical cost convention and financial information is presented in sterling and has been rounded to the nearest thousand ( 000) unless otherwise stated.

9 3. Segmental information Management has determined the operating segments based on the reports reviewed by the Chief Operating Decision Maker ( CODM ) comprising the Board of Directors. During the six month period to 31 March 2015, there have been no changes from prior periods in the measurement methods used to determine operating segments and reported segment profit or loss. The segmental information is split on the basis of those same profit centres, however, management report only the contents of the consolidated statement of comprehensive income and therefore no balance sheet information is provide on a segmental basis in the following tables. March 2015 Patisserie Valerie Druckers Baker & Spice Flour Power Philpotts Overhead As reported to the CODM Reconciling items Unaudited Revenue 28,907 6,484 2,177 1,090 5,025-43,683-43,683 Total IFRS Operating profit 5, (193) 6,989-6,989 March 2014 Patisserie Valerie Druckers Baker & Spice Flour Power Philpotts Overhead As reported to the CODM Reconciling items Unaudited Revenue 24,328 6,514 2, , , ,747 Total IFRS Operating profit 4, ,604 (265) 5,339 September 2014 Patisserie Valerie Druckers Baker & Spice Flour Power Philpotts Overhead As reported to the CODM Reconciling items Audited Revenue 51,075 12,224 4,230 2,631 6, ,641-76,641 Total IFRS Operating profit 8, , (1,344) 10, ,271 The Group s segment operating profit reconciles to the Group s profit before tax as presented in its financial statements as follows: 31 March March September Unaudited Unaudited Audited Total operating profit from reportable segments 7,182 5,516 12,021 Other segment profit (193) 88 (1,344) Statutory reconciling items - (265) 594 Finance expense (34) (541) (858) Profit before income tax 6,955 4,798 10,413

10 4. Income tax expense The tax charge has been calculated by reference to the expected effective current and deferred tax rates for the full financial year to 30 September 2015 applied against the profit before tax for the period ended 31 March The full year effective tax charge on the underlying trading profit is estimated to be 21% (2014: 22.0%). 5. Exceptional items 31 March 31 March 30 September Unaudited Unaudited Audited Costs incurred in relation to listing on AIM Costs associated with subsidiary acquisitions Earnings before interest, tax, depreciation and amortisation (EBITDA) 31 March 31 March 30 September Unaudited Unaudited Audited Operating profit 6,989 5,339 11,271 Depreciation and amortisation 1,724 1,473 3,195 EBITDA 8,713 6,812 14,466 Exceptional items Adjusted EBITDA 8,713 7,077 15,324

11 7. Earnings per share 31 March 2015 Earnings 000 Weighted average number of share Earnings per share (pence) Unaudited Basic earnings per share 5, ,000, Effect of dilutive share options - 557,588 - Diluted earnings per share 5, ,557, March 2014 Earnings 000 Weighted average number of share Earnings per share (pence) Unaudited Basic earnings per share 3,683 76,881, Effect of dilutive share options - 3,851,995 - Diluted earnings per share 3,683 80,733, September 2014 Earnings 000 Weighted average number of share Earnings per share (pence) Audited Basic earnings per share 8,901 85,505, Effect of dilutive share options - 2,412,879 - Diluted earnings per share 8,901 87,918,

12 8. Property, plant and equipment Unaudited Freehold land and buildings Leasehold property improvements Plant, equipment, fixtures and fittings Motor vehicles Cost At 1 October ,798 11,147 29, ,711 Additions ,406-3,879 Assets acquired at acquisition - 1, ,885 At 31 March ,798 13,617 33, ,475 Additions ,833-3,153 At 30 September ,798 13,937 36, ,628 Additions ,188-3,604 At March ,798 14,353 39, ,232 Total Depreciation At 1 October ,799 16, ,639 Charge for the period ,100-1, ,164 17, ,112 At 31 March 2014 Charge for the period , ,722 At 30 September ,545 18, ,834 Charge for the period , ,699 At March ,017 20, ,533 Net book values At 31 March ,556 9,336 19, ,699 At 30 September ,569 9,392 17, ,794 At 31 March ,577 9,453 16, ,363 There were no assets held under finance leases during the period. 9. Share capital The number of shares allotted, called up and fully paid remained at 100,000,000 and totalled 1.0m at 31 March 2015; there were no changes to share capital in the period from 30 September 2014 to 31 March In the prior year the capital structure of the company was reorganised, details of which can be found in the Annual Report and Accounts for the year ended 30 September 2014.