Richoux : Interim Results

Richoux Group plc

Interim results for the 28 weeks ended 10 July 2016

• Turnover increased 5.7% to £7.08 million (2015: £6.70 million).

  • Adjusted* EBITDA decreased to £0.28 million (2015: £0.79 million).

• Loss after tax £0.58 million (2015: profit £0.32 million).

• Currently twenty-three restaurants trading.

• Two new Dean's Diners and one new Villagio opened.

• Cash of £3.09 million at period end. (December 2015: £4.40 million).

* Excluding pre opening costs and impairment.

"In line with a number of other restaurant groups, trading conditions have been difficult during the period as we continue to face the challenge of increased competition at a number of sites as well as increased property and staff costs, the latter due largely to the impact of the living wage. We are pleased to have opened two further Dean's Diner restaurants and one further Villagio restaurant, although handover of what will be the tenth Dean's Diner site has been delayed until 2017 due to delays on the part of the developer. A decision has also been made to recognise impairment charges against three sites which are underperforming"

Philip Shotter, Chairman (020) 7483 7000

Bobbie Hilliam

Revenue for the 28 week period ended 10 July 2016 increased 5.7% on the 28 week period ended 12 July 2015 to

£7.08 million (2015: £6.70 million). Adjusted EBITDA before pre-opening costs and impairment decreased to £0.28 million (2015: £0.79 million). Adjusted operating loss before pre-opening costs and impairment decreased to £0.15 million (2015: profit £0.39 million). Pre-opening costs for the period were £0.09 million (2015: £0.08 million). The net loss for the period was £0.58 million (2015: profit £0.32 million).

The Directors are not recommending the payment of a dividend.

The Group currently has twenty-three operating restaurants, which operate under the Richoux, Dean's Diner and Villagio brands. Further details on each of the brands are set out below.

Richoux is an all day cafe and brasserie established in London in 1909.

The Group has five Richoux restaurants in Central London - in Knightsbridge, Mayfair, Piccadilly, St John's Wood and Gloucester Arcade.

Dean's Diner is a classic 1950s American Diner.

The Group currently has nine Dean's Diner restaurants - the existing restaurants in Chatham, Port Solent, Braintree, Fareham, Bicester, Trowbridge and Hempstead Valley and new restaurants in Orpington; which opened in February 2016 and Yate; which opened in May 2016. An agreement for lease has been exchanged for a new Dean's Diners in Bromley which is due to open in late 2017. An impairment charge of £0.29 million has been made against the restaurants in Bicester and Trowbridge.

Villagio is a modern local Italian family restaurant, delivering a good quality value family dining experience.

The Group currently has eight Villagio restaurants in Andover, Basildon, Hammersmith, Chislehurst, Port Solent, Chatham and High Wycombe and a new restaurant in Canterbury; which opened in July 2016. An impairment charge of £0.06 million has been made against the restaurant in Chislehurst.

The Group also has one Italian restaurant trading as Zippers Bar, Restaurant and Grill in Chatham.

As at the end of the period under review the Group held cash of £3.09 million (December 2015: £4.40 million).

Capital expenditure of £1.71 million was incurred in the period; on the fit out of the new restaurants and some replacement equipment in the existing sites.

The Group will be focusing on improving performance of the three principal trading formats at existing sites but will continue to evaluate new sites for further acquisitions as and when suitable opportunities present themselves.

Philip Shotter Chairman

8 September 2016

for the 28 week period ended 10 July 2016

Notes

28 week period ended

12 July

2015

52 week period ended 27 December

2015

(6,006)

(75)

(11,612)

(181)

Excluding pre-opening costs Pre-opening costs

Administrative expenses (293) (303) (506)

Other operating income 1 3 3

Operating (loss)/profit before impairment (233) 314 731

Impairment of intangible assets 6 - - (1) Impairment of property, plant and equipment 7 (352) - (526) Onerous lease provision - - 150

Operating (loss)/profit (585) 314 354

Finance income 6 6 11

(Loss)/profit before taxation 3 (579) 320 365

Taxation - - -

the period (579) 320 365

attributable to equity holders of the parent (579) 320 365

For the 28 week period ended 10 July 2016

£000 £000 £000 £000

Total comprehensive profit - - 320 320

Credit to equity for equity settled share based payments - - 33 33

Total contributions by and distributions to owners of the Company,

recognised directly in equity - - 33 33

At 12 July 2015 3,681 12,242 (7,130) 8,793

Profit for the period - - 45 45

Total comprehensive profit - - 45 45

Credit to equity for equity settled share based payments - - 13 13

New share capital subscribed 3 7 - 10

Total contributions by and distributions to owners of the Company,

recognised directly in equity 3 7 13 23

Total comprehensive loss - - (579) (579)

Credit to equity for equity settled share based payments - - 16 16

Total contributions by and distributions to owners of the Company,

recognised directly in equity - - 16 16