TIDMCOM
RNS Number : 0464M
Comptoir Group PLC
12 September 2019
12 September 2019
Comptoir Group Plc ("Comptoir", "Group" or the "Company")
Interim Results
Comptoir Group Plc (AIM: COM), the owner and/or operator of
Lebanese and Eastern Mediterranean restaurants, is pleased to
announce its results for the six months ended 30 June 2019.
Introduction and Highlights
Highlights:
-- Group revenue of GBP15.8m up by 0.2% (H1 2018: GBP15.7m).
-- Gross profit of GBP11.5m up by 2.0% (H1 2018: GBP11.3m).
-- Adjusted EBITDA* before highlighted items of GBP2.0m up by 11.1% (H1 2018: GBP1.8m).
-- Net cash and cash equivalents at the period end of GBP3.4m
(H1 2018: GBP3.9m; 31 December 2018: GBP4.6m).
-- Comptoir Westfield, Shepherd's Bush re-opened in May 2019 as
a brand new repositioned site following the extensive centre
redevelopment and is trading well above the Board's
expectations.
-- Currently own and operate 25 restaurants, with a further 4 franchise restaurants.
*Adjusted EBITDA was calculated from the profit/(loss) before
taxation adding back interest, depreciation, share-based payments
and non-recurring costs incurred in opening new sites (note 12).
The Group has applied, for the first time, IFRS 16 Leases that
results in the restatement of the previous financial statements
(note 2).
Richard Kleiner, Non-Executive Chairman, said:
"I am pleased to announce that these results show that Comptoir
Group continues to prove its resilience in a challenging and
uncertain market. The consistent, differentiated offering from
Comptoir sets the business apart from the majority of operators, a
number of which continue to struggle and have fallen victim to
these difficult times. Maintaining an evolving menu with a
delicious, healthy and importantly value for money offering has
helped ensure growth, whilst at the same time the focus on cost
efficiencies has had a positive effect on financial stability
including a healthy cash position and robust balance sheet.
Our cautious approach to investment in new sites has been
maintained, whilst taking the opportunity to carry out selective
refurbishments in the existing estate. This coupled with our
dedicated focus from our operational and support teams across the
business helps drive the optimal experience for all of our
customers."
Enquiries:
Comptoir Group plc Tel: 0207 486 1111
Chaker Hanna
Mark Carrick
Canaccord Genuity Limited (NOMAD Tel: 020 7523 8000
and broker)
Adam James
Georgina McCooke
Chief executive's review
I am pleased to report the results for the 6-month period ended
30 June 2019. Performance over the first six months of the year has
been encouraging despite the continuing challenging economic
climate and uncertainty around Brexit outcome. The Group ended the
period owning and operating 25 restaurants, with a further 4
franchise restaurants.
Revenue for the period was GBP15.8m, an increase of 0.2% (H1
2018: GBP15.7m) over the comparative period. Adjusted EBITDA was
GBP2.0m, an increase of 11.1% (H1 2018: GBP1.8m); the income
statement shows a pre-tax loss of GBP528k (H1 2018: loss of
GBP697k). The basic loss per share for the period was 0.48 pence
(H1 2018: basic loss per share 0.57 pence).
Following the extensive redevelopment of Westfield, Shepherd's
Bush, the brand new repositioned Comptoir opened ahead of schedule
on 8 May 2019. Since re-opening the restaurant has been
exceptionally well received and trading well above management
expectations. As part of the Westfield development, we successfully
exited from the Shawa restaurant on 2 June 2019 having reached the
end of its lease. With the exit from the Oxford Shawa lease as
planned on 31 March 2019, the Company now currently owns and trades
from 25 restaurants (20 Comptoir Libanais, 2 Yalla Yalla, 1 Shawa,
1 Levant and 1 Kenza). The Company's 4 franchise restaurants are
located in Heathrow, Gatwick, Utrecht and Cheshire Oaks.
Three sites were affected by extended temporary closures in the
first half of 2019; the most significant being the Westfield
Comptoir which was closed for five months from the second week in
January 2019 to its re-opening in the second week of May 2019. In
addition to this, we had two temporary closures as a result of
insurance related refurbishments. The comparative sales for these
three sites over the period of closures amounted to GBP1.04m in
2018. Despite the impact of reduced revenue resulting from these
closures the Group still reported revenue during the period above
2018.
We are very wary of the exposure our sector has to increasing
costs, particularly food costs, rent and labour. We remain
confident that our sales levels are able to absorb these increases,
and we continue to refrain from discounting, instead focussing our
efforts on further improving the customer offering and experience.
This includes our stance on providing our customers with the ease
of access to our menus through our digital delivery platforms. In
February this year we entered into an agreement with Uber Eats to
widen access to our customers through a delivery partnership. We
aim to significantly grow this important channel over the coming
years.
We take pride in our standards and safety within our restaurants
and do so through the operation of a monthly 'mystery diner'
programme with Hospitality Gem, to measure our standards of service
and customer experience, and also partner with Food Alert to ensure
we conform to the highest levels of food safety. We are pleased to
report that we continue to achieve a high level of success across
these measures, highlighting our continued increasingly positive
response from our customers across our restaurants.
Investment in our people is paramount in order to ensure we
continue to attract and retain the best talent in our business. As
part of this, we have introduced an international accredited
external leadership and management programme with our first tranche
of managers enrolled on the programme. Our operational managers are
also able to apply for our selective internal fast track
development programme to help grow the pipeline of our future
leaders. We have also further enhanced our digital people platform
with its access to online training.
Up until April this year, the business had been supported by
teams across three separate locations. There is now one
consolidated head office support team based in new offices in
London Bridge. This has already enabled further efficiencies and
the business will benefit from the synergies this brings to the
Group.
In July this year we announced that Mark Carrick had notified
the Board of his intention to resign from his role as Chief
Financial Officer. I am now delighted to advise that Mark has
retracted his intention to resign and will remain in office.
Investment in new sites and internal refurbishments
The Group remain focused on investing in carefully selected
sites following close analysis of site feasibility subject to in
depth scrutiny by the Board prior to approval.
The Group has not yet opened any additional new sites this year
as we continue to develop our property pipeline with caution. Terms
have been agreed on three new franchised sites with our partner HMS
Host in Ashford, UK and Dubai Airport to open in the second half of
the year as planned and the third site in Abu Dhabi airport in the
first half of 2020. Franchise growth remains an attractive and key
contributor to profitable growth for the company.
We have continued to invest in our sites with selective
refurbishments having been carried out over the first half and
continuing into the second half of the year.
Cash Flow & Balance Sheet
The Group's cash balance at the end of the reporting period was
GBP3.4m (31 December 2018: GBP4.6m). As at 30 June 2019 the Group
had bank borrowings of GBP0.5m (31 December 2018: GBP1.4m). This
strong balance sheet allows the Group to continue to invest in the
current estate and explore potential new sites and other revenue
generating opportunities as they arise. The Company expects the
cash balance of the Company to grow during the second half of the
financial year.
We remain cautious and committed to only invest in the sites
which fit within the attributes associated with our most successful
restaurants and that would contribute positively from their first
full year of trading. Further we expect future sites to further
enhance the Group's brand and identity.
The Group remains in a very strong position to fund additional
new site openings but will remain cautious and to acquire new sites
through internally generated cash, whilst seeking to maintain our
healthy cash position.
Current trading and outlook
The Group continues to demonstrate its differential offering
within the sector and will continue to provide its ever-growing
customer base with excellent quality, healthy food in an
environment with a genuine feel of family hospitality.
We can report that year to date trading is in line with the
Board's expectations. As already indicated, the Group continues to
control its costs and improve its operational efficiencies and
margins whilst maintaining great value for money, the Board
maintains its expectations for the full 2019 financial year.
The pipeline for 2019 is still under active consideration with
the Group currently in advanced negotiations for one new location
in 2019. The Company is reviewing other potential sites to
strengthen its pipeline for 2020 and beyond. As detailed earlier,
the Directors expect new franchise operations to form a key part of
future profitable growth.
The Group's focus remains on continuing to invest in, and to
improve, the performance of its current estate. The Group also
continues to assess new sites and acquisition opportunities, whilst
also actively negotiating with our partners, a pipeline of
potential additional franchise sites. The Group expects to end 2019
with 6 franchised operations.
Chaker Hanna
Chief Executive
11 September 2019
Consolidated statement of comprehensive income
For the half-year ended 30 June 2019
Half-year Half-year Year ended
ended 30 ended 30 31 December
June 2019 June 2018 2018
Notes (Restated) (Restated)
GBP GBP GBP
Revenue
15,773,983 15,738,471 34,331,309
Cost of sales (4,257,068) (4,442,030) (9,630,294)
-------------------------------------- -------- ------------- ------------- -------------
Gross profit 11,516,915 11,296,441 24,701,015
Distribution expenses (4,211,604) (4,358,098) (9,108,884)
Administrative expenses (7,596,184) (7,129,184) (15,202,068)
Other income 264,680 - -
Operating (loss)/profit (26,193) (190,841) 390,063
Finance costs (501,566) (502,343) (1,019,728)
-------------------------------------- -------- ------------- ------------- -------------
(Loss)/profit before tax (527,759) (693,184) (629,665)
Taxation (charge)/credit (55,037) (3,709) (108,427)
-------------------------------------- -------- ------------- ------------- -------------
(Loss)/profit for the period (582,796) (696,893) (738,092)
Other comprehensive income - - -
-------------------------------------- -------- ------------- ------------- -------------
Total comprehensive (loss)/profit
for the period (582,796) (696,893) (738,092)
-------------------------------------- ----------------------- ------------- -------------
Basic (loss)/earnings per
share (pence) 6 (0.48) (0.57) (0.60)
Diluted (loss)/earnings per
share (pence) 6 (0.47) (0.57) (0.60)
-------------------------------------- -------- ------------- -------------
Adjusted EBITDA:
Operating (loss)/profit -
as above (26,193) (190,841) 390,063
Add back:
Depreciation and amortisation 1,924,413 1,873,174 3,721,362
Rent expenses 2 (1,560,254) (1,311,871) (2,789,656)
Impairment of assets 54,163 - 259,205
Share-based payments charge/(credit) 5 19,441 (8,650) 28,745
------------- ------------- -------------
EBITDA (Pre IFRS 16 adoption) 411,570 361,812 1,609,719
Rent expenses 2 1,560,254 1,311,871 2,789,656
------------- ------------- -------------
EBITDA (Post IFRS 16 adoption) 1,971,824 1,673,683 4,399,375
Restaurant opening costs 3 8,370 120,432 433,506
------------- ------------- -------------
Adjusted EBITDA 12 1,980,194 1,794,115 4,832,881
-------------------------------------- -------- ------------- ------------- -------------
All the above results are derived from continuing
operations.
Consolidated balance sheet
At 30 June 2019
Notes 31 December
30 June 2019 30 June 2018 2018
(Restated) (Restated)
GBP GBP GBP
Assets
Non-current assets
Property, plant and equipment 11,674,631 11,659,845 11,747,036
Right-of-use assets 7 22,889,144 22,020,538 22,683,419
Intangible assets 2 87,675 99,961 87,675
Deferred tax asset 8 130,254 171,509 168,176
------------------------------- ------ -------------- -------------- --------------
34,781,704 33,951,853 34,686,306
------------------------------- ------ -------------- -------------- --------------
Current assets
Inventories 633,335 654,456 706,741
Trade and other receivables 3,546,975 3,092,916 2,550,223
Cash and cash equivalents 3,369,783 3,886,355 4,624,673
------------------------------- ------ -------------- -------------- --------------
7,550,093 7,633,727 7,881,637
------------------------------- ------ -------------- -------------- --------------
Total assets 42,331,797 41,585,580 42,567,943
------------------------------- ------ -------------- -------------- --------------
Liabilities
Current liabilities
Borrowings (374,820) (548,351) (427,179)
Trade and other payables (4,703,111) (4,150,076) (4,601,376)
Lease liabilities (3,257,142) (3,106,216) (3,173,788)
Current tax liabilities (158,023) (148,163) (158,024)
------------------------------- ------ -------------- -------------- --------------
(8,493,096) (7,952,806) (8,360,367)
------------------------------- ------ -------------- -------------- --------------
Non-current liabilities
Borrowings (140,727) (514,124) (315,953)
Lease liabilities 2 (21,968,636) (20,974,288) (21,717,375)
Provisions for liabilities (162,221) (54,414) (60,892)
Deferred tax liability (189,496) (145,168) (172,380)
------------------------------- ------ -------------- -------------- --------------
(22,461,080) (21,687,994) (22,266,600)
------------------------------- ------ -------------- -------------- --------------
Total liabilities (30,954,176) (29,640,800) (30,626,967)
------------------------------- ------ -------------- -------------- --------------
Net assets 11,377,621 11,944,780 11,940,977
------------------------------- ------ -------------- -------------- --------------
Equity
Share capital 10 1,226,667 1,226,667 1,226,667
Share premium 10,050,313 10,050,313 10,050,313
Other reserves 48,186 307,940 28,745
Retained earnings 52,455 359,860 635,252
------------------------------- ------ -------------- -------------- --------------
Total equity - attributable
to equity shareholders
of the company 11,377,621 11,944,780 11,940,977
------------------------------- ------ -------------- -------------- --------------
Consolidated statement of changes in equity
For the half-year ended 30 June 2019
Share Share premium Other Retained Total equity
capital GBP reserves earnings
Notes GBP GBP GBP GBP
Half year ended 30 June
2019
At 1 January 2019 1,226,667 10,050,313 28,745 635,252 11,940,977
Total comprehensive
income - - - (582,796) (582,796)
---------- -------------- ---------- ------------ -------------
Transactions with owners
Share-based payments 5 - - 19,441 - 19,441
Total transactions with
owners - - 19,441 - 19,441
---------- -------------- ---------- ------------ -------------
At 30 June 2019 1,226,667 10,050,313 48,186 52,456 11,377,621
------------------------------ ------ ---------- -------------- ---------- ------------ -------------
Half year ended 30 June
2018
At 1 January 2018 1,226,667 10,050,313 316,590 2,539,124 14,132,694
Impact on change in
accounting policy - - - (1,482,371) (1,482,371)
---------- -------------- ---------- ------------ -------------
Restated balance as
at 1 January 2018 1,226,667 10,050,313 316,590 1,056,753 12,650,323
Restated total comprehensive
loss - - - (696,893) (696,893)
---------- -------------- ---------- ------------ -------------
Transactions with owners
Share-based payments - - (8,650) - (8,650)
---------- -------------- ---------- ------------ -------------
Total transactions with
owners - - (8,650) - (8,650)
---------- -------------- ---------- ------------ -------------
At 30 June 2018 1,226,667 10,050,313 307,940 359,860 11,944,780
Year ended 31 December
2018
At 1 January 2018 1,226,667 10,050,313 316,590 2,539,124 14,132,694
Impact on change in
accounting policy - - - (1,482,371) (1,482,371)
---------- -------------- ---------- ------------ -------------
Restated balance as
at 1 January 2018 1,226,667 10,050,313 316,590 1,056,753 12,650,323
Restated total comprehensive
loss - - - (738,092) (738,092)
------------------------------ ------ ---------- -------------- ---------- ------------ -------------
Transactions with owners
Share-based payments 5 - - 28,745 - 28,745
Cancellation of existing
EMI share option scheme - - (316,590) 316,590 -
Total transactions with
owners - - (287,845) 316,590 28,745
---------- -------------- ---------- ------------ -------------
Restated as at 31 December
2018 1,226,667 10,050,313 28,745 635,252 11,940,977
------------------------------ ------ ---------- -------------- ---------- ------------ -------------
Consolidated statement of cash flows
For the half-year ended 30 June 2019
Half-year Half-year Year ended
ended 30 ended 30 June 31 December
June 2019 2018 2018
(Restated) (Restated)
Notes GBP GBP GBP
Operating activities
Cash flow from operations 11 1,740,065 1,982,779 6,163,738
Interest paid (501,566) (502,343) (1,019,728)
Tax paid - - (64,312)
------------------------------ ------ ------------ --------------- -------------
Net cash from operating
activities 1,238,499 1,480,436 5,079,698
------------------------------ ------ ------------ --------------- -------------
Investing activities
Purchase of property, plant
& equipment 7 (685,470) (1,263,326) (2,279,042)
Net cash used in investing
activities (685,470) (1,263,326) (2,279,042)
------------------------------ ------ ------------ --------------- -------------
Financing activities
Repayment of bank borrowings (227,585) (314,014) (633,357)
Payment of lease obligations 2 (1,580,332) (1,459,720) (2,985,605)
------------------------------ ------ ------------ --------------- -------------
Net cash (used in)/from
financing activities (1,807,917) (1,773,734) (3,618,962)
------------------------------ ------ ------------ --------------- -------------
(Decrease)/increase in
cash and cash equivalents (1,254,888) (1,556,624) (818,306)
Cash and cash equivalents
at beginning of period 4,624,673 5,442,979 5,442,979
------------------------------ ------ ------------ --------------- -------------
Cash and cash equivalents
at end of period 3,369,785 3,886,355 4,624,673
------------------------------ ------ ------------ --------------- -------------
Cash and cash equivalents: -
Cash at bank and in hand 3,369,785 3,886,355 4,624,673
Bank overdrafts included - - -
in creditors payable within
one year
------------------------------ ------ ------------ --------------- -------------
Notes to the financial information
For the half-year ended 30 June 2019
1. Basis of preparation
The consolidated financial information for the half-year ended
30 June 2019, has been prepared in accordance with the accounting
policies the group applied in the Company's latest annual audited
financial statements and are expected to be applied in the annual
financial statements for the year ending 31 December 2019. These
accounting policies are based on the EU-adopted International
Financial Reporting Standards ("IFRS") and International Financial
Reporting Interpretation Committee ("IFRIC") interpretations. The
consolidated financial information for the half-year ended 30 June
2019 has been prepared in accordance with IAS 34: 'Interim
Financial Reporting', as adopted by the EU, and under the
historical cost convention.
The financial information relating to the half-year ended 30
June 2019 is unaudited and does not constitute statutory financial
statements as defined in section 434 of the Companies Act 2006. It
has, however, been reviewed by the Company's auditors and their
report is set out at the end of this document. The comparative
figures for the year ended 31 December 2018 (prior to the
restatement discussed below) have been extracted from the
consolidated financial statements, on which the auditors gave an
unqualified audit opinion and did not include a statement under
section 498 (2) or (3) of the Companies Act 2006. The annual report
and accounts for the year ended 31 December 2018 has been filed
with the Registrar of Companies.
The group's financial risk management objectives and policies
are consistent with those disclosed in the 2018 annual report and
accounts.
The half-yearly report was approved by the board of directors on
11 September 2019. The half-yearly report is available on the
Comptoir Libanais website, www.comptoirlibanais.com, and at
Comptoir Group's registered office, Unit 2, Plantain Place, Crosby
Row, London Bridge, SE1 1YN.
Going concern
The directors are satisfied that the group has sufficient cash
resources to continue in operation for the foreseeable future, a
period of not less than 12 months from the date of this report.
Accordingly, they continue to adopt the going concern basis in
preparing the financial statements.
2. Changes in accounting policies
The accounting policies adopted in the preparation of the
consolidated financial information for the half-year ended 30 June
2019 are consistent with those followed in the preparation of the
Group's annual consolidated financial statements for the year ended
31 December 2018, except for the adoption of new IFRS standards
effective as of 1 January 2019. The Group has not early adopted any
other standard, interpretation or amendment that has been issued
but is not yet effective.
The Group applies, for the first time, IFRS 16 Leases that
results in the restatement of the previous financial statements. As
required by IAS 34, the nature and effect of these changes are
disclosed below.
IFRS 16 Leases
IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an
Arrangement contains a Lease, SIC-15 Operating Leases-Incentives
and SIC-27 Evaluating the Substance of Transactions Involving the
Legal Form of a Lease. IFRS 16 sets out the principles for the
recognition, measurement, presentation and disclosure of leases and
now requires lessees to account for most leases under a single
on-balance sheet model.
The Group adopted IFRS 16 using the full retrospective method of
adoption with the date of initial application of 1 January 2019.
The Group elected to use the transition practical expedient
allowing the standard to be applied only to contracts that were
previously identified as leases applying IAS 17 and IFRIC 4 at the
date of initial application. The Group also elected to use the
recognition exemptions for lease contracts that, at the
commencement date, have a lease term of 12 months or less and do
not contain a purchase option ('short term leases'), and lease
contracts for which the underlying asset is of low value
('low-value assets').
The Group has lease contracts for various properties. Before the
adoption of IFRS 16, the Group classified each of its leases (as
lessee) at the inception date as an operating lease. The leased
property was not capitalised and the lease payments were recognised
as rent expense in the statement of profit or loss on a
straight-line basis over the lease term. Any prepaid rent and
accrued rent were recognised under Prepayments and Trade and other
payables, respectively.
Upon adoption of IFRS 16, the Group applied a single recognition
and measurement approach for all leases in which it is the lessee,
except for short-term leases and leases of low-value assets. The
Group recognised lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying
assets. In accordance with the full retrospective method of
adoption, the Group applied IFRS 16 at the date of initial
application as if it had already been effective at the commencement
date of existing lease contracts. Accordingly, the comparative
information in the consolidated financial statements for the
half-year ended 30 June 2019 has been restated.
Set out below are the new accounting policies of the Group upon
adoption of IFRS 16:
Right-of-use assets
The Group recognises right-of-use assets at the commencement
date of the lease (i.e., the date the underlying asset is available
for use). Right-of-use assets are measured at cost, less any
accumulated depreciation and impairment losses and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities recognised, initial direct
costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. The
recognised right-of-use assets are depreciated on a straight-line
basis over the shorter of its estimated useful life and the lease
term.
Lease liabilities
At the commencement date of the lease, the Group recognises
lease liabilities measured at the present value of lease payments
to be made over the lease term. The lease payments include fixed
payments less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and amounts expected to
be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain
to be exercised by the Group and payments of penalties for
terminating a lease, if the lease term reflects the Group
exercising the option to terminate. The variable lease payments
that do not depend on an index or a rate are recognised as an
expense in the period on which the event or condition that triggers
the payment occurs.
In calculating the present value of lease payments, the Group
used the incremental borrowing rate at the lease commencement.
After the commencement date, the amount of lease liabilities is
increased to account for interest and reduced for the lease
payments made. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification, a change in
the lease term, a change in the in-substance fixed lease payments
or a change in the assessment to purchase the underlying asset.
The effect of adoption IFRS 16 is as follows:
Impact on the statement of profit or loss:
31 December
30 June 2018 2018
GBP GBP
Depreciation (1,165,667) (2,342,249)
Rent expense 1,370,760 2,897,434
------------- -------------
Operating profit 205,093 555,185
Finance costs (480,890) (977,970)
------------- -------------
Additional loss for the period (275,797) (422,785)
Impact on the statement of financial position:
30 June 2018 31 December
GBP 2018 GBP
Assets
Right-of-use assets 22,020,538 22,683,419
Intangible assets (851,042) (802,153)
------------- ------------
Total assets increase 21,169,496 21,881,266
Liabilities
Lease liabilities 24,080,504 24,891,163
Trade and other payables (1,152,840) (1,104,740)
Total liabilities increase 22,927,664 23,786,423
Equity
Retained earnings decrease (1,758,168) (1,905,156)
------------- ------------
Impact on the statement of cash flows:
31 December
30 June 2018 2018
GBP GBP
Change in net cash flows from
operating activities (1,459,720) (2,985,605)
Change in net cash flows from
financing activities 1,459,720 2,985,605
------------- -------------
3. Group operating loss
Half-year Half-year Year ended
ended 30 ended 30 31 December
June 2019 June 2018 2018
GBP GBP GBP
This is stated after charging/(crediting):
Impairment of assets 54,163 - 259,205
Variable lease payments 441,674 432,724 1,066,299
Share based payments (see note 5) 19,441 (8,650) 28,745
Opening costs (see below) 8,370 120,432 433,506
Depreciation of property, plant &
equipment (see note 7) 1,924,413 1,873,174 3,721,362
-------------------------------------------- ------------ ------------ -------------
For the initial trading period following opening of a new restaurant,
the performance of that restaurant will be lower than that achieved
by other, similar, mature restaurants. The difference in this performance,
which is calculated by reference to gross profit margins amongst
other key metrics, is quantified and included within opening costs.
The breakdown of opening costs, between pre-opening costs and post-opening
costs for 3 months is shown below:
Half-year Half-year Year ended
ended 30 ended 30 31 December
June 2019 June 2018 2018
GBP GBP GBP
Pre-opening costs 3,982 18,001 139,858
Post-opening costs 4,388 102,431 293,648
---------------------------- ---------------- --------------- ------------------
8,370 120,432 433,506
---------------------------- ---------------- --------------- ------------------
4. Operating segments
The Group has only one operating segment: the operation of
restaurants with Lebanese and Middle Eastern offering and one
geographical segment (the United Kingdom). The Group's brands meet
the aggregation criteria set out in paragraph 22 of IFRS 8
"Operating Segments" and as such the Group reports the business as
one reportable segment.
None of the Group's customers individually contribute over 10%
of the total revenue.
5. Share options and share-based payment charge
On 4 July 2018, the Group established a Company Share Option
Plan ("CSOP") under which 4,890,000 share options were granted to
key employees. On the same day, the options which had been granted
under the Group's existing EMI share option scheme were
cancelled.
The new CSOP scheme includes all subsidiary companies headed by
Comptoir Group PLC. The exercise price of all of the options is
GBP0.1025 and the term to expiration is 3 years from the date of
grant, being 4 July 2018. All of the options have the same vesting
conditions attached to them.
The total share-based payment charge for the period was
GBP19,441 (half-year ended 30 June 2018: GBP8,650 (credit) and year
ended 31 December 2018: GBP28,745).
6. (Loss)/earnings per share
The Company had 122,666,667 ordinary shares of GBP0.01 each in
issue at 30 June 2019. The basic and diluted (loss)/earnings per
share figures, is based on the weighted average number of shares in
issue during the periods. The basic and diluted (loss)/earnings per
share figures are set out below.
Half-year Half-year Year ended
ended 30 ended 30 June 31 December
June 2018 2018
2019 (Restated) (Restated)
GBP GBP
GBP
(Loss)/profit attributable to
shareholders (582,796) (696,893) (728,091)
Number Number Number
Weighted average number of shares
For basic earnings per share 122,666,667 122,666,667 122,666,667
Adjustment for options outstanding 597,713 - 116,429
------------ --------------- -----------------
For diluted earnings per share 123,264,380 122,666,667 122,783,096
Pence per Pence per Pence per
share share share
(Loss)/earnings per share:
Basic (pence)
From (loss)/profit for the period (0.48) (0.57) (0.59)
Diluted (pence)
From (loss)/profit for the period (0.47) (0.57) (0.59)
For both of the above (loss)/earnings per share calculations,
the diluted (loss)/earnings per share is calculated by dividing the
profit or loss attributable to ordinary shareholders by the
weighted average number of shares and 'in the money' share options
in issue. Share options are classified as 'in the money' if their
exercise price is lower than the average share price for the
period. As required by 'IAS 33: Earnings per share', this
calculation assumes that the proceeds receivable from the exercise
of 'in the money' options would be used to purchase shares in the
open market in order to reduce the number of new shares that would
need to be issued. As the shares were not 'in the money' as at 30
June 2018 and consequently would be antidilutive, no adjustment was
made in respect of the share options outstanding to determine the
diluted number of options.
7. Property, plant and equipment (Restated)
Group Right-of-use Leasehold Fixtures, Motor
As at 30 June 2019 assets land and Plant fittings vehicles
buildings and machinery & equipment Total
GBP GBP GBP GBP GBP GBP
Restated cost
At 1 January 2019 25,025,668 11,490,328 4,949,517 3,096,003 15,120 44,576,636
Additions 1,426,428 281,111 238,235 166,124 - 2,111,898
------------------------ -------------- ------------- --------------- ------------- ---------- --------------
Restated as at
30 June 2019 26,452,096 11,771,439 5,187,752 3,262,127 15,120 46,688,534
------------------------ -------------- ------------- --------------- ------------- ---------- --------------
(Restated) Accumulated
depreciation and
impairment
At 1 January 2019
Depreciation
Impairment (2,342,249) (4,335,233) (2,257,901) (1,205,357) (5,443) (10,146,183)
(1,220,703) (385,025) (207,464) (110,267) (954) (1,924,413)
- - - (54,163) - (54,163)
------------------------ -------------- ------------- --------------- ------------- ---------- --------------
Restated as at
30 June 2019 (3,562,952) (4,720,258) (2,465,365) (1,369,787) (6,397) (12,124,759)
------------------------ -------------- ------------- --------------- ------------- ---------- --------------
Restated net book
value
As at 30 June 2019 22,889,144 7,051,181 2,722,387 1,892,340 8,723 34,563,775
As at 30 June 2018 22,020,538 6,912,976 2,780,573 1,955,410 10,886 33,680,383
As at 31 December
2018 22,683,419 7,155,095 2,691,616 1,890,646 9,677 34,430,453
------------------------ -------------- ------------- --------------- ------------- ---------- --------------
8. Intangible assets
Intangible fixed assets consist of goodwill from the acquisition
of Agushia Limited. During the period, the Group spent GBPnil on
intangible assets (half-year ended 30 June 2018: GBPnil and year
ended 31 December 2018: GBPnil).
The intangible assets figure in the prior period included
amounts relating lease premiums. In accordance with the change in
accounting policies relating to IFRS 16, the lease premium amount
has now been included in the calculations of right-of-use assets as
an initial direct cost, therefore this amount previously recorded
on the balance sheet relating to lease premiums and subsequent
amortisation associated with this has been reversed.
9. Dividends
No dividends were distributable to equity holders during the
period ending 30 June 2019 (half-year ended 30 June 2018: GBPnil
and year ended 31 December 2018: GBPnil).
10. Share capital
Allotted and fully paid
Number of ordinary 1p shares
30 June 2019 30 June 2018 31 December
2018
Brought forward 122,666,667 122,666,667 122,666,667
Issued in the period - - -
------------- ------------- ------------
Carried forward 122,666,667 122,666,667 122,666,667
---------------------- ------------- ------------- ------------
Nominal value
30 June 2019 30 June 2018 31 December
GBP GBP 2018
GBP
Brought forward 1,226,667 1,226,667 1,226,667
Issued in the period - - -
------------- ------------- ------------
Carried forward 1,226,667 1,226,667 1,226,667
---------------------- ------------- ------------- ------------
11. Cash flow from operations
Half-year ended Half-year ended Year ended 31
30 June 2019 30 June 2018 December 2018
(Restated) (Restated)
GBP GBP GBP
Profit/(loss) for the
period (26,193) (190,841) 400,063
Finance costs 488,518 480,890 977,970
Depreciation 1,924,413 1,873,174 3,721,362
Impairment of assets 54,163 - 259,205
Share-based payment credit 19,441 (8,650) 28,745
Movements in working capital
Decrease/(increase) in
inventories 73,406 (47,804) (100,089)
Increase in trade and
other receivables (996,746) (712,297) (169,604)
Increase in trade and
other payables and provisions 203,063 588,307 1,046,086
Cash from operations 1,740,065 1,982,779 6,163,738
-------------------------------- ---------------- ---------------- ---------------
12. Adjusted EBITDA
Adjusted EBITDA was calculated from the profit/loss before
taxation adding back interest, depreciation, share-based payments
and non-recurring costs incurred in opening new sites, as
follows:
6 months 6 months 12 months ended
ended ended 31 December
30 June 2019 30 June 2018 2018
(Restated) (Restated)
GBP GBP GBP
Operating (loss)/profit (26,193) (190,841) 400,063
Add back:
Depreciation (see note
7) 1,924,413 1,873,174 3,721,362
Impairment of assets 54,163 - 259,205
Share-based payments 19,441 (8,650) 28,745
-------------- -------------- ----------------
EBITDA 1,971,824 1,673,683 4,409,375
Non-recurring costs incurred
in opening new sites (see
note 2) 8,370 120,432 433,506
Adjusted EBITDA 1,980,194 1,794,115 4,842,881
------------------------------ -------------- -------------- ----------------
Independent review report by the auditors
For the half-year ended 30 June 2019
Introduction
We have been engaged by the Company to review the condensed set
of financial information in the half-yearly financial report for
the half-year ended 30 June 2019 which comprises the consolidated
statement of comprehensive income, consolidated balance sheet,
consolidated statement of changes in equity, consolidated statement
of cash flows and related notes to the historical financial
information. 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.
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 AIM Rules for Companies.
As disclosed in note 1, the annual financial statements of the
Company are prepared in accordance with IFRSs 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
financial 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 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 half-year ended 30 June
2019 is not prepared, in all material respects, in accordance with
International Accounting Standard 34, as adopted by the European
Union, and the AIM Rules for Companies.
UHY Hacker Young
Chartered Accountants
Quadrant House
4 Thomas More Square
London E1W 1YW
11 September 2019
Notes
1. The maintenance and integrity of the Comptoir Group plc
website is the responsibility of the directors; the work carried
out by the auditors does not involve consideration of these matters
and, accordingly, the auditors accept no responsibility for any
changes that may have occurred to the half-yearly report or the
auditors' review report since they were initially presented on the
website.
2. Legislation in the United Kingdom governing the preparation
and dissemination of financial information may differ from
legislation in other jurisdictions.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SFMESFFUSEIU
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