RNS Number:6115Z
Hartford Group PLC
10 June 2004
HARTFORD GROUP PLC
("Hartford" or "the Group")
Interim Results for the 28 weeks ended 10 April 2004
Hartford Group PLC ("Hartford" or "the Group"), the London focussed licensed
retailer, announces interim results for the 28 weeks ended 10 April 2004.
HIGHLIGHTS
* Turnover from continuing business level with last year at #6.1m
* Further improvement in gross margin to 74.3% (2003: 72.4%)
* EBITDA improved by 79% to #469k (2003: #262k)
* Profit before tax (excluding amortisation of goodwill) of #148k (2003:
loss of #282k) - initiation of profit for Hartford, EPS positive at
0.01p
* Financial gearing remains below 30%
* Christopher Poil appointed to the Board as a Non Executive Director
* Trading in the second half to date has begun strongly, with sales 4.1%
ahead of the corresponding period last year
* Acquisition of three new sites in the City with terms signed and
completion due in June
Stephen Thomas, Chairman of Hartford Group PLC, commented:
"These results represent a credible performance for the management, staff and
shareholders of the Hartford Group and I am pleased that the Group has moved
into pre-tax profit. The management team has built a solid, financially robust
foundation and we can now look to the future with excitement and optimism."
10 June 2004
ENQUIRIES:
Hartford Group PLC Tel: 020 7269 6370
Stephen Thomas, Chairman
James Kowszun, Chief Executive
College Hill
Justine Warren Tel: 020 7457 2020
Sam Allen
Chairman's Statement
The first half of the current financial year has seen Hartford consolidate its
position, following two years of restructuring and repositioning. The Group is
now a London focused, drinks-led licensed retailer, with good operational
discipline and a strong, motivated management team. The result of these
improvements is that I am pleased to be able to announce the Group's move into
profitability.
Revenue from the continuing business (excluding the impact of disposed sites) is
flat with last year. Gross margin has improved by 1.9 percentage points to
74.3%, principally as a result of an improvement in food margins. This has been
delivered through a mixture of better buying, increased focus on cost control
and improved training. The administration centre costs have remained tightly
controlled running at approximately 10% below last year. Overall EBITDA has
improved by #207k and the EBITDA margin has more than doubled to 7.7% from 3.5%.
This improvement has been generated through continued good control of wages and
variable costs, coupled with the gross margin increase. The infrastructure is
in place such that the business can double the number of trading sites within
the estate, with a minimal increase in central costs.
During the first half, Hartford has spent #359k on capital expenditure, compared
with #397k in the equivalent period last year. This finance has been committed
in two key areas - a company-wide IT project to install tills, EPOS, back of
house and adequate general IT resources to all sites, and the on-going
renovation of the Jamies Bars sites. The refurbishment programme has continued
with minor projects to a number of the City bars, a larger project at Jamies,
Bishopsgate and a conversion of the former Jamies site at West Smithfield to
Heads & Tails, which opened in February 2004.
Interest cover at the interims was 3.3 times. The Group has paid no corporation
tax for the period and continues to have substantial tax losses.
Management & Staff
The on-going training and development programme for all staff in the business is
continuing to deliver results. Our staff, and in particular those at site
level, continue to be our greatest asset and our ability to attract, train and
retain the best will play a critical part in the Group's continued development.
To this end we have a bespoke development plan in place for each manager and
assistant within the business. Our approach is to implement training on a
regular basis to reinforce and develop core skills.
As previously announced, I am pleased that the Board has been further
strengthened by the appointment of Christopher Poil as our second independent
non-executive director. Chris brings a wealth of experience of corporate
governance, finance and the equity markets, skills that we anticipate will be
extremely valuable to Hartford as it looks for growth opportunities.
Current Trading & Prospects
The second half of the financial year has begun well, with sales to date 4.1 %
ahead of last year on a comparable basis.
Now that the Group is financially stable and profitable, the management is
actively looking to expand the estate. Contracts have been signed for the
acquisition of three sites within central London. We have acquired the
well-known Hodgsons wine bar in Chancery Lane, London this week and expect to
complete the acquisition of two further City Bar sites in June.
In summary, Hartford has continued to improve the performance of its existing
estate, moved into profit and is looking to expand organically and through
selective acquisition.
Stephen Thomas
Chairman
10 June 2004
Consolidated Profit & Loss Account for the 28 weeks ended 10 April 2004
28 Weeks to 10 28 Weeks to 12 52 weeks to 27
April 2004 April 2003 September 2003
unaudited unaudited audited
#'000 #'000 #'000
Turnover 6,100 7,521 14,294
Cost of Sales (1,568) (2,077) (3,937)
Gross Profit 4,532 5,444 10,357
Administrative expenses excluding exceptional (4,437) (5,707) (10,746)
expenses
Exceptional reorganisation costs - (33) (108)
Exceptional provision for impairment in value of - - (200)
tangible fixed assets
Total administrative expenses (4,437) (5,740) (11,054)
Other Operating Income - - 30
Operating Profit / (Loss) on ordinary activities 95 (296) (667)
Loss on sale of tangible fixed assets - (2) (991)
Interest receivable and similar income - 5 18
Interest payable and similar charges (63) (105) (204)
Profit / (Loss) on ordinary activities before 32 (398) (1,844)
taxation
Taxation on profit / (loss) on ordinary 0 0 0
activities
Profit / (Loss) for the financial period 32 (398) (1,844)
Dividends 0 0 0
Amounts transferred to / (from) reserves 32 (398) (1,844)
Profit / (Loss) per share
Basic and diluted 0.01 p (0.07) p (0.34) p
Consolidated Balance Sheet
As at As at As at
10 April 2004 12 April 2003 27 Sept 2003
Unaudited Unaudited Audited
#'000 #'000 #'000
Fixed Assets
Intangible 3,572 3,788 3,688
Tangible 5,816 7,551 5,912
9,388 11,339 9,600
Current Assets
Stocks 172 234 189
Debtors & Prepayments 1,495 1,395 2,104
Cash - 121 151
1,667 1,750 2,444
Creditors :amounts falling due within
one year (3,305) (3,617) (4,198)
Net current liabilities (1,638) (1,867) (1,754)
Total assets less current liabilities 7,750 9,472 7,846
Creditors : amounts falling due after
more than one year (1,142) (1,450) (1,270)
6,608 8,022 6,576
Capital and reserves
Share capital 5,457 7,072 5,457
Share premium 8,104 6,489 8,104
Merger reserve 2,060 2,060 2,060
Capital redemption reserve 5,440 5,440 5,440
Other reserve (54) (54) (54)
P&L account (14,399) (12,985) (14,431)
Shareholders' funds 6,608 8,022 6,576
Unaudited Consolidated Cash Flow Statement for the 28 weeks ended 10 April 2004
28 weeks ended 28 weeks ended 52 weeks ended
10 April 2004 12 April 2003 27 Sept 2003
Unaudited Unaudited Audited
#'000 #'000 #'000
Net cash (outflow) / inflow from operating (3) 610 1,136
activities
Returns on investment & servicing of finance
Interest Received - 5 18
Interest Paid (63) (105) (204)
Net cash outflow from returns on investments and (63) (100) (186)
servicing of finance
Capital expenditure and financial investment
Purchase of tangible fixed assets (359) (397) (627)
Sale of tangible fixed assets 197 - -
Net cash outflow from capital investment and (162) (397) (627)
financial investment
Net cash (outflow) / inflow before management of (228) 113 323
liquid resoucres
Financing
Repayment of short term borrowing (225) (360) (540)
Loan draw down 232 - -
Net cash inflow / (outflow) from financing 7 (360) (540)
Decrease in cash (221) (247) (217)
Notes to the Interim Results
10 April 2004 12 April 2003 27 Sept 2003
Unaudited Unaudited Audited
#'000 #'000 #'000
1 Reconciliation of operating profit /
(loss) to net cash outflow from operating
activities
Operating profit / (loss) for the period 95 (296) (667)
Amortisation of goodwill 116 116 216
Depreciation 258 409 665
Impairment of tangible fixed assets - - 200
Decrease in stock 17 14 61
Decrease / (increase) in debtors 609 348 444
(Decrease) / increase in creditors (1,098) 19 217
Net cash (outflow) / inflow from (3) 610 1,136
operating activities
#'000 #'000 #'000
2 (Decrease) / Increase in cash in the (221) (247) (217)
period
Cash (inflow) / outflow from repayment of (7) 360 540
loan
Change in net debt resulting from (228) 113 323
cashflows
Non cash changes in net funds - - -
Movement in net debt in the year (228) 113 323
Net debt at start of period (1,659) (1,982) (1,982)
Net debt at end of period (1,887) (1,869) (1,659)
3 Analysis of net funds / (debt) At 27 At 10
September April
2003 Cashflow 2004
#'000 #'000 #'000
Cash at bank and in hand 151 (221) (70)
Loans due before one year (540) (135) (675)
Loans due after one year (1,270) 128 (1,142)
Financing excluding share capital (1,810) (7) (1,817)
Total (1,659) (228) (1,887)
4. The interim statements have been prepared under the same accounting
policies as the statutory accounts for the period ending 27 September 2003.
5. Based upon the results of the Group there is no tax charge / (credit)
for the period.
6. The calculation of basic and diluted earnings per share is based upon a
profit after taxation for the period of #32,000 (2003: loss #398,000; 52 weeks
ended 27 September 2003: #1,844,000) and the weighted number of ordinary shares
in issue during the period was 545,725,290 (2003: 545,725,290; 52 weeks ended 27
September 2003: 545,725,290).
7. No interim dividend is proposed.
8. The financial information is unaudited and does not amount
to full accounts, within the meaning of Section 240 of the Companies Act, 1985.
Accounts for Hartford Group plc for the period to 27 September 2003, have been
filed with the Registrar of Companies, and received an unqualified audit report.
9. Extract of Profit & Loss account showing margin and EBITDA
28 Weeks to 10 28 Weeks to 12 52 weeks to 27
April 2004 April 2003 September 2003
unaudited unaudited audited
#'000 #'000 #'000
Turnover 6,100 7,521 14,294
Cost of Sales (1,568) (2,077) (3,937)
Gross Profit 4,532 5,444 10,357
Gross profit percentage 74.3% 72.4% 72.5%
Administrative expenses
excluding Exceptional expenses,
depreciation and amortisation (4,063) (5,182) (9,865)
Earnings before interest, tax,
depreciation and amortisation 469 262 492
Depreciation (258) (409) (665)
Amortisatisation of Goodwill (116) (116) (216)
Exceptional reorganisation costs - (33) (108)
Exceptional provision for impairment in value - - (200)
of tangible fixed assets
Total administrative expenses (4,437) (5,740) (11,054)
95 (296) (697)
Other Operating Income - - 30
Operating Profit / (Loss) on ordinary 95 (296) (667)
activities
This information is provided by RNS
The company news service from the London Stock Exchange
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