RNS No 0518t
HARTFORD GROUP PLC
11 May 1999
Preliminary results for the period ended 27 December 1998
Group Highlights:
- Reversal by Bluelodge Limited in September 1998 and disposal of
previous businesses
- Pharmacy Restaurant and Bar now firmly established
- Identifying site for West End Pharmacy Bar to exploit the potential
of our flagship brand
- Proposed expansion with the opening of new restaurants, the Levant
(Middle Eastern cuisine) and Rockpool (Pacific rim)
- Proposal launch of Spitfire, a high street Kebab operation
Matthew Freud (Chief Executive) commented:
"Any business is about the people and it is here that we have made our
largest investment"
Enquiries:
Matthew Freud, Chief Executive Hartford Group Plc 0171 487 3487
Mike Salinger, Company Secretary Hartford Group Plc 0171 487 3487
Chairman's and Chief Executive Officer's statement
We are pleased to be writing to you at the end of our first years' trading
under the new management. Since reversing Bluelodge Limited, owner of the
Pharmacy Restaurant and Bar, into Hartford in September, we have set about
creating a strong management team and developing new concepts to take Hartford
forward and to build it into a long term substantial business.
Pharmacy
At an operating level the Pharmacy has now stabilised and is operating at a
healthy 85% capacity and generating margins of approximately 15% of turnover.
It also won its category at this year's London Restaurant Awards. However, we
are reporting a loss in Hartford for it's first year primarily as a result of
the head office costs of both creating a capable management team and the
expense of running a public company. Suffice it to say, we strongly believe
that this investment was required to take the business forward, the results of
which will be seen in the years to come. We do not intend to be a single
asset business for very long. With little additional overhead we can run a
business many times larger than the existing operation. We have proved that
we are capable of successfully launching a new restaurant and established it
firmly in the London Restaurant scene. This requires a top quality management
team and has been an investment for the future.
We will shortly be embarking on the expansion of the Hartford Group.
Levant
Firstly, Levant, about which there has already been considerable media
coverage, will open later this year in Knightsbridge and is the first stage of
our initiative to reinterpret Middle Eastern Cuisine for the UK. Food from
the Levant region is some of the finest in the world but has been never been
presented in a contemporary setting.
Spitfire
Stage two of this operation is the launch of Spitfire, the much awaited high
street kebab operation, with two units opening this year and, depending upon a
successful outcome, a roll out during 2000 at a rate of up to one store every
eight weeks.
Rockpool
We are in advance discussions with Australia's greatest chef, Niall Perry's
Rockpool group which should result in the London opening of a landmark
restaurant in a joint venture with Hartford.
Pharmacy Bar and Outpatient
Finally we are keen to identify a site for a West End Pharmacy Bar and begin
to exploit the potential of our flagship brand. This is about to begin
laterally, with the opening in June of Outpatient, a high end food retail and
delivery operation next door to Pharmacy Notting Hill.
The above proposals will be financed from cashflow and bank borrowings.
Whilst our expansion plans were delayed as a result of our choice not to
compete in the overheated rental and premium paying London market during 1998,
our patience has been well rewarded as restaurant site rental values appear to
have come down and premiums reduced considerably.
"However, any business is about the people and it is here that we have made
out largest investment."
Matthew Freud's and Jonathan Kennedy's experience in launching over 100
restaurants will, hopefully, ensure that we keep generating revenue from start
up operations that open with high awareness and full booking sheets. We have
been joined by Raymond De Fazio who has many years experience at ensuring
healthy margins, tight operating controls and efficient purchasing and supply.
Liam Carson has been a star of the London Restaurant industry for many years,
having been involved in Langans, Grouchos and Momo. He has been with us since
the start of Pharmacy and is gearing up for the launch of Levant.
We have also been fortunate to retain the services of Michael Mcinearney as
our group executive chef and head chef at Pharmacy. Michael was formerly at
Bluebird where he oversaw a kitchen brigade of 75.
We have identified and agreed terms with a Chief Executive for our Spitfire
division who is experienced both in city finance and high yield catering
concepts. We believe he will be a dynamic and able leader for the team who
should do for the kebab what Pret A Manger has so successfully done for the
sandwich, or Starbucks for the cup of coffee.
With experienced City non-executives we believe we now represent a strong
balanced management team and consider that 1999 will be an exciting time for
us. We are looking forward to the future.
J M Edelson
Chairman
M R Freud
Chief Executive Officer
Consolidated profit and loss account for the period ended 27 December 1998
Continuing Discontinued Total
operations operation
Acquisition
1998 1998 1998
# # # #
Turnover - 764,429 3,496,544 4,260,973
Cost of sales - 267,997 2,832,406 3,100,403
Gross profit 496,432 664,138 1,160,570
Administrative expenses 426,065 495,745 568,152 1,489,962
(426,065) 687 95,986 (329,392)
Other operating income - - 31,789 31,789
Operating (loss)/profit (426,065) 687 127,775 (297,603)
Profit on disposal of - - 101,794 101,794
discontinued operation
(Loss)/profit on ordinary
activities before interest and(426,065) 687 229,569 (195,809)
taxation
Interest receivable and similar 53,538
income
Interest payable and similar (24,633)
charges
Loss on ordinary activities (166,904)
before taxation
Taxation on loss from ordinary 45,360
activities
Loss for the financial period (212,264)
Dividends 100,000
Amounts transferred from (312,264)
reserves
Loss per share
Basic and diluted (0.0p)
Discontinued activities represent the results of companies that were both
acquired and disposed during the period. The post acquisition activities of
Bluelodge Limited are included within 1998 acquisitions.
Consolidated balance sheet at 27 December 1998
1998
# #
Fixed assets
Intangible assets - goodwill 2,395,135
Tangible assets 2,152,730
4,547,865
Current assets
Stocks 42,761
Debtors 204,950
Cash at bank and in hand 643,117
890,828
Creditors: amounts falling due within one 598,734
year
Net current assets 292,094
4,839,959
Capital and reserves
Called up share capital 3,044,062
Share premium account 287,224
Merger reserve 1, 988,437
Profit and loss account (479,764)
Shareholders' funds - equity 4,839,959
Consolidated cash flow statement for the period ended 27 December 1998
1998
# #
Net cash outflow from operating activities (696,906)
Returns on investments and servicing of
finance
Interest received 53,538
Interest paid (24,633)
28,905
Taxation (81,360)
Capital expenditure and financial
investment
Purchase of tangible fixed assets (50,339)
Sale of investment 50,000
(339)
Acquisitions and disposals
Purchase of subsidiary undertakings (1,560,325)
Sale of business operations 1,000,919
(559,406)
Equity dividends paid (100,000)
Cash outflow before financing (1,409,106)
Financing
Issue of ordinary share capital 1,552,223
Increase in cash 143,117
NOTES TO THE ACCOUNTS
1 Financial Information
The financial information set out in this announcement does not
constitute the Company's statutory accounts for the period ended 27
December 1998 within the meaning of s240 of the Companies Act 1985, but
is derived from those accounts. Statutory accounts for this period have
been delivered to the Registrar of Companies. The auditors have reported
on those accounts; their report was unqualified.
2 Dividends
Ordinary dividends #
Interim paid of 3.3p per share 100,000
The directors do not recommend the payment of a final dividend
3 Earnings per share
Basic earnings per ordinary share have been calculated using the weighted
average number of shares in issue during the period. The weighted
average number of equity shares in issue is 589,074,545 and the earnings,
being loss after tax are #(212,264).
No further information is disclosed in respect of dilutive earnings per
share on the basis that the value of basic earnings per share and
difference between basic and diluted earnings per share are negligible.
4 Reconciliation of operating profit to net cash inflow from operating
activities
1998 1998 1998
Continuing Discontinued Total
# # #
Operating loss (425,378) 127,775 (297,603)
Depreciation 49,539 3,242 52,781
Amortisation of goodwill 30,318 14,255 44,573
(Increase) in stocks - (996,122) (996,122)
Decrease in debtors - 970,032 970,032
(Decrease)/increase in (112,562) (358,005) (470,567)
creditors
Net cash outflow from (458,083)
continuing activities
Net cash outflow from (238,823)
discontinued activities
Net cash outflow from operating (696,906)
activities
5 Annual Report
Copies of the Report and Accounts for the period ended 27 December
1998 will be posted to shareholders shortly and will be available from
the Company's registered office at, 150 Notting Hill Gate, London, W11
3QG.
END
FR AAONKKRKVAAR
Harvard (LSE:HAR)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Harvard (LSE:HAR)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024
