RNS Number:5097U
Hartford Group PLC
22 January 2004


                              HARTFORD GROUP PLC
                          ("Hartford" or "the Group")

            Preliminary Results for 52 weeks ended 27 September 2003

Hartford Group PLC, the operator of licensed premises in London and the
South-East, announces results for the 52 weeks ended 27 September 2003.


                                   HIGHLIGHTS



  *    Hartford has delivered its first positive EBITDA of #414k (2002: loss of
       #355k)

  *    Net debt was reduced to #1.7m at the year end, representing gearing of
       25%, and is currently #1.2m

  *    Disposal of three non core and loss-making sites after the year-end:  The
       Pharmacy, Dakota (both in Notting Hill) and The Wells (Ascot) for #1.0m

  *    Sales over the six-week Christmas period were 3.3% above the comparative
       period for the on-going business

  *    Urvashi Parekh appointed to the Board as Finance Director (see separate
       announcement)


Stephen Thomas, Chairman of Hartford Group PLC, commented:

"This announcement puts the troubles of the past behind Hartford and allows the
management team to concentrate on the core business without distractions.
Hartford is now looking to make a profit for the first time and I am grateful to
all the management for their hard work in achieving this end."


                                                                 22 January 2004



ENQUIRIES:

Hartford Group PLC                                    Tel:     020 7269 6370
Stephen Thomas, Chairman
James Kowszun, Chief Executive

College Hill
Justine Warren                                        Tel:     020 7457 2020




                               HARTFORD GROUP PLC
                           ("Hartford" or "the Group)

          Preliminary Results for the 52 Weeks ended 27 September 2003

                              Chairman's Statement

Introduction

Hartford Group plc has made significant progress in the first full year of
trading following the acquisition of Jamies Bars plc ("Jamies") in September
2002, despite a trading environment that has continued to be challenging.
Hartford successfully integrated Jamies during the first half of the year under
review, delivering the expected synergy benefits.  Expenditure on capital
projects was tightly controlled, but money was invested on essential estate
management and on specific projects where the risk/return profile was acceptable
in the prevailing market conditions.  As a result of these actions, together
with ongoing operational discipline, Hartford delivered its first positive
EBITDA in the year as a whole and gearing had fallen to 25% by the year end.
Since the year end, Hartford has completed the disposal of three non-core,
loss-making outlets, generating gross receipts of #1m and reducing current
gearing to less than 20%.  In addition, trading in December 2003 was good, with
sales from the on-going business 3.3% ahead of the prior year for the six weeks
to 3 January 2004.  All of these areas are discussed in more detail below.


Disposals

In the second half of the financial year, the Board reviewed Hartford's trading
locations and identified three units for disposal - The Wells on the outskirts
of Ascot, and the two Notting Hill restaurants, Pharmacy and Dakota.
Performance, particularly of the restaurants, had been increasingly unacceptable
during the financial year, as the trading environment continued to be
challenging and sales continued to decline.  The disposal of these three non
core sites has been successfully completed for gross receipts of #1m.

The disposals have resulted in a book loss on disposal of #991k, coupled with an
impairment for Dakota of #200k because, although terms had been agreed on this
site prior to the year end, no contracts had been exchanged.  More
significantly, the disposals have removed loss-making, cash-draining sites from
the estate and allowed management to increase its focus on the bars business.


Jamies Bars Integration

The Jamies business was fully integrated by the end of the first half of the
financial year, with the reorganisation costs totalling #108k for the year.  The
extensive training programme to increase the management skills of site staff has
been very productive - during the year over 75% of all management appointments
have been from within the business.  In addition, the sites' ability to control
costs in a tough trading environment has been much improved, with control over
gross margin, wages and variables all encouraging.

The key goals with the integration have been to re-motivate staff after a
prolonged period of uncertainty, tighten site-level controls, particularly over
costs and continue to train and develop our staff.  It has been critical that we
achieve these goals whilst not damaging those elements that have characterised
Jamies' strong customer offer.  We have predominantly achieved these goals
during the financial year, although there is capacity to improve further.


Financial Review

Sales performance has continued to be the major challenge within the business,
but one that is showing encouraging signs for the future.  Comparable sales from
the on-going business increased by 2% during the year, reducing to a 1% decline
when the sales of the disposed sites are included.

The gross margin has substantially improved in the current financial year to
73.3% for the ongoing business (72.5% including disposed properties), compared
with the 70.4% in last year's accounts.  This improvement is the result of
aggressive supplier rationalisation following the acquisition of Jamies,
together with the increasing focus on drinks-led businesses.

The wage percentage to sales for the on-going business has reduced to 24.8%
(28.1% for the total business).  Our target is to maintain this level and not to
materially reduce it.  Staff quality is of critical important to our operation
and our on-going commitment to invest in the recruitment, training and
development of the best people comes at a cost, but is crucial to delivering a
sustainable business.

The remainder of the cost base continues to be tightly controlled, resulting in
administrative expenses (excluding exceptional expenses from reorganisation
costs and impairment of disposed property values) reducing as a percentage of
sales from 84.0% last year to 75.2% for the current financial year.

Resulting from these improvements, the Company recorded an EBITDA of #414k for
the year, the first time that a positive result has been achieved.  This rises
to #1.1m if the disposed businesses (which made an EBITDA loss of #580k) and the
reorganisation costs of #108k are excluded and compares with a loss in the
previous year on a comparable basis of #14k.

Excluding the loss/impairment on disposal and reorganisation costs, the Company
made a Loss Before Tax of #545k.  This compares with a loss of #632k on a
comparable basis for the nine months to 28 September 2002.  However, if the
trading losses from the disposed businesses are also excluded, the on-going
business delivered a Profit Before Tax and reorganisation costs of #187k.  This
performance represents solid progress in Hartford's development into a focused,
profitable business.

During the financial year, Hartford invested #627k (4.4% of sales) on capital
projects.  Much of this expenditure was on essential refurbishment work to the
Jamies estate, with only the Jamies sites at Minories and Gresham Street having
no capital expended on them.  Three major refurbishments were completed during
the financial year, totalling #393k of capital expenditure, on Jamies at
Charlotte Street, West Smithfield and Canary Wharf.  Within the financial year,
the combined EBITDA from these sites improved by #172k, even with the trading
losses incurred during closure.  This represents a return on capital of 43.8%,
significantly ahead of the Group's internal investment return requirements.

Overall, at the year end, Hartford had net debt of #1.7m representing gearing of
25%.  Following the completion of the disposals, net debt is currently #1.2m and
represents gearing of less than 20%.


Review of Operations

Hartford has now become a focused bar operator with the benefits seen in both
gross margin delivery and control of site costs.  Each section of the business
has faced its own specific challenges during the year and is reviewed in turn.


City Bars

Many of the City Bar sites are small and intimate and all are located in the
heart of the City of London.  They are all five-day operations and for many, the
core trading period is lunchtime, not the more usual evening custom.  The focus
is on the wine list and on a level of service and interaction impossible in
larger venues.  The extensive wine list enables our staff to sell across a wide
variety of styles and price points, but it is only possible to do this
professionally with a significant commitment to continuous training.  In
addition to regular in-house training, supplemented by the generous support of
our key suppliers, many of our managers and assistants are awarded the Wine &
Spirit Education Trust Intermediate Certificate.

Trading conditions in the City throughout most of the financial year were
difficult.  However, the micro-market for a specific site is frequently less
than five minutes walk from the front door.  As a result, specific events
targeted at individual companies can have a material impact on the performance
of a particular site.  Overall sales within this section of business were 10%
down on the previous year, but this overall figure was largely a result of poor
sales performance at Jamies Gresham Street and the Pavilion, which together
accounted for some two-thirds of the shortfall.  Elsewhere, Jamies Philpot Lane
and Betjemans saw sales 1% ahead of last year, an excellent performance under
these conditions.  Overall, the site EBITDA margin delivered by the City Bars
was a healthy 24%.


Bars

The Bar sites, ranging from Jamies, Canary Riverside to The Common Room in
Wimbledon Village, are larger and more lively than the City Bars.  The wine list
is significantly shorter than in the City Bars, however it still provides a
range of styles to meet most occasions and is augmented by a wider menu of beers
and spirits, with some sites also selling draught beer and cocktails.  The Bar
sites are just as focused on service and standards as the City Bars, just within
a more lively environment.

Overall, performance within the Bars has shown encouraging progress.  Excluding
The Wells in Ascot (now disposed) and Borough Bar in London Bridge (not open for
the full two years), the bars showed a sales increase of 0.8%.  The performance
of The Wells was adversely affected by the disposal process, coupled with
aggressive discounting by sites in the centre of Ascot.  Borough Bar had a good
first full year of trading, marred only by disappointing sales during the hot
summer weather, and is well-positioned to perform well in the current financial
year.

The Common Room in Wimbledon had another strong year, with sales up 8% on the
previous year, gross margin further improved and costs well controlled,
resulting in the EBITDA margin improving by 7.6 percentage points.  The site
also had a minor refurbishment resulting in improvements to the bar and service
area.

Hartford acquired seven sites with Jamies that are now being run as Bars rather
than City Bars.  We have invested time and resource on five of these sites and
the outcome has provided the highlight of the year in terms of performance.
Canary Wharf, Charlotte Street and Poland Street have collectively been turned
around from an EBITDA loss of #52k in the prior year into a profit of #192k.
Bishopsgate has performed well with sales up on last year, converting into a 4.3
percentage point improvement in EBITDA margin.  West Smithfield performed
acceptably, following the first phase of a major refurbishment programme and is
scheduled for the final phase in early 2004, when the internal layout will be
substantially improved and the site will be given a new identity.  The Jamies
sites at Ludgate Hill and Holborn have struggled to deliver top line sales in
the last financial year.  Both sites are scheduled for refurbishments during
2004 which the Directors are confident will improve the trading prospects for
both locations.


Restaurants

The performance of both Dakota and Pharmacy was disappointing during the
financial year and their successful disposal has removed two cash-draining units
from the estate.  With Hartford unwilling to spend a material amount of capital
on a restaurant site, the only viable option for Dakota was disposal.  Pharmacy
showed real signs of improvement in the autumn 2002, following the appointment
of Hywel Jones as head chef.  However, this was not continued into 2003, despite
a series of predominantly positive reviews and a tremendous effort by the staff
at the site.  The site was therefore closed at the end of the financial year and
has now been returned to the landlord in return for a significant surrender
premium.  Canyon continues to trade strongly with both sales and EBITDA margin
improving during the financial year.


Management and Employees

It has been separately announced today that Colin Lewin, Finance Director since
the acquisition of Jamies, is to leave Hartford and that Urvashi Parekh has been
promoted from Financial Controller to become the new Finance Director.

This has been a challenging year, from a trading perspective, and I would like
to take this opportunity to thank our dedicated staff, both at the sites and in
the administration centre.  Their commitment and motivation is a major
contributor to our continued improvement.


Current Trading and Outlook

Trading in December was good, following a difficult period in October and
November.  On-going gross sales were 3.3% ahead of the comparative period for
the six weeks to 3 January 2004, with bars sales 4.5% ahead and performance in
the three weeks leading up to Christmas particularly pleasing with both bookings
and revenue better than last year.  This has resulted in on-going sales for the
14 weeks to 3 January 2004 being marginally ahead of last year (+0.8%).

The Board is pleased with the performance to date, particularly the critical
Christmas period and looks forward to the current financial year with confidence
of delivering the first profit in Hartford's history.  Having rationalised the
trading units and focused the business behind its strategy, the Company is now
looking to expand its estate at a prudent rate from within current resources,
with cash return on cash capital employed and sustainability of performance the
two criteria that will drive any decisions on new sites.

                                                                  Stephen Thomas
                                                                        Chairman
                                                              Hartford Group plc

                                                                 22 January 2004


Consolidated Profit & Loss Account for the 52 weeks ended 27 September 2003

                                                          29 September 2002       31 December 2001
                                                                         to                     to
                                                          27 September 2003      28 September 2002
                                                                      #'000                  #'000

Turnover                                                             14,294                  4,876
Cost of Sales                                                       (3,937)                  1,442

Gross Profit                                                         10,357                  3,434

Administrative expenses                                              10,746                  4,095
  excluding Exceptional expenses

Exceptional administrative expenses
  Reorganisation                                                        108                     62
  Provision for impairment in value of tangible fixed                   
assets                                                                  200                      -

Total Administrative expenses                                        11,054                  4,157

Operating Loss                                                        (697)                  (723)

Other Operating Income                                                   30                     33


Operating Loss on ordinary activities before interest                 
and taxation                                                          (667)                  (690)

Loss on disposal                                                      (991)                   (34)

Interest receivable and similar income                                   18                     16

Interest payable and similar charges                                  (204)                   (20)

Loss on ordinary activities before taxation                         (1,844)                  (728)

Taxation on loss on ordinary activities                                   0                      0

Loss for the financial period                                       (1,844)                  (728)

Dividends                                                                 0                      0

Amounts transferred from reserves                                   (1,844)                  (728)

Loss per share
Basic and diluted                                                   (0.34)p                (0.27)p



Consolidated Balance Sheet
                                                            As at 27      As at 28
                                                           September     September
                                                                2003          2002

                                                              #000's        #000's

FIXED ASSETS
  Intangible                                                   3,688         3,904
  Tangible                                                     5,912         7,563

                                                               9,600        11,467
CURRENT ASSETS
  Stocks                                                         189           248
  Debtors & Prepayments                                        2,104         1,783
  Cash                                                           151           368

                                                               2,444         2,399

CREDITORS: amounts falling due within one year               (4,197)       (4,161)

NET CURRENT ASSETS                                           (1,753)       (1,762)

TOTAL ASSETS LESS CURRENT LIABILITIES                          7,846         9,705

CREDITORS: amounts falling due after more than one year      (1,270)       (1,285)

                                                               6,576         8,420

CAPITAL & RESERVES
  Share capital                                                5,457         3,306
  Unissued share capital                                           0         3,766
  Share premium                                                8,104         6,489
  Merger reserve                                               2,060         2,060
  Capital redemption reserve                                   5,440         5,440
  Other reserve                                                 (54)          (54)
  P&L account                                               (14,431)      (12,587)

SHAREHOLDERS' FUNDS EQUITY                                     6,576         8,420


Consolidated Cash Flow Statement for the Period ended 27 September 2003

                                                       52 Weeks  ended                39 weeks ended
                                                         27 September                  28 September
                                                             2003                          2002
                                                  Note   #'000    #'000                #'000    #'000

Net cash inflow / (outflow) from operating         
activities                                         1              1,136                         (148)

Returns on investment & servicing of finance
Interest Received                                           18                            16
Interest Paid                                            (204)                          (16)
Interest element of finance lease rental payment             -                           (4)
                                                                  (186)                           (4)

Capital Expenditure & Financial Investment
Acquisition of Fixed Assets                              (627)                         (935)
Sale of Tangible fixed assets                                -                           166
                                                                  (627)                         (769)

Acquisitions and Disposals
Cash Expenses of purchase of subsidiary                      -                         (958)
undertaking
Net Overdraft acquired with subsidiary                       -                         (186)
                                                                      -                       (1,144)

Net cash inflow / (outflow) before management of                    323                       (2,065)
liquid resources
Decrease/(increase) in short term deposits                            -

Financing
Payment of loans                                         (540)                             -
Net proceeds of share issue                                  -                         2,607
Capital element of finance lease rental payments             -                          (44)
                                                                  (540)                         2,563


Increase / (Decrease) in Cash                      2              (217)                           498



Notes
                                                                     52 Weeks  ended       39 weeks ended
                                                                        27 September         28 September 
                                                                                2003                 2002
                                                                               #'000                #'000
1.   Reconciliation of operating loss to net cash outflow from
     operating activities
     Operating Loss for period                                                 (667)                (690)
     Amortisation of Goodwill                                                    216                    8
     Depreciation                                                                665                  327
     Impairment of tangible fixed assets                                         200                    -
     Decrease in stock                                                            61                   48
     Decrease in debtors                                                         444                   16
     Increase in creditors                                                       217                  143
     Net cash inflow / (outflow) from operating activities                     1,136                (148)



                                                                              #'000               #'000
2.  (Decrease) / Increase in cash in the period                               (217)                 498
    Cash outflow from repayment of loan                                         540                   -
    Cash outflow from finance leases                                              -                  44
    Change in net debt resulting from cashflows                                 323                 542
    Non cash changes in net funds                                                 -             (2,350)
    Movement in net debt in the year                                            323             (1,808)
    Net debt at start of period                                             (1,982)               (174)
    Net debt at end of period                                               (1,659)             (1,982)


3.  Analysis of net debt
                                                       At 29 Sept          Cash flow       At 27 Sept
                                                             2002                                2003
                                                            #'000              #'000            #'000

    Cash at bank and in hand                                  368              (217)              151

    Loans due before one year                             (1,065)                525            (540)
    Loans due after one year                              (1,285)                 15          (1,270)
    Financing excluding share capital                     (2,350)                540          (1,810)

    Total                                                 (1,982)                323          (1,659)



4.     Nature of Preliminary Announcement

This preliminary results statement has been prepared on the basis of the same
accounting policies as those set out in the financial statements for the period
ended 28 September 2002. The financial information contained in this statement
does not constitute statutory accounts as defined in section 240 of the
Companies Act 1985.

The summarised balance sheet at 27 September 2003 and the summarised profit and
loss account, summarised cash flow statement and associated notes for the year
ended have been extracted from the Group's 2003 financial statements. Those
financial statements have not yet been delivered to the Registrar. The financial
information for the period ended 28 September 2002 is an abridged version of the
group's published financial statements for the period which contained an
unqualified audit report and which have been filed with the Registrar of
Companies.


Supplementary Unaudited Information

  Profit & Loss account analysed between ongoing
  and disposed businesses

                                                                                               
                                                                                     29 September
                                                                                       2002 to 27
                                                      Ongoing    Disposed               September
                                                     Business    Business                    2003
                                                        #'000       #'000                   #'000

  Turnover                                             11,775       2,519                  14,294
  Cost of Sales                                       (3,147)       (790)                 (3,937)

  Gross Profit                                          8,628       1,729                  10,357

  Administrative expenses                               8,285       2,461                  10,746
    excluding Exceptional expenses

  Exceptional administrative expenses
    Reorganisation                                        108           -                     108
    Provision for impairment in value of tangible           
  fixed assets                                              -         200                     200

  Total Administrative expenses                         8,393       2,661                  11,054

  Operating Profit / (Loss)                               235       (932)                   (697)

  Other Operating Income                                   30           -                      30


  Operating Profit / (Loss) on ordinary                   
  activities before interest and taxation                 265       (932)                   (667)

  Loss on disposal                                          -       (991)                   (991)

  Interest receivable and similar income                   18           -                      18

  Interest payable and similar charges                  (204)           -                   (204)

  Profit / (Loss) on ordinary activities before            
  taxation                                                 79     (1,923)                 (1,844)

  Taxation on loss on ordinary activities                   0           0                       0

  Profit / (Loss) for the financial period                 79     (1,923)                 (1,844)

  Dividends                                                                                     0

  Amounts transferred from reserves                        79     (1,923)                 (1,844)




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