RNS Number:8503P
Pubs 'n' Bars PLC
17 September 2003
CHAIRMAN'S STATEMENT
I am pleased to report a very satisfactory start to the year. The interim
results for the six months ended 30th June 2003 show a profit before tax of
#518,402 (2002 #513,831) achieved on a turnover of #7,059,932 (2002 #7,169,136).
Earnings were 1.70 pence per ordinary shares (2002 - 1.68p). The directors
have declared an interim dividend of 0.5 pence per share (2002 - 0.5 pence)
which will be paid on 31st December 2003 to shareholders on the register at the
close of business on 28 November 2003. The shares will be declared 'ex'
dividend on 26 November 2003.
These results have been achieved despite substantially higher costs from
insurance, rent reviews and interest/hedging costs, and lower turnover due in
part to a reduced number of pubs, being 63 compared to 66 in the same period
last year. In addition turnover is also lower as a direct result of the
transfer last year of some pubs from managed to tenancy. This transfer has
resulted as expected in increased operating margins which have risen to 13.07%
compared to 10.52% at the end of 2002. Operating profit for the period, which
benefited from higher than expected turnover, was #922,862 an increase of 6% on
last year. 'Like for like' sales for the year to date are approximately 2%
ahead of last year. Interest costs, which include #105,315 of hedging costs
(2002 #25,786), have increased to #445,917 from #357,196. Gearing fell to 90%
from 118% at 30 June 2002 and 93% at 31 December 2002.
The results for the half year compared with the same period last year were
achieved from 63 pubs instead of 66. In the first 6 months we acquired one
leasehold pub in March and a freehold in June and have since disposed of one
leasehold in September. As of today our estate compared to September 2002 is as
follows:
2003 2002 2003 2002
Managed 44 46 Freehold 24 25
Tenanted 19 20 Leasehold 39 41
TOTALS 63 66 63 66
We have also agreed to buy a company with 2 tenanted long leasehold pubs which
is conditional upon the outcome of an EGM on the 3rd October - the details of
which were sent to shareholders on 15th September. We continue to seek further
acquisitions but only those which we consider to represent fair value with an
opportunity to increase profitability. We also expect to continue to dispose of
properties which are not meeting management expectations and where sales
proceeds are in excess of book value.
Given the mixed fortunes being experienced in the sector as a whole, the Board
is delighted with the first half performance and looks forward to the second
half with some confidence.
M. C. Mealey
17 September 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months ended 30 June 2003
6 Months ended 6 Months ended
30.06.03 30.06.02 Year to 31.12.02
Unaudited Unaudited Audited
# # #
Turnover 7,059,932 7,169,136 14,519,047
Cost of sales (2,320,087) (2,383,858) (4,878,234)
Gross profit 4,739,845 4,785,278 9,640,813
Administrative expenses (3,816,983) (3,915,229) (8,113,474)
Operating profit 922,862 870,049 1,527,339
Profit on disposal of tangible fixed assets 38,709 - 180,902
Interest receivable and similar income 2,748 978 1,324
Interest payable and similar charges (445,917) (357,196) (455,554)
Profit before taxation 518,402 513,831 1,254,011
Taxation (155,000) (154,000) (291,798)
Profit after taxation 363,402 359,831 962,213
Dividends (107,186) (107,186) (342,995)
Retained profit 256,216 252,645 619,218
Basic earnings per share (see note 3) 1.70p 1.68p 4.49p
CONSOLIDATED BALANCE SHEET
as at 30 June 2003
30 June 30 June 31 December
2003 2002 2002
Unaudited Unaudited Audited
# # # # # #
Fixed assets
Tangible assets 24,531,915 21,727,840 23,515,713
Intangible assets 1,617,697 1,638,301 1,666,483
26,149,612 23,411,141 25,182,196
Current assets
Stocks 440,530 506,034 552,299
Debtors 2,005,906 1,745,937 2,609,391
Cash at bank and
in hand 46,426 46,654 39,833
2,429,862 2,298,625 3,201,523
Creditors:
Amounts falling
due within one
year (2,929,733) (2,824,771) (3,090,974)
Net current
assets/
(liabilities) (436,871) (526,146) 110,549
Total assets less
current
liabilities 25,712,741 22,884,995 25,292,745
Creditors:
Amounts falling
due after more
than one year (11,732,929) (11,949,019) (11,569,149)
Provisions for
liabilities and
charges (227,426) (230,411) (227,426)
Net assets 13,752,386 10,705,565 13,496,170
Capital and
reserves
Called up share
capital 4,287,442 4,287,442 4,287,442
Share premium
account 4,522,209 4,522,209 4,522,209
Revaluation
reserve 3,091,339 559,712 2,866,802
Profit and loss
account 1,851,396 1,336,202 1,819,717
Shareholders'
funds 13,752,386 10,705,565 13,496,170
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2003
6 Months 6 Months
ended ended Year ended
30.6.03 30.6.02 31.12.02
Unaudited Unaudited Audited
# # #
Net cash inflow from
operating activities 1,714,773 1,313,712 1,062,188
Returns on investments
and servicing of
finance
Interest received 2,748 978 1,324
Interest paid (445,917) (357,196) (455,554)
Net cash outflow on
investments and
servicing of finance (443,169) (356,218) (454,230)
Taxation (199) - (229,057)
Capital expenditure
and financial
investment
Purchase of tangible
fixed assets (1,142,337) (439,382) (1,090,817)
Sale of tangible fixed
assets 38,709 - 1,343,368
Net cash outflow for
capital expenditure
and financial
investment (1,103,628) (4,39,382) 252,551
Acquisitions
Purchase of subsidiary
undertakings in prior
period - - (32,788)
Equity dividends paid - (214,372) (321,588)
Net cash inflow/
(outflow) before
financing 167,777 303,740 277,106
Financing: -
Debt repaid (492,664) (10,070,821) -
Debt due within a
year: repayment of
secured bank loans - - (10,255,816)
Debt due beyond a
year: new secured bank
loans 1,000,000 11,500,000 11,500,000
Capital element of
finance lease payments (170,730) (146,685) (341,559)
Net cash (outflow)/
inflow from financing 336,606 1,282,494 1,097,625
Increase/Decrease) in
cash 504,383 1,586,234 1,374,731
NOTES TO CONSOLIDATD CASH FLOW STATEMENT
for the six months ended 30 June 2003
(a) Reconciliation of operating profit to net cash inflow from operating
activities
6 Months ended 6 Months Year
30.6.03 ended 30.6.02 ended 31.12.02
Unaudited Unaudited Audited
# # #
Operating profit 922,862 870,049 1,527,339
Depreciation 126,135 124,919 250,047
Amortisation of goodwill 48,787 47,966 97,572
Decrease/(increase) in stock 111,769 117,483 71,218
(Increase)/decrease in debtors 603,485 (289,792) (1,016,778)
Increase/(decrease) in creditors (98,265) 443,087 132,790
Net cash inflow from operating activities 1,714,773 1,313,712 1,062,188
(b) Reconciliation of net cash flow to movement in net debt
Increase in cash in the period 504,383 1,586,234 1,374,731
Cash inflow from increase in debt (336,606) (1,282,494) (1,097,625)
Change in net debt resulting from cash flows 167,777 303,740 277,106
New finance leases - (195,000) -
Movement in net debt in the period 167,777 108,740 277,106
Net debt at 1st January 2003 (12,509,024) (12,786,130) (12,786,130)
Net debt at 30th June 2003 (12,341,247) (12,677,390) (12,509,024)
(c) Analysis of changes in net debt
At 30
At 1 January June
2003 Cash flow 2003
# # #
Cash at bank and in hand 39,833 6,593 46,426
Overdrafts (642,597) 497,790 (144,807)
(602,764) 504,383 (98,381)
Debt due after one year (11,315,005) (278,268) (11,593,273)
Debt due within one year - (229,068) (229,068)
Finance leases (591,255) 170,730 (420,525)
Total (12,509,024) 167,777 (12,341,247)
Notes
1. The financial information contained in the Interim Report does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. The comparative financial information for the year ended 31 December
2002 is an abridged version of the group's published financial statements for
that year, which contained an unqualified audit report and which have been
filed with the Registrar of Companies.
2. The interim financial statements have been prepared on the basis of the
accounting policies set out in the 2002 financial statements of Pubs 'n'
Bars plc.
3. The basic earnings per share calculation is based on a weighted average
number of ordinary shares of 20 pence each in issue during the period of
21,437,207 (year ended 31 December 2002 - 21,437,207).
4. The reconciliation of movements in shareholders' funds is as follows:
#
Shareholders' funds at 1st January 2003 13,496,170
Profit for the period 256,216
Shareholders' funds at 30th June 2003 13,752,386
This information is provided by RNS
The company news service from the London Stock Exchange
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