RNS Number:9823J
Coliseum Group Plc
14 April 2003
14 April 2003
COLISEUM GROUP PLC
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2002
Coliseum Group plc ("Coliseum"), which acquired The Sports Cafe Group in
December 2001, announces preliminary results for the year ended 31 December
2002.
Highlights
* Core sales up 1.4%, including London Sports Cafe sales up 10.7%
* Core trading EBITDA up 4% to #1,508,000
* Exercise of option to acquire the 125 year leasehold of The Birmingham
Sports Cafe at a significant discount to the current market price
* Continued good progress of roll out plans;
* the November 2002 opening of The Manchester Sports Cafe, the first new
venue under the roll out plan;
* final planning permission received to build the new Cardiff Sports Cafe;
* signing of 25 year lease in The Headrow for The Leeds Sports Cafe
* signing of 25 year lease in Sir Thomas Street for The Liverpool Sports
Cafe
* expected opening of The Newcastle Sports Cafe by November 2003
* Coliseum now EBITDA positive week-on-week following an excellent start to
2003 trading
Commenting on Coliseum's results and prospects, Ian Lenagan, Chairman, said:
"Coliseum has achieved its first target of being EBITDA positive on a weekly
basis. The next target is to have eight Sports Cafe's open by April 2004. With
three venues currently trading well and five sites in major cities throughout
the UK in various stages of progress, Coliseum is well on the way to meeting
this objective."
Enquiries:
Coliseum Group plc Tel: 020 7643 5360
William Balkou, Chief Executive
Rodger Sargent, Finance Director
Buchanan Communications Tel: 020 7466 5000
Charles Ryland
Catherine Miles
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report on the first full year of trading for Coliseum, following
its acquisition of The Sports Cafe Group on 13 December 2001.
Financial Results
Throughout this statement, the profit and loss comparatives relate to the
trading of The Sports Cafe Group Ltd prior to its acquisition by Coliseum and
the balance sheet comparatives are for Coliseum at 31 December 2001.
For the year ended 31 December 2002, turnover was #6,435,000 (2001: #6,804,000)
despite the closure of the Cardiff site during the year and the
ultra-competitive nature of the Birmingham Sports Cafe market. Sales for the
core London and Birmingham venues were up 1.4% on 2001.
Coliseum's profit before interest, tax, depreciation, amortisation and
exceptional items in the year ending 31 December 2002 was #66,000 (2001:
#267,000), due to the operating losses incurred during the closure of Cardiff at
the start of the year and the opening costs of Manchester. The loss before tax
was #1,111,000 (2001: #1,568,000). The depreciation charge for the period was
#677,000 (2001: #684,000), the amortisation of goodwill for the period was
#476,000 (2001: nil), exceptional items were nil (2001: #1,002,000) and net
interest payments were #24,000 (2001: #150,000).
At 31 December 2002, Coliseum had net assets of #13,557,000 (31 December 2001:
#14,709,000). Long-term loans were #3,250,000 (2001: #1,550,000) while gearing,
calculated as long-term loans over net assets, was 24 % (2001: 11%). Gearing and
long term loans have increased during the year primarily due to the mortgage
secured on the recently acquired long leasehold of the Birmingham Sports Cafe.
The leasehold has not been re-valued to reflect market value, but has been
prudently included in the balance sheet at cost.
The trading EBITDA (EBITDA before head office costs) for the two core operating
units London and Birmingham has increased by 4% to #1,508,000 (2001:
#1,457,000). This demonstrates the cash generating potential of Coliseum when
our estate reaches a critical mass.
Operations
The trading of existing units is covered within the Chief Executives Report.
During the year, leases were signed in four locations - Manchester, Newcastle,
Leeds and Liverpool. Manchester opened in November 2002 and is performing well.
Newcastle was due to open during the financial year and had been expected to
make a significant contribution. However, an incident occurred during the
conversion of the venue by the contractor that has severely delayed progress.
Liability has been accepted by the landlord's insurance company, and it is
expected that The Newcastle Sports Cafe will open in November 2003. Leeds and
Liverpool are expected to open in April 2004.
Having surrendered without financial penalty the previous Cardiff Bay lease,
planning permission was received on 26 February 2003 to build the new Cardiff
Sports Cafe. The new venue is situated a few hundred yards from the Millennium
Stadium in the heart of Cardiff and it is expected to open in February 2004.
In February 1999, Sports Cafe entered into an option to acquire the 125 year
leasehold of the Birmingham Sports Cafe. On 18th November 2002, the option was
exercised resulting in the #2,243,000 acquisition of the long leasehold. The
option was valued at a significant discount to the current market price and was
financed by mortgage.
Financing
The four new leases signed in Manchester, Liverpool, Leeds and Newcastle have
been negotiated at rents considerably below market rate and have substantial
rent-free periods. Coliseum is EBITDA positive on a weekly basis, benefits from
low gearing and has significant equity within The Birmingham Sports Cafe long
lease-hold.
This provides Coliseum with the flexibility to phase the construction and
opening dates of new venues to best suit the various debt funding options
currently being considered. This allows the roll-out to be deferred or
accelerated according to the availability of funding.
Employees
We have 186 employees across the Group including 55 new employees in our
Manchester Sports Cafe. We are delighted to welcome them to the Group and
congratulate them on their success to date.
We issued 1,414,000 options during the year to key staff and will continue to do
this to encourage the 'owner manager' philosophy within the company.
Dividend
The strategy of the Company is to continue with the roll-out plan and therefore
we do not recommend the payment of a dividend for this period in order to retain
cash resources for this purpose.
Current trading and prospects
London continues to excel with first quarter 2003 significantly ahead of 2002, a
tremendous achievement for a unit now entering its eighth year of operation.
Birmingham continues to trade in an extremely competitive market but we are
confident initiatives that are currently being introduced will improve
performance. Manchester is exceeding management expectations and is experiencing
tremendous month-on-month growth since its launch in November 2002.
Summary
The opening of Manchester Sports Cafe has meant that Coliseum has achieved its
first target which was to be EBITDA positive on a weekly basis; the net trading
contribution now exceeds the head office overhead.
Coliseum's next target is to have eight Sports Cafe's open by April 2004, with
further development thereafter. With three venues currently trading well and
five sites in major cities throughout the UK in various stages of progress, the
Company is well on the way to meeting this objective. I am confident the
strength of the Sports Cafe brand will prevail.
Ian Lenagan
Chairman
11 April 2003
CHIEF EXECUTIVE'S STATEMENT
The media coverage received by The Sports Cafe during the 2002 Football World
Cup demonstrates the potential of the brand. Amongst others, the BBC, Sky
Sports, Talksport Radio, The Times and The Daily Telegraph covered the action at
our venues. This is quite a testament given our current portfolio of only three
units.
The London Sports Cafe, in its eighth year of operation, continues to produce
excellent trading results, whilst the start The Manchester Sports Cafe has made
is exceeding our expectations. It is encouraging that the first new unit opened
under the roll-out plan has quickly established itself in a very competitive
local market.
Operations
London
Gross weekly sales in our London venue during 2002 were #83,600 (2001: #75,500),
an increase of 10.7% with EBITDA for the year up 20% to #979,000 (2001:
#816,000), representing an EBITDA margin of 26.5% (2001: 24.4%) of turnover.
The May 2002 refurbishment of London included the installation of 6 new pool
tables, improved audio-visuals and an enlarged dance floor, and this has
contributed towards the strong performance of London throughout the year. I am
delighted that this trend has continued into 2003, with sales for the first
three months of the year significantly up on 2002.
Birmingham
Gross weekly sales in Birmingham during 2002 were #51,400 (2001: #57,600), down
10.8%, with EBITDA for the year of #529,000 (2001: #641,000), representing an
EBITDA margin of 23.3% (2001: 25.1%) of turnover. In April 2002 we opened a 17
table pool lounge which has been very successful, but as the results show the
Birmingham market has been and remains extremely competitive. The Sports Cafe is
located on Broad Street, the busiest, licensed retail street in Britain that has
already witnessed several high profile casualties. There are also specific local
issues such as a temporary ban on cars using Broad Street in the last quarter of
the year that has made trade difficult. We are confident that as competition
reduces and management initiatives take effect, trade will improve.
Manchester
Manchester Sports Cafe opened on 27th November 2002 and generated #111,000 sales
in the period to 31 December 2002.
The first two months after opening were treated as a 'soft launch', with little
promotion, to allow staff to learn the Sports Cafe approach and fine tune the
general running of the venue. Since the promotional drive began in February and
the unit has been running at full efficiency, we have been delighted with the
results. Average weekly gross sales in January were #27,900, improving 56% to
#43,400 in February and a further 24% to #53,700 in March. We have already built
the Friday and Saturday night markets to a level exceeding our expectations but
have yet to introduce the Monday to Thursday night promotions that have been so
successful in London. Once these have been introduced, I expect a further
improvement in Manchester's trading.
This performance is very encouraging as it is the first new unit to be opened
under the Coliseum strategy, and demonstrates the roll-out potential of the
Sports Cafe brand.
New venues
On 12 December 2002, the Company signed a 25 year lease on a unit in Sir Thomas
Street, Liverpool. This will be a 15,000 sq ft three-storey venue with 4 bars
and 12 pool tables. We hope to obtain full licensing consent by autumn this
year. Liverpool has a vibrant sports and entertainment culture and I believe the
Sports Cafe experience will be ideal for the city.
It was very pleasing to receive planning for the new Cardiff Sports Cafe in
February 2003. Our application was supported by a host of sports stars including
Colin Jackson, Steve Davis, Jo Calzaghe and Lord Sebastian Coe. It is a tribute
to the Sports Cafe brand and to our licensing team that permission for this
prime location was obtained.
We continue to wait for vacant possession to be delivered on our 15,000 square
foot Leeds site, located in The Headrow, and look forward to commencing
development work once this is received.
We continue to work on the development of our Newcastle site in Grainger Street.
The landlord's insurance company has accepted liability for the damage. The
landlord is currently appointing contractors to carry out the restoration and
work is expected to commence shortly. Licensing and planning permissions have
remained in place and we are currently re-applying for listed building
permission. We anticipate that the opening date will now be November 2003.
I am particularly pleased that we have recently obtained planning permission for
the new Cardiff site and that progress continues to be made in Newcastle. I
believe that when they open they have the potential to become the most
successful Sports Cafes yet.
Other venues
We will continue to search for new locations, but intend to concentrate on the
development of the exceptional sites that we have already secured. At least four
other sites have been identified, and we will progress with them once the core
base of eight units has been completed.
Sponsorship
We also announce today an innovative sponsorship partnership with the world's
leading betting exchange, Betfair. The Sports Cafe venues will be displaying
Betfair's live markets on certain television screens and on bespoke kiosks that
will also give free internet access to our customers. Betfair will host
functions and launches at Sports Cafe's throughout the country that will
introduce our brand to new customers. Betfair will also sponsor staff shirts,
menus and posters and provide merchandise during promotional and big game
nights. It is most encouraging that a company such as Betfair have taken the
commercial decision to partner The Sports Cafe.
Titan Food and Drinks ('Titan')
Titan is a 90% owned subsidiary that produces Sports Cafe branded American Style
chicken wings, barbeque ribs and beef burgers that are currently sold through
Waitrose and Spar outlets. For the year ended 31 December 2002, turnover was
#158,000 (2001: #64,000), an increase of 147%, with a loss before and after tax
of #82,000 (2001: #58,000). The Sports Cafe burger that was launched in October
2002 has been well received and already accounts for 32% of sales. Much of the
loss generated during the year relates to research and development of new and
existing products. During the summer months when demand for Titan products is
greatest, the company was close to break even. We continue to identify further
commercial opportunities for the company.
The future
2003 is a year of significant development for the Company. Coliseum is now
EBITDA positive on a weekly basis, which provides a sound financial base for our
continued roll-out strategy. We have identified sufficient sites to transform
The Sports Cafe into the national brand it has always had the potential to
become and I look forward to the challenge of realising this potential.
Bill Balkou
Chief Executive
11 April 2003
Consolidated profit and loss account
for the year ended 31 December 2002
11 month
Year ended period ended
Note 2002 2001
#000 #000
Group turnover 2 6,435 477
Cost of sales (1,871) (63)
Gross profit 4,564 414
Administrative expenses (5,651) (295)
Group operating (loss)/profit (1,087) 119
Interest receivable 6 78 74
Interest payable 7 (102) (4)
(Loss)/profit on ordinary activities before taxation 3-5 (1,111) 189
Tax on (loss)/profit on ordinary activities 8 64 -
(Loss)/profit on ordinary activities after taxation (1,047) 189
Minority Interest- equity 20 7 -
(Loss) retained/retained profit for the financial period for
the group (1,040) 189
(Loss)/earnings per share - basic and diluted 9 (2.69p) 2.20p
A statement of total recognised gains and losses has not been included as part
of these consolidated financial statements as the group made no gains or losses
in the period other than disclosed above in the profit and loss account.
A note on historical gains and losses has not been included as part of the
consolidated financial statements as the results as disclosed in the profit and
loss account are prepared on an unmodified historical cost basis.
The results stated above are derived from continuing operations for both the
current and previous period.
Consolidated balance sheet
at 31 December 2002
Note 2002 2001
#000 #000 #000 #000
Fixed assets
Intangible assets 10 9,053 9,529
Tangible fixed assets 11 8,322 4,476
17,375 14,005
Current assets
Stocks 13 124 122
Debtors - due within one year 14 1,662 1,035
- due after more than one year 14 113 113
Cash at bank and in hand 463 4,084
2,362 5,354
Creditors: amounts falling
due within one year 15 (2,351) (2,398)
Net current assets/(liabilities)
Due within one year (102) 2,843
Due after more than one year 113 113
11 2,956
Total assets less current liabilities 17,386 16,961
Creditors: amounts falling due after more than
one year 16 (3,591) (1,950)
Provisions for liabilities and charges 17 (238) (302)
Net assets 13,557 14,709
Capital and reserves
Called up share capital 18 1,933 1,933
Share premium account 19 5,288 5,393
Merger reserve 19 7,200 7,200
Profit and loss account 19 (851) 189
Equity shareholders' funds 13,570 14,715
Equity minority interests 20 (13) (6)
13,557 14,709
These financial statements were approved by the board of directors on 11 April
2003 and were signed on its behalf by:
RD Sargent
Director
Company balance sheet
at 31 December 2002
Note 2002 2001
#000 #000 #000 #000
Fixed assets
Investments 12 8,000 8,000
Current assets
Debtors - due within one year 14 526 484
- due after more than one year 14 5,752 2,868
Cash at bank and in hand (including short
term deposits) - 3,493
6,278 6,845
Creditors: amounts falling
due within one year 15 (78) (339)
Net current assets
Due within one year 448 3,638
Debtors due after more than one year 5,752 2,868
6,200 6,506
Net assets 14,200 14,506
Capital and reserves
Called up share capital 18 1,933 1,933
Share premium 19 5,288 5,393
Merger reserve 19 7,200 7,200
Profit and loss account 19 (221) (20)
Equity shareholders funds 14,200 14,506
These financial statements were approved by the board of directors on 11 April
2003 and were signed on its behalf by:
RD Sargent
Director
Consolidated cash flow statement
for the year ended 31 December 2002
Note
Year ended 11 month
2002 period ended
2001
#000 #000
Net cash outflow from operating activities 23 (381) (1,392)
Returns on investments and servicing of finance 24 (19) 70
Capital expenditure (4,523) -
Net cash outflow before use of liquid resources and
financing (4,923) (1,322)
Management of liquid resources 24 3,493 (3,493)
Financing 24 1,581 5,226
Increase in cash in the period 151 411
Reconciliation of net cash flow to movement in net (debt)/
funds
(Decrease)/increase in cash in the period 151 411
Repayment of finance leases 14 -
Cash flow in respect of liquid resources (3,493) 3,493
Cash flow from change in debt financing (1,700) 1,300
Change in net funds resulting from cash flows (5,028) 5,204
Loans and finance leases acquired with subsidiary - (3,719)
Movement in net funds in the year (5,028) 1,485
Net funds at the start of the year 1,485 -
Net (debt)/funds at the end of the year 25 (3,543) 1,485
Reconciliations of movements in shareholders' funds
for the year ended 31 December 2002
Group Group Company Company
2002 2001 2002 2001
#000 #000 #000 #000
(Loss)/profit for the financial year (1,040) 189 (201) (20)
Expenses paid in connection with share issues (105) 14,526 (105) 14,526
Net (decrease)/increase in shareholders' funds (1,145) 14,715 (306) 14,506
Opening shareholders' funds 14,715 - 14,506 -
Closing shareholders' funds 13,570 14,715 14,200 14,506
Notes
(forming part of the financial statements)
1 Accounting policies
The following accounting policies have been applied consistently in dealing with
items which are considered material in relation to the company's financial
statements. The Company has adopted FRS 18 "Accounting policies" and FRS 19 "
Deferred tax" in these financial statements. The adoption of these new
standards has not had a material impact on the financial statements.
Basis of preparation
The financial statements are prepared and in accordance with applicable
accounting standards and under the historical cost accounting rules.
Basis of consolidation
The consolidated financial statements include the financial statements of the
company and its subsidiary undertakings made up to 31 December 2002. The
acquisition method of accounting has been adopted. Under this method, the
results of subsidiary undertakings acquired or disposed of in the year and
included in the consolidated profit and loss account from the date of
acquisition or up to the date of disposal.
Goodwill
Purchased goodwill (representing the excess of the fair value of the
consideration given (plus any associated costs) over the fair value of the
separable net assets acquired) arising on consolidation is capitalised.
Positive goodwill is amortised to nil by equal instalments over its estimated
useful life, being 20 years.
On the subsequent disposal or termination of a business, the profit or loss on
disposal or termination is calculated after charging the unamortised amount of
any related goodwill.
In the company's financial statements, investment in subsidiary undertakings is
stated at cost.
Tangible fixed assets and depreciation
Depreciation is provided to write off the cost less the estimated residual value
of tangible fixed assets by equal instalments over their estimated useful
economic lives as follows:
Long leasehold property - life of lease
Leasehold improvements - life of lease
Fixture and fittings - 10 years
Office equipment and motor vehicles - 5-10 years
Assets in the course of construction are not depreciated until they are brought
into use.
The carrying values of tangible fixed assets are reviewed for impairment in
periods where events or changes in circumstances indicate the carrying value may
not be recoverable.
Fixed asset investments
Fixed asset investments are held at cost less provision for any impairment in
their value. The carrying values of fixed asset investments are reviewed for
impairment where events or changes in circumstance indicate the carrying value
may not be recoverable.
Accounting policies
Leases
Assets acquired under finance leases are capitalised and the outstanding future
lease obligations are shown in creditors. A finance lease is a lease that
transfers substantially all the risks and rewards of ownership of an asset to
the lessee. Operating lease rentals are charged to the profit and loss account
on a straight line basis over the period of the lease.
Employee share schemes
The cost of awards to employees that take the form of shares or rights to shares
are recognised over the period of the employee's related performance.
Stocks
Stocks are stated at the lower of cost and net realisable value.
Taxation
The charge for taxation is based on the profit for the year and takes into
account taxation deferred because of timing differences between the treatment of
certain items for taxation and accounting purposes.
Deferred taxation is recognised without discounting, in respect of all timing
differences between the treatment of certain items for taxation and accounting
purposes which have arisen but not reversed by the balance sheet date, except as
otherwise required by FRS 19.
Turnover
Turnover represents the amounts (excluding value added tax) derived from the
provision of goods and services to customers. Turnover is recognised at the
point when goods are received by customers.
Cash and liquid resources
Cash, for the purpose of the cash flow statement, comprises cash in hand and
deposits repayable on demand, less overdrafts payable on demand. Liquid
resources are current asset investments which are disposable without curtailing
or disrupting the business and are either readily convertible into known amounts
of cash at or close to their carrying values or traded in an active market.
Liquid resources comprise term deposits of less than one year.
Notes (continued)
2 Turnover
Turnover represents the amounts derived from the provision of goods and services
which fall within the group's ordinary activities, stated net of valued added
tax. Turnover is recognised at the point of delivery of goods to customers and
is derived wholly in the United Kingdom.
3 Profit on ordinary activities before taxation
Group
Year ended 11 month
2002 period ended
2001
#000 #000
Profit on ordinary activities before taxation is stated
after charging:
Auditors' remuneration:
Group - audit 50 57
fees paid to the auditors and its associates
in respect of other services 15 18
Company - audit 10 17
fees paid to the auditors and its associates
in respect of other services 3 3
Depreciation and other amounts written off tangible
fixed assets:
Owned 677 32
Leased - 2
Amortisation charges 476 -
Hire of other assets - operating leases 359 23
4 Remuneration of directors
Group
Year ended 11 month
2002 period ended
2001
#000 #000
Directors' emoluments 115 45
Notes (continued)
5 Staff numbers and costs
The average number of persons employed by the group (including directors) during
the year, analysed by category, was as follows:
Group
Number of employees
Year ended 11 month
2002 period ended
2001
Management 10 3
Retail 176 8
186 11
The aggregate payroll costs of these persons were as follows:
Group
Year ended 11 month
2002 period ended
2001
#000 #000
Wages and salaries 1,878 90
Social security costs 135 5
2,013 95
6 Interest receivable
Group
Year ended 11 month
2002 period ended
2001
#000 #000
On bank deposits 78 74
Notes (continued)
7 Interest payable
Group
Year ended 11 month
2002 period ended
2001
#000 #000
On bank loans and overdrafts 102 4
8 Taxation
Group
Year ended 11 month
2002 period ended
2001
#000 #000
UK corporation tax
Current tax on income for the period - -
Deferred tax (see note 17)
Origination/reversal of timing differences (64) -
Tax on (loss)/profit on ordinary activities (64) -
Factors affecting the tax charge for the current period
The current tax charge for the period is higher (2001: lower) than the standard
rate of corporation tax in the UK (30%, 2001: 30%). The differences are
explained below.
Group
Year ended 11 month
2002 period ended
2001
Current tax reconciliation #000 #000
(Loss)/profit on ordinary activities before tax (1,111) 189
Current tax at 30% (333) 57
Effects of:
Expenses not deductible for tax purposes ( primarily goodwill 91 -
amortisation)
Capital allowances for period in excess of depreciation 182 -
Utilisation of tax losses (4) (57)
Total current tax charge (see above) (64) -
Notes (continued)
9 (Loss)/earnings per share
Year ended 11 month
2002 period ended
2001
(Loss)/earnings per ordinary share
Basic (2.69p) 2.20p
Diluted (2.69p) 2.20p
(Loss)/earnings per ordinary share is based on the group's loss of #1,104,000.
(2001: profit #189,000).
The weighted average number of shares used in the calculation are :- basic and
diluted 38,666,613 (2001: basic 8,652,909 and diluted 8,809,909).
10 Intangible fixed assets
Goodwill Total
Group #000 #000
Cost
At beginning and end of year 9,529 9,529
Amortisation
At beginning of year - -
Charge for year 476 476
476 476
Net book value
At 31 December 2002 9,053 9,053
At 31 December 2001 9,529 9,529
The directors consider each acquisition separately for the purpose of
determining the amortisation period of any goodwill that arises. The following
sets out the periods over which goodwill is amortised and the reasons for the
periods chosen.
The goodwill arising on the investment in the Sports Cafe Group Limited and its
subsidiaries is to be amortised over 20 years based on the nature of the
industry in which it operates.
Notes (continued)
11 Tangible fixed assets
Fixtures, Office
Long Assets in the Leasehold fittings, equipment
leasehold course of improvements plant and and motor
property construction equipment vehicles Total
#000 #000 #000 #000 #000 #000
Group
Cost
At beginning of year - - 2,781 780 949 4,510
Additions 2,255 318 1,060 726 164 4,523
At end of year 2,255 318 3,841 1,506 1,113 9,033
Depreciation
At beginning of year - - 14 7 13 34
Charge for the year 1 - 262 145 269 677
At end of year 1 - 276 152 282 711
Net book value
At 31 December 2002 2,254 318 3,565 1,354 831 8,322
At 31 December 2001 - - 2,767 773 936 4,476
Notes (continued)
12 Fixed asset investments
Share in
group
undertaking
#000
Company
Cost
At beginning and end of year 8,000
The investments in subsidiary undertakings comprise the following companies, all
incorporated in the United Kingdom.
Class and percentage of Principal activity
ordinary shares held
Sports Cafe Group Limited 100% ordinary Sports Cafe Head office
The London Sports Cafe Limited *100% ordinary Sports cafe operator
Sports Cafe (Cardiff) Limited *100% ordinary Sports cafe operator
Sports Cafe (Birmingham) Limited *100% ordinary Sports cafe operator
Sports Cafe (Newcastle) Limited *100% ordinary Dormant
Titan Food and Drinks Limited *90% ordinary Food retailer
Titan Industries Limited *90% ordinary Dormant
Denotes subsidiary undertaking of Sports Cafe Group Limited.
13 Stocks
Group Group Company Company
2002 2001 2002 2001
#000 #000 #000 #000
Finished goods and goods for resale 109 122 - -
Packaging materials 15 - - -
124 122 - -
Notes (continued)
14 Debtors
Group Group Company Company
2002 2001 2002 2001
#000 #000 #000 #000
Trade debtors 81 125 - -
Amounts owed by group undertakings - - 5,752 2,868
Other debtors 1,408 735 508 484
Prepayments and accrued income 286 288 - -
1,775 1,148 6,260 3,352
Group debtors include other debtors of #113,000 are due after more than one year
(2001: #113,000).
Company debtors include amounts owed by group undertakings of #5,752,000 which
is due after more than one year (2001: #2,868,000).
15 Creditors: amounts falling due within one year
Group Group Company Company
2002 2001 2002 2001
#000 #000 #000 #000
Bank loans and overdrafts (see note 21) 756 1,035 - -
Obligations under finance leases and hire
purchase contracts (see note 16) - 14 - -
Trade creditors 1,022 614 -
Amounts owed to group undertakings - - - 19
Taxation and social security 199 112 - -
Accruals and deferred income 374 623 78 320
2,351 2,398 78 339
Notes (continued)
16. Creditors: amounts falling due after more than one year
Group Group Company Company
2002 2001 2002 2001
#000 #000 #000 #000
Bank loans and overdrafts (see note 21) 3,250 1,550 - -
Accruals and deferred income 341 400 - -
3,591 1,950 - -
Analysis of debt: Group Group Company Company
2002 2001 2002 2001
#000 #000 #000 #000
Debt can be analysed as falling due:
In one year or less, or on demand 300 300 - -
Between one and two years 378 600 - -
Between two and five years 1,387 950 - -
After 5 years 1,485 - - -
3,550 1,850 - -
The rate of interest charged on the bank loans is 2% over LIBOR. They are
secured by a first legal charge over the long leasehold premises of Sports Cafe
(Birmingham) Limited, the leasehold premises of The London Sports Cafe Limited
and all new sites including the Sports Cafe Manchester. There is also a charge
over the Intellectual Property Rights of the group.
The maturity of obligations under finance leases and hire purchase contracts is
as follows:
Group Group Company Company
2002 2001 2002 2001
#000 #000 #000 #000
Within one year 15 15 - -
Less future finance charges (1) (1) - -
14 14 - -
Notes (continued)
Provisions for liabilities and charges
Group Deferred taxation
#000
At beginning of year 302
Credit to the profit and loss account for the year (64)
At end of year 238
The elements of deferred taxation are as follows:
2002 2001
#000 #000
Difference between accumulated depreciation, amortisation
and capital allowances 238 302
Called up share capital
2002 2001
#000 #000
Authorised
Equity: 100,000,000 Ordinary shares of 5p each 5,000 5,000
Allotted, called up and fully paid
Equity: 38,666,613 Ordinary shares of 5p each 1,933 1,933
The directors held the following options to subscribe for shares in group
companies:
Company and class of share At end At beginning of
of year year or date
of appointment
RD Sargent Coliseum ordinary shares 133,333 133,333
AM Gardiner Coliseum ordinary shares 66,667 66,667
WS Balkou Coliseum ordinary shares 100,000 100,000
The above options are held under an executive share option scheme and
exercisable by 2012 at prices ranging between 25p and 50p.
Notes (continued)
19. Reserves
Group Company
Share Merger Profit Share Merger Profit
premium reserve and loss premium reserve and loss
account account account account
#000 #000 #000 #000
At beginning of year 5,393 7,200 189 5,393 7,200 (20)
Retained loss for the year - - (1,040) - - (201)
Share issue costs (105) - - (105) - -
At end of year 5,288 7,200 (851) 5,288 7,200 (221)
20. Minority interests
Group
2002
#000
At beginning of period (6)
Share of loss for the period (7)
At end of period (13)
Equity (13)
21. Contingent liabilities
Coliseum Group Plc is subject to an unlimited composite account cross guarantee
over their borrowings of the group. The total borrowings subject to the
guarantee at 31 December 2002 were #3,550,000 (2001: #1,350,000).
22. Commitments
Annual commitments under non-cancellable operating leases are as follows:
Group Company Group Company
2002 2002 2001 2001
Land and Land and Land and Land and
buildings buildings buildings Buildings
Group #000 #000 #000 #000
Operating leases which expire:
Over five years 610 - 467 -
Notes (continued)
Reconciliation of operating (loss)/profit to operating cash flows
Year ended 2002 11 month period
ended 2001
#000 #000
Operating (loss)/profit (1,087) 119
Depreciation, amortisation and impairment charges 1,153 34
Increase in stocks (2) (14)
Increase in debtors (632) (503)
Increase/(decrease) in creditors 187 (1,028)
Net cash outflow from operating activities (381) (1,392)
24. Analysis of cash flows
2002 2002 2001 2001
#000 #000 #000 #000
Returns on investment and servicing of finance
Interest received 83 74
Interest paid (102) (4)
Net cash (outflow)/inflow from returns on investment
and servicing of finance (19) 70
Management of liquid resources
Withdrawals from/(investments in) short term
deposits 3,493 (3,493)
Net cash inflow/(outflow) from management of liquid
resources 3,493 (3,493)
Financing
Repayment of loans (800) (1,300)
Receipt of loans 2,500 -
Repayment of finance lease (14) -
Expenses paid in connection with share issues (105) -
Issue of ordinary share capital - 6,526
Net cash inflow from financing 1,581 5,226
Notes (continued)
25. Analysis of net funds
At beginning At end of
of year Cash flow Year
#000 #000 #000
Cash in hand and at bank 591 (128) 463
Overdrafts (735) 279 (456)
(144) 151 7
Debt due within one year (300) - (300)
Debt due after one year (1,550) (1,700) (3,250)
Finance leases (14) 14 -
Short term deposits 3,493 (3,493) -
Total 1,485 (5,028) (3,543)
26. Related party disclosures
The directors believe there is no ultimate controlling party.
27. Financial instruments
The group's financial instruments comprise trade debtors, trade creditors, cash,
long term creditors and equity shares.
The company has taken advantage of the exemption under FRS13 to exclude short
term debtors and short term creditors from disclosure of financial assets and
liabilities.
The group has cash at bank. This is placed on short term deposit to maximise the
group's liquid resources and no interest rate hedging is undertaken. During the
year a weighted average of 3.4% was achieved.
The group's principle financial liability is long term loans. During the year a
weighted average of 6.3% was due.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UOSUROURSAAR