Interim Results
November 21 2005 - 12:38PM
UK Regulatory
RNS Number:4579U
Bakery Services PLC
21 November 2005
Bakery Services plc ("Bakery Services" or the "Company")
Interim Results for the six months ended 30 September 2005
21 November 2005
CHAIRMAN'S STATEMENT
Highlights
* Operating loss before exceptional items # 56,943 (2004 - #70,871)
* Pre tax losses reduced to #57,814 (2004 - #148,372)
* Cash inflows from operating activities # 214,696 (2004 #580)
Overview
Inbake's in-store concession business performed satisfactorily during the period
although gross margins declined slightly from 39.2% to 37.5%. This was due to an
increase in labour costs relative to sales, which were to a large extent offset
by other cost savings.
The Don Millers franchise business also performed to expectations. In particular
operating losses arising from managed units were significantly reduced due to
the closure of the Birmingham and Loughborough units. Following these closures
Don Millers now has only one managed unit in the estate.
Review of Operations
Bakery Division - Inbake(R)
Inbake Limited currently operates 11 in-store bakeries trading from concession
sites in large United Kingdom based supermarkets. Most Inbake stores now trade
under the Don Millers brand name.
Trading over the last six months has been in line with your Directors
expectations and reflects profitable management of Inbake's
gradually contracting business.
The results are as follows:
Unaudited 6 Unaudited 6
months Months
ending 30:09:05 ending 30:09:04
#000s' #000's
Sales 1,343 1,434
Gross Margins percentage 37.5% 39.2%
Operating profit before exceptional items 147 150
Franchise Division -Don Millers (R)
As at the date of this report, Don Millers Limited had 7 retail bakery and
sandwich cafe franchises operating in high street and shopping centre locations,
predominantly in the midlands and north of England. In addition Don Millers also
operates 1 managed unit.
The results are as follows:
Unaudited 6 Unaudited 6
months Months
ending 30:09:05 ending 30:09:04
#000s' #000's
Franchise income 92 96
Managed store sales 144 189
----- -----
Total 236 285
Operating profit franchise 61 59
Operating loss managed stores (64) (91)
----- -----
Total before exceptional items (3) (32)
Losses for the Managed stores are broken down as follows:
Victoria Centre #33,081
Temple Row #31,228 (unit now closed with lease disposal pending)
The company is actively seeking new sites for franchising.
Summary of Financial Results
Group turnover for the period was #1,588,371 (2004 - #1,729,336).
Group losses after taxation and exceptional items were #57,814 (2004 -
#148,372).
Taxation in the current and prior year comparative period was nil.
Net cash outflows from operating activities before working capital changes were
#3,756 (2004 - #20,133. Cash inflows from operating activities were #214,696
(2004 #580)
Cash balances at 30 September 2005 were #132,076 (2004 - #4,098). The Group has
overdraft facilities in place amounting to #50,000.
Basic and fully diluted losses per share were 0.0330 p (2004 - 0.1054p)
Outlook
In the current year both Group's businesses are trading in line with your Boards
expectations.
Your Board continues to manage the contraction of the Inbake business to ensure
it remains profitable and cash generative and is seeking new franchise sites for
Don Millers.
Your Board continues to review wider opportunities for enhancing shareholder
value.
Richard D. Worthington
Non-Executive Chairman and Financial Director
21 November 2005
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Unaudited six months Audited
Ended 30 September 31 March
Total Total Total
2005 2004 2005
Note #'000 #'000 #'000
Turnover 1,588 1,729 3,374
Cost of Sales (894) (978) (1,943)
------- ------- -------
Gross profit 694 751 1,431
------- ------- -------
Gross Margin 43.7% 43.4% 42.4%
------- ------- -------
Distribution costs (171) (182) (339)
Administrative expenses (580) (640) (1,366)
Other Operating income - - 409
------- ------- -------
Operating loss (57) (71) 135
Provision for impairment of fixed
assets 5 - (73) (182)
Net interest payable (1) (4) (9)
------- ------- -------
Loss on ordinary activities before
taxation (58) (148) (56)
Taxation 3 - - -
------- ------- -------
Loss on ordinary activities after
taxation (58) (148) (56)
------- ------- -------
Retained loss for the period (58) (148) (56)
======== ======== ========
Loss per share 4
- Basic (0.0330 p) (0.1054 p) (0.0400 p)
- Fully diluted (0.0330 p) (0.1054 p) (0.0400 p)
CONSOLIDATED BALANCE SHEET
Unaudited six months Audited
Ended 30 September 31 March
2005 2004 2005
Note #'000 #'000 #'000
Fixed assets
- Tangible assets 5 183 432 216
------- ------- -------
183 432 216
Current asedts
- Stocks 98 130 93
- Debtors 268 259 561
- Cash in at bank and in hand 132 4 47
------- ------- -------
498 393 701
Creditors: amunts falling due within one (246) (500) (423)
year
Net current assets/(liabilities) 252 (107) 278
Total assets less current liabilities 435 325 494
Creditors: amouts falling due after more than
one year (40) (64) (41)
------- ------- -------
Net assets 395 261 453
======= ======= =======
Capital and reserves
- Called up share capital 176 141 176
- Share premium 2,634 2,569 2,634
- Profit and loss account (2,415) (2,449) (2,357)
------- ------- -------
Shareholders' funds - all equity 395 261 453
======== ======== =======
CONSOLIDATED CASH FLOW STATEMENT
Unaudited six months Audited
Ended 30 September 31 March
2005 2004 2005
#'000 #'000 #'000
Net cash inflow/(outflow) from operating
activities 215 1 (39)
Returns on investments and servicing of
finance (1) (5) (8)
Taxation - - -
Capital expenditure (19) (145) (123)
------- ------- -------
195 (149) (170)
Equity dividends paid - - -
------- ------- -------
195 (149) (170)
Financing (16) (12) 67
------- ------- -------
179 (161) (103)
======= ======= =======
Reconciliation of net cash flow to movement in
net
Funds/(debt)
Increase/(decrease) in cash in the period 179 (161) (103)
Decrease in debt and lease financing 16 12 33
New finance leases - (64) (64)
======= ======= ======
Change in net funds/(debt) 195 (213) (134)
Net debt at start of period (144) (10) (10)
------- ------- -------
Net funds/(debt) at end of period 51 (223) (144)
======= ======= =======
Notes
1. Publication of Non-Statutory
Accounts
The financial information contained in this interim statement has not been
audited and does not constitute accounts as defined by section 240 of the
Companies Act 1985. The financial information for the full preceding year
is based on the statutory accounts for the year ended 31 March 2005. Those
accounts, upon which the Auditors issued an unqualified opinion have been
delivered to the Registrar of Companies.
2. Basis of Preparation of Interim
Financial Information
The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the year
ended 31 March 2005.
3. Taxation
The Directors believe that available tax losses will result in no tax charge
for the period.
4. Earnings per Share
The calculation of earnings per share is based on the profit or loss after
tax for the financial period divided by the weighted average number of
ordinary shares in issue during the period. The weighted average number of
ordinary shares in issue for the periods reported were as follows:
Unaudited six months Audited
ended 30 September 31 March
2005 2004 2005
Basic:
Weighted average
number of ordinary 175,833,333 140,833,333 155,121,004
shares in issue
Fully diluted:
Weighted average
number of ordinary 175,833,333 140,833,333 155,121,004
shares in issue
5. Impairment of Fixed Assets
Provision was made in the comparative periods, against the impairment of
plant and equipment at sites which had closed, were expected to close before
the end of the prior financial year or where cashflows generated by the
assets are expected to be negative. No adjustment to these provisions is
considered necessary for the half year to 30 September 2005.
6. Copies of the Interim Statement
Copies of the interim statement will be available on the Company's website
www.bakeryservices.co.uk in due course.
7. Copies of this Announcement
Copies of this announcement will be available from the nominated adviser,
Smith & Williamson Corporate Finance Limited, 25 Moorgate, London, EC2R 6AY,
free of charge, for one month from the date of this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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