Interim Results
November 28 2006 - 4:41AM
UK Regulatory
RNS Number:8090M
Bakery Services PLC
28 November 2006
Bakery Services plc ("Bakery Services" or the "Company")
Interim Results for the six months ended 30 September 2006
28 November 2006
CHAIRMAN'S STATEMENT
Highlights
* Operating loss before exceptional items #81,731 (2005 - #56,943)
* Pre tax losses #83,679 (2005 - #57,814)
* Cash outflows from operating activities #8,763 (2005 - #214,696 inflows)
Overview
The overall results for the period are disappointing.
However the loss for the period includes #54,882 relating to the managed unit at
the Victoria Centre, Nottingham (closed for refitting during part of the period)
and #33,154 relating to rentals and other costs for the closed unit at Temple
Row, Birmingham. Without these costs the Group would have been close to
breakeven.
As discussed later in this report, after reopening with a new format, the
Victoria Centre is expected to move into modest profit in the third quarter of
the current year. The Temple Row unit was finally assigned to a new tenant in
October 2006.
Inbake's in-store concession business performed satisfactorily during the period
and gross margin improved slightly from 37.5% to 37.7%.
The Don Millers franchise business also performed to expectations. Following the
closure of the units at Loughborough and Birmingham Don Millers now trades only
one managed unit, being the Victoria Centre referred to above.
During the period your Board considered a number of potential opportunities for
enhancing shareholder value outside the Group's present business. However none
of these were considered sufficiently attractive to put to shareholders.
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 30:09:06 ending 30:09:05
#000s' #000's
Sales 1,361 1,343
Gross Margin percentage 37.7% 37.5%
Operating profit before exceptional items 142 147
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 30:09:06 ending 30:09:05
#000s' #000's
Franchise income 86 92
Managed store sales 140 144
----- -----
Total 226 236
Operating profit franchise 65 61
Operating loss managed stores (88) (64)
----- -----
Total before exceptional items (23) (3)
Losses for the managed stores are broken down as follows:
Victoria Centre #54,882
Temple Row #33,154 (unit now sold)
As indicated above, during the period the managed unit at the Victoria Centre
was closed for a period for refitting to a new format designed as a test site
for a future new franchise offering. Although it is still too early to judge if
this new format will provide a robust franchising model, since re-opening the
trading results have been very encouraging with like-for-like sales at the unit
running at + 22%.
Summary of Financial Results
Group turnover for the period was #1,598,695 (2005 - #1,588,371).
Group losses after taxation and exceptional items were #83,679 (2005 - #57,814).
Taxation in the current and prior year comparative period was nil.
Net cash outflows from operating activities were #8,763 (2005 - #214,696
inflows)
Cash balances at 30 September 2006 were #53,926 (2005 - #132,076). The Group has
overdraft facilities in place amounting to #50,000.
Basic and fully diluted losses per share were 0.0478p (2005 - 0.0330p).
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
so far as it is possible that it remains profitable and cash generative. At Don
Millers we are looking to expand the new franchising format if the present test
site proves successful.
Concurrently your Board continues to explore wider opportunities for enhancing
shareholder value outside the Group's present businesses.
Richard D. Worthington
Non-Executive Chairman and Financial Director
28 November 2006
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Unaudited six months Audited
ended 30 September 31 March
Total Total Total
2006 2005 2006
#'000 #'000 #'000
Turnover 1,598 1,588 3,121
Cost of Sales (899) (894) (1,758)
------- ------- -------
Gross profit 699 694 1,363
------- ------- -------
Gross Margin 43.7% 43.7% 43.7%
------- ------- -------
Distribution costs (181) (171) (336)
Administrative expenses (600) (580) (1,166)
Other Operating income - - -
------- ------- -------
Operating loss (82) (57) (139)
Net interest payable (2) (1) (5)
------- ------- -------
Loss on ordinary activities before
taxation (84) (58) (144)
Taxation - - -
------- ------- -------
Loss on ordinary activities after
taxation (84) (58) (144)
------- ------- -------
Retained loss for the period (84) (58) (144)
======= ======= =======
Loss per share
- Basic (0.0478 p) (0.0330 p) (0.0800 p)
- Fully diluted (0.0478 p) (0.0330 p) (0.0800 p)
CONSOLIDATED BALANCE SHEET
Unaudited six months Audited
ended 30 September 31 March
Total Total Total
2006 2005 2006
#'000 #'000 #'000
Fixed assets
- Tangible assets 189 183 159
------- ------- -------
189 183 159
Current assets
- Stocks 84 98 86
- Debtors 279 268 311
- Cash in at bank and in hand 54 132 116
------- ------- -------
417 498 513
Creditors: amounts falling due
within one year (368) (246) (344)
Net current assets/(liabilities) 49 252 169
Total assets less current liabilities 238 435 328
Creditors: amounts falling due after
more than one year (12) (40) (18)
------- ------- -------
Net assets 226 395 310
======= ======= =======
Capital and reserves
- Called up share capital 176 176 176
- Share premium 2,634 2,634 2,634
- Profit and loss account (2,584) (2,415) (2,500)
------- ------- -------
Shareholders' funds - all equity 226 395 310
======= ======= =======
CONSOLIDATED CASH FLOW STATEMENT
Unaudited six months Audited
ended 30 September 31 March
Total Total Total
2006 2005 2006
#'000 #'000 #'000
Net cash inflow/(outflow) from operating
activities (9) 215 175
Returns on investments and servicing of finance (2) (1) (4)
Taxation - - -
Capital expenditure (70) (19) (45)
------- ------- -------
(81) 195 126
Equity dividends paid - - -
------- ------- -------
(81) 195 126
Financing (14) (16) (30)
------- ------- -------
(95) 179 96
======= ======= =======
Reconciliation of net cash flow to movement in
net Funds/(debt)
Increase/(decrease) in cash in the period (95) 179 96
Decrease in debt and lease financing 14 16 30
====== ====== =======
Change in net funds/(debt) (81) 195 126
Net debt at start of period (18) (144) (144)
------- ------- -------
Net funds/(debt) at end of period (99) 51 (18)
======= ======= =======
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 2006. 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 2006.
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
2006 2005 2006
Basic:
Weighted average number of ordinary
shares in issue 175,833,333 175,833,333 175,833,333
Fully diluted:
Weighted average number of ordinary
shares in issue 175,833,333 175,833,333 175,833,333
5.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 and on the
Company's website, www.bakeryservices.co.uk, in due course.
6. Copies of the Interim Statement
Copies of the interim statement will be sent to shareholders. Further copies
will be available from Smith & Williamson Corporate Finance Limited,
25 Moorgate, London, EC2R 6AY.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BPBLTMMJTMLF
Bakery Services (LSE:BKE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Bakery Services (LSE:BKE)
Historical Stock Chart
From Jul 2023 to Jul 2024
