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| 17-11-09 | AFX UK Focus |
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LONDON, Nov 17 (Reuters) - Pubs n Bars PLC:
((London Equities Newsroom; +44 20 7542 7717)) (For more news, please click here)
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. More |
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| 17-11-09 | RNS |
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RNS Number : 6577C Pubs 'n' Bars PLC 17 November 2009 Pubs 'n' Bars plc (AIM: PNB) ("Pubs 'n' Bars" or "the Group") Trading Statement The Directors of Pubs 'n' Bars, the community public house owner and operator announce that the Group continues to experience difficult trading conditions and a lack of supplier credit to the business which is having an adverse effect on the Group's working capital. The Group's bankers are currently supporting the business on a day to day basis and discussions with them regarding the Group's future funding are ongoing. A further announcement will be made in due course.
--END-- Enquiries: Mel Belligero, Chief Executive
Paul Shackleton/Stewart Dickson
This information is provided by RNS The company news service from the London Stock Exchange END
TSTILFFRLELDLIA More |
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| 28-09-09 | RNS |
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This news article is displayed preformatted as it may contain results tables
RNS Number : 7417Z
Pubs 'n' Bars PLC
28 September 2009
Pubs 'n' Bars plc
(AIM: PNB)
("Pubs 'n' Bars" or "the Group")
INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2009
Pubs 'n' Bars, the AIM quoted community pub owner and operator, announces its unaudited interim results for the period ended 30 June 2009.
The first six months of the current year have been disappointing and show no improvement over the corresponding period of 2008.
Part of the decline in turnover was due to a change in the mix of pubs. There were more pubs under management in 2008. Managed houses account for a larger turnover as tenanted houses only contribute rents and a small amount of beer sales income. In addition, beer sales to tenants fell from £675,000 to £301,000 due to our major supplier entering administration. We have made arrangements with new suppliers whereby we no longer purchase the beer and then sell it to our tied tenants, but receive a profit contribution from the supplier built into the price at which the tenants purchase their beer. Taking these factors into account, the decline in like for like turnover was 3.05%. Gross profit margin fell from 68.99% to 66.77%; this was also impacted by the continued decline in income from gambling machines.
There can be no doubt that the smoking ban continues to adversely affect traditional community pubs like ours. Together with competition from supermarkets which, despite government pleas, continue to use alcohol sales as a loss leader, uncertain weather and no major international football matches to bring in customers, trading conditions were extremely difficult for the Group.
Current Trading
Trading remains difficult in the second half of the year. We are still being affected by the factors mentioned above and turnover is currently approximately 3% lower than last year. The decline in like for like sales has been less pronounced since mid August and although it is too early to call this a recovery, we are hopeful that the trading climate is improving.
As previously announced on 10 September 2009, administrators have been appointed to our subsidiary Moorgate Taverns Ltd. This group of ten freeholds was trading at a loss, there were no parent company guarantees and, as a result, the Group will save approximately £150,000 per annum.
We are continuing to negotiate with our bankers who are showing a great deal of understanding and the utmost co-operation in these difficult times.
Finally, I would like to thank my colleagues and all members of the staff for their continued efforts on behalf of the Group.
K. CHAPMAN
Chairman
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2009
6 Mths Ended 6 Mths Ended Year Ended
30.06.2009 30.06.2008 31.12.2008
(unaudited) (unaudited) (audited)
Restated (note 10)
Notes £ £ £
REVENUE 10,332,097 11,217,196 22,287,657
Cost of sales (3,433,137) (3,478,542) (7,413,534)
GROSS PROFIT 6,898,960 7,738,654 14,874,123
Administrative expenses
Before exceptional items (6,476,574) (6,663,863) (13,777,550)
Exceptional items 3 144,410 323,200 (7,494,705)
(6,332,164) (6,340,663) (21,272,255)
OPERATING PROFIT/(LOSS) 566,796 1,397,991 (6,398,132)
Finance cost (1,262,036) (1,273,283) (2,552,642)
Investment income 4,607 3,564 6,094
(LOSS)/PROFIT BEFORE TAXATION (690,633) 128,272 (8,944,680)
Taxation 4 (54,167) (113,394) 1,379,084
(LOSS)/PROFIT FOR THE PERIOD (744,800) 14,878 (7,565,596)
OTHER COMPREHENSIVE INCOME
Property revaluation - - (2,658,684)
Deferred tax arising on property 4 - - 863,245
revaluation
(744,800) 14,878 (9,361,035)
EARNINGS PER SHARE - from continuing and total operations
Basic 5 (1.87)p 0.04p (18.96)p
Diluted 5 (1.87)p 0.03p (18.96)p
CONSOLIDATED INTERIM BALANCE SHEET
AS AT 30 JUNE 2009
6 Mths Ended 6 Mths Ended
30.06.2009 30.06.2008 Year Ended
(unaudited) (unaudited) 31.12.2008
Restated (note 10) (audited)
Notes £ £ £
ASSETS
Non-current assets
Property, plant and equipment 7 41,192,653 49,220,947 41,276,365
Intangible fixed assets 8 4,361,972 5,911,487 4,564,533
Derivative financial - 65,200 -
instruments
Deferred tax assets 1,811,960 547,004 1,881,039
47,366,585 55,744,638 47,721,937
Current assets
Inventories 858,514 837,909 764,863
Trade and other receivables 2,889,111 2,914,089 2,176,002
Cash and cash equivalents 94,987 99,783 100,072
3,842,612 3,851,781 3,040,937
TOTAL ASSETS 51,209,197 59,596,419 50,762,874
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 9 7,965,671 7,965,671 7,965,671
Share premium account 7,192,665 7,192,665 7,192,665
Revaluation reserve 2,203,815 3,999,254 2,203,815
Share based payment reserve 75,300 - 52,933
Retained earnings (8,618,014) (74,195) (7,873,214)
TOTAL EQUITY 8,819,437 19,083,395 9,541,870
Non-current liabilities
Long-term borrowings - 34,226,393 -
Finance lease liabilities 139,464 4,152 156,904
Derivative financial 1,230,290 - 1,374,700
instruments
Deferred tax liabilities 934,157 1,970,757 949,069
2,303,911 36,201,302 2,480,673
Current liabilities
Trade and other payables 4,571,003 3,463,570 3,343,676
Short-term borrowings 35,427,951 823,881 35,330,701
Current tax payable - 20,511 -
Finance lease liabilities 86,895 3,760 65,954
40,085,849 4,311,722 38,740,331
TOTAL EQUITY AND LIABILITIES 51,209,197 59,596,419 50,762,874
CONSOLIDATED INTERIM CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
6 Mths Ended 6 Mths Ended
30.06.2009 30.06.2008 Year Ended
(unaudited) (unaudited) 31.12.2008
Restated (note10) (audited)
£ £ £
Cash flows from operating activities
(Loss)/Profit before taxation (690,633) 128,272 (8,944,680)
Adjustments for:
Investment income (4,607) (3,564) (6,094)
Interest expense 1,262,036 1,273,283 2,552,642
Decrease in value of leasehold properties - - 5,287,979
Derivative financial instrument fair value 144,410 (323,200) 1,116,700
adjustment
Depreciation 389,907 349,833 732,410
Increase in inventories (93,651) (86,292) (13,246)
Increase in trade & other receivables (713,109) (725,545) (18,458)
Increase in trade payables 938,505 404,890 621,214
Amortisation and impairments 202,561 295,688 1,642,642
Expenses in return for shares 22,367 - 31,000
Cash generated from operations 1,457,786 1,313,365 3,002,109
Interest paid (1,262,036) (1,234,006) (2,805,085)
Tax received - - (31,699)
NET CASH FROM OPERATING ACTIVITIES 195,750 79,359 165,325
Cash flows from investing activities
Purchase of tangible fixed assets (306,195) (553,401) (938,059)
Interest received 4,607 3,564 6,094
NET CASH FROM INVESTING ACTIVITIES (301,588) (549,837) (931,965)
Cash flows from financing activities
Net (repayment)/drawdown of borrowings (9,453) 23,119 13,885
Payment of finance lease liabilities (36,499) (1,888) (25,635)
Dividends paid - - (199,142)
Funds raised by sale and lease back of assets 40,000 - 238,693
NET CASH FROM FINANCING ACTIVITIES (5,952) 21,231 27,801
NET DECREASE IN CASH
AND CASH EQUIVALENTS (111,790) (449,247) (738,839)
Cash and cash equivalents at beginning of period (956,683) (217,844) (217,844)
CASH AND CASH EQUIVALENTS AT (1,068,473) (667,091) (956,683)
END OF PERIOD
REPRESENTED BY:
Cash at bank and in hand 94,987 99,783 100,072
Bank overdrafts (1,163,460) (766,874) (1,056,755)
(1,068,473) (667,091) (956,683)
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2009
Ordinary Share Revaluation Share-Based Retained Total
Share Capital Premium Reserve Payments Earnings Equity
Reserve
£ £ £ £ £ £
Balances at 1 January 2009 7,965,671 7,192,665 2,203,815 52,933 (7,873,214) 9,541,870
Total comprehensive income for the period
Loss for the period - - - - (744,800) (744,800)
Transactions with owners, recorded directly in
equity
Share-based payments - - - 22,367 - 22,367
Balances at 30 June 2009 7,965,671 7,192,665 2,203,815 75,300 (8,618,014) 8,819,437
Ordinary Share Revaluation Share-Based Retained Total
Share Capital Premium Reserve Payments Earnings Equity
Reserve
£ £ £ £ £
Balances at 1 January 2008 7,934,671 7,192,665 3,999,254 - (89,073) 19,037,517
Total comprehensive income for the period
Loss for the period - - - - (7,565,596) (7,565,596)
Other comprehensive income
Property revaluation - - (2,658,684) - - (2,658,684)
Deferred tax arising on revaluation - - 863,245 - - 863,245
Total other comprehensive income for the year - - (1,795,439) - - (1,795,439)
Total comprehensive income for the year - - (1,795,439) - (7,565,596) (9,361,035)
Transactions with owners, recorded directly in
equity
Dividends paid - - - - (199,142) (199,142)
Share-based payments - - - 52,933 (19,403) 33,530
Issue of share capital 31,000 - - - - 31,000
Total transactions with owners 31,000 - - 52,933 (218,545) (134,612)
Balances at 31 December 2008 7,965,671 7,192,665 2,203,815 52,933 (7,873,214) 9,541,870
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
1. ACCOUNTING POLICIES
The interim financial information in this report has been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS), as adopted for use in the EU, applied in accordance with the provisions of the Companies Act 2006. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the directors expect to be applicable as at 31 December 2009.
Basis of Preparation
The financial information has been prepared in accordance with applicable International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), under the historical cost convention as modified by the revaluation of freehold, long leasehold property and derivative financial instruments. The measurement basis is the historical cost convention and the principal accounting policies are set out below.
Non-Statutory Accounts
The financial information for the year ended 31 December 2008 set out in this interim report does not comprise the Group's statutory accounts as defined in Section 240 of the Companies Act 1985.
The statutory accounts for the year ended 31st December 2008, which were prepared under IFRS, have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under either Section 237 of the Companies Act 2006.
These accounts have been prepared in accordance with IAS 34 'Interim Financial Statements'.
The financial information for the six months ended 30 June 2009 and 30th June 2008 is unaudited.
Going Concern
The interim financial statements have been prepared on a going concern basis which the Directors believe to be appropriate.
At the 30 June 2009 the Group classified £34,264,493 of long term bank as short term liabilities due to breaches of covenants in the underlying agreements. The Group is continuing to negotiate with its bankers with regard to restructuring its facilities and it is likely that this will include increased interest margins.
The issues impacting the pub sector continue especially the smoking ban, the credit squeeze and the availability of discounted alcohol at supermarkets.
The Directors have prepared cash flow forecasts for two years from the 31 December 2008 and have taken steps to reduce the Group's net cash outflow. These projections have been prepared on the basis that the impact of the current economic downturn has been incorporated in their forecasts. In terms of any future interest rate changes, the cash projections have been revised to reflect possible interest rate adjustments. On this basis the Board considers that the Group will have sufficient funds for the twelve month period from the date of signing of the interim financial statements.
In view of the significance of the factors outlined above, the Independent Review Report includes an Emphasis of Matter which refers to the existence of these uncertainties and their impact on the Group's ability to continue in operational existence for the foreseeable future.
IFRS effective in 2008/09 but not relevant
A review of IFRIC interpretations were mandatory for the Group's accounting period, but are not relevant to the operations of the Group.
Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Group
At the date of authorisation of these interim financial statements, certain new standards, amendments and interpretations to existing standards have been published but are not yet effective, and have not been adopted early by the Group. Management anticipates that all of the pronouncements will be adopted in the Group's accounting policies for the first period beginning after the effective date of the pronouncements. Information on new standards, amendments and interpretations that are expected to be relevant to the Group's financial statements is provided below. Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Group's financial statements.
IFRS 3 Business Combinations (Revised 2008) (effective from 1 July 2009)
The standard is applicable for business combinations occurring in reporting periods beginning on or after 1 July 2009 and will be applied prospectively. The new standard introduces changes to the accounting requirements for business combinations, but still requires use of the purchase method, and will have a significant effect on business combinations occurring in reporting periods beginning on or after 1 July 2009.
IAS 27 Consolidated and Separate Financial Statements (Revised 2008) (effective from 1 July 2009)
The revised standard introduces changes to the accounting requirements for the loss of control of a subsidiary and for changes in the Group's interest in subsidiaries. Management does not expect the standard to have a material effect on the Group's financial statements.
Annual Improvements 2009
The IASB has issued Improvements for International Financial Reporting Standards 2009 which became effective in the six months period ending 30June 2009 however, these amendments are not expected to have a material impact on the Group's financial statements.
Basis of Consolidation
The financial information incorporates the results of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the period are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Financial statements of the subsidiaries are prepared to the same year end, 31 December.
Where necessary, adjustments are made to the results of subsidiaries to bring the accounting policies used into line with those used by the Group.
All intra-Group transactions, balances, income and expenses are eliminated on consolidation.
Business Combinations and Goodwill
Goodwill on acquisitions comprises the excess of the fair value of the consideration plus any associated costs for investments in subsidiary undertakings over the fair value of the net identifiable assets acquired. Adjustments are made to fair values to bring the accounting policies of acquired businesses into alignment with those of the Group. The costs of integrating and reorganising acquired businesses are charged to the income statement post acquisition.
Goodwill is carried at cost less accumulated impairment losses. Goodwill is tested for impairment annually. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Negative goodwill is recognised immediately in the income statement.
Revenue Recognition
Revenue is the value of goods and services sold to third parties as part of the Group's trading activities, after deducting sales based taxes, coupons and staff discounts. The majority of revenue comprises beverages as well as food sold in the Group's outlets. This revenue is recognised at the point of sale to the customer. Revenue arising from the sale of property is recognised on unconditional exchange of contracts. Investment income is recognised upon a receivable basis.
Taxation
The tax expense represents the sum of the tax currently payable and any deferred tax. The tax currently payable is based on the estimated taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantially enacted by the balance sheet date.
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be
available against which the temporary differences can be utilised.
Deferred tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Share-based Payments
The cost of share-based payment arrangements, whereby employees receive remuneration in the form of shares or share options, is recognised as an employee benefit expense in the income statement.
The total expense to be apportioned over the vesting period of the benefit is determined by reference to the fair value at the date of grant. The assumptions underlying the number of awards expected to vest are subsequently adjusted for the effects of non market-based vesting conditions prevailing at the balance sheet date. Fair value is measured by the use of Black-Scholes option pricing model and is based on a reasonable expectation of the extent to which performance criteria will be met.
Property, Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation is charged so as to write off the costs of assets, over their estimated useful lives, using the straight-line method, on the following bases:
Fixtures and fittings 10% straight line
Computers and EPOS 20% straight line
Motor vehicles 25% straight line
Leasehold improvements the shorter of the lease term or five years
The property assets of the Group are stated at revalued amounts, being fair value at the date of revaluation less accumulated impairment losses. Increases in the value of revalued assets are recognised in the revaluation reserve except to the extent they relate to a previous decrease in value which had been charged to the income statement. Decreases in value are taken to the revaluation reserve to the extent of any pre-existing surplus on that individual asset; decreases in excess of any pre-existing surplus are taken to the income statement.
Pub Operating Lease Premiums
Short leasehold property premiums arising on leases of property which are classified as operating leases under IAS17 are recognised as intangible fixed assets. They are capitalised at cost and amortised over the finite lease term, amortisation being recognised under amortisation expenses. The leases are tested annually for impairment. Any improvements to the short leasehold property are classified as leasehold improvements under tangible fixed assets.
Impairment
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment and if events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A review for indicators of impairment is performed annually. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. Any impairment charge is recognised in the income statement in the year in which it occurs. When an impairment loss, other than an impairment loss on goodwill, subsequently reverses due to a change in the original estimate, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, up to the carrying amount that would have resulted, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Trade and other receivables
Trade receivables are stated at their original invoiced value, as the interest that would be recognised from discounting future cash receipts over the short credit period is not considered to be material. Trade receivables are reduced by appropriate allowances for estimated irrecoverable amounts. Interest on overdue trade receivables is recognised as it accrues.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and other short-term highly liquid deposits with an original maturity at acquisition of three months or less. Cash held on deposit with an original maturity at acquisition of more than three months is disclosed as current asset investments. For the purposes of the cash flow statement, cash and cash equivalents consists of cash and cash equivalents as defined above, net of bank overdrafts that are repayable on demand and that are integral to the Group's cash management.
Trade payables
Trade payables are stated at their original invoiced value, as the interest that would be recognised from discounting future cash payments over the short payment period is not considered to be material.
Derivative financial instruments
The Group's policy is to hedge a proportion of its variable rate borrowings at fixed rates of interest. To achieve this, the Group enters into interest rate swap contracts in which the Group agrees to exchange its variable rate obligations for fixed rate obligations.
Although not accounted for as being hedge effective, the swaps are held for risk management purposes and not for trading purposes. These swaps are defined as cash flow hedges and the fair values are determined by discounting the future cash flows using the mid point of the sterling yield curve prevailing at the year end.
Interest-bearing borrowings
Interest-bearing borrowings are stated at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability.
Provisions
Provisions are recognised in the balance sheet when there is a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Plant and Equipment Leases
Leases of property, plant and equipment, where the Group has substantially all the risks and rewards of ownership, are classified as finance leases. Finance leases are capitalised at the lease's inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance cost is charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the asset's useful life and the lease term.
Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.
Rental income received under operating leases is credited to the income statement on a straight line basis over the lease term.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method. It excludes borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
Pensions
The Group operates a defined contribution pension plan. The scheme is funded through payments to insurance companies.
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity.
The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
For a defined contribution plan, the Group pays contributions to publicly or privately administered pension insurance plans on a contractual basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due.
Exceptional Items
Exceptional items comprise material changes in the values of its freehold, long leasehold properties and derivative financial instruments and impairments of operating lease premiums recognised in the income statement, as exceptional items. This is due to the profits and losses not being directly attributable to the trading performance of the Group.
Segmental Reporting
The Directors consider that within the one business there are two main types of income; managed house income and tenanted house income. These are considered to be part of the same segment.
All income is derived from the within United Kingdom.
2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
The preparation of financial information in conformity with generally accepted accounting practice requires management to make estimates and judgments that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation were:
* Impairment of goodwill. Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires the Group to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate the present value.
* Non-depreciation of assets. The Directors believe that the following factors are relevant to the Group's public house estates, which mitigate the need to apply depreciation to these assets:
* The Company has a policy of regular maintenance and repair such that the properties are retained at the previously assessed standard of performance;
* The properties are unlikely to suffer from technical or commercial obsolescence;
* The Company, as a commercial enterprise, has historically recognised disposal proceeds of similar assets which have not been materially less than their carrying value.
Therefore the directors consider that it is not necessary to depreciate the property assets owned.
3. EXCEPTIONAL ITEMS
Group operating profit for the period is stated after the following:
6 Mths Ended 6 Mths Ended Year Ended
30.06.2009 30.06.2008 31.12.2008
£ £ £
Impairment of short leasehold property - - 1,090,026
Revaluation deficit on freehold and - - 5,287,979
longleasehold property
Revaluation (surplus)/deficit on (144,410) (323,200) 1,116,700
derivativeFinancial instrument
(144,410) (323,200) 7,494,705
4. TAXATION 6 Mths Ended 6 Mths Ended Year Ended
30.06.2009 30.06.2008 31.12.2008
£ £ £
Current tax charge - - -
Deferred tax (14,912) 67,097 (73,262)
Deferred tax on - 90,496 -
revaluations
Deferred tax - - (1,480,634)
released on
revaluation
Deferred tax - (44,199) -
released on
reclassification of
short leasehold
property
Utilisation of tax 69,079 - 174,812
losses
Total tax expense 54,167 113,394 (1,379,084)
for the periods
before other
comprehensive income
Tax has been calculated using an estimated annual effective rate of 28% (2008 interim: 30%) on profit before tax.
Tax effects relating to other comprehensive income:
A loss on property revaluation of £2,658,684 in the year ended 31st December 2008 gave rise to an associated deferred tax benefit of £863,245. The net
loss on revaluation of the Group's properties, after this deferred tax credit, amounted to £1,795,439.
5. EARNINGS PER SHARE 6 Mths Ended 6 Mths Ended Year Ended
30.06.2009 30.06.2008 31.12.2008
£ £ £
Earnings from Continuing and Total
Operations
Earnings for the purpose of basic and (744,800) 14,878 (7,565,596)
diluted earnings per share being net
profit attributable to equity shareholders
Number of Shares
Weighted average number of ordinary shares 39,828,355 39,724,739 39,828,355
for the purpose of basic earnings per
share
Weighted average number of ordinary shares 42,268,226 42,622,425 42,268,226
for the purpose of dilutive earnings per
share
The calculation of diluted earnings per share assumes conversion of all
potentially dilutive ordinary shares, all of which arise from share
options. A calculation is performed to determine the number of shares that
could have been acquired at fair value, based upon the monetary value of
the subscription rights attached to outstanding share options.
As at 30th June 2009 and 31st December 2008 2,897,686 of shares under
option were not included in the calculations of diluted EPS because they
were anti-dilutive for those periods however could potentially dilute basic
EPS in the future.
6. DIVIDENDS
No dividends were paid or proposed in the last two interim periods.
7. PROPERTY, PLANT AND Freehold Long Lease-hold Fixtures Motor Total
EQUIPMENT Land and Leasehold Improve-ments and Vehicles
Buildings Property Fittings
GROUP £ £ £ £ £ £
COST/VALUATION
At 1 January 2009 38,143,380 1,048,633 2,956,377 3,695,207 13,500 45,857,097
Additions 112,643 2,020 161,906 29,626 - 306,195
At 30 June 2009 38,256,023 1,050,653 3,118,283 3,724,833 13,500 46,163,292
DEPRECIATION
At 1 January 2009 - - 2,285,386 2,284,146 11,200 4,580,732
Charge for the - - 187,698 199,909 2,300 389,907
period
At 30 June 2009 - - 2,473,084 2,484,055 13,500 4,970,639
NET BOOK VALUE
At 30 June 2009 38,256,023 1,050,653 645,199 1,240,778 - 41,192,653
At 1 January 2009 38,143,380 1,048,633 670,991 1,411,061 2,300 41,276,365
COST/VALUATION
At 1 January 2008 - 45,558,435 1,123,692 2,670,995 3,501,579 11,000 52,865,701
restated
Additions 453,855 2,694 285,382 193,628 2,500 938,059
Deficit (7,868,910) (77,753) - - - (7,946,663)
At 31 December 2008 38,143,380 1,048,633 2,956,377 3,695,207 13,500 45,857,097
DEPRECIATION
At 1 January 2008 - - 1,941,984 1,895,338 11,000 3,848,322
Charge for the - - 343,402 388,808 200 732,410
period
At 31 December 2008 - - 2,285,386 2,284,146 11,200 4,580,732
NET BOOK VALUE
At 31 December 2008 38,143,380 1,048,633 670,991 1,411,061 2,300 41,276,365
At 1 January 2008 45,558,453 1,123,692 729,011 1,606,241 - 49,017,379
8. INTANGIBLE FIXED ASSETS Goodwill Operating Total
Lease
Premiums
£ £ £
COST
At 1 January 2009 and 30 June 2009 2,224,260 8,176,049 10,400,309
AMORTISATION AND IMPAIRMENT LOSSES
At 1 January 2009 585,447 5,250,329 5,835,776
Amortisation charge - 202,561 202,561
At 30 June 2009 585,447 5,452,890 6,038,337
NET BOOK VALUE
At 30 June 2009 1,638,813 2,723,159 4,361,972
At 1 January 2009 1,638,813 2,925,720 4,564,533
COST
At 1 January 2008 and 31 December 2,224,260 8,176,049 10,400,309
2008
AMORTISATION AND IMPAIRMENT LOSSES
At 1 January 2008 585,447 3,607,687 4,193,134
Amortisation charge - 552,616 552,616
Impairment losses - 1,090,026 1,090,026
At 31 December 2008 585,447 5,250,329 5,835,776
NET BOOK VALUE
At 31 December 2008 1,638,813 2,925,720 4,564,533
At 31 December 2007 1,638,813 4,568,362 6,207,175
9. SHARE CAPITAL 6 Mths Ended 6 Mths Ended Year Ended
30.06.2009 30.06.2008 31.12.2008
£ £ £
Authorised:
Number of shares 50,000,000 50,000,000 50,000,000
Ordinary shares of 20p each 10,000,000 10,000,000 10,000,000
Called up, allotted and
fully paid:
Number of shares 39,828,355 39,828,355 39,828,355
Ordinary shares of 20p each 7,965,671 7,965,671 7,965,671
No shares were issued during the period.
10. PRIOR YEAR ADJUSTMENTS
As in outlined in note 27 to the annual accounts to 31 December 2008 the Group undertook a full retrospective restatement to reclassify the premiums arising on short leaseholds as intangible assets. Leasehold improvements remain classified
as tangible fixed assets. The interim figures to 30th June 2008 have been restated on the same basis. The impact is as follows, with unbracketed figures being debit entries and bracketed figures credit entries:-
Income statement for the six months to 30 June 2008
£
Amortisation of operating leases 295,688
Depreciation of leasehold improvements 157,853
Deferred tax (44,199)
Net decrease in profit for the period 409,342
The division of the short leasehold property into operating leases and leasehold improvements has resulted in an amortisation charge of £295,688 against the operating leases and a depreciation charge of £157,853 against the leasehold
improvements. There is an associated decrease in the deferred taxation charge of £44,199 due to the increase in the depreciation charge.
Balance sheet at 30 June 2008
Previously stated Adjustments Restated
At 30 June 2008 year to six months to 30 June 2008
31 December 2007 At 30 June 2008
£ £ £ £
Non current assets
Property, plant and 56,228,421 (6,849,621) (157,853) 49,220,947
Equipment
Operating lease - 4,568,362 (295,688) 4,272,674
premiums
Deferred tax assets 1,596,482 (1,093,677) 44,199 547,004
Capital and reserves
Revaluation reserve 4,550,775 (551,521) - 3,999,254
Retained earnings 2,932,097 (2,596,950) (409,342) (74,195)
Non-current
liabilities
Deferred tax 2,197,225 (226,468) - 1,970,757
liabilities
Changes to the restated balance sheet figures are outlined above. The impact to the opening balances as at 1 January 2008 have been described in the annual accounts and the impact to the six months to June 2008 in the
Interim Statement of Comprehensive Income section above.
10. PRIOR YEAR ADJUSTMENTS - continued
Cash Flow statement for the six months ended 30th June 2008
Previously stated Adjustment Restated
£ £ £
Cash flows from operating activities
Profit/(Loss) before 581,813 (453,541) 128,272
taxation
Adjustments for:
Depreciation 191,980 157,853 349,833
Amortisation and - 295,688 295,688
impairments
NET CASH FROM 773,793 - 773,793
OPERATING ACTIVITIES
The impact on the income statement has had an associated impact on the lines above
from the 'cash flows from operating activities' section of the cash flow statement.
11. CONTINGENT LIABILITIES
The company has provided a cross guarantee to other members of the Group in respect of Group bank borrowings.
The company's previous nominated supplier of beers, wines, spirits and soft drinks was Standwood Taverns Limited. The Group has provided guarantees to three suppliers of Standwood Taverns Limited in respect of liabilities incurred by Standwood Taverns Limited on the Group's behalf.
At the date of signing the interim financial statements, a claim has been received from one of the three suppliers for £1.1 m. This claim is subject to a counter claim from Standwood Taverns Limited and it has yet to be established if any residual claim under the guarantee would be valid.
12. POST BALANCE SHEET EVENTS
On 10 September 2009 the Directors applied to the courts for the appointment of administrators to Moorgate Taverns Limited, a wholly owned subsidiary of Pubs'n'Bars Plc with immediate effect.
There are no guarantees from Pubs'n'Bars Plc. to Clydesdale Bank Plc in respect of Moorgate Taverns Limited's borrowings and the net effect on cashflow will be an interest saving of approximately £150,000 per annum by Pubs'n'Bars Plc. The book value of the pubs as at 31st December 2008 was £8.03m and the debt was £7.08m.
INDEPENDENT REVIEW REPORT TO PUBS 'N' BARS PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2009 which comprises Consolidated Interim Statement of Comprehensive Income, Consolidated Interim Balance Sheet, Consolidated Interim Cash Flow Statement, Consolidated Interim Statement of Changes in Equity and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Rules of the Alternative Investment Market.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRS as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Rules of the Alternative Investment Market.
Emphasis of matter - Going concern
In completing our review, we have considered the adequacy of the disclosures made in note 1 to the interim financial statements concerning the Company's ability to continue as a going concern.
As stated in note 1 the Company has reclassified £34,264,393 of bank loans as short term liabilities due to breaches of covenants and/or terms and conditions of the underlying agreements. The Company believes the only variation in the terms and conditions of these agreements will be a change in the interest charges. The Company's Directors' forecasts taking the increased interest charges into account have been prepared showing the Company has sufficient available funds to meet their day to day working capital requirements for the foreseeable future.
These conditions indicate the existence of a material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern. The interim financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern.
Kingston Smith LLP
Chartered Accountants and Registered Auditors
Devonshire House
60 Goswell Road
London EC1M 7AD
These interim results are available to be downloaded from the Company's website at www.pubsnbars.co.uk
--END--
Enquiries:
Mel Belligero, Chief Executive
Pubs 'n' Bars plc ` Tel: 020 8228 4800
Stewart Dickson/Paul Shackleton
Daniel Stewart & Company plc Tel: 020 7776 6550
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| 10-09-09 | RNS |
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RNS Number : 8536Y Pubs 'n' Bars PLC 10 September 2009 Pubs 'n' Bars plc (AIM: PNB) ("Pubs 'n' Bars" or "the Group") Appointment of Administrators to Moorgate Taverns Limited The Directors of Pubs 'n' Bars, the community public house owner and operator announce that following discussions with Clydesdale Bank PLC ("Clydesdale") who hold a charge over the property assets of Moorgate Taverns Limited ( "Moorgate"), the directors have applied to the courts for the appointment of administrators to Moorgate, a wholly owned subsidiary of PnB with immediate effect. Moorgate has an estate of ten freehold public houses within Hertfordshire, Oxfordshire and the South coast. Nine of these public houses were tenanted to individual operators and had tied contracts for beer supply and one pub was managed. As a result of the general economic environment, Moorgate has been trading at a loss after finance costs and, due to the downturn in pub values, has breached certain of its borrowing covenants with Clydesdale. There are no guarantees from PnB to Clydesdale in respect of Moorgate's borrowings and the net effect on cashflow will be an interest saving of approximately £150,000 per annum by PnB. The book value of the pubs as at 31st December 2008 was £8.03m and the debt is £7.08m As a result of this, the Group now operates 94 pubs.
--END-- Enquiries: Mel Belligero, Chief Executive
Stewart Dickson/Paul Shackleton
This information is provided by RNS The company news service from the London Stock Exchange END
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Thanks Notalf - found it with a quick search of The Times.
Hope they're wrong, but today's RNS suggests I'm banking on a triumph of hope over reality! You get out in time? More | View thread (8) | Respond | Login to Vote up | Login to Vote down |
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sorry thought i put the link. It was in the Times, but can't find link now. It was not bull, hence why i posted it.
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Notalf
Appears that your rumour is at least partly true. Which makes me even more eager to know where you picked up the rumour... Thanks More | View thread (8) | Respond | Login to Vote up | Login to Vote down |
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Notalf
Before I start thinking you're making up rumours, won't you share the source of the rumour, as requested. Thanks More | View thread (8) | Respond | Login to Vote up | Login to Vote down |
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They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
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