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VARIOUS EATERIES PLC
Interim / Quarterly Report • Jun 27, 2024
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Interim / Quarterly Report
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National Storage Mechanism | Additional information 
RNS Number : 0491U
Various Eateries PLC
27 June 2024
27 June 2024
VARIOUS EATERIES PLC
("Various Eateries" or "the Company"
and with its subsidiaries "the Group")
Half Year Results
For the 26-week period to 31 March 2024
Various Eateries PLC, the owner, developer and operator of restaurant, clubhouse and hotel sites in the United Kingdom, announces its unaudited results for the 26-week period ending 31 March 2024.
Financial Highlights
| · | Revenue growth of 10.2 % to £ 22.7 m (H1 2023: £20.6m), largely driven by new site openings |
| · | Gross profit increase of 138.2% to £1.3m (H1 2023: £0.6m), driven by cost savings and efficiencies |
| · | Adjusted EBITDA loss of £1.2m (H1 2023: loss of £1.9m) |
| · | Cash at bank of £7.2m (H1 2023: £3.1m) |
| · | Net cash of £4.2m (H1 2023: net debt of £9.8m) |
Operational Highlights
| · | Solid performance despite adverse weather, train strikes and economic conditions, with Like-for-Like revenues slightly down |
| · | Maintained our strategy of absorbing most cost increases to strengthen our long-term position |
| · | Enhanced customer experience through site improvements and menu updates |
Post-Period Highlights
| · | The significant increase in minimum wage has impacted margins and has partially been offset by food and utilities inflation which has fallen year on year |
| · | Successful openings of Noci Richmond and Coppa Club Townhouse Cardiff |
| · | Performance at the start of H2 has been steady, although we are yet to experience any real consistency in the weather |
An dy Bassadone, Executive Chairman of Various Eateries, said:
"In a tough trading environment compounded by poor weather, the performance of the Group has been resilient, and I thank our whole team for their efforts.
The opening weeks at our two latest sites are satisfying and demonstrate the continued strength of and demand for the Coppa Club and Noci concepts. Alongside this, the work that has been done to enhance existing Coppa sites positions us well to capitalise on the important summer trading months.
The majority of the Company's larger sites deliberately have large and attractive outside spaces, which generate a considerable extra volume of trade in warm weather. The Company's full year budgets therefore reflect an expectation that, at some point, we will experience a reasonable version of summer this year, rather than the inconsistent weather we've seen so far.
With the welcome signs that inflationary pressures are continuing to fall, a growing estate of high-quality sites and increasingly robust organisational infrastructure, I remain confident in the long-term opportunity."
Enquiries
| Various Eateries plc | Via Alma | |
| Andy Bassadone Sharon Badelek |
Executive Chairman Chief Financial Officer |
|
| WH Ireland Limited | Sole Broker and NOMAD | Tel: +44 (0)20 7220 1666 |
| Broking Harry Ansell |
||
| Nominated Adviser Katy Mitchell |
||
| Darshan Patel | ||
| Alma Strategic Communications | Financial PR | Tel: +44 (0)20 3405 0205 |
| David Ison Rebecca Sanders-Hewett Will Merison |
[email protected] |
About Various Eateries
Various Eateries owns, develops and operates restaurant, clubhouse and hotel sites in the United Kingdom. The Group's stated mission is "great people delivering unique experiences through continuous innovation".
The Group is led by a highly experienced senior team including Hugh Osmond (Founder), Andy Bassadone (Executive Chairman) and Sharon Badelek (CFO).
The Group operates two core brands across 20 locations:
Coppa Club , a multi-use, all day concept that combines restaurant, terrace, café, lounge, bar and work spaces
Noci , a modern, neighbourhood pasta-only concept which serves very high-quality dishes at reasonable prices
For more information visit www.variouseateries.co.uk
Executive Chairman's Review
Like-for-Like revenues were slightly down on last year, primarily due to an unseasonably wet winter and the Company continuing to adhere to its strategy of absorbing most cost increases rather than passing them on to customers. While this strategy temporarily puts pressure on margins, it is management's belief that prioritising customer satisfaction over short-term profits will position the Group for significant growth when conditions improve.
As the Company continues its strategy to absorb price rises without passing them on to customers, it has been encouraging to see food and utility costs continue to gradually fall. The benefits of this have, however, been tempered somewhat by the impact of the minimum wage increase in April, which has been felt across the industry.
Despite this, we have continued to make good strategic progress and are generally satisfied with the performance of the Group and its brands given the mitigating circumstances.
Executing on our growth strategy
Our strategy continues to revolve around the expansion of our distinctive Noci and Coppa Club brands, which both fill specific gaps in the market.
As previously reported, we were thrilled to open two new sites in the period, Noci Richmond and Coppa Club Townhouse Cardiff. Both welcomed guests for the first time in May 2024 and we are pleased by the progress made by both in their first weeks.
Noci Richmond, the brand's fourth site since opening in Islington in 2022, is situated on the popular Richmond Hill, just a short walk from the river. As our prior experience shows, its popularity will continue to increase as the brand grows and word of mouth spreads.
Coppa Club Cardiff, the brand's third Townhouse, has enjoyed some outstanding trading weeks. Its location in the heart of the city near the Principality Stadium, the quality of food and service, and its strong start give us confidence in the site's prospects.
The pipeline for new sites is strong and we continue to see many prime opportunities for expansion. Management will continue to be cautious and thorough in its approach to growing the estate, with long-term, sustainable success the priority.
Continuing to enhance our proposition
Much hard work took place in the period to enhance our existing sites in preparation for the summer trade, including the refurbishment of outdoor terrace areas. We anticipate that these new spaces will support revenue over the warmer months, with additional footfall expected from major international sports events.
Quality food has always been at the heart of Various Eateries. During the year, we continued to work diligently to enhance our menus while working closely with suppliers to incorporate a stronger seasonal component. As well as fresher food, it is also typically more cost effective.
The enhancements to our menus have been coupled with a renewed focus on consistency of delivery across the Group, which we see as an important step to ensure customers continue to return again and again.
Solid half-year results in context
Sales grew by 10.2% across the Group compared to the same period last year, largely driven by new site openings. Gross profit increased by 138.2%, highlighting the success of cost savings and efficiencies relating to colleagues and suppliers.
Following the successful placing in December 2023, the Group's financial position remains strong, with cash at bank of £7.2m as at 31 March 2024 (H1 2023: £3.1m).
The higher minimum wage has had a significant impact on staff costs, with pay rises occurring across the business. In response, we continue to be proactive in our efforts to uncover cost-saving opportunities, leveraging technology where possible. We have recently introduced at-table ordering at some sites and are working on several further initiatives we expect to improve efficiency while simultaneously enhancing the customer experience.
We continued to see the effects of the cost-of-living crisis in customer spending patterns in the period but, encouragingly, higher priced items such as lobster have remained consistently popular, indicating that our typical customer continues to have more expendable income.
Focus on colleague development and procurement excellence
During the first half, we made good progress in upskilling and strengthening operational management.
Investing in colleague training is a key focus area, driven in a large part by our new People Director. In a competitive and dynamic industry such as ours, it is crucial to ensure our workforce is motivated and equipped to deliver the best possible service.
We also hired a new Head of Procurement in May 2024, who has begun a process to deepen the work we have undertaken to ensure menus are comprised of in-season and, where possible, local produce. This is expected to have an incrementally positive impact on costs moving forward.
Optimistic outlook despite challenging conditions
An unseasonably wet winter hampered performance at the start of the year but trading remained resilient and, with the enhancements made in the first half, we are confident moving into the important warmer trading months.
Despite the abiding inflationary pressures being experienced in the hospitality sector, we are encouraged by their gradual easing and remain optimistic that this trend will continue through the second half.
Performance at the start of H2 has been steady and, while our full year budgets reflect an expectation that the weather improves somewhat as the summer progresses, the business is in a healthy position and its long-term prospects remain sound
Various Eateries PLC
Consolidated Statement of Comprehensive Income
for the 26 weeks ended 31 March 2024
| 26 weeks ended 31 March 2024 | 26 weeks ended 2 April 2023 | 52 weeks ended 1 October 2023 | ||||
| Unaudited | Unaudited | Audited | ||||
| Note | £ 000 | £ 000 | £ 000 | |||
| Revenue | 22,676 | 20,578 | 45,495 | |||
| Cost of sales | (21,330) | (20,013) | (43,597) | |||
| Gross profit / (loss) | 1,346 | 565 | 1,898 | |||
| Central staff costs | (1,748) | (1,745) | (3,426) | |||
| Share-based payments | 11 | (139) | (51) | (69) | ||
| Gain on early surrender of lease | - | - | 899 | |||
| Loss on disposal of assets and leases | - | (37) | (37) | |||
| Other expenses | (1,860) | (1,947) | (3,472) | |||
| Operating loss | (2,401) | (3,215) | (4,207) | |||
| Finance income | - | - | - | |||
| Financing costs | 4 | (1,462) | (1,085) | (2,470) | ||
| Loss before tax | (3,863) | (4,300) | (6,677) | |||
| Tax | - | - | - | |||
| Loss for the period | (3,863) | (4,300) | (6,677) | |||
| Earnings per share | ||||||
| Basic loss per share (pence) | 5 | (2.3) | (5.2) | (8.1) | ||
| Diluted loss per share (pence) | 5 | (2.3) | (5.2) | (8.1) |
Various Eateries PLC
Consolidated Statement of Financial Position
As at 31 March 2024
| 31 March 2024 | 2 April 2023 | 1 October 2023 | ||||
| Unaudited | Unaudited | Audited | ||||
| Note | £ 000 | £ 000 | £ 000 | |||
| Non-current assets | ||||||
| Intangible assets | 6 | 11,121 | 11,183 | 11,152 | ||
| Right-of-use assets | 7 | 24,728 | 25,764 | 24,873 | ||
| Other property, plant and equipment | 7 | 25,338 | 23,956 | 25,397 | ||
| 61,187 | 60,903 | 61,422 | ||||
| Current assets | ||||||
| Inventories | 1,089 | 899 | 1,078 | |||
| Trade receivables | 8 | 111 | 126 | 154 | ||
| Other receivables | 8 | 1,902 | 1,671 | 2,082 | ||
| Cash and bank balances | 7,220 | 3,111 | 1,902 | |||
| 10,322 | 5,807 | 5,216 | ||||
| Total assets | 71,509 | 66,710 | 66,638 | |||
| Current liabilities | ||||||
| Trade and other payables | 9 | (8,156) | (7,448) | (10,089) | ||
| Borrowings | 10 | (6,501) | (6,009) | (16,802) | ||
| Net current (liabilities) / assets | (4,335) | (7,650) | (21,675) | |||
| Total assets less current liabilities | 56,852 | 53,253 | 39,747 | |||
| Non-current liabilities | ||||||
| Borrowings | 10 | (27,763) | (39,197) | (28,049) | ||
| Provisions | (357) | (357) | (358) | |||
| Total non-current liabilities | (28,120) | (39,554) | (28,407) | |||
| Total liabilities | (42,777) | (53,011) | (55,298) | |||
| Net assets | 28,732 | 13,699 | 11,340 | |||
| Equity | ||||||
| Share capital | 1,750 | 890 | 890 | |||
| Share premium | 72,540 | 52,284 | 52,284 | |||
| Merger reserve | 64,736 | 64,736 | 64,736 | |||
| Other reserves | (5,012) | (5,012) | (5,012) | |||
| Retained earnings | (105,282) | (99,199) | (101,558) | |||
| Total shareholder funds | 28,732 | 13,699 | 11,340 |
Various Eateries PLC
Consolidated Statement of Changes in Equity
for the 26 weeks ended 31 March 2024
| Called-up share capital | Share premium account | Merger reserve | Employee benefit trust reserve | Retained earnings | Total | ||||||
| £ 000 | £ 000 | £ 000 | £ 000 | £ 000 | £ 000 | ||||||
| At 2 October 2022 | 890 | 52,284 | 64,736 | (5,012) | (94,950) | 17,948 | |||||
| Share-based payments | - | - | - | - | 51 | 51 | |||||
| Loss for the period | - | - | - | - | (4,300) | (4,300) | |||||
| At 2 April 2023 | 890 | 52,284 | 64,736 | (5,012) | (99,199) | 13,699 | |||||
| At 2 April 2023 | 890 | 52,284 | 64,736 | (5,012) | (99,199) | 13,699 | |||||
| Share-based payments | - | - | - | - | 18 | 18 | |||||
| Loss for the period | - | - | - | - | (2,377) | (2,377) | |||||
| At 1 October 2023 | 890 | 52,284 | 64,736 | (5,012) | (101,558) | 11,340 | |||||
| At 1 October 2023 | 890 | 52,284 | 64,736 | (5,012) | (101,558) | 11,340 | |||||
| Share issue | 860 | 20,256 | - | - | - | 21,116 | |||||
| Share-based payments | - | - | - | - | 139 | 139 | |||||
| Loss for the period | - | - | - | - | (3,863) | (3,863) | |||||
| At 31 March 2024 | 1,750 | 72,540 | 64,736 | (5,012) | (105,282) | 28,732 |
Various Eateries PLC
Consolidated Statement of Cash Flows
for the 26 weeks ended 31 March 2024
| 26 weeks ended 31 March 2024 | 26 weeks ended 2 April 2023 | 52 weeks ended 1 October 2023 | ||||
| Unaudited | Unaudited | Audited | ||||
| £ 000 | £ 000 | £ 000 | ||||
| Cash flows from operating activities | ||||||
| Loss for the year | (3,863) | (4,300) | (6,677) | |||
| Adjustments to cash flows from non-cash items: | ||||||
| Depreciation and amortisation | 2,723 | 2,638 | 5,571 | |||
| Gain on early surrender of lease | - | - | (899) | |||
| Loss on disposal and surrender of leases | - | 37 | 37 | |||
| Share-based payments | 139 | 51 | 69 | |||
| Finance income | - | - | - | |||
| Finance costs | 1,462 | 1,085 | 2,470 | |||
| 461 | (489) | 571 | ||||
| Working capital adjustments: | ||||||
| Increase in inventories | (14) | (91) | (270) | |||
| (Increase) / decrease in trade and other receivables | 210 | 403 | 327 | |||
| (Increase) / decrease in accruals, trade and other payables | (1,563) | (949) | 1,454 | |||
| Net cash flow from operating activities | (906) | (1,126) | 2,082 | |||
| Cash flows from investing activities | ||||||
| Interest received | - | - | - | |||
| Purchases of property plant and equipment | (1,408) | (3,755) | (6,845) | |||
| Proceeds on disposal of property plant and equipment | - | - | - | |||
| Costs on issue of shares | - | - | - | |||
| Net cash flows from investing activities | (1,408) | (3,755) | (6,845) | |||
| Cash flows from financing activities | ||||||
| Interest paid | (901) | (714) | (1,627) | |||
| Proceeds from issue of shares | 9,707 | - | - | |||
| Principal elements of lease payments | (1,174) | (684) | (1,098) | |||
| Net cash flows from financing activities | 7,632 | (1,398) | (2,725) | |||
| (Decrease) / increase in cash | 5,318 | (6,279) | (7,488) | |||
| Opening cash at bank and in hand | 1,902 | 9,390 | 9,390 | |||
| Closing cash at bank and in hand | 7,220 | 3,111 | 1,902 |
Various Eateries PLC
Notes to the Financial Statements
for the 26 weeks ended 31 March 2024
1 General information
Various Eateries PLC, 'the Company', and its subsidiaries (together 'the Group') are engaged in the operation of restaurants and hotels in London and the South of England.
The company is a public company limited by shares whose shares are publicly traded on AIM, a market of the London Stock Exchange and is incorporated in the United Kingdom under the Companies Act 2006 and are registered in England and Wales.
The registered address of the Company is 20 St Thomas Street, London, SE1 9RS.
2 Basis of preparation
The unaudited interim financial information for the 26 weeks ended 31 March 2024 has been prepared under the recognition and measurement principles of International Financial Reporting Standards ("IFRS") based on the accounting policies consistent with those used in the financial statements for the period ended 1 October 2023, but does not contain all the information necessary for full compliance with IFRS.
The unaudited interim financial information was approved and authorised for issue by the Board on 26 June 2024. The unaudited interim financial information for the 26 weeks ended 31 March 2024 does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and should be read in conjunction with the statutory accounts for the period ended 1 October 2023. The information for the 52 weeks ended 1 October 2023 has been extracted from the statutory accounts for that year which have been delivered to the Registrar of Companies. The audit report on these statutory accounts was unqualified, did not contain an emphasis of matter paragraph, and did not contain a statement under sections 498(2)-(3) of the Companies Act 2006.
The interim financial statements are presented in Pounds Sterling because that is the currency of the primary economic environment in which the company operates. All values are rounded to the nearest one thousand Pounds (£'000) except when otherwise indicated.
Changes in accounting policies and disclosures:
There were no changes in accounting policies and disclosures during the period.
3 Segmental reporting
| 26 weeks ended 31 March 2024 | Restaurant segment | Hotel segment | Other unallocated | Total | |||
| £ 000 | £ 000 | £ 000 | £ 000 | ||||
| Revenue | 21,007 | 1,657 | 12 | 22,676 | |||
| Trading sites EBITDA (IAS 17) | 1,964 | 340 | (3,544) | (1,240) | |||
| Pre Opening costs | (203) | - | - | (203) | |||
| Impact of IFRS 16 | 1,229 | 681 | - | 1,910 | |||
| Total EBITDA (IFRS 16) | 2,990 | 1,021 | (3,544) | 467 | |||
| Depreciation & Amortisation | - | - | (2,723) | (2,723) | |||
| Financing costs | - | - | (1,462) | (1,462) | |||
| Exceptional costs | - | - | (6) | (6) | |||
| Share based payments | - | - | (139) | (139) | |||
| Profit / (loss) before tax | 2,990 | 1,021 | (7,874) | (3,863) | |||
| Tax | - | - | - | - | |||
| Profit / (loss) for the period | 2,990 | 1,021 | (7,874) | (3,863) |
| 26 weeks ended 2 April 2023 | Restaurant segment | Hotel segment | Other unallocated | Total | |||
| £ 000 | £ 000 | £ 000 | £ 000 | ||||
| Revenue | 18,983 | 1,590 | 5 | 20,578 | |||
| Trading sites EBITDA (IAS 17) | 1,540 | 153 | (3,575) | (1,882) | |||
| Pre Opening costs | (460) | - | - | (460) | |||
| Impact of IFRS 16 | 896 | 647 | 310 | 1,853 | |||
| Total EBITDA (IFRS 16) | 1,976 | 800 | (3,265) | (489) | |||
| Depreciation & Amortisation | - | - | (2,638) | (2,638) | |||
| Profit / (loss) on disposal of assets and leases | - | - | (37) | (37) | |||
| Financing costs | - | - | (1,085) | (1,085) | |||
| Share based payments | - | - | (51) | (51) | |||
| Profit / (loss) before tax | 1,976 | 800 | (7,076) | (4,300) | |||
| Tax | - | - | - | - | |||
| Profit / (loss) for the period | 1,976 | 800 | (7,076) | (4,300) |
3 Segmental reporting (continued)
| 52 weeks ended 1 October 2023 | Restaurant segment | Hotel segment | Other unallocated | Total | |||
| £ 000 | £ 000 | £ 000 | £ 000 | ||||
| Revenue | 41,437 | 4,025 | 33 | 45,495 | |||
| Trading site EBITDA (IAS 17) | 2,859 | 1,162 | (6,210) | (2,189) | |||
| Pre Opening costs | (809) | - | (77) | (886) | |||
| Exceptional costs | - | - | (126) | (126) | |||
| Non-trading sites income | 27 | - | - | 27 | |||
| Impact of IFRS 16 | 2,492 | 1,253 | - | 3,745 | |||
| Share-based payments | - | - | (69) | (69) | |||
| Total EBITDA | 4,569 | 2,415 | (6,482) | 502 | |||
| Depreciation & Amortisation | - | - | (5,571) | (5,571) | |||
| Profit / (loss) on disposal of assets and leases | - | - | (37) | (37) | |||
| Gain on early surrender of lease | - | - | 899 | 899 | |||
| Financing costs | - | - | (2,470) | (2,470) | |||
| Loss before tax | 4,569 | 2,415 | (13,661) | (6,677) | |||
| Tax | - | - | - | - | |||
| Loss for the period | 4,569 | 2,415 | (13,661) | (6,677) |
4 Financing costs
| 26 weeks ended 31 March 2024 | 26 weeks ended 2 April 2023 | 52 weeks ended 1 October 2023 | |||
| Unaudited | Unaudited | Audited | |||
| £ 000 | £ 000 | £ 000 | |||
| Financing costs on bank overdraft and borrowings | 562 | 371 | 897 | ||
| Lease liability interest | 900 | 714 | 1,573 | ||
| 1,462 | 1,085 | 2,470 | |||
5 Earnings per share
Basic loss per share is calculated by dividing the profit attributable to equity shareholders by the weighted average number of shares outstanding during the year. There were no potentially dilutive ordinary shares outstanding as at the reporting date.
| 26 weeks ended 31 March 2024 | 26 weeks ended 2 April 2023 | 52 weeks ended 1 October 2023 | |||
| Unaudited | Unaudited | Audited | |||
| Loss for the year after tax (£ 000) | (3,863) | (4,300) | (6,677) | ||
| Basic and diluted weighted average number of shares | 168,180,186 | 82,143,398 | 82,143,398 | ||
| Basic loss per share (pence) | (2.3) | (5.2) | (8.1) | ||
| Diluted loss per share (pence) | (2.3) | (5.2) | (8.1) |
6 Intangible assets
| Brand | Goodwill | Trademarks, patents & licenses | Total | ||||
| £ 000 | £ 000 | £ 000 | £ 000 | ||||
| Cost or valuation | |||||||
| At 2 October 2022 | 2,912 | 26,019 | 25 | 28,956 | |||
| Additions | - | - | - | - | |||
| At 2 April 2023 | 2,912 | 26,019 | 25 | 28,956 | |||
| Additions | - | - | - | - | |||
| At 1 October 2023 | 2,912 | 26,019 | 25 | 28,956 | |||
| Additions | - | - | - | - | |||
| At 31 March 2024 | 2,912 | 26,019 | 25 | 28,956 | |||
| Amortisation | |||||||
| At 2 October 2022 | 2,788 | 14,954 | - | 17,742 | |||
| Amortisation | 31 | - | - | 31 | |||
| At 2 April 2023 | 2,819 | 14,954 | - | 17,773 | |||
| Amortisation | 31 | - | - | 31 | |||
| At 1 October 2023 | 2,850 | 14,954 | - | 17,804 | |||
| Amortisation | 31 | - | - | 31 | |||
| At 31 March 2024 | 2,881 | 14,954 | - | 17,835 | |||
| Carrying amount | |||||||
| At 2 April 2023 | 93 | 11,065 | 25 | 11,183 | |||
| At 1 October 2023 | 62 | 11,065 | 25 | 11,152 | |||
| At 31 March 2024 | 31 | 11,065 | 25 | 11,121 |
Brand relates to registered brand names and is amortised over an estimated useful economic life of four years.
Goodwill is not amortised, but an impairment test is performed annually by comparing the carrying amount of the goodwill to its recoverable amount. The recoverable amount is represented by the greater of the individual CGU's fair value less costs of disposal and its value-in-use.
7 Property, plant and equipment
| Right of use assets | Freehold property | Leasehold improve- ments | Furniture, fittings and equipment | Work in progress | IT equipment | Total | |||||||
| £ 000 | £ 000 | £ 000 | £ 000 | £ 000 | £ 000 | £ 000 | |||||||
| Cost or valuation | |||||||||||||
| At 2 October 2022 | 37,588 | 2,294 | 16,293 | 8,535 | 573 | 2,108 | 67,391 | ||||||
| Additions | 985 | - | 1 | 273 | 3,442 | 40 | 4,741 | ||||||
| Disposals | - | - | - | - | (37) | - | (37) | ||||||
| Lease modifications | (78) | - | - | - | - | - | (78) | ||||||
| Transfers | - | - | 550 | 427 | (1,018) | 41 | - | ||||||
| At 2 April 2023 | 38,495 | 2,294 | 16,844 | 9,235 | 2,960 | 2,189 | 72,017 | ||||||
| Additions | 237 | - | 653 | 662 | 1,749 | 25 | 3,326 | ||||||
| Lease modifications | 118 | - | - | - | - | - | 118 | ||||||
| Disposals | (1,228) | - | - | - | 7 | - | (1,221) | ||||||
| Transfers | - | - | 3,754 | 237 | (4,119) | 128 | - | ||||||
| At 1 October 2023 | 37,622 | 2,294 | 21,251 | 10,134 | 597 | 2,342 | 74,240 | ||||||
| Additions | 805 | - | - | 39 | 1,369 | - | 2,213 | ||||||
| Disposals | - | - | - | - | - | - | - | ||||||
| Lease modifications | 275 | - | - | - | - | - | 275 | ||||||
| Transfers | - | - | 106 | 215 | (345) | 24 | - | ||||||
| At 31 March 2024 | 38,702 | 2,294 | 21,357 | 10,388 | 1,621 | 2,366 | 76,728 | ||||||
| Depreciation | |||||||||||||
| At 2 October 2022 | 11,479 | - | 2,489 | 4,440 | - | 1,282 | 19,690 | ||||||
| Charge for the period | 1,252 | - | 473 | 727 | - | 155 | 2,607 | ||||||
| Eliminated on disposal | - | - | - | - | - | - | - | ||||||
| At 2 April 2023 | 12,731 | - | 2,962 | 5,167 | - | 1,437 | 22,297 | ||||||
| Charge for the period | 1,247 | 138 | 581 | 775 | - | 161 | 2,902 | ||||||
| Eliminated on disposal | (1,229) | - | - | - | - | - | (1,229) | ||||||
| At 1 October 2023 | 12,749 | 138 | 3,543 | 5,942 | - | 1,598 | 23,970 | ||||||
| Charge for the period | 1,225 | 19 | 618 | 689 | - | 141 | 2,692 | ||||||
| Eliminated on disposal | - | - | - | - | - | - | - | ||||||
| At 31 March 2024 | 13,974 | 157 | 4,161 | 6,631 | - | 1,739 | 26,662 | ||||||
| Carrying amount | |||||||||||||
| At 2 April 2023 | 25,764 | 2,294 | 13,882 | 4,068 | 2,960 | 752 | 49,720 | ||||||
| At 1 October 2023 | 24,873 | 2,156 | 17,708 | 4,192 | 597 | 744 | 50,270 | ||||||
| At 31 March 2024 | 24,728 | 2,137 | 17,196 | 3,757 | 1,621 | 627 | 50,066 |
8 Trade and other receivables
| 31 March 2024 | 2 April 2023 | 1 October 2023 | |||
| Unaudited | Unaudited | Audited | |||
| £ 000 | £ 000 | £ 000 | |||
| Trade receivables | 111 | 126 | 154 | ||
| Prepayments | 719 | 626 | 946 | ||
| Other debtors | 1,183 | 1,045 | 1,136 | ||
| 2,013 | 1,797 | 2,236 |
All of the trade receivables were non-interest bearing, receivable under normal commercial terms, and the Directors do not consider there to be any material expected credit loss. The Directors consider that the carrying value of trade and other receivables approximates to their fair value.
9 Trade and other payables
| 31 March 2024 | 2 April 2023 | 1 October 2023 | |||
| Unaudited | Unaudited | Audited | |||
| £ 000 | £ 000 | £ 000 | |||
| Trade payables | 1,445 | 1,267 | 3,107 | ||
| Accrued expenses | 4,023 | 3,664 | 4,205 | ||
| Social security and other taxes | 950 | 914 | 1,400 | ||
| Other payables | 1,738 | 1,603 | 1,377 | ||
| 8,156 | 7,448 | 10,089 |
10 Loans and borrowings
| 31 March 2024 | 2 April 2023 | 1 October 2023 | |||
| Unaudited | Unaudited | Audited | |||
| £ 000 | £ 000 | £ 000 | |||
| Current borrowings | |||||
| Borrowings from related parties | 3,018 | 3,006 | 13,511 | ||
| Lease liabilities | 3,483 | 3,003 | 3,291 | ||
| 6,501 | 6,009 | 16,802 | |||
| 31 March 2024 | 2 April 2023 | 1 October 2023 | |||
| Unaudited | Unaudited | Audited | |||
| £ 000 | £ 000 | £ 000 | |||
| Non-current interest bearing loans and borrowings | |||||
| Borrowings from related parties | - | 9,908 | - | ||
| Lease liabilities | 27,763 | 29,289 | 28,049 | ||
| 27,763 | 39,197 | 28,049 |
10 Loans and borrowings (continued)
Borrowings from related parties classed as payable within 12 months includes one deep discounted bond instrument issued by VEL Property Holdings Limited until 1 October 2023 where the non-current deep discounted bond issued by Various Eateries Trading Limited was reclassed to current.
The deep discounted bond instrument issued by VEL Property Holdings Limited was rolled in 2023 with a new redemption date of 14 July 2023. In July 2023 the deep discounted bond was rolled with a new redemption date of 14 January 2024; and was rolled again in January 2024 with a new redemption date of 14 July 2024. The nominal value at 1 October 2023 and 31 March 2024 is £2,902,000. The discount is recognised on a straight-line basis between subscription and redemption date, resulting in £51,000 of accrued financing costs as at the reporting date.
The deep discounted bond instrument issued by Various Eateries Trading Limited was rolled for 12 months in February 2023 with a redemption date of April 2024. The nominal value at 1 October 2023 is £10,001,000 and at 31 March 2024 is £nil as the loan was repaid in full through proceeds of a share issue in December 2023.
11 Share based payments
As at 31 March 2024, the Group maintained one separate share based payment scheme for employee remuneration (2023: two):
· Various Eateries Company Share Option Plan ("CSOP")
In accordance with IFRS 2 "Share-based Payment", the value of the awards is measured at fair value at the date of the grant. The fair value is expensed on a straight-line basis over the vesting period, based on management's estimate of the number of shares that will eventually vest. A charge of £139,000 (2023: £51,000) has been recognised in the income statement by the Group in the 26 week period ended 31 March 2024.
During the period, 13,483,180 options were granted into the CSOP scheme to certain directors and PDMRs of the Company. 7,517,816 options were cancelled.
12 EBITDA Reconciliation
| 26 weeks ended 31 March 2024 | 26 weeks ended 2 April 2023 | 52 weeks ended 1 October 2023 | |||
| Unaudited | Unaudited | Unaudited | |||
| £ 000 | £ 000 | £ 000 | |||
| Revenue | 22,676 | 20,578 | 45,495 | ||
| Loss before tax | (3,863) | (4,300) | (6,677) | ||
| Net financing costs | 1,462 | 1,085 | 2,470 | ||
| Impairment | - | - | - | ||
| Depreciation and amortisation | 2,723 | 2,638 | 5,571 | ||
| Gain on early surrender of lease | - | - | (899) | ||
| Loss on disposal of property, plant and equipment | - | 37 | 37 | ||
| Authorised Guarantee Agreements provision | - | - | - | ||
| EBITDA before exceptional costs | 322 | (540) | 502 | ||
| Pre-opening costs | 203 | 460 | 886 | ||
| Share-based payments | 139 | 51 | 69 | ||
| Non-trading sites | - | - | (27) | ||
| Exceptional costs | 6 | - | 126 | ||
| Adjusted EBITDA (IFRS 16) | 670 | (29) | 1,556 | ||
| Adjustment for rent expense | (1,910) | (1,853) | (3,745) | ||
| Adjusted EBITDA before impact of IFRS 16 | (1,240) | (1,882) | (2,189) |
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