RNS Number:1441Q
Coliseum Group Plc
25 September 2003
25 September 2003
COLISEUM GROUP PLC
Interim Results for the six months ended 30 June 2003
Coliseum Group plc ("Coliseum"), the owner and operator of The Sports Cafe
Group, announces unaudited interim results for the six months ended 30 June
2003.
Key Points
* Turnover increased 17% to #3,894,000 (2002: #3,329,000)
* EBITDA increased to #250,000 (2002: loss of #63,000)
* Improved operational gearing demonstrated by Trading EBITDA 40% higher
at #733,000
* In eighth year of operation, London Sports Cafe EBITDA increased 10%
reflecting improved operational controls and longevity of Sports Cafe brand
* Birmingham Sports Cafe exceeded budget in spite of local competitive
environment
* Newest operating venue, Manchester Sports Cafe, exceeded management
expectations with continued growth throughout the period
* New #5.8 million banking facility agreed to fund roll-out of next five
units, all currently at various stages of development;
o Glasgow, construction underway, anticipated to open in March 2004
o Rebuilding work at Newcastle scheduled to commence later this year
o Entertainment license successfully secured at Cardiff
o Landlord works expected to begin shortly at Liverpool and Leeds
Commenting on Coliseum's results and prospects, Ian Lenagan, Chairman, said:
"Our existing venues continue to generate a tremendous level of business and we
are confident about trading for the final quarter. Bank facilities are now in
place to fund the next five units and I believe Coliseum is set to benefit as
the roll-out strategy continues."
Enquiries:
Coliseum Group plc Tel: 0207 399 4260
William Balkou, Chief Executive
Roger Sargent, Finance Director
Buchanan Communications Tel: 020 7466 5000
Charles Ryland
Catherine Miles
CHAIRMAN'S STATEMENT
Unaudited interim results for the six months ended 30 June 2003
For the six months ended 30 June 2003, turnover increased by 17% to #3,894,000
(2002: #3,329,000). This is particularly encouraging as the 2002 comparative
period includes the positive effect of the Football World Cup. Overall sales
have exceeded budget each month during the period except one which, given the
general malaise in the sector, is a fine achievement.
Coliseum's earnings before interest, tax, depreciation and amortisation (EBITDA)
in the six months ended 30 June 2003 increased substantially to #250,000 (2002 :
a loss of #63,000). The pre amortisation operating loss was 72% better at
#109,000, (2002 : a loss of #391,000 ). The loss before tax (LBT) of #451,000
was 26% better than last year (2002: LBT #612,000).
Trading EBITDA (EBITDA before head office costs) was 40% higher at #733,000
(2002: #524,000). It is particularly pleasing to see the positive effects of
improved operational gearing beginning to take effect, despite having received a
contribution from only one additional venue - Manchester - during the period.
This gearing effect will continue to improve as more venues are opened, with the
profit and cash generated having a direct and significant effect on Coliseum's
financial performance.
Head office costs for the period are significantly lower at #483,000 (2002:
#587,000), an 18% reduction. This is due to an on going cost cutting exercise.
Overheads will be reduced still further as the entire head office function is
being moved above The London Sports Cafe venue in Haymarket during October 2003,
resulting in savings on rent and other costs.
At 30 June 2003, Coliseum had net assets of #13.1 million (2002 : #14.1
million). Short-term borrowings were unchanged at #0.7 million and long-term
loans were #3.25 million (2002: #1.4 million). Gearing, calculated as long-term
debt over net assets, was 25% (2002 : 10%). Long-term debt has increased due to
a mortgage taken out to fund the purchase of the 125-year leasehold of The
Birmingham Sports Cafe.
Operations
Like-for-like sales in The London Sports Cafe were down 2% on the prior year,
this slight reduction being due to the positive impact of the Football World Cup
in June 2002. Removing the effect of last year's Football World Cup,
like-for-like sales were up 8% on 2002 (which were themselves up 12% on the
prior year). Improved operating controls meant that EBITDA was up 10% on prior
year, which is a strong performance for a venue entering its eighth year of
operation and demonstrates the longevity of the brand. A new air conditioning
unit is currently being fitted, and will be operational for the start of the
Rugby World Cup in October.
The sponsorship deal with leading betting exchange Betfair is now in place, with
their screens and terminals providing customers in London with sports
information, adding a new dimension to the action they are watching. These
facilities will be rolled out shortly to the Manchester and Birmingham sites.
The well-documented level of competition on Broad Street, Birmingham,
illustrated by the recently announced decision by Urbium to close their 2,000
capacity Tiger Tiger venue, together with the effect of last years Football
World Cup has meant that The Birmingham Sports Cafe sales were below prior year.
It is encouraging that despite the lower turnover, the venue's EBITDA margin has
been almost maintained. Notwithstanding lower sales, Birmingham's performance
has exceeded the budget and is a reflection of management's reaction to the
competitive environment in which it operates.
The 19,000 square foot Manchester Sports Cafe in Quay Street, which has a
capacity of 1,750 people, opened on 27 November 2002 and has exceeded management
expectations. Turnover grew progressively throughout the period; weekly sales
for the second three months of the year being 24% higher than the first three
months. The Manchester venue has quickly established itself as a major
destination venue for sports fans and weekend revellers and will continue to
build on this initial success.
New venues
We have recently agreed a new #5.8 million facility with Barclays Bank that will
be used to fund the roll out of our five new units, commencing with The Glasgow
Sports Cafe.
Glasgow
As we recently announced, we have acquired a 25 year lease for The Glasgow
Sports Cafe in Sauchiehall Street. The 18,000 square foot venue is situated in
an ideal location on the site of an old circus, within the centre of the Glasgow
entertainment circuit. Many of the major national bar and club brands are
located near this prime area. The venue will have a capacity of 1,600 people,
with five bars, 12 pool tables, large dance area and over 100 TV and plasma
screens spread over two floors. Construction and fit out are now well under way,
and it is anticipated that the venue will open in March 2004.
Newcastle
Negotiations are continuing with the landlord, the council, lawyers and loss
adjusters on the Grainger Street site. The landlord's insurance company has
accepted liability for the damage and rebuilding work at the site. It is
anticipated that work will commence in November. The protracted and complex
negotiations will mean a further delay to the opening date, which is now
expected to be Autumn 2004.
Other venues
Following the receipt of planning permission for The Cardiff Sports Cafe, we
successfully applied for an entertainment licence earlier this month. Landlord
works will commence next month, with the opening expected in Summer 2004.
Landlord works are expected to start shortly on The Liverpool Sports Cafe, which
is situated in Sir Thomas Street. Handover of the unit in shell condition is
expected to be by December 2003. The expected opening date is Summer 2004.
Landlord works are also expected to start shortly on The Leeds Sports Cafe,
which is situated in The Headrow. We hope to receive handover on the unit in
shell condition by January 2004. The opening date is expected to be Summer 2004.
Titan Food and Drinks
Titan, a 90% owned subsidiary of Coliseum, supplies branded ready meal products
to 120 Waitrose, Spar and, since May 2003, BP Express and Connect stores. In the
six months ended 30 June 2003, turnover was up 76% to #109,000 (2002 : #62,000)
with a 19% reduced loss of #26,000 (2002 : loss #32,000).
Current trading and prospects
Trading in the 13 weeks ended 21 September, traditionally the quietest period of
the Sports Cafe year, has been satisfactory with like for like sales, relating
to the London and Birmingham venues, up 1% on the prior year. This is
particularly pleasing given the record breaking temperatures experienced during
the period which have encouraged outdoor activities.
The Rugby World Cup will be a major event for The Sports Cafe during October and
November 2003. As previously announced, permission to open for 24 hours a day
during the tournament was received earlier this year, a first in British
licensing. Many advance bookings for the corporate packages have already been
received, and we anticipate significant levels of business and media interest
throughout the tournament, which starts on 10th October. The advance issue and
promotion of the Christmas menu has also resulted in corporate bookings already
being received.
The recent announcement that BSkyB has won the exclusive rights to broadcast
Premiership football from 2004 until 2007 is an additional boost, as attendances
in Sports Cafe's tend to be higher when a football match is not covered by
terrestrial television.
Outlook
The flagship London Sports Cafe continues to generate a tremendous level of
business, Manchester's launch and subsequent trading has exceeded our
expectations, and Birmingham continues to perform well within its competitive
market place.
Bank facilities have now been secured to fund the roll-out plan for the next
five units. The Glasgow venue, which is currently under construction, is
expected to be one of our most successful sites. The other new venues in
Cardiff, Newcastle, Leeds and Liverpool continue to progress and are all
expected to open in 2004.
Trading for the final quarter of the year is expected to be strong and Coliseum
is ideally placed to benefit financially and operationally as the roll out
strategy continues.
Ian F Lenagan
Chairman
25th September 2003
Unaudited Consolidated Profit and Loss account for the 6 months ending
30 June 2003
6 months ended 6 months ended
30 June 2003 30 June 2002
#'000 #'000
Turnover 3,894 3,329
Cost of sales (1,105) (949)
_______ _______
Gross profit 2,789 2,380
Administrative expenses (3,136) (3,009)
_______ _______
Operating (loss)/profit (347) (629)
Interest receivable - 62
Interest payable (104) (45)
_______ _______
(Loss)/profit on ordinary activities before (451) (612)
taxation
Tax on profit on ordinary activities - -
_______ _______
(Loss)/profit on ordinary activities after (451) (612)
taxation
Minority interest 3 3
_______ _______
Retained (loss)/profit for the period (448) (609)
Retained profit/(loss) b/f (851) 189
_______ _______
Retained (loss)/profit c/f (1,299) (420)
There were no other recognised gains or losses other than in the loss for the
period.
Unaudited Consolidated Balance Sheet at 30 June 2003
30 June 2003 30 June 2002
#'000 #'000
Fixed assets
Intangible assets 8,815 9,291
Tangible assets 8,248 4,532
_______ _______
17,063 13,823
Current assets
Stock 104 95
Debtors 1,006 564
Cash 726 3,354
_______ _______
1,836 4,013
Creditors - amounts falling due within one (1,996) (1,637)
year
_______ _______
Net current assets (160) 2,376
_______ _______
Total assets less current liabilities 16,903 16,199
Creditors - amounts falling due after one year
Loans (3,250) (1,400)
Deferred rent (308) (400)
_______ _______
(3,558) (1,800)
Provisions for liabilities and charges (238) (302)
_______ _______
13,107 14,097
Capital and reserves
Called up share capital 1,933 1,933
Share premium 5,289 5,393
Merger reserve 7,200 7,200
Profit and loss reserve (1,299) (420)
Equity shareholders funds 13,123 14,106
Equity minority interests (16) (9)
13,107 14,097
Unaudited Consolidated Cashflow for the 6 months ended 30 June 2003
6 months ended 6 months ended
30 June 2003 30 June 2002
#'000 #'000
Net cash inflow/(outflow) from operating 685 146
activities
(see note)
Returns on investment and servicing of
finance
Interest received - 62
Interest paid (104) (45)
_______ _______
(104) 17
_______ _______
Cash inflow/(outflow) before financing 581 163
Capital expenditure and financial investment (286) (384)
Management of liquid resources - 334
Financing
Drawdown/(Repayment) of loans (150)
Capital element of finance lease repayment (30) (12)
_______ _______
(30) (162)
_______ _______
_______ _______
Increase/(Decrease) in cash in the period 265 (49)
_______ _______
Reconciliation of net cash flow to movement in
net funds
Increase/(decrease) in cash in the period 265 (49)
Cash used to (decrease)/increase liquid - (334)
resources
Cash outflow from decrease in debt and lease - 150
financing
Capital element of finance lease repayment 30 12
Change in net funds resulting from cash 295 (221)
flows _______ _______
Net funds at the start of the period (3,543) 1,485
_______ _______
Net funds at the end of the period (3,248) 1,264
_______ _______
Unaudited Consolidated Cashflow Note
for the 6 months ending 30 June 2003
6 months ended 6 months ended
30 June 2003 31 Dec 2002
#'000 #'000
Reconciliation of operating (loss)/profit to
operating cashflow
Operating (loss)/profit (347) (629)
Depreciation and amortisation 598 566
Decrease/(Increase) in stocks 20 27
Decrease/(Increase) in debtors 769 584
(Decrease) in creditors (355) (402)
_______ _______
Net cash inflow/(outflow) from operating 685 146
activities
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