RNS Number:0399I
Urbium PLC
27 February 2003
Embargoed until 0700 27 February 2003
Urbium PLC
("Urbium" or the "Group")
Preliminary Results for the year ended 31 December 2002
Highlights
Continuing businesses before exceptional costs and amortisation of
intangible assets
- Turnover up 38% to #59.9 million (2001: #43.4 million)
- Operating profit up 32% to #10.3 million (2001: #7.8 million)
- Adjusted earnings per share on continuing businesses up 21%
to 1.21 pence
> Profit before tax up by 139% to #4.3 million (2001: #1.8 million)
> Basic earnings per share 0.23 pence (2001: Loss per share 0.56
pence)
> Strong December and second half performance helped deliver Group
result for the year in line with expectations in substantially more
difficult trading environment
> Three new large format Tiger Tigers opened in Croydon, Glasgow and
Newcastle and trading is ahead of expectations
> Successful implementation of new management initiatives to combat
trading environment increased sales and improved cost efficiencies
> Strong performance from core estate in London's West End despite
slowdown in market. Total late night licensed market share for
Urbium's sixteen West End Bar Nightclubs now estimated at 15%
> Group's financial position remains robust and Urbium continues to
trade well within its banking covenants
> Clear strategy for growth
- Further large capacity Tiger Tigers in UK major population
centres together with smaller Tiger Tiger formats in
secondary markets
- Further expansion of the London estate in West End, the City
and key London suburban markets
John Conlan, Chairman said: "Our relatively strong performance
last year against challenging conditions is mainly due to the
strategic positioning of the businesses which has secured a
competitive edge through a well differentiated operating format.
We focus mainly on an older, more affluent and less crowded market
where we can generally compete on service and quality rather than
on price discounting. Our unique combination of bar, restaurant
and nightclub, usually trading all day and late night, is ideally
suited for this more discerning market.
"Our banking facilities consist of a #50 million medium term
facility and a #5 million overdraft facility. At the end of 2002,
#23 million of these facilities were undrawn and uncommitted. The
Group has traded and continues to trade comfortably within all its
banking covenants. This combined with the strong and growing cash
flow from existing businesses puts Urbium in a secure financial
position. Additionally over the past six months we have been
deliberately conserving our resources and maintaining maximum
flexibility in our future development commitments until we
consider that property and business values fully reflect the
degree of downturn in the sector and until the current general
uncertainty in the economy has eased. This revised strategy will
result in a significant reduction in debt in 2003 and put Urbium
in a strong financial position to take advantage of the many
development and acquisition opportunities which we are confident
will be available in the future.
"We expected that market conditions for 2003 would continue to be
difficult and trading during January and February, the lowest
trading period for the year, has confirmed our caution. We have
taken advantage of this traditionally quieter period to carry out
a number of reinvestment projects, such as the refurbishment of
Tiger Tiger London, which inevitably results in some business
disruption.
"The leisure retail market generally appears to have been slower
to recover from the traditional New Year lows than in previous
years but given the low levels of activity during this period, it
is too early yet to gauge trends for the year as a whole. The
Board continues to be confident about the long term prospects for
Urbium."
An analyst meeting will be held at 0930 today at the offices of
Weber Shandwick Square Mile, Fox Court, 14 Gray's Inn Road,
London, WC1X 8WS.
Enquiries:
URBIUM PLC
John Conlan, Chairman (27 February) 020 7067 0700
Robert Cohen, Managing Director (Thereafter) 020 7434 0030
Steven Palmer, Finance Director
WEBER SHANDWICK SQUARE MILE 020 7067 0732
Becky Haywood
27 February 2003
Urbium PLC
("Urbium" or the "Group")
Preliminary Results for the year ended 31 December 2002
Chairman's Statement
Introduction
I am pleased to announce Urbium's first full year results as an
independently quoted Company. Urbium, the former bar nightclub
business of Chorion PLC, was formed following the demerger of the
Intellectual Property business and was admitted to AIM on 17 May
2002.
We are required to report Urbium's results for the full year to 31
December 2002, together with the 20 week results to 17 May 2002 of
the Chorion businesses which were demerged. The demerged
activities are reported under discontinued operations.
This commentary on the year's results focuses only on Urbium's
continuing operations, the bar nightclub businesses. I am
delighted to report that this business has enjoyed another
successful year and that the strong rate of growth achieved since
the business was established five years ago has continued.
Turnover for the period increased by 38% to #59.9 million (2001:
#43.4 million) with operating profit from continuing operations,
before amortisation of intangible assets and exceptional costs,
increasing by 32% to #10.3 million (2001:#7.8 million).
The reported results for the year include a #3.9 million
exceptional cost relating to the total cost of effecting the
demerger. The net interest charge for the period of #1.2 million
relates to the borrowing costs on the total debt used to establish
both the bar nightclub business and the demerged intellectual
property business, except for #5 million repaid to Urbium on
demerger. Profit before tax increased to #4.3 million, an
increase of 139%. Adjusted earnings per share from the continuing
operations, before exceptional costs and amortisation of
intangible assets, increased by 21% to 1.21 pence whilst the basic
earnings per share of 0.23 pence per share compares favourably to
a loss of 0.56 pence in 2001.
As signalled in the demerger documentation, no dividend is being
proposed for 2002. In view of the Group's robust trading
performance and strong cash flow the Directors will consider
declaring a maiden dividend with the preliminary results for 2003.
For Urbium 2002 has been a busy and rewarding year in which a
number of important corporate strategic landmarks were reached.
Chief among these were the complex demerger of the Intellectual
Property business and the final elimination of the remaining and
onerous Trocadero liabilities. These complex and lengthy
transactions have finally delivered an unencumbered, vibrant and
well managed bar nightclub business that has traded well in 2002
and which, I believe, has significant future potential and value.
Business Review
That potential is clearly demonstrated in the fine performance for
2002. Our businesses and markets are not immune to the well
documented downturn in general leisure retail spending over the
past year or so. Our relatively strong performance last year in
those challenging conditions is mainly due to the strategic
positioning of the businesses which has secured a competitive edge
through a well differentiated operating format. We focus mainly
on an older, more affluent and less crowded market where we can
generally compete on service and quality rather than on price
discounting. Our unique combination of bar, restaurant and
nightclub, usually trading all day and late night, is ideally
suited for this more discerning market.
A significant factor contributing to the relatively strong 2002
performance was management's recognition early in the year of a
further tightening in leisure consumer spending and the
implementation of specific initiatives to improve profits in the
seasonally much more important second half of the year. These
initiatives were mainly directed towards competing aggressively
for additional sales during our peak demand periods, especially in
December, and to driving cost efficiencies throughout the business
without compromising service standards.
The success of these initiatives led to a very satisfactory second
half performance with total sales up by 33% on the previous year
and like for like sales in comparable businesses up by 1%. This
result was a significant improvement on first half trading
patterns with both London and the provinces performing more
strongly. The December trading period was a particular success.
Total net sales for the four weeks ending 31 December increased by
37% to #9.8 million, with like for like sales for comparable
December trading businesses up by 3.4% on the previous year's
record result.
This robust performance in a tougher market was achieved mainly
through one of the business's key strengths - its ability to
provide restaurant and party catering services to a high standard
and in volume during periods of peak demand. This strong December
result was delivered despite indifferent trading in London on the
traditionally strong New Year's Eve. We, together with other
London operators, were disappointed with the lack of any
substantial organised New Year's Eve celebrations in Central
London and the active encouragement by various authorities to stay
out of the West End on that night. Overall a rather poor
reflection on the capital city.
The Board's strategic plan for growth has been tightly focused on
developing our two prime assets, the Tiger Tiger brand and our
unique position in London's West End. In 2002 significant value
has been added to both of these assets.
Tiger Tiger
Tiger Tiger is our own creation and lead development brand. This
highly individual fusion of bar, restaurant and nightclub is now
firmly established as a highly regarded and recognised national
brand. It achieves trade and consumer recognition well beyond
what would normally be afforded to a business that still trades
from just eight locations in the UK.
Three Tiger Tigers opened to significant success in 2002 and after
absorbing the substantial pre-opening and launch costs of these
large businesses, they made a good initial part year contribution
to profits. All three are expected to make a significant
contribution in 2003. Croydon opened in March 2002 and made a
major contribution to profits in the second half. Glasgow opened
in August 2002 and by the year end was firmly established.
Newcastle, which opened in mid November, has since traded ahead of
our expectations and is showing all the hallmarks of developing
into another large and successful business.
It is not unusual for large, well invested new developments in our
sector to perform strongly in their first year following opening
but it has often proved to be more challenging to maintain or grow
profits thereafter. With the exception of Birmingham, which was
our first regional Tiger Tiger, we have been able to maintain
growth in subsequent years. As the businesses mature and become
more established in their individual locations, management have
been able to grow the business, particularly corporate, restaurant
and function bookings, in their second and subsequent years
following opening. Portsmouth and Leeds, which opened in 2001,
recorded solid growth in the second half of 2002 and Manchester,
which opened in 2000, achieved its best profit to date in 2002.
In 2002, in its fourth full year of trading, the original Tiger
Tiger in London's Haymarket recorded profits ahead of 2001.
With each new opening we continue to develop the brand and range
of facilities. We have recently taken the opportunity to retro-
fit part of the Birmingham Tiger Tiger using some of the design
and layout modifications used in recent successful openings.
These modifications are designed to improve Birmingham's profit
contribution in 2003. Similarly, at Tiger Tiger Haymarket, now in
its fifth trading year, in February 2003 we completed, at a modest
cost compared to the original investment, a design refit of a
substantial part of the unit in order to help maintain the
unprecedented profit contribution from this remarkable business.
These smaller additional investments are being made in order to
maintain, and enhance where possible, the brand values, quality
and performance of the Tiger Tiger business, which is one of
Urbium's principal assets.
London
London is by far the largest leisure and hospitality market in the
UK and has characteristics which are particularly attractive to
us. Our customer base is predominantly drawn from those who work
and live in and around London and our dependence on the less
reliable tourist market is minimal. Compared to elsewhere, a
significant level of business is available all day and all week.
Also, in this affluent market price discounting is quite limited
and higher gross margins can be achieved. Our significant
presence in London's West End is very valuable and, with current
licensing restrictions, would be a difficult asset to replicate.
Urbium now trades from 16 individual venues with capacities
ranging from 200 in some smaller bar concepts to 1,770 at Tiger
Tiger. It is estimated that we now control approximately 15% of
the late night licensed capacity in our area of trade in the West
End.
Set against the background of the well publicised downturn in
leisure and hospitality demand in London, we are very pleased with
the strong performance of Urbium's businesses in the capital in
2002. As early as February 2001, we noted a discernable
downturn in demand in our City related corporate and party
business. That trend has continued in 2002. However, in the
second half of the year in particular, revenue levels stabilised
as we have been able to increase our market share partly through
various web based marketing initiatives with our
latenightlondon.co.uk website and its dedicated sales team.
Late Night London's dedicated database of over 100,000 registered
users in the much coveted demographic of 22-30 year old affluent
professionals living and working in and around London has proved
to be a powerful tool for sustaining and building customer traffic
through our wide choice of venues and facilities.
During the second half of 2002 two further units were added to the
West End portfolio. A small capacity unit in Greek Street, was
acquired, closed, redeveloped and now trades as The Soho. The 680
capacity former Rock venue on the Embankment was acquired and
relaunched as Motion. Together these new venues are expected to
make a useful contribution to profits in 2003.
During the second half Red Cube, the restaurant led bar acquired
in June 2001, was successfully repositioned at low cost as a more
conventional Urbium bar nightclub. The other restaurant led bar,
the high profile Sugar Reef unit also acquired in June 2001, made
a very useful contribution to profits particularly in the second
half. However, this business has yet to achieve our expected
return on investment as its performance has been curtailed due to
the downturn in restaurant demand from corporate and City clients.
We are evaluating a range of operating modifications to improve
future performance similar to those successfully implemented at
Red Cube.
Elsewhere in the West End, many of our established businesses such
as The Loop, The Langley, Oxygen, On Anon, Digress, Sway and
Babble traded strongly reporting profits ahead of the previous
year.
With the interim results in September we announced our first
business in the City of London, the 750 capacity Digress that
opened at the CityPoint development in Ropemaker Street in late
November. Although trading only during normal licensing hours to
11pm and mainly Monday to Friday, we were very pleased with the
high level of sales achieved during the five weeks to the end of
2002 and since. The unit's performance to date suggests that our
contemporary and stylish brand offering is being well received by
the City market. We believe that considerable further growth
potential exists in this large market. The current well
publicised downturn in the City provides us with a window of
opportunity to secure other suitable properties at rental levels
appropriate for our business and in which we can achieve our
target return rates in the short term and significant out-
performance when City confidence is again restored.
Overall in London Urbium has enjoyed a robust performance in 2002.
In our experience London is the most resilient market in a period
of extended consumer downturn and the most lucrative when demand
is strong. It's a market in which Urbium's management has
particular experience and operational knowledge. By continuing to
develop a strong presence in this unique market, the Directors are
confident that a very valuable asset for shareholders has already
been created.
Future Growth Strategy
Urbium will continue to build on its core strengths and prime
assets with a strategy focused on three key objectives.
Firstly, we will continue to develop our successful lead brand,
the large capacity Tiger Tigers, in primary population centres in
the UK where there is still considerable potential for development
over the next three years. For the foreseeable future our only
Tiger Tiger development outside of the UK will be restricted to
the very attractive Dublin market. We expect to open in Dublin in
early 2004.
Secondly, as referred to in the last Interim Statement, we also
plan to launch a smaller capacity adaptation of the Tiger Tiger
format which will still retain the unique mix of bar, restaurant
and nightclub which is the hallmark of the brand. This will
provide us with a major opportunity to exploit the brand in a wide
range of smaller UK markets.
Finally, although the national roll out of the Tiger Tiger brand
is rapidly reducing our historic reliance on London, we will
continue to expand our presence, both in our West End heartland
and beyond. We will build on our West End strength, mainly
through acquisition, as and when suitable opportunities at the
right price are identified. Additionally, building on our
successful experience at Croydon in South London, we plan to
establish our contemporary operating formats in affluent London
suburbs and in major markets around the M25. Also, as discussed
above, will seek to secure a greater share of the attractive City
of London market.
Our banking facilities consist of a #50 million medium term
facility and a #5 million overdraft facility. At the end of 2002,
#23 million of these facilities were undrawn and uncommitted. The
Group has traded and continues to trade comfortably within all its
banking covenants. This combined with the strong and growing cash
flow from existing businesses puts Urbium in a secure financial
position. Additionally over the past six months we have been
deliberately conserving our resources and maintaining maximum
flexibility in our future development commitments until we
consider that property and business values fully reflect the
degree of downturn in the sector and until the current general
uncertainty in the economy has eased. This revised strategy will
result in a significant reduction in debt in 2003 and put Urbium
in a strong financial position to take advantage of the many
development and acquisition opportunities which we are confident
will be available in the future.
People
Shareholders I know will join me in expressing our thanks and
congratulations to my fellow executive Directors, Robert Cohen and
Steven Palmer, together with the management team and staff who
have worked so hard to deliver such a good 2002 result in
challenging market conditions. These people are our best assets
and I can assure shareholders that they are fully focused and
determined to deliver outperformance in 2003.
Outlook
As in the past, a significant element of Urbium's annual growth
stems from the full year benefit of developments carried out in
the previous year. Eight new businesses were added in 2002
including three large capacity Tiger Tigers. A substantial full
year growth benefit is expected from these in 2003.
We expected that market conditions for 2003 would continue to be
difficult and trading during January and February, the lowest
trading period for the year, has confirmed our caution. We have
taken advantage of this traditionally quieter period to carry out
a number of reinvestment projects, such as the refurbishment of
Tiger Tiger London, which inevitably results in some business
disruption.
The leisure retail market generally appears to have been slower to
recover from the traditional New Year lows than in previous years
but given the low levels of activity during this period, it is too
early yet to gauge trends for the year as a whole. The Board
continues to be confident about the long term prospects for
Urbium.
John Conlan
CHAIRMAN 26 February
2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2002
Restated
Year to Year to
31 December 31 December
2002 2001
Notes #'000 #'000
_______________________________________________________________________________________
Turnover 2
Continuing operations:
Ongoing 57,919 43,383
Acquisitions 2,006 -
_______________________________________________________________________________________
59,925 43,383
_______________________________________________________________________________________
Discontinued operations 2,818 10,167
_______________________________________________________________________________________
62,743 53,550
Cost of sales (12,461) (8,920)
_______________________________________________________________________________________
Gross profit 50,282 44,630
Net operating expenses (44,782) (43,042)
Operating profit
Continuing operations:
Ongoing before amortisation 10,239 7,819
Acquisitions before amortisation 63 -
Amortisation of intangibles (1,157) (853)
Exceptional demerger costs 3 (3,869) -
_______________________________________________________________________________________
5,276 6,966
_______________________________________________________________________________________
Discontinued operations:
Discontinued before amortisation 477 5,220
Amortisation of intangibles (253) (443)
Exceptional costs 3 - (10,155)
_______________________________________________________________________________________
224 (5,378)
_______________________________________________________________________________________
Group operating profit 5,500 1,588
Interest payable (1,274) (285)
Interest receivable and similar
income 32 472
_______________________________________________________________________________________
Profit on ordinary activities
before taxation 4,258 1,775
Tax on profit on ordinary
activities 4 (2,979) (3,926)
_______________________________________________________________________________________
Profit/(loss) on ordinary
activities after taxation 1,279 (2,151)
Equity minority interests (105) (757)
_______________________________________________________________________________________
Profit/(loss) for the financial
year 1,174 (2,908)
Ordinary dividend 5 - (1,811)
_______________________________________________________________________________________
Retained profit/(loss) for the
financial year 1,174 (4,719)
_______________________________________________________________________________________
Earnings/(losses) per share 6
Basic 0.23p (0.56p)
Diluted 0.22p (0.56p)
Adjusted 1.25p 1.65p
Adjusted continuing operations 1.21p 1.00p
CONSOLIDATED BALANCE SHEET
at 31 December 2002
Restated
2002 2001
#'000 #'000
_______________________________________________________________________________________
Fixed assets
Intangible fixed assets 17,608 46,290
Tangible fixed assets 46,177 35,956
Film and TV investments - 14,984
_______________________________________________________________________________________
63,785 97,230
_______________________________________________________________________________________
Current assets
Stocks 1,403 849
Debtors due within one year 4,422 12,741
Debtors due after more than one year 1,184 2,525
Cash at bank and in hand 2,450 2,267
_______________________________________________________________________________________
9,459 18,382
Creditors: amounts falling due (12,248) (25,686)
_______________________________________________________________________________________
within one year
Net current liabilities (2,789) (7,304)
_______________________________________________________________________________________
Total assets less current 60,996 89,926
liabilities
Creditors: amounts falling due after more
than one year (32,000) (15,646)
Provisions for liabilities and charges (3,611) (1,395)
_______________________________________________________________________________________
Net assets 25,385 72,885
_______________________________________________________________________________________
Capital and reserves
Called up share capital 5,175 5,173
Share premium - 30,038
Merger reserve - 9,234
Other reserve 13,529 -
Capital redemption reserve - 15,050
Profit and loss account 6,681 5,507
_______________________________________________________________________________________
20,210 59,829
_______________________________________________________________________________________
Equity shareholders' funds 25,385 65,002
Equity minority interests - 7,883
_______________________________________________________________________________________
25,385 72,885
_______________________________________________________________________________________
STATEMENT OF TOTAL GROUP RECOGNISED GAINS AND LOSSES
for the year ended 31 December 2002
Restated
2002 2001
#'000 #'000
_______________________________________________________________________________________
Profit/(loss) for the financial year 1,174 (2,908)
Prior year adjustment 253 -
_______________________________________________________________________________________
Total recognised gains and losses since previous financial
statements 1,427 (2,908)
_______________________________________________________________________________________
The cumulative impact of the prior year adjustment on opening reserves
as at 1 January 2002 is #253,000.
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
for the year ended 31 December 2002
Restated
2002 2001
#'000 #'000
___________________________________________________________________________
Profit/(loss) for the financial year 1,174 (2,908)
Ordinary dividend - (1,811)
___________________________________________________________________________
Retained profit/(loss) for the financial year 1,174 (4,719)
Issue of ordinary shares 30 10
Demerger of Intellectual Property business (40,821) -
___________________________________________________________________________
Net reduction to shareholders' funds (39,617) (4,709)
___________________________________________________________________________
At 1 January as previously stated 65,002 67,507
Prior year adjustment - 2,204
___________________________________________________________________________
At 1 January as restated 65,002 69,711
___________________________________________________________________________
At 31 December 25,385 65,002
___________________________________________________________________________
CONSOLIDATED GROUP CASH FLOW STATEMENT
at 31 December 2002
2002 2001
Notes #'000 #'000
_____________________________________________________________________________________
Net cash inflow from operating 7 3,832 12,542
activities
_____________________________________________________________________________________
Net cash outflow from returns on
investments and servicing of finance
Interest received 14 472
Dividends paid to minority
shareholders - (713)
Interest paid (1,290) (285)
_____________________________________________________________________________________
(1,276) (526)
Taxation (958) (1,633)
Net cash outflow from capital
expenditure and financial investment
Purchase of tangible fixed assets (13,703) (10,247)
Proceeds from disposal of tangible
fixed assets 33 10
Purchase of intangible assets (160) (7,023)
Investment in films and TV (382) (5,314)
_____________________________________________________________________________________
(14,212) (22,574)
Net cash outflow from acquisitions and
disposals
Acquisition of bar nightclubs (4,942) (11,013)
Acquisition of intangible assets - (5,294)
Net cash acquired with acquisitions - 84
Partial acquisition of minority
shareholding in subsidiary - (361)
Reduction in debt arising from demerger 3,772
_____________________________________________________________________________________
(1,170) (16,584)
Equity dividends paid (1,811) (1,552)
_____________________________________________________________________________________
Net cash outflow before financing (15,595) (30,327)
Net cash inflow from financing
Issue of share capital 30 10
New bank loans 18,000 14,000
_____________________________________________________________________________________
18,030 14,010
_____________________________________________________________________________________
Increase/(decrease) in cash in the
year 8 2,435 (16,317)
_____________________________________________________________________________________
Notes to the Preliminary Results
for the year ended 31 December 2002
1. Basis of Preparation
The accounts have been prepared under the historical cost
convention and in accordance with applicable accounting standards
in the United Kingdom.
The Group has adopted during the year FRS19: Deferred tax, which
requires full rather than partial provision for deferred tax timing
differences. This has resulted in a change of accounting policy
for the Group and a prior year adjustment.
Urbium PLC acquired Urbium Bars PLC (formerly Chorion PLC)
following a scheme of arrangement and demerger of its Intellectual
Property business on 17 May 2002. Urbium PLC was incorporated on
27 February 2002 but these accounts have been prepared on a merger
accounting basis as if Urbium PLC had been the ultimate holding
company throughout all periods reported on. Accordingly, the
profit and loss account for the current period includes the results
of Urbium Bars PLC for the full year, whilst the comparatives are
based on the results and net assets of Urbium Bars PLC for 2001.
The demerger of the Intellectual Property business has been dealt
with as a distribution at book value at the date of the demerger.
2. Segmental Information
(a) Turnover by class of business
2002 2001
#'000 #'000
_____________________________________________________________________
Continuing operations:
Bar nightclubs 59,925 43,383
Discontinued operations:
Intellectual property 2,499 9,836
Other 319 331
_____________________________________________________________________
2,818 10,167
_____________________________________________________________________
62,743 53,550
_____________________________________________________________________
(b) Profit before taxation by class of business
2002 2001
#'000 #'000
_____________________________________________________________________
Continuing operations:
Bar nightclubs 11,835 9,751
Amortisation of intangible assets (1,157) (853)
Central costs (1,533) (1,932)
Exceptional demerger costs (3,869) -
_____________________________________________________________________
5,276 6,966
_____________________________________________________________________
Discontinued operations:
Intellectual property 561 5,335
Amortisation of intangible assets (253) (443)
Other activities (84) (115)
Other exceptional costs - (10,155)
_____________________________________________________________________
224 (5,378)
Group operating profit 5,500 1,588
Interest payable (1,274) (285)
Interest receivable 32 472
_____________________________________________________________________
Profit before taxation 4,258 1,775
_____________________________________________________________________
(c) Turnover by geographical segment
All Bar Nightclub activities are carried out within the United
Kingdom. The discontinued Intellectual Property operations were
based in the United Kingdom but royalty income was derived from
worldwide sales. The Intellectual Property business had
subsidiaries in Singapore and Hong Kong. Turnover by destination
is analysed below:
2002 2001
#'000 #'000
_____________________________________________________________________
Intellectual Property
United Kingdom 1,208 2,192
Other European Community 732 3,433
Americas 295 2,278
Asia and Australia 239 1,565
Other 25 368
_____________________________________________________________________
2,499 9,836
Others - United Kingdom 319 331
Bar Nightclubs - United Kingdom 59,925 43,383
_____________________________________________________________________
62,743 53,550
_____________________________________________________________________
(d) Net assets by geographical segment
Net assets are not analysed by territory as the Group is operated
from the United Kingdom and there are no significant assets or
liabilities in other territories.
(e) Profit before taxation by geographical segment
All the Bar Nightclub business is derived from the United Kingdom.
This information is not provided for the discontinued Intellectual
Property business as, in the opinion of the Directors, such
disclosure would be seriously prejudicial to that business.
(f) Analysis of ongoing, acquired and discontinuing operations
2002
Ongoing Acquisitions Discontinued Total
#'000 #'000 #'000 #'000
__________________________________________________________________________________
Turnover 57,919 2,006 2,818 62,743
Cost of sales (11,965) (496) - (12,461)
__________________________________________________________________________________
Gross profit 45,954 1,510 2,818 50,282
Administrative expenses (39,584) (1,447) (2,341) (43,372)
Amortisation of intangible assets (982) (175) (253) (1,410)
__________________________________________________________________________________
Group operating profit/(loss) 5,388 (112) 224 5,500
Net interest (payable)/receivable (1,243) - 1 (1,242)
__________________________________________________________________________________
Profit/(loss) before taxation 4,145 (112) 225 4,258
__________________________________________________________________________________
Net operating expenses comprise of administrative costs and
amortisation of intangible assets.
Included in the administrative expenses are exceptional costs of
#3.9 million (2001: #10.2 million). Further details are included
in note 3.
2001
Ongoing Discontinued Total
#'000 #'000 #'000
____________________________________________________________________
Turnover 43,383 10,167 53,550
Cost of sales (8,910) (10) (8,920)
____________________________________________________________________
Gross profit 34,473 10,157 44,630
Administrative expenses (26,654) (15,092) (41,746)
Amortisation of intangible assets (853) (443) (1,296)
____________________________________________________________________
Group operating profit/(loss) 6,966 (5,378) 1,588
Net interest receivable 134 53 187
____________________________________________________________________
Profit/(loss) before taxation 7,100 (5,325) 1,775
____________________________________________________________________
3. Exceptional Costs
Profit before tax is arrived at after charging the following
exceptional costs:
2002 2001
#'000 #'000
________________________________________________________________________
(a) Demerger costs 3,869 -
(b) Losses arising from surrender of a
lease in discontinued business - 8,420
(c) Provision for diminution in value of fixed
assets in discontinued business - 1,735
________________________________________________________________________
3,869 10,155
________________________________________________________________________
(a) These costs relate to professional, advisory fees and other
costs incurred in reorganising the Group in order to demerge
the Intellectual Property business.
(b) The Group was the head lessee for the former Segaworld space
within the Trocadero. The Group has now surrendered this lease
following negotiations in 2001. Under this arrangement, the Group
agreed to make an initial payment of #9.0 million on 30 September
2002 and a further payment of up to #1.4 million which may become
payable (spread over quarter dates from 1 January 2006 to 31 December
2007) if the landlord has not achieved certain rental levels from re-
letting the space. After taking account of amounts previously
provided a charge of #8.4 million was made in the year ended 31
December 2001. The payment of #9.0 million was made on 30 September
2002.
(c) The Group was also the operator of the Drop Ride in the
Trocadero. As part of the Group's exit from the Trocadero a
provision of #1.7 million was made in the year to 31 December 2001 to
reflect the impairment of the Drop Ride tangible fixed assets. The
Drop Ride operation was terminated on 30 September 2002.
(d) The impact of exceptional costs on the tax charge in the current
period and prior year is shown in note 4(ii).
4. Taxation
Restated
2002 2001
________________________________________________________________________
#'000 #'000
(i) Analysis of charge in year
Current tax
UK Corporation tax on profits for the year 510 1,975
________________________________________________________________________
Deferred tax
Origination and reversal of timing differences
Current year 2,469 1,951
________________________________________________________________________
Tax on profit on ordinary activities 2,979 3,926
________________________________________________________________________
(ii) Factors affecting tax charge for the year
The tax charge for the year is different to the standard rate of
tax in the UK (30%). The differences are explained below:
2002 2001
#'000 #'000
_____________________________________________________________________________
Profit on ordinary activities before tax 4,258 1,775
Corporation tax at the standard UK rate of 30% 1,277 532
Effects of
Other expenses not deductible for tax purposes 492 403
Exceptional costs not deductible for tax purposes 1,011 3,046
Capital allowances for year in excess of depreciation (2,214) (1,109)
Utilisation of tax losses (56) (692)
Reversal of timing differences in revenue expenditure - (205)
_____________________________________________________________________________
510 1,975
_____________________________________________________________________________
(iii) Factors affecting tax charge in future years
The future tax charge will be principally affected by the level of
ongoing capital expenditure and related capital allowances.
5. Dividends
2002 2001
#'000 #'000
______________________________________________________________________________
Dividend on ordinary shares nil p (2001: 0.35p) per share - 1,811
______________________________________________________________________________
6. Earnings per share
2002
Continuing Discontinued Total
#'000 #'000 #'000
_____________________________________________________________________________
Earnings/(losses)
Basic and diluted earnings 1,224 (50) 1,174
Amortisation of intangible assets 1,157 253 1,410
Exceptional costs 3,869 - 3,869
_____________________________________________________________________________
Adjusted earnings before amortisation of
intangible assets and exceptional costs 6,250 203 6,453
_____________________________________________________________________________
2001
Continuing Discontinued Total
#'000 #'000 #'000
_____________________________________________________________________________
Earnings
Basic and diluted earnings 4,299 (7,260) (2,908)
Amortisation of intangible assets 853 443 1,296
Exceptional costs - 10,135 10,155
_____________________________________________________________________________
Adjusted earnings before amortisation of
intangible assets and exceptional costs 5,152 3,338 8,543
_____________________________________________________________________________
2002 2001
#'000 #'000
_____________________________________________________________________________
Earnings/(losses) per share
_____________________________________________________________________________
Basic 0.23p (0.56p)
_____________________________________________________________________________
Diluted 0.22p (0.56p)
_____________________________________________________________________________
Adjusted 1.25p 1.65p
_____________________________________________________________________________
Adjusted continuing operations 1.21p 1.00p
_____________________________________________________________________________
The calculation of basic earnings per share is based on profit
after tax and minority interests. The calculation of adjusted
earnings uses the basic earnings before amortisation of intangible
assets and exceptional costs.
The weighted average number of ordinary shares in issue during the
year used in the calculation of the basic, adjusted and adjusted
continuing operations and diluted earnings per share is as follows:
2002 2001
_______________________________________________________________________________
Weighted average number of shares in issue during
the year used in the calculation of basic and adjusted
earnings per share 517,503,529 517,330,358
Dilutive effect of options treated as exercisable
at the year end 13,618,940 14,558,939
_______________________________________________________________________________
Weighted average number of shares in issue during
the period used in the calculation of diluted
earnings per share 531,122,469 531,889,297
_______________________________________________________________________________
Included in the above calculation are 30,237,662 share options
(2001: 31,597,401) exercisable at prices between 8.8p and 12.61p
where the condition for exercise would have been met if the year
end was the first date for exercise of the share options. The
average share price in 2002 used in the calculation is 9.5p (2001:
30.47p).
7. Reconciliation of operating profit to net cash inflow from
operating activities
2002 2001
#'000 #'000
_________________________________________________________________
Group operating profit 5,500 1,588
Amortisation of intangible assets 1,410 1,296
Amortisation of film investment 250 648
Depreciation 3,275 2,454
Loss on disposal of tangible assets 10 2
Increase in stock (537) (157)
Decrease/(increase)in debtors 232 (1,160)
(Decrease)/increase in creditors (6,308) 7,871
_________________________________________________________________
Net cash inflow from operating activities 3,832 12,542
_________________________________________________________________
The above movements in working capital include a net cash outflow
of #7.5 million, being the #9.0 million payment set out in note
3(b) and the repayment of #1.5 million rent deposits, relating to
the former Trocadero lease obligations.
8. Reconciliation of net cash flow to movement in net debt
2002 2001
#'000 #'000
_________________________________________________________________
Increase/(decrease) in cash in year 2,435 (16,317)
Cash flow from increase in debt financing (18,000) (14,000)
_________________________________________________________________
Changes in net debt from cash flows (15,565) (30,317)
Net (debt)/funds at start of year (14,366) 15,951
_________________________________________________________________
Net debt at end of year (29,931) (14,366)
_________________________________________________________________
9. Analysis of changes in net debt during the year
As at Cash As at
1 January Flows 31 December
#'000 #'000 #'000
_________________________________________________________________
Cash at bank and in hand 2,267 183 2,450
Overdrafts (2,633) 2,252 (381)
Debt due after one year (14,000) (18,000) (32,000)
_________________________________________________________________
(14,366) (15,565) (29,931)
_________________________________________________________________
10. Preparation of the preliminary statement
The financial information set out above does not constitute the
Group's statutory accounts for the years ended 31 December 2002 or
2001. The financial information for 2001 is derived from the
statutory accounts for 2001 of Urbium Bars PLC, which have been
delivered to the Registrar of Companies. The Auditors have
reported on the 2002 accounts, their report was unqualified and did
not contain a statement under section 237(2) or (3) or the
Companies Act 1985. The statutory accounts for 2002 will be
delivered to the Registrar of Companies following the Company's
annual general meeting in April 2003.
11. Report and Accounts
Copies of the preliminary statement are available on request at the
registered office of the Company: Vernon House, 40 Shaftesbury
Avenue, London W1D 7ER. The Report and Accounts for the year ended
31 December 2002 will be posted by 6 March 2003. The Report and
Accounts will be available to view on the Group's website
(www.urbium.com) in PDF version from Friday 28 February 2003.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEMFAMSDSEDE