1. business and industrial
2. company
3. merger and acquisition

Patisserie Holdings plc (‘the Group’)
Interim results for the 6 months ended 31 March 2015
Patisserie Holdings plc, the leading UK branded café and casual dining group, today reports
its interim results for the 6 months ended 31 March 2015.
Financial summary
Revenue
EBITDA*
Pre-tax profit
Basic earnings per share
Diluted earnings per share
6 months
ended
31 March
2015
£m
6 months
ended
31 March
2014
£m
Change
43.7
8.7
7.0
5.50
5.46
35.7
7.1
4.8
4.79p
4.56p
22.2%
23.1%
45.0%
14.7%
19.7%
%
* EBITDA is calculated as operating profit before depreciation and amortisation and for 31 March
2014 also excludes exceptional items.
Highlights









Group revenue of £43.7m up by 22.2% (2014: £35.7m)
Gross profit of £33.7m up by 22.0% (2014: £27.7m)
EBITDA of £8.7m up by 23.1% (2014: £7.1m)
Significant growth in pre-tax profit to £7.0m up by 45.0% (2014: £4.8m)
Operating cash flows of £8.0m up by 110.5%
Diluted earnings per share of 5.46p up by 19.7% (2014: 4.56p)
Net cash at 31 March 2015 of £3.0m (2014: £0.2m)
10 new stores opened in the period all funded from operating cash flow
156 trading stores at the period end
Luke Johnson, Executive Chairman, said
“We have delivered another strong set of results in the first half of 2015. Sales across all of the different
formats in the Group continue to perform well and our brand awareness continues to grow. We have
opened 10 new stores since the beginning of the year and trialled several new product launches, such
as afternoon tea, all with pleasing results. The Group is well placed for a successful second half of the
year and beyond.”
Enquiries
Patisserie Holdings PLC
Luke Johnson, Executive Chairman
Paul May, Chief Executive Officer
Chris Marsh, Finance Director
Nomad and Broker
Canaccord Genuity Limited
Bruce Garrow
Peter Stewart
Joe Weaving
Financial Public Relations
Maitland
James Devas
+44 (0)121 777 7000
+44 (0)20 7523 8000
+44 (0) 20 7379 5151
Chief Executive’s Statement
Results
I am delighted to report a strong set of results for the six months to 31 March 2015. During the first half
of the year, the Group delivered an increase in revenue of £7.9m or 22.2% to £43.7m (2014: £35.7m
over the same period last year). EBITDA was £8.7m, an increase of £1.6m or 23.1% (2014: £7.1m) and
pre-tax profit was £7.0m, an increase of £2.2m or 45.0% (2014: £4.8m).
Basic earnings per share of 5.50 pence per share represented a 14.7% increase on last year (2014:
4.79 pence per share) and diluted earnings per share was 5.46 pence per share, 19.7% higher than
last year (2014: 4.56 pence per share).
All of our brands performed very well in the first six months of the year. Revenue from Patisserie Valerie
(106 stores) was £28.9m, up £4.6m or 18.8% (2014: £24.3m). We launched several new seasonal
products in the period, including a winter menu and afternoon tea, which have all helped drive increases
in revenues. We also trialled voucher deals via promotional websites which sold exceptionally well, and
due to the strength of our brand, we were able to offer these deals at little or no discount.
On the back of our growth in online sales, we developed a new website which went live in January. The
website has new features including 360 degree virtual tours of our cafes and a “create-a-cake” feature
which is proving to be very popular.
Revenue from our other brands was also encouraging. Druckers (22 stores) and Baker & Spice (4
stores) grew from £8.5m in 2014 to £8.7m in 2015, whilst revenue from Flour Power City (1 site), our
wholesale business, grew from £1.0m in 2014 to £1.1m in 2015.
Revenue from Philpotts (23 stores), a premium sandwich retailer which we acquired in February 2014,
was £5.0m. Philpotts is now fully integrated into the Group and is operating with a streamlined backoffice function and is benefiting from the Group’s purchasing power. In the 12 months since acquisition,
the business has performed ahead of expectations and contributed £1.3m of profit before tax to the
Group and is on track to meet our payback hurdle rate set for acquisitions.
Estate Development
During the period we successfully opened 10 new stores (2014: 8) located across the UK in high-streets
and shopping centres and across different formats from brasseries (1), service station (1), counter
service (2), concessions (1) and full service (5). All of our new stores were acquired from existing cash
and are all performing in line with expectations and trading profitably.
All 19 stores opened in the prior financial year continue to trade well and a number of these have already
paid back the initial capital outlay, well ahead of the 24 month target.
The pipeline for new stores remains healthy. We have identified and secured or are in advanced
discussions to secure new sites to enable us to deliver the 20 store target for the year.
Notwithstanding our focus on delivering on the organic store rollout, we are continuing to assess
selective acquisition opportunities that we believe would be accretive to the Group.
Cash flow & balance sheet
Cash flow generated from operations was £9.2m (2014: £5.5m) and after interest and tax payments,
free cash flows available for investment were £8.0m (2014: £3.8m).
We invested £3.6m in capital expenditure (2014: £3.9m) the majority of which was invested in opening
new stores.
Net cash inflow in the period was £4.4m (2014: £1.3m) and at the end of the period the net cash position
was £3.0m (2014: £0.2m).
Dividends
As previously announced, the Directors continue to anticipate a maiden dividend to be paid in respect
of the financial year ending 30 September 2015.
Current Trading and Outlook
We have delivered a strong set of results in the first half of the year and look to continue this
performance through the remainder of 2015. Trading to date remains encouraging and, with our
premium brands, established management team and a strong pipeline for new stores, I am confident
that we will deliver another set of positive results in line with the Board’s expectations at the year end.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 MARCH 2015
Six months to
31 March
2015
£’000
Total
Unaudited
Six months to
Year to
31 March 30 September
2014
2014
£’000
£’000
Total
Total
Unaudited
Audited
Notes
Continuing operations
Revenue
Cost of sales
Gross profit
Administration expenses
Operating profit before exceptional items
Exceptional items
5
Operating profit
Finance expense
Profit before income tax
Income tax expense
4
Profit after tax and total comprehensive income for the
period attributable to equity holders
Earnings per share
Basic earnings per share (pence)
Diluted earnings per share (pence)
43,683
(9,940)
35,747
(8,094)
76,641
(17,363)
33,743
(26,754)
27,653
(22,314)
59,278
(48,007)
6,989
-
5,604
(265)
12,129
(858)
6,989
5,339
11,271
(34)
(541)
(858)
6,955
(1,460)
4,798
(1,115)
10,413
(1,512)
5,495
3,683
8,901
5.50
5.46
4.79
4.56
10.41
10.12
7
CONDENSED CONSOLIDATED BALANCE SHEET
31 MARCH 2015
31 March
2015
£’000
Unaudited
31 March
2014
£’000
Unaudited
30 September
2014
£’000
Audited
17,872
30,699
17,897
27,363
17,897
28,794
48,571
45,260
46,691
9,964
4,118
2,978
6,226
3,160
294
10,552
3,927
484
17,060
9,680
14,963
65,631
54,940
61,654
1,000
33,661
(89)
25,902
1
499
15,189
1,000
33,661
(212)
20,407
60,474
15,689
54,856
1,746
25,771
1,323
1,746
1,746
27,094
1,746
3,411
-
4,451
7,462
244
3,149
1,903
-
3,411
12,157
5,052
5,157
39,251
6,798
65,631
54,940
61,654
Notes
ASSETS
Non-current assets
Intangible assets
Property, plant and equipment
8
Current assets
Trade and other receivables
Inventories
Cash and cash equivalents
Total assets
EQUITY AND LIABILITIES
Equity
Capital and reserves attributable to the equity holders
Ordinary share capital
Share premium
Other reserves
Retained earnings
Total equity
Non-current liabilities
Borrowings
Deferred tax
Current liabilities
Trade and other payables
Borrowings
Corporation tax
Total liabilities
Total equity and liabilities
Registered no. 08963601
9
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2015
Share
capital
Share
premium
Retained
earnings
Total
£'000
Share
based
payment
reserve
£'000
£'000
£'000
£'000
£'000
£'000
1,000
33,661
(312)
46
54
20,407
54,856
Result and total comprehensive income for
the period
-
-
-
-
123
5,495
5,618
Transactions with owners
-
-
-
-
-
-
-
1,000
33,661
(312)
46
177
25,902
60,474
1
499
-
12,006
-
-
-
11,506
-
-
3,683
3,683
Transactions with owners
1
-
499
-
-
-
-
15,189
-
15,689
-
As at 31 March 2014
1
499
-
-
-
15,189
15,689
Audited
As at 30 September 2013
1
499
-
-
-
11,506
12,006
-
-
-
-
8,901
8,901
Unaudited
As at 30 September 2014
As at 31 March 2015
Unaudited
As at 30 September 2013
Result and total comprehensive income for
the period
Result and total comprehensive income for
the period
Transactions with owners
Increase in share based payments reserve
Shares issues under employee share
schemes
Reorganisation of share capital
Shares issued on listing on AIM
Cost of issue of equity shares
As at 30 September 2014
Merger
Capital
reserve redemption
reserve
41
1,959
-
-
54
-
-
54
2,000
765
193
-
(499)
32,560
(858)
(312)
-
46
-
-
-
32,753
(858)
1,000
33,661
(312)
46
54
20,407
54,856
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2015
Six months to
31 March
Six months to
31 March
Year to
30 September
2015
£’000
Unaudited
2014
£’000
Unaudited
2014
£’000
Audited
6,955
4,798
10,413
1,724
34
1,473
541
3,195
858
123
-
58
Notes
Cash flows from operating activities
Profit before income tax
Adjusted by:
Depreciation and amortisation
Net finance charges in the consolidated statement of
comprehensive income
Impairment charge
Other non-cash charges
Changes in working capital:
Inventory
Trade and other receivables
Trade and other payables
(191)
336
259
(363)
(330)
(624)
(1,130)
(2,771)
(2,197)
9,240
(34)
(1,207)
5,495
(276)
(1,396)
8,426
(858)
(3,124)
Net cash generated from operating activities
7,999
3,823
4,444
Cash flows from investing activities
Acquisition of subsidiary undertakings
Purchase of property, plant and equipment
(3,602)
(3,760)
(3,879)
(3,869)
(7,032)
Net cash used in investing activities
(3,602)
(7,639)
(10,901)
Cash flows from financing activities
Proceeds from borrowings
Net proceeds from issue of shares
Repayment of borrowings
-
7,850
(2,703)
7,875
33,895
(35,608)
Net cash generated from financing activities
-
5,147
6,162
4,397
1,331
(1,419)
(1,124)
(1,124)
207
(1,419)
Cash generated from operations
Interest paid
Income tax paid
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
2,978
(295)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH ENDED 31 MARCH 2015
1.
General information
Patisserie Holdings plc (the Company) and its subsidiaries (collectively the Group) operate in the casual dining sector offering
cakes, pastries, snacks, meals and hot and cold drinks across the UK.
The Company is a public limited company which is listed on the Alternative Investment Market (AIM) of the London Stock
Exchange and incorporated and domiciled in England and Wales. The registered office of the Company is 146 - 156
Sarehole Road, Birmingham, B28 8DT. This document along with copies of the Annual Report and Accounts may be
obtained from the registered office or via the Investor section of the Company’s website at www. patisserie-valerie.co.uk
2.
Basis of preparation
The condensed financial statements have been prepared using accounting policies consistent with International Financial
Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as
endorsed by the European Union and in accordance with IAS34 – “Interim Financial Reporting”. The same accounting policies,
presentation and methods of computation have been followed in the preparation of these results as were applied in the
Group’s latest annual audited financial statements.
The financial information for the year ended 30 September 2014 does not constitute the full statutory accounts for that
period. The Annual Report and Financial Statements for 2014 have been filed with the Registrar of Companies. The
Independent Auditors’ Report on the Annual Report and Financial Statements for 2014 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act
2006.
The condensed financial statements have been prepared under the historical cost convention and financial information is
presented in sterling and has been rounded to the nearest thousand (£’000) unless otherwise stated.
3.
Segmental information
Management has determined the operating segments based on the reports reviewed by the Chief Operating Decision
Maker (“CODM”) comprising the Board of Directors. During the six month period to 31 March 2015, there have been no
changes from prior periods in the measurement methods used to determine operating segments and reported segment
profit or loss.
The segmental information is split on the basis of those same profit centres, however, management report only the
contents of the consolidated statement of comprehensive income and therefore no balance sheet information is provide
on a segmental basis in the following tables.
March 2015
Patisserie Druckers
Baker &
Flour Philpotts Overhead
As Reconciling
Valerie
Spice
Power
reported
items
to the
CODM
Unaudited
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Revenue
£’000
28,907
6,484
2,177
1,090
5,025
5,374
535
505
206
562
Patisserie
Valerie
Druckers
Baker &
Spice
Flour
Power
Philpotts
Overhead
£’000
£’000
£’000
£’000
£’000
£’000
As
reported
to the
CODM
£’000
24,328
6,514
2,031
962
1,049
167
35,051
696
35,747
Operating profit
4,091
569
496
229
131
88
5,604
(265)
5,339
September 2014
Patisserie
Valerie
Druckers
Baker &
Spice
Flour
Power
Philpotts
Overhead
Audited
£’000
£’000
£’000
£’000
£’000
£’000
As
reported
to the
CODM
£’000
Revenue
51,075
12,224
4,230
2,631
6,226
255
76,641
-
76,641
8,987
810
1,046
458
720
(1,344)
10,677
594
11,271
Operating profit
March 2014
Unaudited
Revenue
Operating profit
-
Total
IFRS
(193)
43,683
-
43,683
6,989
-
6,989
Reconciling
items
Total
IFRS
£’000
£’000
Reconciling
items
Total
IFRS
£’000
£’000
The Group’s segment operating profit reconciles to the Group’s profit before tax as presented in its financial statements as
follows:
31 March
2015
31 March
2014
£’000
Unaudited
£’000
Unaudited
30
September
2014
£’000
Audited
Total operating profit from reportable segments
Other segment profit
Statutory reconciling items
Finance expense
7,182
(193)
(34)
5,516
88
(265)
(541)
12,021
(1,344)
594
(858)
Profit before income tax
6,955
4,798
10,413
4.
Income tax expense
The tax charge has been calculated by reference to the expected effective current and deferred tax rates for the full
financial year to 30 September 2015 applied against the profit before tax for the period ended 31 March 2015. The full year
effective tax charge on the underlying trading profit is estimated to be 21% (2014: 22.0%).
5.
Exceptional items
31 March
31 March
2015
£’000
Unaudited
2014
£’000
Unaudited
30
September
2014
£’000
Audited
-
265
593
265
-
265
858
31 March
31 March
2015
£’000
Unaudited
2014
£’000
Unaudited
30
September
2014
£’000
Audited
Operating profit
Depreciation and amortisation
6,989
1,724
5,339
1,473
11,271
3,195
EBITDA
Exceptional items
8,713
-
6,812
265
14,466
858
Adjusted EBITDA
8,713
7,077
15,324
Costs incurred in relation to listing on AIM
Costs associated with subsidiary acquisitions
6.
Earnings before interest, tax, depreciation and amortisation (EBITDA)
7.
Earnings per share
31 March 2015
Earnings
£’000
Weighted
average
number of
share
Earnings per
share
(pence)
Unaudited
Basic earnings per share
Effect of dilutive share options
5,495
-
100,000,000
557,588
5.50
-
Diluted earnings per share
5,495
100,557,588
5.46
Earnings
£’000
Weighted
average
number of
share
Earnings per
share
(pence)
Unaudited
Basic earnings per share
Effect of dilutive share options
3,683
-
76,881,366
3,851,995
4.79
-
Diluted earnings per share
3,683
80,733,361
4.56
Earnings
£’000
Weighted
average
number of
share
Earnings per
share
(pence)
Audited
Basic earnings per share
Effect of dilutive share options
8,901
-
85,505,967
2,412,879
10.41
-
Diluted earnings per share
8,901
87,918,847
10.12
31 March 2014
30 September 2014
8.
Property, plant and equipment
Unaudited
£’000
£’000
Plant,
equipment,
fixtures and
fittings
£’000
Cost
At 1 October 2013
Additions
Assets acquired at acquisition
1,798
-
11,147
473
1,997
29,693
3,406
848
73
40
42,711
3,879
2,885
At 31 March 2014
Additions
1,798
-
13,617
320
33,947
2,833
113
-
49,475
3,153
At 30 September 2014
Additions
1,798
-
13,937
416
36,780
3,188
113
-
52,628
3,604
At March 2015
1,798
14,353
39,968
113
56,232
213
8
221
3,799
365
4,164
16,555
1,100
17,655
72
72
20,639
1,473
22,112
8
381
1,324
9
1,722
At 30 September 2014
Charge for the period
229
13
4,545
472
18,979
1,207
81
7
23,834
1,699
At March 2015
242
5,017
20,186
88
25,533
1,556
1,569
1,577
9,336
9,392
9,453
19,782
17,801
16,292
25
32
41
30,699
28,794
27,363
Depreciation
At 1 October 2013
Charge for the period
At 31 March 2014
Charge for the period
Net book values
At 31 March 2015
At 30 September 2014
At 31 March 2014
Freehold
Leasehold
land and
property
buildings improvements
Motor
vehicles
Total
£’000
£’000
There were no assets held under finance leases during the period.
9.
Share capital
The number of shares allotted, called up and fully paid remained at 100,000,000 and totalled £1.0m at 31 March 2015;
there were no changes to share capital in the period from 30 September 2014 to 31 March 2015. In the prior year the
capital structure of the company was reorganised, details of which can be found in the Annual Report and Accounts for the
year ended 30 September 2014.