17 July 2008
Disposal of The Bombay Bicycle Club
The Board of Clapham House, the owner and developer of leading restaurant brands, today announces the sale of The Bombay Bicycle Club group of companies (“BBC”), comprising 3 restaurants and 15 delivery kitchens.
On 16 July 2008, Gourmet Restaurants Limited agreed to acquire the entire issued share capital of BBC for £4.4 million payable in cash upon completion. Clapham House will use the proceeds of the disposal to reduce existing bank debt and fund the continued development of Clapham House’s other restaurant formats.
For the year ended 30 March 2008, BBC generated a statutory aggregated loss before tax of £484,000. As at 30 March 2008, it had aggregated net assets of £2,421,000 before intercompany indebtedness.
As a result of the sale of BBC and after accounting for the costs associated with the sale, the full year consolidated accounts for Clapham House for the year ended 30 March 2008 will differ from the preliminary results announced on 30 June 2008. Profit after taxation will be reduced by a one-off non cash impairment charge of £1,900,000 relating to the carrying value of the goodwill of the BBC business as at 30 March 2008. The net assets of Clapham House as at 30 March 2008 will be reduced by the same amount. The Company will send final audited results for the Company to shareholders in August 2008.
Commenting on the sale, Paul Campbell, Chief Executive of The Clapham House Group plc, said:
“Whilst we are sad to see The Bombay Bicycle Club leave our portfolio, it is predominantly a home delivery business with a different pricing point and a longer period for return on capital than our other brands. We believe that at the current time it is appropriate to strengthen our balance sheet and focus resources on our pure restaurant businesses, Gourmet Burger Kitchen, Tootsies and The Real Greek.”