Burgerfuel Worldwide Results To 30 September 2007
The directors of BurgerFuel Worldwide Limited (BFW) today reported an un-audited loss of $1.35 million for the
three-and-a-half month period to 30 September 2007, of which $991,000 represented costs associated with the company’s
Initial Public Offering (IPO).
Of the remaining loss, the amount of $203,000 related to BFW’s investment in Australia, where the company opened its
Kings Cross store on 7 October 2007.
BFW results for period 14 June to 30 September 2007
$(000’s)
Operating Revenue 1,400
Operating Expenses * (2,755)
Loss (1,355)
* includes $991,000 of non-recurring costs associated with the IPO.
Directors say the loss is in line with the Boards’ expectations after costs associated with the IPO, as outlined in the
company’s prospectus.
They say continued losses of $50,000 per month are anticipated, but expect these will progressively reduce as additional
stores are opened.
Four additional BurgerFuel stores have opened since the incorporation of BFW on June 14, one of which is company-owned.
Total stores now number 24, of which two are in Sydney, Australia. Of the 24 stores two are company owned and the
remaining 22 are franchised.
A further four new BurgerFuel stores are planned to open in this financial year, at sites currently under negotiation.
BFW has four main areas of revenue: up-front franchise fees, on-going royalty fees, sales of certain proprietary goods
and store income from company-owned stores.
System sales up 40%
For the 6 month period 1 April to 30 September 2007 (which included pre-listing trading)
BurgerFuel’s total system sales for all stores, from which BFW derived franchise royalties were up 40% from $7.8 million
to $10.9 million compared with the previous corresponding period. Comparative results for same store sales for the 6
month period were up 4%.
Following the company’s NZAX listing, management has been firmly focused on new store development and continued sales
improvements and that in accordance with the prospectus, BFW will continue to invest and expand the chain in New Zealand
as well as other potential markets.
To obtain an understanding of the overall consolidated trading results of the BurgerFuel group of companies pre and post IPO for the 6 month period to 30 September 2007 the results are set out below:
Combined results pre and post IPO for the 6 month period, 1 April to 30 September 2007
($000’s)
Revenue 2,336
Expenses * (4,284)
Loss (1,948)
* These results include non-recurring expenses of $1,321,000 for the IPO.
A further amount of $298,000 relates to the costs associated with entry into Australia.
BFW was incorporated on June 14, 2007. It raised $8M in its IPO. Funds have been used for IPO costs, repayment of all
loans and further capital investment, such as the Kings Cross store.
BFW’s cash reserves as at 30 September were $3,987,000. The company has no borrowings.
ENDS