FRS 15 leads to stripped down profits for table-dancing and pub group SFI
Changes in accounting standard FRS 15 has left pub and table dancing chain SFI with a huge fall in pre-tax profits.
The Financial Times reports today that the cut in profits has come despite strong first half trading. Tony Hill, chairman of the firm, said sales, free cash flow and earnings before interest, tax, depreciation and amortisation were all well ahead in the first half.
The chain has also doubled its stable of pubs to 79 in just over two years with preparations to expand to 140 by 2002.
FRS 15 saw changes in depreciation policy and the fall in SFI profits followed a rise in depreciation charges from £854,000 to £1.4m.
SFI owns the Litten Tree and Bar Med pub chains along with three-table dancing clubs which together brought the fall in profits from £3.3m to £3.1m in the 24 weeks to November 20.
However, Hill is reported to be planning to create a new brand from six Latin bought from Capital Radio while opening a new table-dancing club.
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