Savor opens hero Viaduct venue, announces half year results

Results Announcement
(for Equity Security issuer)



Results for announcement to the market
Name of issuer Savor Limited
Reporting Period 6 months to 30 September 2022
Previous Reporting Period 6 months to 30 September 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
20,703 20.7%
Total Revenue 20,703 20.7%
Net profit/(loss) from continuing
operations
(2,132) N/A
Total net profit/(loss) (2,132) NA
Interim Dividend
Amount per Quoted Equity Security Not Applicable
Imputed amount per Quoted Equity
Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable

Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$(0.16) $(0.18)
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
Figures may not be comparable between periods due to the changing impact of
COVID-19 restrictions and the timing of acquisitions during the prior period.
Authority for this announcement
Name of person authorised to make
this announcement
Tim Peat
Contact person for this
announcement
Tim Peat
Contact phone number +64 21 049 7442
Contact email address
tim@savor.co.nz
Date of release through MAP 23/11/2022

Unaudited financial statements accompany this announcement.

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Interim financial statements
for the period ended 30 September 2022
GROUP

In this report
01
Director's Report
02
Consolidated Statement of
Comprehensive Income
03
Consolidated Statement of
Movements in Equity
04
Consolidated Balance Sheet
05
Consolidated Statement of
Cash Flows
06
Notes to the Financial
Statements
09
Corporate Directory

Director's Report
The Board of Directors has pleasure in
presenting the interim financial statements
for Savor Limited for the period ended 30
September 2022.
The interim financial statements presented
are signed for and on behalf of the Board
of Directors and were authorised for issue
on 23 November 2022.
Paul Robinson
Executive Chairman
Ryan Davis
Director
1
Savor Group 2022 Interim Financial Statements

Notes
Six months
Sept 2022
$000's
Unaudited
Six months
Sept 2021
$000's
Unaudited
Year ended
March 2022
$000's
Audited
Revenue20,703 17,155 30,581
Expenses:
Direct costs(6,241)(5,151)(8,974)
Employee costs(10,287)(8,013)(14,202)
Marketing costs(95)(100)(188)
Utilities and operational expenses(1,548)(1,374)(2,622)
Other expenses(1,182)(1,024)(2,317)
Other income- 617 717
1,350 2,110 2,995
Depreciation and amortisation(2,270)(1,960)(4,001)
Restructuring costs3(475)(315)(1,200)
Impairment of goodwill- - (1,564)
Interest expense(737)(588)(1,266)
Loss before income tax(2,132)(753)(5,036)
Taxation expense- - -
Loss attributable to the shareholders(2,132)(753)(5,036)
Other comprehensive income and expenses- - -
Total comprehensive loss(2,132)(753)(5,036)
Basic and diluted losses per share (cents)(3.3)(1.2)(8.2)
Weighted average number of shares outstanding
(thousands of shares)
Basic and diluted 65,017 61,980 61,753
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated Statement of
Comprehensive Income
For the six months ended 30 September 2022
2
Savor Group 2022 Interim Financial Statements
Financial Statements

Notes
Share capital
$000's
Accumulated
losses
$000's
Share-based
payments reserve
$000's
Total equity
$000's
Total equity at 1 April 202147,251 (34,680)155 12,726
Total comprehensive loss for the period - (753) - (753)
Issue of new shares6,886 - - 6,886
Total equity at 30 September 2021
(unaudited)
54,137 (35,433)155 18,859
Total equity at 1 April 202147,251 (34,680)155 12,726
Total comprehensive loss for the period - (5,036) - (5,036)
Issue of new shares6,887 - - 6,887
Repurchase of shares(233) - - (233)
Total equity at 31 March 2022 (audited)53,905 (39,716)155 14,344
Total equity at 1 April 202253,905 (39,716)155 14,344
Total comprehensive loss for the period - (2,132) 6 (2,126)
Issue of new shares4 2,099 - - 2,099
Total equity at 30 September 2022
(unaudited)
56,004 (41,848)161 14,317
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated Statement of
Movements in Equity
For the six months ended 30 September 2022
3
Savor Group 2022 Interim Financial Statements
Financial Statements

Notes
Sept 2022
$000's
Unaudited
Sept 2021
$000's
Unaudited
March 2022
$000's
Audited
Assets
Current assets:
Cash(94)2,696 1,350
Trade and other financial receivables851 508 586
Inventories669 734 620
Total current assets1,426 3,938 2,556
Non-current assets:
Property, plant and equipment13,335 11,700 11,118
Intangible assets5 25,224 26,695 25,261
Right of use asset14,868 17,302 16,069
Total non-current assets53,427 55,697 52,448
Total assets54,853 59,635 55,004
Liabilities
Current liabilities:
Trade and other payables7,371 3,948 6,094
Lease liability2,445 2,887 2,278
Borrowings3,671 2,435 2,671
Deferred consideration payable1,400 2,850 1,000
Related party payables - 272 112
Total current liabilities14,887 12,392 12,155
Non-current liabilities:
Trade and other payables1,197 1,169 831
Lease liability14,092 15,460 15,069
Borrowings10,010 11,750 10,755
Deferred consideration payable350 - 1,850
Total non-current liabilities25,649 28,379 28,505
Total liabilities40,536 40,771 40,660
Equity
Share capital4 56,004 54,137 53,905
Reserves(41,687)(35,273)(39,561)
Total equity 14,317 18,864 14,344
Total liabilities and equity54,853 59,635 55,004
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated
Balance Sheet
As at 30 September 2022
4
Savor Group 2022 Interim Financial Statements
Financial Statements

Six months
Sept 2022
$000's
Unaudited
Six months
Sept 2021
$000's
Unaudited
Year ended
March 2022
$000's
Audited
Cash flow from operating activities
Receipts from customers20,438 17,082 30,325
Payments to suppliers, employees and other(18,796)(15,953)(27,373)
Net cash from operating activities1,642 1,129 2,952
Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets(2,367)(1,161)(1,798)
Supplier loan funds received730 --
Payments for venue development costs(212)(86)(137)
Repayment of related party payable(112)(1,974)(2,125)
Repayment of deferred consideration(1,100)- -
Purchase of businesses- (7,975)(7,975)
Net cash used in investing activities(3,061) (11,196)(12,035)
Cash flow from financing activities
Interest paid(737)(219)(1,266)
Borrowings drawn down1,575 6,966 15,130
Repayment of borrowings(1,320)(945)(8,726)
Lease liability principal repayment(1,462)(1,306)(2,738)
Transaction costs from issue of shares(21)(181)(182)
Repurchase of shares- - (233)
Issue of shares1,940 5,046 5,046
Net cash from financing activities(25) 9,361 7,031
Net movement in cash held(1,444)(706)(2,052)
Add: opening cash1,350 3,402 3,402
Closing cash(94)2,696 1,350
The accompanying notes form part of and are to be read in conjunction with these interim financial statements.
Consolidated Statement
of Cash Flows
For the six months ended 30 September 2022
5
Savor Group 2022 Interim Financial Statements
Financial Statements

1. Basis of presentation
Savor Limited (‘the Parent’ or ‘Company’) and its
subsidiaries (together ‘the Group’) operate in the hospitality
sector, operating a number of premium restaurants
and bars. The address of its registered office is Level 4,
Seafarers Building, 114 Quay Street, Auckland, 1142.
The condensed consolidated interim financial statements
presented are those of Savor Limited and its subsidiaries
(the "Group"). Savor Limited is a company domiciled in New
Zealand, registered under the Companies Act 1993 and
is a Financial Markets Conduct Act 2013 reporting entity.
These interim financial statements have been prepared in
accordance with Generally Accepted Accounting Practice
in New Zealand (NZ GAAP) and the requirements of the
Financial Markets Conduct Act 2013. For the purposes of
complying with NZ GAAP the Group is a for-profit entity.
The condensed consolidated financial statements of the
Group comply with New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS). They also comply
with International Financial Reporting Standards (IFRS). The
interim financial statements are presented in New Zealand
dollars. They comply with NZ IAS 34 Interim Financial
Reporting and should be read in conjunction with the 31
March 2022 annual report available on the Group website
at www.savor.co.nz.
The accounting policies used to prepare these interim
financial statements are consistent with the preparation of
the Group's latest annual report.
2. Key estimates and judgements
The Group has undertaken a number of key estimates and
judgements when preparing these financial statements,
the details of which are outlined in this note. These
judgements have been formed using historical information
and comparatives where available, and management's best
judgement where there is no appropriate comparison. The
Group continues to review all significant estimates along
with the assumptions used and recognises any adjustments
to these in the period in which a change occurs. The key
estimates and judgements are disclosed in the Group's most
recent annual report.
3. Restructuring costs
Restructuring costs occur outside the normal course
of operating the venues on a day to day basis, and
are unrelated to the Group's trading operations. These
have been separated out on the face of the Statement
of Comprehensive Income to allow the reader of these
financial statements to understand the day to day
operations for the year without the impact of these items.
These items typically include the impairment or disposal
of assets, costs related to restructuring or M&A activity,
concept development or are otherwise unrelated to Group's
trading operations. Costs incurred during the period are
related to the development and opening of MoVida and
Bivacco, as well as recruitment and immigration costs in
response to the significant labour shortage that would
not otherwise have been incurred in the normal course of
business.
Six months
Sept 2022
$000's
Six months
Sept 2021
$000's
Year ended
March 2022
$000's
Acquisition costs(20)(95)(804)
Restructuring and
other costs
(242)(97)(149)
Loss on disposal of
fixed assets
- (36)(110)
Concept development
expenses
(212)(87)(137)
(474)(315)(1,200)
4. Share capital
On 31 May 2022, the Group completed a private placement
to raise a total of $2.1m of new equity at $0.40 per share,
totalling 5.3 million new shares.
5. Intangible asset impairment
The Group performed its annual impairment testing of
goodwill at 31 March 2022, which included a number of
conservative assumptions for the impact of COVID-19.
Management has reconsidered the assumptions of the
impairment tests in light of the results for the six months and
are satisfied that there is no indication of an impairment
that would require a more comprehensive impairment
assessment at this time.
Notes to the Interim Financial Statements
6
Savor Group 2022 Interim Financial Statements
Financial Statements

6. Segmental information
Segmental information is presented in respect of the
Group’s industry segments as all of the Group's operations
are in New Zealand.
Six months
Sept 2022
$000's
Six months
Sept 2021
$000's
Year ended
March 2022
$000's
Revenue
Hospitality 20,703 17,155 30,581
Corporate - - -
Total 20,703 17,155 30,581
EBITDA*
Hospitality 2,556 2,531 4,598
Corporate (1,206) (421) (1,603)
Total 1,350 2,110 2,995
* EBITDA means earnings before interest, tax, depreciation, amortisation,
restructuring costs, and impairment charges as disclosed in the
Statement of Comprehensive Income.
Depreciation and amortisation
Hospitality (2,270) (1,960) (4,001)
Corporate - - -
Total (2,270) (1,960) (4,001)
Capital expenditure
Hospitality (2,579) (1,161) (1,936)
Corporate - - -
Total (2,579) (1,161) (1,936)
Non-current assets
Hospitality 53,286 55,697 52,448
Corporate - - -
Total 53,286 55,697 52,448
7. Reconciliation of net earnings to net cash
from operating activities
Six months
Sept 2022
$000's
Six months
Sept 2021
$000's
Year ended
March 2022
$000's
Net loss after tax(2,132)(746)(5,036)
Add back:
Interest paid737 588 1,266
Venue development
costs expensed
212 86 137
Add/(Less) non-cash items:
Depreciation and
amortisation
2,2701,9604,001
Supplier loan income
recognised
(159)(151)(312)
Loss on disposal of fixed
assets
- 36 110
Impairment of goodwill - - 1,564
Movements in working capital:
Trade and other
receivables
(264)(73)(256)
Inventories(49)(139)143
Trade and other payables1,027 (432)1,335
Net cash from
operating activities
1,642 1,129 2,952
7
Savor Group 2022 Interim Financial Statements
Financial Statements

Corporate
Directory
Directors
Paul Robinson
Executive Chairman
Lucien Law
Executive Director & CEO
Ryan Davis
Independent Director
Louise Alexander
Independent Director
Financial Calendar
Interim results announced: November
End of financial year: 31 March
Annual Report published: May
Registered Office and
address for service
Level 4, Seafarers Building, 114 Quay
Street, Auckland, 1010, New Zealand
contact@savor.co.nz
Auditor
EY
Banker
Kiwibank
Lawyers
Chapman Tripp
Company Publications
The Company informs investors of
the Group’s business and operations
by publishing an Annual Report and
regular trading updates.
Share register and
shareholder enquiries
Shareholders with enquiries about
transactions or changes of address
should contact the share register.
Link Market Services Limited
Level 30, PwC Tower, 15 Customs
Street West, Auckland, PO Box 91976,
Auckland 1142
Phone: +64 9 375 5998
Fax: +64 9 375 5990
Other questions should be directed to
the Company at the registered address.
Stock Exchange Quotation
The Company’s shares trade on the
NZX Main Board equity security market
operated by NZX under the code SVR.
9
Savor Group 2022 Interim Financial Statements
Corporate Directory

New Zealand's premier hospitality group
GROUP

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NZX Release

Savor opens hero Viaduct venue, provides an update on trading and
half year results
23 November 2022
Savor Limited (NZX: SVR) (“Savor” or with its subsidiaries “the Group”), New Zealand’s premier
hospitality group, opens Bivacco in the Viaduct Harbour’s most desirable site, provides an update on
trading led by MoVida, and announces its half year results.

Highlights:
• Bivacco, the Group’s 18
th
venue, opened in Auckland’s Viaduct Harbour on Monday 14
November. Trading for the first 10 days has exceeded all expectations, a powerful statement
for trading throughout the busy summer period.
• MoVida opened in Britomart’s Seafarers in August with a tremendous response from
customers. Trading to date has exceeded budget by over $100,000 per month.
• Savor today announces strong revenues of $21m for the six months ended 30 September
2022.
• Operating earnings were $1.4m, compressed by labour shortages and capacity constraints.
• Despite this the Group strengthened its balance sheet by paying down $2.5m of third party
debt during the period.
• Following the arrival of 60 international employees over the last six weeks, the Group is
approaching full trading hours across all venues and is well placed to take advantage of the
busy summer trading period.


Opening of Bivacco
Savor is pleased to report that Bivacco opened on the Viaduct precinct’s most prominent site on 14
November and trading has so far exceeded expectations. The venue recorded revenue in excess of
$250,000 in the first week of trading, despite terrible weather, and served over 2,000 customers. The
Group is excited by the future potential of this powerhouse of a venue.

Savor Group Chief Executive Officer, Lucien Law, confirmed the reaction from customers has been
significant.
“We are incredibly pleased to be able to open Bivacco in time for summer. The opening has been highly
anticipated both within the Group and from our customers, both existing and new.” he said.
“The quality of the fit-out is unparalleled in the Viaduct precinct and is again a credit to our
development partners.”

Trading Update
Following the update provided at the Annual Meeting in August, the Group has continued to trade well
in the face of capacity constraints and labour shortages. MoVida opened on 31 August with
overwhelming positive feedback and has achieved revenue in excess of budgeted expectations by up
to $100,000 per month. The summer season kicked off in early November, marked by the return of

2

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Melbourne Cup events for the first time in two years, a $100,000 day for the Group hosting functions
at several venues.
The Group has alleviated the labour shortages with the arrival of 60 international recruits through
October and November. This will allow all venues to reopen and increase trading hours to return to
full trading operations for the summer season. While there are additional friction costs associated with
international recruitment, the trading potential it unlocks far outweighs the cost involved.

Half Year financial results
Today the Group also announces its half year results for the six months ended 30 September 2022. The
Group posted strong revenue for the six months of $21 million, compared to $17 million in the prior
period, with both periods of trading impacted by COVID-19. The Group achieved EBITDA of $1.4m
compared to $1.5m in the prior period (excluding one-off gains recognised as other income in the prior
period).
The first three months of the year continued to feel the effects of COVID-19, both through reduced
customer activity as well as continued constraints on the labour market through immigration settings.
Savor responded quickly to these wage pressures by increasing menu prices, as advised at the Annual
Meeting in August 2022, however there is a natural time-lag between the two leading to a short term
compression of margin.
This, combined with lower efficiencies of fixed costs due to reduced trading hours or closures in some
venues, has led to compression at an EBITDA level. The Group expects to recover this in the second
half of the year with the return to full trading operations and stronger than expected trading for the
new venues.
Despite the challenges during the period, the Group has improved its Balance Sheet position, with
$1.3m of bank borrowings and $1.1m of deferred consideration for the Hipgroup purchase both repaid
during the period. This, combined with the remaining $0.1m of the Mission Bay deferred payable,
resulted in $2.5m of third party debt repaid from trading cash flows.
Savor continues to cement its position as an employer of choice, despite the tight immigration settings
and labour market, with over 150 staff joining the Group in the last three months. The calibre of these
staff is extremely high, with a number of the new senior team joining us with significant local and
international experience. The recruitment pipeline is solid and will underpin the summer trading
period.
Savor Group Chairman, Paul Robinson, said: “The first six months of the financial year have
demonstrated the strong demand for our brands, offerings and employment opportunities. We have
been impacted by the same challenges experienced throughout the industry, and more generally
New Zealand as a whole, but have responded appropriately to ensure we are able to take advantage
of our busy trading period. We are incredibly pleased with the early successes of MoVida and Bivacco
and are looking forward to driving both top and bottom line growth through the rest of the year.”

The Group expects to be in a position to provide a further market update in February 2023 following
the busy summer period.

-ENDS-

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Investor Enquiries
Tim Peat
CFO, Savor
Mobile: 021 049 7442
Email: tim@savor.co.nz


About Savor
Savor, established in 2011, is one of New Zealand’s largest hospitality businesses with 18 iconic
venues in Auckland, including Amano, Azabu Ponsonby, Azabu Mission Bay, Ebisu and Non Solo Pizza,
each with its own unique concept, culture and offering. In 2022, Savor opened Bivacco in Auckland’s
Viaduct Harbour and brought iconic Melbourne concept MoVida to Britomart’s Seafarers Building.
Savor has a reputation for originality, the quality of its products and the high standard of service that
is consistent across the company portfolio.