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Wednesday 13th March 2013

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BFW were pleased to report that the unaudited net profit before tax (NPBT) was up 102% to $454,356 for the six months to 30 September 2012.This compares with a NPBT of $224,554 for the same period last year.

Prior year tax losses in NZ have now been fully utilised and in FY13 it is necessary to carry a tax provision. The Group reported a net profit after tax (NPAT) of $308,372 to 30 September 2012.

Total unaudited BurgerFuel Worldwide system sales are $22,056,829 (excl GST) up 26.5% on the same period last year.

Total operating revenue is up by 10.1% from $4,869,700 to $5,363,877.

This takes into account the reduction in the company’s revenue of $524,662 as a result of the sale of the Australian company owned store to a franchisee.

OUTLOOK: BFW reports that its model is scalable and its stores are popular in the Middle East. It intends to continue expansion in the Middle East in both existing territories as well as new territories.

In NZ BFW intends to commence opening new stores in FY13 and it intends to increase same store sales as well as consolidate system costs.

BFW is mindful of increasing commodity and other costs and accordingly maintains a strong focus on controlling both system and company costs.The focus in FY13 will be on international expansion in the Middle East as well as the continued re-shaping of the New Zealand business.

More stores are currently under construction in Dubai and Saudi Arabia and they will open in this financial year. Egypt is also anticipated to open its first store toward the end of March 2013.

From 1 April to 30 September BFW's New Zealand business has enjoyed an unaudited system sales increase of 5.8%.There are now 30 Burger Fuel outlets in NZ with more scheduled to open in the second half of this financial year.

The NZ business was successfully restructured in April to enable continued growth and BFW are actively recruiting new franchisees for the main centres in the South Island and regional centres in the North Island.

In Australia,unaudited sales are up 6.1% for the 1 April to 30 September period. Revenue was down due to the sale of company owned store but Australia remains a large potential market. Burger Fuel Middle East unaudited sales for the 1 April to 30 September period are up 141% with many of the Middle Eastern stores have broken sales records this year.

BFW's Master Licensee in Dubai has acquired the Kuwait territory and also entered into a joint venture with the Abu Dhabi based Bin Hammoodah Group to open in the UAE city of Abu Dhabi in the near future. A new site has been opened in Dubai’s Mall of Emirates and more sites are planned to open in Dubai before the end of the financial year.

Burger Fuel is performing strongly in every market that it operates in. Worldwide system sales (unaudited) have increased to $22.1million, up 26.5% on the same period last year. Burger Fuel’s operating revenue is up 10.1% to $5,363,877.

The management says that the company is well positioned to deploy its variety of operating models in different markets. As at 30 September 2012 the group had $2,310,829 in cash, up $1,151,462 (99.3%) on the prior period and has no borrowings.

While the management acknowledge the necessity of returning profits to shareholders through dividends, they believe it is essential at this time that BFW continue investment to support growth and take a long-term view of their business.

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