(Sharecast News) - Restaurant operator Fulham Shore reported a 103% improvement in first-half revenues on Monday, to £39.5m, as trading since the lifting of Covid-19 restrictions continued to outpace its forecasts.
The AIM-traded firm said restaurants traded with no pandemic-related restrictions for 10 of the 26 weeks comprising the period ended 26 September.
Its adjusted headline EBITDA swung to earnings of £6.9m from a loss of £0.1m in the prior year, while its headline EBITDA improved to £10.6m from £3.6m.
The company recorded an operating profit of £4.5m for the period, compared to a loss of £3m in the first half of the 2021 financial year.0
Both business' revenue, headline EBITDA and profit before tax were also ahead of the same pre-pandemic period two years ago, in 2019.
Fulham Shore said its profit after tax totalled £2.4m, swinging from losses of £3.9m, while its operating cash inflow grew to £15.6m from £6.3m.
On the operational front, the company opened two new Franco Manca pizzeria in Glasgow and Holborn in the period, and one new Real Greek restaurant in Norwich.
It operated a total of 75 restaurants at the period end on 26 September, up from 72 year-on-year, while it swung to net cash excluding lease liabilities of £5.1m, from debt of £3.3m a year ago.
That was also an improvement of £8.7m from the net debt position of £3.6m as at 28 March.
"During the half year, revenue more-than-doubled against the prior year and increased by 10% when compared to the first half to September 2019," said chairman David Page.
"This is despite being able to trade without restrictions and serve dine-in customers for only 10 out of the 26 weeks of the half year.
"This strong performance continues to reflect the outstanding quality and value of our menus as well as the talent of the amazing teams across both of our restaurant businesses."
Page said the company had seen continued trading momentum in recent weeks, with revenues in October and November ahead of 2019 comparatives.
"This includes our office and theatre district located restaurants which are continuing to trade positively, over the four weeks in November 2021, achieving revenues ahead of the same weeks in 2019.
"With strong revenue growth in the half year and continued buoyant current trading, Fulham Shore is performing ahead of management's expectations with many restaurants throughout the UK continuing to break weekly trading records."
That, David Page said, augured well" for the group's full year performance, which it expected to be now ahead of market expectations, as well as for its UK-wide expansion plans.
"We have 21 more potential sites in solicitors' hands across both businesses and look forward with confidence to the continued growth of both of our fantastic restaurant businesses over the coming years."
At 1002 GMT, shares in the Fulham Shore were up 6.81% at 17.89p.
11 Jul 2023 14:17
IN BRIEF: Fulham Shore takeover by Great Sea Kitchens effective
Fulham Shore PLC - London-based Franco Manca and The Real Greek owner - Says takeover by Great Sea Kitchens Ltd is now effective. This follows the April 5 announcement by Fulham Shore and Great Sea Kitchens to their respective boards that they had reached agreement on April 5 on the terms of a cash offer pursuant to which Great Sea Kitchens, newly-incorporated company established on behalf of Toridoll Holdings Corp, would acquire the entire issue and to be issued share capital of Fulham Shore for GBP93.4 million.
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