FUL.L Share News (FUL)

LONDON (Alliance News) - Shares dropped in Fulham Shore PLC on Thursday as it reported "uncertain economic outlook" as headline earnings before interest, taxes, depreciation and amortization for its current year are expected to be below market expectations due to higher operating costs.

Shares in the restaurant operator fell 17% at 8.90 pence on Thursday.

The Real Greek, Franco Manca and Bukowski restaurants owner said it expects headline Ebitda for the year March 25 to be below market expectations, despite an increase in turnover, in line with expectations.

The company said this is primarily due to trade in its suburban London restaurants which are serving fewer customers than the prior year with higher operating costs.

Last year, Fulham Shore reported headline Ebitda of GBP7.1 million and a headline operating profit of GBP4.7 million.

The group said it have opened 13 new restaurants in the financial year, increasing its total number to 58 restaurants. Fulham Shore also said it building a new Franco Manca pizzeria in Bath and it has exchanged contracts on a site for later in the year on South St Andrew Street in Edinburgh.

However, the company said it plans to reduce the number of new restaurant openings for the coming year and will only fund them from its internally generated free cash due to "uncertain economic outlook" for both the UK and the restaurant sector in particular.