Various Eat. Share News (VARE)

(Sharecast News) - Various Eateries said on Monday that it expects to report record profitability and a return to like-for-like growth for the year ended 28 September, driven by improved operational efficiency and stronger summer trading across its Coppa Club and Noci brands.

The AIM-traded restaurant and hospitality group said full-year revenue was expected to rise 6% to £52.4m, ahead of market forecasts of £50.7m, while adjusted EBITDA was set to reach at least £1.1m, up from £0.3m a year earlier and well above expectations of £0.4m.

It said the performance was achieved despite a £1.3m headwind from higher minimum wage and national insurance costs.

Like-for-like sales rose 4% in the second half and 2% for the full year, compared with a 1% decline in 2024.

The improvement reflected favourable summer weather and the success of menu enhancements that introduced premium food and drink options.

Chief executive Mark Loughborough said the turnaround reflected disciplined execution and continued improvements across the estate.

"Momentum from the first half carried into the second, with a return to like-for-like growth and record profitability demonstrating the progress we have made," he said.

"Across the group, our teams are lifting standards site by site, refining menus, improving speed and consistency, and building stronger, more focused operations."

He added that the breadth of the group's offer remained one of its core advantages.

"That diversity, combined with disciplined execution, has allowed us to grow sales in a way that helps offset some cost and margin pressures," Loughborough said.

"We are becoming a more efficient and resilient business while continuing to enhance the guest experience, which in turn is driving stronger conversion and more repeat visits."

Various Eateries said it entered the new financial year with positive momentum and a solid balance sheet, reporting cash of £8m at year-end, up from £5.8m in 2024.

The company said it remained focused on expanding its core brands while pursuing new opportunities that fit its quality and character-led strategy.

At 1138 BST, shares in Various Eateries were up 19.7% at 11.97p.

Reporting by Josh White for Sharecast.com.