LONDON (Alliance News) - The Fulham Shore PLC on Thursday said its profit shrunk in the first half of the financial year despite new restaurants helping the Franco Manca pizzeria and Real Greek restaurant owner more than double revenue in the period.
The eatery owner and operator saw revenue soar to GBP13.9 million in the first half ended September 27 from only GBP5.5 million a year earlier after new additions to its restaurant portfolio began to make an impact.
However, the company's pretax profit still fell to GBP187,000 from GBP747,000 a year ago as higher administrative and exceptional costs offset the material revenue rise, mainly driven by the company's rapid expansion.
Administrative expenses rose to GBP4.6 million from GBP1.7 million, leading to an operating profit before items of GBP1.7 million, almost double the GBP863,000 reported a year earlier. However, with higher exceptional items, bottom-line operating profit fell to GBP230,000 from GBP766,000.
The six month period was the first full set of results to benefit from the company's acquisition of a 99% stake in Franco Manca Holdings Ltd, which owns the 18-strong Franco Manca group of restaurants which specialise in Neapolitan sour-dough pizza. The Fulham Shore purchased that stake for GBP27.5 million, split unequally in cash and shares back in April.
It was also the first six month period to recognise a full half of results from The Real Greek restaurant in London's West End, pushing the company's portfolio of restaurants at the end of the period up to 24, comprising of 9 The Real Greek eateries and 15 Franco Manca pizzerias.
The Fulham Shore has continued to expand, opening a further two Franco Manca restaurants in Bermondsey and Wimbeldon since the end of the first half, pushing its portfolio up to 27 eateries.
The Fulham Shore is currently fitting out another Franco Manca restaurant in Stoke Newington which is scheduled to open in March and has the Bukowski franchise restaurant set to open in the spring of 2016.
"The board is excited about the future with the prospect of expanding the group's excellent restaurant businesses. The Real Greek and Franco Manca are planning to open new restaurants, mainly in London and the Home Counties in the coming year and, for the first time, the group expects to be opening Franco Manca pizzeria outside London during the financial year to March 2017," said the company.
"Contracts have been exchanged on three fantastic sites in very different locations: groovy Brighton; smart Guildford; and the large office and retail development of Nova Victoria behind Buckingham Palace," it added.
The Fulham Shore shares were untraded on Thursday morning, last trading at 19.50 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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