Tortilla Mexican Grill swings to loss as admin costs outpace revenue

(Alliance News) - Tortilla Mexican Grill PLC reported a loss in the first half of its financial year as administrative expenses increased faster than revenue.

The London-based fast-casual restaurant chain said in the half-year to July 2, it swung to a pretax loss of GBP615,107 from a profit of GBP264,052 a year prior. Revenue climbed 22% to GBP32.7 million from GBP26.9 million.

However, administrative expenses increased 25% to GBP25.0 million from GBP20.0 million. Cost of sales increased 22% to GBP7.5 million from GBP6.2 million.

"The summer was unsurprisingly quiet, as seen in the wider market, with an increased demand for overseas holidays, ongoing industrial strike-action on the train network and uninspiring weather. Nonetheless, the group delivered like-for-like growth for this period," the company said."

Looking ahead, Chief Executive Officer Richard Morris said the company is eyeing to expanding its UK network and taking the brand into markets, with a focus on Europe. Further, he said: "We are very excited by the launch of our Tortilla Sunsets initiative earlier this month, which has had a very positive customer response so far. We believe there is a significant opportunity to enhance our evening sales by offering a great-value, dine-in experience including beers and margarita cocktails for just GBP2.50 as well as a number of delicious new menu additions."

Tortilla Mexican shares were 0.7% lower at 69.00 pence each on Tuesday morning in London.

By Tom Budszus, Alliance News reporter

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