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This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
16 January 2024
Hostmore plc
Trading Update
Hostmore plc (the "Company") today announces an update on trading following the end of its financial year on 31 December 2023, also covering the December 2023 period.
Revenue during H2 2023, on a like-for-like ("LFL") basis versus H2 2022, was flat, representing an improvement on H1 2023, which was 2% below the comparative FY22 period (adjusted for differences in VAT).
The Board is pleased that the four week December 2023 holiday period generated a further improvement on H2's overall trend, with LFL revenue +4% compared to December 2022. This result is particularly encouraging as c.65% of our estate is located in retail parks or shopping centres, many of which operated on reduced holiday hours resulting in a c.2% impact to our LFL sales in December.
It is currently expected that H2 2023 generated unadjusted FRS102 EBITDA of £5.4 million, with an EBITDA profit being realised in each of the six months of the period. This is the first period to benefit from a significant portion of the restructuring actions announced previously, which were implemented late in H1 2023.
Pro forma FRS102 EBITDA for H2 2023 would have been approximately £7.2 million if all currently implemented actions had been in effect for the entire period. The Company continues to evaluate further opportunities to improve EBITDA, and will report on these initiatives after they have been implemented.
The Company maintains an objective of becoming debt free by dedicating all free cash flow towards repayment of borrowings. In furtherance of this, consolidated net bank debt at the year-end was £25.1 million, an improvement in line with forecast from £31.3 million at 2 July 2023.
The Company is continuing to engage existing and potential new lenders in the refinancing process, and we remain focused on concluding this in the previously announced timeline.
The Company expects to publish its 2023 preliminary results in the second half of April.
Julie McEwan, Chief Executive Officer, commented:
"We have continued making good progress in executing our turnaround strategy, through disciplined capital allocation and the delivery of further cost reductions. Our organic growth initiatives, implemented through a strong and motivated operational platform, have improved the financial outlook of the business and continue into 2024."
ENDS
Enquiries
Hostmore plc
Matthew Bibby, Chief Financial Officer
Tel: +44 (0)330 460 5588
Email: enquiries@hostmoregroup.com
Dentons Global Advisors
Jonathon Brill, James Styles
Tel: +44 (0)20 7664 5095
Email: Hostmore@dentonsglobaladvisors