21st May 2024 14:28
(Alliance News) - Comptoir Group PLC on Tuesday said it is successfully advancing its growth strategy despite swinging to a loss in 2023.
The London-based operator of Lebanese, Middle Eastern and North African inspired restaurants swung to a GBP1.6 million pretax loss in 2023 from a GBP902,450 pretax profit the year before.
Revenue rose 1.4% to GBP31.5 million from GBP31.0 million.
Unchanged from the previous year, the company declared no dividend as management intends to invest cash resources back into the business.
Chief Executive Officer Nick Ayerst said: "Our strategy to grow through organic sales, new openings and franchising is bearing fruit and I am pleased to report that each strand of these strategic pillars grew in the last year.
"Whilst our group revenue grew, our costs increased as a result of food cost inflation, a further increase in the minimum wage and, for a period, energy bills that were three times that of years previous."
Ayerst added that he expect it will take a further 2 to 3 years before the company can adjust pricing sufficiently to fully return to pre-Covid margins.
The portfolio continues to expand with the opening of a new site in Ealing in 2023, and more recently this year, a site in Southbank as well as a franchise store in Abu Dhabi.
The company now has 28 locations running of which 6 are franchised.
Looking ahead, the company said it will continue working towards generating labour efficiencies and improving cost management to help mitigate enduring economic challenges.
Comptoir shares were down 3.3% to 6.53 pence each in London on Tuesday afternoon.
By Elijah Dale, Alliance News reporter
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