23rd Apr 2018 12:28
LONDON (Alliance News) - Comptoir Group PLC on Monday reported a swing to profit in 2017, as its revenue rose by more than a third and it disposed a freehold property.
Shares in Comptoir were trading 8.3% higher at 14.35 pence per share on Monday.
The Lebanese restaurant chain said revenue rose 38% year-on-year to GBP29.6 million from GBP21.5 million, while it swung to a pretax profit of GBP456,858 for 2017 from a GBP1.0 million loss the year before as it sold central production unit for GBP1.3 million in October last year.
The group said it invested funds from the sale in the opening of new sites and development of existing sites.
Comptoir said it continued to feel cost pressures in the supply chain throughout the year, including the ongoing effect of the National Living Wage and Apprenticeship Levy.
"Despite this, costs were controlled carefully by management, such that once the new restaurants reach maturity of trading, the Group's adjusted results should return to much enhanced profitability," the company said.
Distribution expenses increased year-on-year to GBP8.4 million from GBP5.6 million, while administrative costs rose to GBP13.6 million from GBP11.0 million.
The group said its expansion plan continues as it opened four new restaurants and added franchise site to its portfolio. At the end of the year, Comptoir had a total of 26 restaurants and three franchise operations, compared with 22 restaurants and two franchise operations in 2016.
Looking ahead, the company said it plans to open further two restaurants in London and Birmingham in current financial year, with trading during the year-to-date in line with expectations and strong sales anticipated in the second quarter.
The company said it will not pay a dividend for the year, as it plans to invest funds in new restaurants or the existing estate for the foreseeable future. It is currently looking to refurbish some of its existing matured restaurants which have been trading for over four years to give a fresh look and innovation with new designs.
"Sales at the new restaurants are gradually building towards the levels anticipated at maturity and the company is putting in place several marketing initiatives, including a new menu, ahead of the critical summer trading period to promote sales at both existing and new restaurants," said Chief Execuitve Hanna Chaker.
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