20th Aug 2020 11:35
(Alliance News) - Fulham Shore PLC on Thursday said it has raised GBP2.3 million in equity, with its new GBP25.8 million bank facilities now unconditional, and said it has benefited from the UK government's "Eat Out to Help Out" scheme.
Shares in Fulham Shore were up 16% at 9.85 pence in London in morning trading.
Fulham Shore, owner of UK chain restaurants Franco Manca and The Real Greek, has completed its equity fundraise to raise GBP2.3 million and has admitted all 36.0 million new shares issued under the fundraise to trading on London's AIM market.
Moreover, due to director participation in the fundraise, Fulham Shore's new GBP25.8 million bank facilities are now unconditional in all respects.
In terms of trading, Fulham Shore said the government's Eat Out to Help Out scheme, which allows customers to get a 50% discount when eating out at restaurants, has "proved to be beneficial both for UK diners and Fulham Shore". The scheme runs from August 3 to August 31.
The company said trade in the first full fortnight in August was markedly higher compared to the same period a year before, with the company hitting one of its highest weekly turnover figures in the second week of the scheme despite some of its restaurants remaining closed.
Nearly all the company's employees have been taken off furlough, and Fulham Shore is recruiting and training more restaurant staff.
Since August 6, Fulham Shore has opened another two The Real Greek restaurants and plans to reopen an additional Franco Manca next week, this located next to the new Harrods store in Westfield London.
At that point, 50 out of 51 Franco Manca restaurants will be open and 16 out of 18 The Real Greek restaurants will be open, with only 3 total restaurants yet to open. Plans to open a new Franco Manca near Warerloo Station in London in mid-September are still on track.
In terms of its leases, Fulham Shore said: "After the closure of the restaurants at the start of lockdown in March, the company initiated conversations with all of its landlords regarding a reduction in the sums paid to them under the various leases. The group is pleased to report that it has reached agreement with more than 40% of its landlords to waive, defer and/or reduce the rent on the properties it leases from them.
"The company remains in discussions over similar arrangements with its other landlords. The board is grateful to those landlords who have engaged with the company and been supportive of the business in these difficult times."
By Anna Farley; [email protected]
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