17th Aug 2021 14:41
(Alliance News) - Fulham Shore PLC on Tuesday reported a drop in sales and a wider loss in the 2021 financial year, as it vowed to push on with expansion plans while diners return to restaurants after lockdown.
The London-based company, which owns the Franco Manca and Real Greek restaurant brands, made revenue of GBP40.3 million in the financial year ended March 28, down 41% year-on-year from GBP68.6 million. Its pretax loss widened to GBP7.5 million from GBP754,000.
Shares were up 3.1% to 16.50 pence in London on Tuesday afternoon.
The company was hit hard as the pandemic shut its restaurants, most of which are in London. But trading was "buoyant" in summer 2020, between lockdowns in the UK, and the company took advantage of government support including the furlough scheme and tax relief.
In an update on current trading, Fulham Shore said revenue averaged GBP1.5 million per week between June 21 and Sunday last week, an increase of 8% compared to the same period in 2019.
But sales in city centre restaurants were down 41% versus 2019 levels, because of a lack of office workers and tourists. Outside city centres, sales are up 30%, with outlets in coastal and university towns "especially busy".
"We believe revenues will recover in the medium term as tourism recovers and the move back to offices recommences after the summer," the company said.
Fulham Shore is continuing expansion plans, identifying over 125 new Franco Manca and 30 new Real Greek sites, which would bring its total estate to over 230 restaurants in the UK in the medium term. The company said it has benefited from lower rents as High Street stores go out of business.
The firm has also started "investing in an experienced team to capitalise on the opportunity to establish our brands overseas."
Although Fulham Shore had been considering starting a dividend, that will be delayed "until the full effects of the pandemic are over."
"Having navigated the impact of the Covid-19 pandemic, the group is well-positioned to capitalise on emerging opportunities. We are confident that this current financial year will be the start of another exciting period of growth," Executive Chair David Page said.
By Ivan Edwards; [email protected]
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