12th Dec 2018 09:43
LONDON (Alliance News) - Shares in Fulham Shore PLC surged on Wednesday as the restaurant chain owner said it is considering increasing its future opening programme after posting a positive set of interim results.
Fulham Shore shares were trading up 12% at 10.56 pence each on the back of the news.
For the six months to September 23, the owner of Franco Manca pizzerias and The Real Greek posted pretax profit up 36% to GBP1.5 million from GBP1.1 million a year prior.
Revenue increased 20% to GBP33.0 million from GBP27.5 million in the period, driven by openings and increased customer numbers.
"Our two restaurant businesses performed well in the first half of the year, driven by a number of factors including: new menu initiatives, including vegan and gluten free options, within both businesses and investment in our digital channels," Chairman David Page said.
He added: "During the current financial year to date we have seen sales and profit growth, improved operating cash flow, and reduced debt exposure for the group. These factors, together with our successful new opening so far this year, have led us to consider increasing our opening programme beyond the current financial year."
For the half, Fulham shore opened two new Franco Manca restaurants, with a further one after the six-month-period. It now trades from 43 restaurants, mainly in London.
For the financial year ending March 2020, the company is now looking to open more restaurants across both brands than in the current financial year, as it is in negotiations with several landlords.
Despite the positive growth, Fulham shore did not propose to pay a dividend in respect of the period. "Dividends will be paid to shareholders when the directors believe it is appropriate and prudent to do so," it explained.
Looking ahead, the company reiterated its confidence for "continued growth and a great future".
"Whilst the turmoil in UK retail and restaurant sectors has continued throughout 2018, we believe that restaurant operations which offer value for money and, above all, food quality and provenance, will continue to prosper," it added.
With regards to Brexit, the firm said it continues to progress with contingent plans for "all types of exit".
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