26th May 2022 16:04
Hostmore PLC - Edinburgh-based hospitality company and owner of the Fridays American food chain - Warns its margin will fall short of medium-term guidance. Hostmore expects an adjusted earnings before interest, tax, depreciation and amortisation margin in the low double-digits range for 2022, compared with its medium-term aim which targets a level in the mid-teens. Like-for-like revenue in the 20 weeks to May 22 was 6% lower than three years earlier. "We believe this is primarily a result of consumer confidence weakening significantly since Russia's invasion of Ukraine on 24 February 2022 which is contributing to the current cost of living crisis," Hostmore explains.
"We are not where we expected to be, however, I am able to report a financial performance which, regardless of the arduous challenge and extreme economic headwinds being encountered presently, allows us to confidently continue with our development strategy," says Chief Executive Robert Cook.
Current stock price: 42.65 pence, down 14% in London
12-month change: down 68%
By Heather Rydings; [email protected]
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