11th Nov 2024 14:23
(Alliance News) - Various Eateries PLC on Monday said it estimates revenue to have grown nearly 10% during its most recent financial year, which comes in ahead of market expectations.
The London-based operator of UK restaurants under the Coppa Club, Tavolino and Noci brands said it expects to report group revenue for the financial year that ended September 29 "slightly ahead" of market expectations at GBP50.5 million, which would represent a 9.9% increase from GBP45.5 million last year.
It also expects to report adjusted earnings before interest, tax, depreciation and amortisation ahead of expectations, as a result of "efficiency improvements coupled with further softening of inflationary pressures".
Various Eateries cited a company-compiled market consensus of GBP47.8 million in revenue for the full year, and nothing in adjusted Ebitda. This compared to an adjusted Ebitda loss of GBP2.2 million pre-IFRS 16 a year prior.
The group reported like-for-like sales growth of 1% in the second half compared to the year before, and said the final quarter of the year saw a 4% rise in like-for-like sales "despite above-average rainfall".
Executive Chair Andy Bassadone said: "It is gratifying to see the progress made, particularly in the second half of the year, which reflects the tireless work of our teams in delivering superior experiences to our guests. At the same time, we've achieved meaningful gains in operational efficiency, which will help to offset government mandated cost rises next year, all while maintaining the high standards that define our brands.
"While the market remains challenging, we are encouraged by the continued easing of the pressures that have negatively impacted the industry, such as food and utility costs, alongside signs of gradually improving consumer confidence.
"With a strengthened organisational infrastructure now in place, there is a sense that momentum is returning to the business. While we will remain cautious in our expansion, we are confident in the group's long-term growth prospects and look forward to building on our successes in the coming financial year."
Shares in Various Eateries were up 2.8% at 18.25 pence each in London on Monday afternoon.
By Emily Parsons, Alliance News reporter
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