Boston Tea Party is trading materially ahead of its forecasts, its latest financial report reveals.

The cafe group said it modelled a conservative trading scenario post-lockdown, which would initially be at 30% of previous levels.

As a result, the South West-based company is trading ahead of its funding model, which provides it with a “considerable cash cushion”.

The 22-strong business agreed with bank Santander that all covenants would be relaxed, with working directors taking a 50% pay cut.

Boston Tea Party also received finance from the Coronavirus Business Interruption Loan Scheme, on the basis that trading would gradually return to normal levels over a two-year period.

In its strategic report, CEO and co-founder Sam Roberts wrote: “Although the directors acknowledge that there are considerable ongoing uncertainties caused by covid-19 when assessing the next 12 months, including the possibilities of some or all of the cafes having to close for a period of time, the directors are confident that they will be able to react appropriately and trade through all reasonable scenarios.”

The report, covering the period ended 23 Oct 2019, reported sales were up 7.1% to £18.5m. EBITDA was up 66% to £1.3m.

The company described 2019 as a transformational year, becoming the first cafe business to ban single use coffee cups.