Honest Burgers secured additional funding of £1.3m last year from its investors Active Partners to support the opening of two new sites.

The investment is in the form of convertible loan notes, accruing interest at 20%.

The disclosure was made in financial accounts covering the full year to January 2022, a period that was impacted by Covid restrictions.

During the period, the company said it continued to capitalise on the shift in customer behaviour to more delivery led sites, including dark kitchens.

In the second half of the year, Honest resumed its ambitious growth plans, opening three new sites.

Turnover increased by 40% to £38.2m. EBITDA increased by 49% to £1.7m (2021: £1.1m)

Group operating loss increased by 109% to a loss of £5.4m (2021: loss of £2.6m).

Exceptional items increased to £3.6m, driven by pandemic-related events, pre-opening costs of £0.5m, impairment of £1.6m reflecting weaker trading, and £0.5m for an onerous lease provision.

There was also £0.5m spent on management enhancement costs in relation to the reshaping of the business and head office restructure.

Honest also secured additional £4.9 in debt from its bank, with £1.3m drawn down at the period end.