Chilango’s parent company Mucho Mas had said it is in the advanced stages of issuing a second Burrito Bond, in order to fund the continued development of the business.

Referred to in the company’s recently filed accounts at Companies House for the year to 25 March 2018, the company said its directors expect the Burrito Bond to raise sufficient funds in advance of the repayment of shareholder loans to fully or partly repay those due, and to develop further new sites.

The Group has shareholder loans of £773k that are due to be repayable in November 2018, however the holders of the loans have “granted a written undertaking to the company that over 85% of the amount of these loans can be deferred by 13 months or even beyond”, read the report.

“The directors consider that the repayment of the remaining 15% element of the shareholder loans can be done without any further fund raise,” it added.

Chilango first launched a Burrito Bond, via Crowdcube, in 2014, and smashed its £1m fundraising target by more than 100%.

Mucho Mas’ directors’ report, stated that the company “experienced considerable momentum in both sales and underlying EBITDA growth”, during the 52-week period.

Across the restaurant estate, sales grew 6.2% compared to the previous year, from £9.7m to £10.3m. “A particularly strong performance was seen via the delivery market channel,” it said.

Group underlying EBITDA stood at £0.4m, compared to a loss of £1.2m in the same period in 2017, while the company posted an operating loss for the year of £1.1m, vs. £2.9m the previous year. Loss after tax came in at £1.1m, compared to £3.1m for the full year to March 2017.

Said food and labour costs were “optimised significantly”, with the gross profit margin strengthened from 63.7% to 66.7%. Gross profits increased by 11.3%, from £6.2m to £6.9m.

The company said it was pleased with the current trading performance of its restaurants, and “the directors are confident that the company will deliver a significantly higher company underlying EBITDA in the forthcoming financial year”.