Pret franchise and fish and chip shop operator Chesterford Group grew turnover by 13.7% to £27.3m in 2022, as inflationary pressures forced price increases on takeaway food and drink.
EBITDA fell from £2.8m to £1.2m due to “extraordinary” external pressures.
During the year, the group entered into a franchise agreement with Pret A Manger to open in Cambridgeshire, Essex and Hertfordshire.
The impact of the first period of trade from this new subsidiary, Joy Brands, resulted in a decrease in group pre-tax profits, with a loss of £668k (2021: profit of £1.4m) as resources were expended to set up this business.
Overall, the business made a loss of £868k (2021: profit of £1.07m).
Four Pret stores were opened during the period, in St Albans, two in Cambridge and one in Chelmsford.
The shops’ performance has been “within management expectations”, with a pipeline of new openings being built.
Bishop’s Stortford opened in February 2023 and Braintree in June 2023, with more planned during this year.
In its core business focussed on fish and chips, the group reported inflation reaching as high as 70% on some products, leading to several price increases throughout the year.
The surging costs meant consumers paid an extra 11% on average in 2022, which has “clearly had an adverse effect on consumer spending”.
Directors said the company was “well placed to whether any storm, with its strong liquidity and focused, determined management team”.
Despite continuing high inflation and pressure on spending, directors said the company’s offering remains attractive to the market, with growth opportunities being sought in both divisions.
