Famous Brands, the operator of the Wimpy and Spur brands, has reported that its UK operations recorded one of its best-ever results in the year to 28 February, and announced plans to open more sites under its Steers brand here.
The group said that “notwithstanding dire trading conditions in this market”, its performance in the UK was “a reflection of the significantly better-managed cost base.”
During the period the Group opened its first Steers UK restaurant, situated in Clapham. Three restaurants were also added to the Wimpy network during the year. In the forthcoming period the existing Wimpy Twickenham restaurant will be converted to the Steers brand and an additional new Steers restaurant will be opened, while two new Wimpy restaurants are also planned.
Revenue across its UK estate decreased by 6% during the year, but in terms of the Rand improved 11% to R92m (£5.3m). Operating profit rose to R13m (2013: R5m) as no repeat impairment of the UK goodwill was required.
Operating profit margin grew strongly to 14.0% from 6.5% in the prior year.
Overall the group, which operates 2,738 sites, grew its revenue 12% to R2.83bn in the year to February. Operating profit increased by 21% to R566m, while its operating margin reached a record high of 20%, up from 18.5% last year.
It Brands plans to open 300 more restaurants in the year ahead.
Group chief executive Kevin Hedderwick said: “It is satisfying to report on a year which featured not only strong results but also substantial progress made on the programmes which will realise our goal and drive the group’s future growth trajectory. Noteworthy advancements were achieved in building capability across our brands, logistics and manufacturing operations, providing a holistic solution to the group’s investment partners and consumers.”
