Five Guys has said it plans to continue its rapid roll out in the UK, despite posting pre-tax losses of £3.9m for the full year to 31 December 2018.
In its latest accounts filed at Companies House, Five Guys JV Limited, the operating company for its UK restaurants reported that despite a challenging start to 2018, with the extreme weather and the Football World Cup, the company performed “exceptionally well” in the latter part of the year, with revenue up 23% to £149.6m (2017: £121.9m).
Operating profit stood at £5.8m, up from £5.1m in 2017, however the company saw pre-tax losses increase on 2017, from -£3.1m to -£3.9m last year.
During the year the group secured a £100m bank facility from Goldman Sachs to aid its expansion in the UK and Europe and to repay UK shareholder debt, with £35m used to repay previous bank debt and £25 to reduce shareholder debt.
“This has significantly reduced the blended cost of debt. All UK shareholder loans will be repaid in 2019, said the company.
John Eckbert, chief executive of Five Guys UK, said: “The directors continue to believe that there are strong growth prospects in the premium burger market and intend to continue the rapid roll out of Five Guys in the UK.”
At the year-end Five Guys operated 88 restaurants in the UK. During the year 10 stores opened and one closed. So far this year, two stores have closed and the company plans to open 10-15 new restaurants.
Eckbert added that delivery had proved to be “an exciting new revenue stream for the business” and continued to help it grow and reach out to new customers. Five Guys began trialling its UK delivery service at the beginning of 2017.
Five Guys added that committed to developing apprentices and was currently developing a new apprenticeship programme to train staff.