Fulham Shore increased revenues by 26% to £49.9m in the second half of the year (2021: £39.5m).
The operator of The Real Greek and Franco Manca reported adjusted headline EBITDA of £6.0m (2021: £6.9m), reflecting the absence of the business rates holiday, lower VAT rate, and Covid-19 grants that were in place during the prior year comparable period
Operating profit was £2.4m (2021: £4.5m), reflecting higher one-off pre-opening costs incurred on more new restaurant openings during the half year.
Covering the six months ended 25 September 2022, the unaudited interim results showed profit after tax of £0.3m (2021: £2.4m).
During the period the group opened 11 new Franco Manca pizzerias (one of which was a relocation), and two new The Real Greek restaurants (with one closed due to the end of a lease).
Fulham Shore operated 93 restaurants as at 25 September 2022 (2021: 75).
A further two further Franco Manca have opened since the period end, bringing it to 71 pizzerias, and a further two Real Greek, taking it to 26.
A franchise territory deal for Franco Manca in Spain has been agreed, which directors believe is a “potential major market”.
A strategic expansion into retail was made in November with launch of debut range of five Franco Manca cook-at-home pizzas, available to purchase in 500 supermarkets across the UK, with “encouraging levels” of sales so far
Post the period end, an RCF loan facility of £17m was extended with HSBC by one year to expire in November 2025.
As at 15 December 2022, the group had net cash (excluding lease liabilities) of £0.7m, and undrawn debt facilities of £16.9m out of total facilities of £17.75m.
David Page, executive chairman of Fulham Shore, said: “The group traded in line with management expectations during the period despite challenging trading circumstances. This creditable performance was underpinned by continued strong revenue growth at both Franco Manca and The Real Greek reflecting both businesses’ high-quality food and excellent value-for-money propositions.
“During the six month period the Group made solid strategic progress, opening a total of 11 net new restaurants in the UK and since the period end have agreed the terms of a new franchise agreement for Franco Manca in Spain which will see the opening of two restaurants in the country early next year.
“Our UK restaurant expansion is now complemented by the launch of our very first range of cook-at-home Franco Manca sourdough pizzas into 500 UK supermarkets. The customer reception to the range has been encouraging since its launch in November, and we look forward to seeing this develop further over the coming months and years.
“Trading during the first two months of the second half of the financial year was well ahead of the comparable periods in 2019 and 2021, at 46% and 12% respectively. Furthermore, the Franco Manca loyalty programme continues to grow in user numbers with 350,000 users and over 50,000 loyalty pizzas enjoyed by our loyal customers. Notwithstanding this momentum, the board remains mindful that we continue to operate against an unstable political and economic backdrop, which in turn has impacted consumer confidence and driven up our costs as well as facing significant challenges from the ongoing transportation disruption.
“Reflecting on this, our aims over the coming 12 months are to conserve cash for our shareholders, to proceed cautiously, and take advantage of ever-decreasing rents.”
