Megan’s is on track to deliver sales growth of 70% in its current financial year, according to finance director Gill Clements.
Commenting on the neighbourhood restaurant’s current performance, following the publishing of Megan’s latest accounts on Companies House for the full year to 31 March 2022, Clements said the business continued to grow “at an impressive pace”.
“We have proven our success across the suburbs of London and our focus now shifts towards those areas beyond, particularly the home counties. Our current three ‘out of London’ sites are significantly exceeding expectations, and we have a strong pipeline of over 10 locations to continue our expansion in this key market,” she said.
Megan’s, which is just about to open its 20th location, in Guildford, reported an 193% increase in annual turnover for the year to March 2022, to £22.7m, up from £7.7m the prior year. Adjusted EBITDA increased to £4.1m (2021: £1.7m) – an operating margin of 17.8%, with the company delivering a pre-tax profit of £871k, compared to £515k in 2021.
Clements said the growth had been supported by the successful opening of five new sites during the period and the benefit of a return to regular trading patterns.
“Despite another year of challenging market conditions, we’ve continued to deliver exceptional results because of the quality of our offering, our ability to truly trade all day from brunch through to dinner, and our fantastic teams,” she said.
“Our performance to March 2022 and the strength of our balance sheet has enabled us to continue to invest in our business. Our 20th site will open its doors in Guildford in April, and we remain focused on our existing estate, with a number of exciting CAPEX projects ongoing. This wouldn’t be possible without our teams, and we are recognising that by continuing to invest in our team pay structures and opportunities.”
Since the year end Megan’s has opened four new restaurants around London (in Marlow, East Dulwich, Welwyn Garden City and Richmond.
It secured a £5m banking facility in September 2022, which will enable it to continue on its growth trajectory.
