Rockfish is planning a £3m fundraise, which will be used to support capital outgoings and new openings in 2024.
The upcoming raise is “materially oversubscribed by existing shareholders and institutional investors which demonstrates the level of confidence in the brand, management and the future business plan”.
The Mitch Tonks-led seafood restaurant business paused new openings last year, amid challenging macro-economic conditions.
However the South West business plans to resume expansion in 2024, with three confirmed new sies in the pipeline, in Topsham, Sidmouth and Salcombe.
The group also reports that it is in legals on a fourth beachfront site.
In accounts for year ended 30 April 2023, Rockfish reported turnover was more or less flat at £13.64m (2022: £13.36m).
Restaurant EBITDA was £1.94m, while group level EBITDA was £85k. Overall, the group made a loss for the year of £876k.
The business reports it is “performing well, with growth in sales, margin & overall conversion which has returned the group to budgeted levels of profitability in the current financial year.”
While Rockfish benefited from staycations last year, it was impacted by operational challenges caused by inflation, with seafood particularly impacted with increases on certain species of up to 150%.
Consumer cost of living pressures meant there were fewer people eating out at restaurants between September and February.
These factors led to the Will Beckett-chaired group’s 2023 performance being below forecasts.
During the period, the group acquired Hillside foods, which was previously part of its supply chain, to help vertically integrate the business, protect it against inflationary pressures, as well as help deliver its direct-to-consumer proposition.
Rockfish uniquely owns & controls its own seafood supply chain, based on the quayside in Brixham. This gives the group significant competitive advantages, enabling it to maintain a high-quality supply of seafood to its restaurants and also maximize margin.
The success of the seafood supply business has helped Rockfish negotiate fish prices below the market average.
As a result, the company says it is in a strong position to return to budgeted level of performance in 2024.
Mitch Tonks, founder & CEO, commented: “2022/23 was a difficult year; the inflationary challenges in particular felt relentless. I am extremely proud of how the company rose to meet those challenges, and believe we will be stronger for it in the near and long-term. The trading performance of 2024 demonstrates the skill of our leadership team and the resilience of our brand. With recent confidence low in our sector I am delighted that Rockfish was oversubscribed in our fund-raising with support from existing and new shareholders. Rockfish is a strong brand with a unique offer and I feel we have re-gained the momentum we had in 2019.Our three new openings and the commercial advantages of our supply chain will see sales, profitability and the estate grow in the coming year “
Will Beckett, chairman of Rockfish and CEO of Hawksmoor, said: “Rockfish remains, to my mind, one of the stand-out companies in the hospitality industry. Like many, it has had challenges post-Covid, but while dealing with them has remained focused on the customer having a fantastic experience, on sourcing the best produce, and on trying to change the way people experience seafood in the UK.”
