TD4 Brands, the parent company that operates Boost Juice Bars and Shake Labs in the UK, has reported a decline in like-for-like (lfls) sales of 2.8% for the full year to 26 September 2018.
Overall sales grew by 5.5% but the two weather extremes last year dented lfls. The group posted a loss for the period, after tax, of £1.1m, compared with £2m the previous year. Revenue increased from £11m to £11.6m.
The company said that the accounting period was a transitional one for the group, not helped by the tough backdrop. It said the ambient temperature remained the single largest component affecting consumer demand of its products, therefore a prolonged winter following by an extended period of hot weather had a negative impact.
However, the group’s strategic report noted that the directors were pleased TD4 had delivered on the plan set out the previous year, which was broadly to open new Shake Lab shops in order to diversify its portfolio, and close loss-making Boost Juice Bars.
It also sought to negotiate better deals with its landlord, as a result of discussions, successfully negotiated favourable outcomes in several locations, “be that a reduction in rent, the return of a rent deposit, support with relocating a shop within a scheme or a capital contribution to a refit”, it said.
The measures saw an improvement to its EBITDA, before operating lease expenses, to £189k, compared with £93k the previous year, with the full-affect of changes within the business likely to come in 2019, it said.
The group invested £1.1m in the period to improve its resilience. Its Peterborough Boost closed during the period, but Shake Lab opened in Westfield White City, Sheffield Meadowhall and Bristol Cribbs as standalone operations, and in Oxford and Birmingham Boost shops were relocated and reopened as ‘Devil and Angel’ concepts.
It also exercised a break clause at its Boost Juice site in Kensington High Street, with the store closing in November 2018, after the end of the accounting period; the cost of which was included within the year end.
At the year end the group had a total estate of 35 shops.