The Breakfast Club has reported “significant improvement” in its financial performance over the last 18 months, as it continued further expansion in FY24.

In financial accounts for the year ended 31 March, 2023, the 17-strong breakfast specialist said that it had faced further challenges in the supply chain and utility pricing.

It posted a pre-tax loss of £1.4m in the year to March 2023 compared with a £1.3m loss the year before.

For the first six months of the financial year, the company reported a significant EBITDA loss, and to address these challenges, a restructure of central costs was implemented removing £600k from its cost base.

The second half of the year from October 2022 onwards, saw the company return to monthly EBITDA profitability, delivering £438k of EBITDA for the last six months of the financial year.

“This upturn in profitability has continued through FY24,” the business said.

On top of the central cost restructure, cost reviews across the business were carried out, and this resulted in gross profit improving from 73.2% in April 22 to 77.5% in March 23.

“We continue to look at ways to improve all aspects of the business from a profitability perspective,” it added. 

Trading across The Breakfast Club improved, with turnover increasing by 17% to £18.02m from the prior year and Restaurant EBITDA improving by 10% to £2.0m.

“So, whilst the first half of FY23 may have started out with some considerable challenges, the business has responded and met those challenges which has led to a significant improvement in financial performance over the last 18 months which has allowed us to expand the business in FY24.”

During the period, The Breakfast Club operated thirteen sites, and has since opened a further two sites in Central London, in Covent Garden and Soho. 

“Both sites have started trading well and we are buoyed by their early success”, according to the business.

Post year end, the business decided to sell its site on Battersea Rise, after it failed to return to pre-pandemic sales levels, resulting in a decision to sell and “re-invest in more central locations.”

During the year, it also opened its first franchise site at Gatwick airport, and is working with franchise partners SSP, with two further sites in the pipeline, set to open in summer 2024