Various Eateries has seen a steady start to H2, despite inconsistent weather conditions.
The Noci and Coppa Club operator said that significant increase in minimum wage has impacted margins but this has partially been offset by food and utilities inflation which has fallen year on year.
For the 26-week period ending 31 March 2024 the group reported revenue growth of 10.2% to £22.7m (H1 2023: £20.6m), largely driven by new site openings.
Gross profit increase grew 138.2% to £1.3m (H1 2023: £0.6m), which the group said was driven by cost savings and efficiencies.
Meanwhile, it reported an adjusted EBITDA loss of £1.2m (H1 2023: loss of £1.9m). During the period it had cash at bank of £7.2m (H1 2023: £3.1m) and net cash of £4.2m (H1 2023: net debt of £9.8m)
The company hailed this a “solid performance” despite adverse weather, train strikes and economic conditions, with like-for-like revenues slightly down.
It maintained a strategy of absorbing most cost increases to strengthen our long-term position and enhanced customer experience through site improvements and menu updates.
Andy Bassadone, Executive Chairman of Various Eateries, said: “In a tough trading environment compounded by poor weather, the performance of the Group has been resilient, and I thank our whole team for their efforts.
”The opening weeks at our two latest sites are satisfying and demonstrate the continued strength of and demand for the Coppa Club and Noci concepts. Alongside this, the work that has been done to enhance existing Coppa sites positions us well to capitalise on the important summer trading months.
”The majority of the Company’s larger sites deliberately have large and attractive outside spaces, which generate a considerable extra volume of trade in warm weather. The Company’s full year budgets therefore reflect an expectation that, at some point, we will experience a reasonable version of summer this year, rather than the inconsistent weather we’ve seen so far.
”With the welcome signs that inflationary pressures are continuing to fall, a growing estate of high-quality sites and increasingly robust organisational infrastructure, I remain confident in the long-term opportunity.”
