Last week I had the good fortune of being able to attend the Mello conference.

Mello is quickly becoming the biggest day in the retail investor’s calendar. According to David Stredder - the event organiser - attendance was up by 11% this year and the Tuesday was its busiest opening day ever. What’s more, over 31% of the investors had never been to a Mello event. So if you’ve never been before do come to the next one.

I’ve typed up my notes from the speeches and panels I attended. Gervais Williams’ talk (towards the end of the notes) was a particular highlight.

David Page and Nick Wong, The Fulham Shore Plc

(Please note that I have a long position in FUL.)


After a cramped, bad-tempered, delayed 50-minute tube journey, I got to this one a little late. It’s never fun being the guy that bursts into a room halfway through a presentation, bumping and sidling along rows of seats, whispering ‘Sorry’ to people as they hug their knees to their chests to let you past...

Fulham Shore (LON:FUL) is a small cap Leisure stock made up of two brands: Franco Manca and The Real Greek. The former attracts a mixed crowd of typically (but not exclusively) 16-35 year-olds, while the latter attracts more female diners. It has recently launched a loyalty program for its customers.

The Board owns around 50% of the shares and friends and family hold another 25%. It’s safe to say management has a lot of skin in the game.

Operations - management plans to keep debt down by funding site openings with operating cash flow.

FUL’s food sourcing expertise allows it to generate good margins despite offering its product at a lower price point than many of its competitors. It is a low-cost operator.

The group has its Half-Year results out in December and is comfortable with analyst forecasts of £8.5m EBITDA (HY18: £4.1m). It will comment on its plans for the next three years or so in these results.


What makes Franco Manca different?

Big chains freeze their product (cheese, dough, etc.). Franco Manca makes everything on site. It has a short menu of seven pizzas.


FM sites have around a 2.5 year payback. They generate £250k of profit per year and cost £700k to set up. Landlords are in a terrible…

Unlock this Article with a 14 day free trial

or Unlock with your email

Already have an account?
Login here