Business Development & Trading Update
01/11/2022 07:00
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RNS Number : 8208E Fulham Shore PLC (The) 01 November 2022
1 November 2022
The Fulham Shore PLC
("Fulham Shore", the "Company" or the "Group")
Business Development & Trading Update
First half trading in line with management expectations
Strategic expansion of the Franco Manca brand into retail operations through
launch of Chef's Selection cook-at-home range
Fulham Shore, the owner and operator of the Franco Manca and The Real Greek
restaurant brands, is pleased to provide an update on trading during the six
months to 25 September 2022 (the "Period") and to announce the strategic
expansion of the Group's Franco Manca pizza business into retail stores
nationwide.
Strategic expansion
The Group has launched its debut range of five premium Franco Manca Chef's
Selection cook-at-home pizzas. The range has been developed through a
licensing partnership with the fine Italian food business Rondanini and is
available to purchase in over 500 supermarkets across the UK from this week.
The Group has the opportunity to expand into more stores (additional to the
current 500) over the coming year, and to partner with further grocery
retailers from late 2023.
The range has been created by Franco Manca Executive Chef Alfonso Marseglia.
To recreate an authentic at-home experience, all pizzas are made with
ingredients of the same high quality and are inspired by the daily 'pizzaiolo
specials' available at Franco Manca restaurants.
Fulham Shore's expansion into retail operations complements its portfolio of
restaurants, will drive brand awareness and enable the Group to introduce the
Franco Manca brand to consumers throughout UK, especially where Franco Manca
does not yet have a restaurant presence.
New openings
Since its update published on 31 August 2022, the Group has opened four Franco
Manca pizzeria in Lincoln, Hove, Chichester and Cardiff, and two The Real
Greek restaurants in Gloucester Quays and Solihull. These new locations have
all been busy from the outset. These openings take the total number of
restaurants operated by the Group to 95.
The first The Real Greek in Scotland, located in the successful new shopping
scheme St James Quarter, Edinburgh, is also being fitted out ready for a
December opening.
Trading update
During the six months to the end of September, in spite of challenging
political and macroeconomic circumstances as well as recent sporadic train and
tube disruptions, the Group traded in line with management expectations. This
performance was driven by the popularity of both Franco Manca and The Real
Greek's excellent value-for-money propositions.
As a result, Group revenues for the Period grew approximately 35% when
compared with the same period in 2019 prior to the onset of Covid-19, and some
25% ahead when compared with the same period to September 2021.
The Company's net cash position before lease liabilities recognised under IFRS
16 as at 26 September 2022 was over £2.6m. The Group has undrawn bank
facilities of £16.9m, providing substantial financial headroom of over
£19.5m.
As previously stated, the Group plans to publish its Interim Results and an
update on trading in December 2022.
Outlook
Macroeconomic challenges including inflation, rising interest rates and
political uncertainty continue to affect consumer confidence and, combined
with input cost inflation, are presenting trading conditions that are more
unstable and unpredictable than at any time in recent memory. These rising
costs and what, if any, relevant government support leads to a lack of
transparency for short term trading.
As previously stated, Fulham Shore plans to open around 18 restaurants during
the 12 months to 26 March 2023.
The Group will review on an ongoing basis its opening target for the 2024
financial year based on the ever-evolving economic and political outlook, and
will share subsequent updates as appropriate.
David Page, Fulham Shore Executive Chairman, commented:
"After many months of careful development we are thrilled to launch our debut
range of Franco Manca cook-at-home sourdough pizzas which are now available in
over 500 supermarkets. This is a very exciting new strategic development for
Franco Manca and The Fulham Shore, which complements the appeal and success of
our consistently busy and growing portfolio of restaurants, and we are looking
forward to seeing it develop.
We're delighted that underpinned by the relevance of our Franco Manca and The
Real Greek brands and their value-for-money propositions, both our established
and new restaurants performed well during the first half of the Group's
financial year. This has led the Group to trade in line with management
expectations and represents revenue growth of over 35% compared with the same
period in 2019 and some 25% ahead when compared with the same period to
September 2021."
ENDS
About Franco Manca Chef's Selection sourdough pizzas:
- Available in over 500 supermarkets nationwide
- Each pizza is made with Franco Manca's signature sourdough base,
hand-stretched and then stone baked in a traditional wood-fired oven
- Five Chef's Selection pizza flavours:
o Quattro Formaggi with Balsamic Glaze (V)
o Spicy Salami, Fried Onion and Chilli-Infused Honey
o Spiced Beef Meatball, Red Onion & Pecorino
o Butternut Squash, Stilton & Pumpkin Seeds (V)
o Fennel Sausage, Chargrilled Red Peppers & Mozzarella
For further information, please contact:
The Fulham Shore PLC www.fulhamshore.com (http://www.fulhamshore.com/)
David Page / Nick Wong Via Hudson Sandler
Singer Capital Markets (Nominated Adviser & Broker) +44 (0) 20 7496 3000
Shaun Dobson / James Moat / Kailey Aliyar
Hudson Sandler - Financial PR fulhamshore@hudsonsandler.com (mailto:fulhamshore@hudsonsandler.com)
Alex Brennan / Lucy Wollam / Ben Wilson Telephone: 020 7796 4133
Notes for editors
Information on The Fulham Shore PLC
Fulham Shore owns and operates "The Real Greek" (www.therealgreek.com
(http://www.therealgreek.com) ) and "Franco Manca" (www.francomanca.co.uk
(http://www.francomanca.co.uk) ) restaurants.
Fulham Shore was incorporated in March 2012. The Directors believed that there
were attractive investment opportunities within the restaurant sector in the
UK and that, given their collective experience in the restaurant sector, they
could take advantage of the opportunities which existed.
The ordinary shares of the Company were admitted to trading on AIM in October
2014 in order to capitalise on such opportunities and to give the company
employees, customers and public the ability to share in the enterprise.
The Real Greek
Since its foundation in London in 1999, The Real Greek group has grown
steadily, now offering modern Greek cuisine in 25 restaurants primarily in
London and Southern England but with restaurants across the UK (e.g.
Manchester, Newcastle and Norwich).
The Real Greek food centres on the delicious, healthy diet of the Eastern
Mediterranean, staying true to the Greek ethos of food, family and friends.
Dishes are created using premium ingredients sourced from Greece and Cyprus
whenever possible, and developed by Tonia Buxton, the face of Greek food in
the UK.
The Real Greek's menu and atmosphere retain the spirit of eating in Greece,
encouraging diners to take their time eating amongst friends and family, be it
a relaxed dinner, family get-together, or a fully catered party.
Franco Manca
Franco Manca opened its first restaurant in 2008 and now has 70 restaurants,
primarily in London, but also with restaurants across the UK (e.g. Edinburgh,
Glasgow, Manchester, Leeds, Cambridge, Bath, Oxford, Bristol and Exeter).
Franco Manca's pizza is made from slow-rising sourdough and is baked in an
oven that produces high heat. The slow levitation and blast cooking process
lock in the flour's natural aroma and moisture, giving a soft and easily
digestible crust. Where possible, locally sourced and organic ingredients are
used.
Franco Manca has received the following accolades:
Winner of Peach 20/20's Consumer Choice Award at the 2021 Hero & Icon
Awards
Winner of the Casual Dining Best Family Dining Experience Award 2020
Winner of the R200 Best Value Restaurant Operator- Over 20 Sites Award 2019
and 2017
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