Trading Update
05/04/2023 07:30
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230405:nRSE4505Va&default-theme=true
RNS Number : 4505V Fulham Shore PLC (The) 05 April 2023
5 April 2023
The Fulham Shore PLC
("Fulham Shore", the "Company" or the "Group")
Trading Update
The Board of The Fulham Shore PLC is pleased to provide an update on trading
ahead of the publication of the Company's results for the year ended 26 March
2023 ("FY23") which are due to be published in July 2023.
Trading Update
During the second half of FY23, both our Franco Manca and The Real Greek
businesses delivered creditable underlying performances despite the impact of
industrial action, social disruption, and cost of living increases for our
customers. In addition, the hybrid partial working from home 'new normal'
continues to change the trading patterns in the Group's restaurants. In
general, transport hub and tourist locations are performing strongly while
restaurants near offices have not yet fully returned to pre-pandemic trading
levels.
The Group opened 18 new restaurants in FY23, including one relocation. During
this period there were two restaurant closures. These openings were primarily
funded through operational cashflow during the financial year.
New openings comprised of 13 Franco Manca pizzeria including sites in Cardiff,
Windsor and three in the Manchester area, as well as five new The Real Greek
restaurants including St James Quarter in Edinburgh and the Silverburn
shopping centre Glasgow. The new locations have all been well received, with
Cardiff and Edinburgh being especially busy since opening.
The trading momentum and absence of Covid closure periods compared to the last
two financial years as well as new store expansion has driven a significant
increase in revenue to circa £100m for FY23, which represents a new record
high for the Group.
As flagged at the half year, input costs rose throughout the year due to
inflation in cost of raw materials and utilities, however there are early
signs of inflation in these areas easing.
Franchising
In line with Fulham Shore's international strategy during the year we
franchised Franco Manca in Athens, Greece and after the year end, later this
week, we will open a franchised Franco Manca in Malaga, Spain, our second
international territory.
Retail
The launch in November 2022 of our range of five Franco Manca Cook at Home
pizzas in the UK's largest supermarket business has been well received with an
encouraging sales performance so far.
In addition, the Real Greek has entered a collaboration for its first retail
product, a herb and spice mix, which is due to be introduced into UK
supermarkets this summer.
Cash and bank facilities
The Company's net debt position before lease liabilities recognised under IFRS
16 as at 26 March 2023 was £0.7m. The Group has undrawn net bank facilities
of £14.9m. New openings have been and will continue to be financed primarily
by internally generated cash flow.
COVID-19 Business Interruption Insurance
As announced in the Company's half year report on 16 December 2022, we
continue to make progress in formulating a COVID 19 business interruption
insurance claim. We believe our policy wording is similar to some recent
successful outcomes for insured parties in our industry. Whilst a successful
claim may result in a material payout to the Group, at this stage, there can
be no certainty of any financially beneficial outcome.
Current trading and outlook
We now trade from 27 The Real Greek restaurants and 70 Franco Manca pizzeria
throughout the UK.
Despite the slowing down of the Group's 2023/2024 opening programme to reflect
the current short-term uncertainties, the Group continues to seek desirable
sites at favourable rents and several locations are under negotiation.
The outlook for costs, be they utilities, raw ingredients or labour continue
to present challenges for all operators within the sector and we are not
immune. As with other operators, finding staff remains challenging.
Thanks to both our brands' affordable, value-for-money proposition, the Group
is well placed to offset these increased costs through increased menu pricing,
which, when they occur, will be implemented to cover costs rather than
increase margins.
As customer numbers and demand continues to recover the Group currently plans
to open around six new UK restaurants across both brands in the financial year
ending March 2024 and will review this opening programme in October 2023 at
the half year.
The popularity and affordability of our two businesses combined with clear
growth opportunities in the UK and internationally, gives us confidence in the
Company's future.
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 / Asha Chotai
Hudson Sandler - Financial PR fulhamshore@hudsonsandler.com (mailto:fulhamshore@hudsonsandler.com)
Alex Brennan / 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 27 restaurants primarily in
London and Southern England but with restaurants across the UK (e.g.
Manchester, Newcastle, Edinburgh and Glasgow).
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 in
the UK, primarily in London, but also with restaurants across the country
(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
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTUVRNRORUSRRR