REG - Hostmore PLC - Trading Update

HostmoreAnnouncement

17/01/2022 07:05

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RNS Number : 5518Y  Hostmore PLC  17 January 2022

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Hostmore plc

Trading Update

 

17 January 2022

 

Hostmore plc, the hospitality business focused on American-themed casual
dining brand, 'Fridays', and the cocktail-led bar and restaurant brand,
'63rd+1st', is pleased to announce a trading update for the financial year
ending 2 January 2022.  As of 17 January 2022, Hostmore operates 88
restaurants in the United Kingdom and Jersey, a majority of which are in high
footfall locations, including retail parks, shopping centres and city centres.

Current trading and full year update

 

Further to the introduction of restrictive measures in Scotland and Wales, and
the discussions for England to act in a similar manner, the Group is pleased
to report that the trading for the month of December 2021 was ahead of
early-month expectations.

 

Revenue for December was 8.3% lower than the comparable period in 2019. Whilst
an increased level of guest reservation cancellations became evident as
December progressed, and was in line with Government guidance relating to the
new Omicron variant, this was more than offset by a combination of new
reservations and walk-in demand which reflected the short-term nature of
customer decision making while the uncertainty prevailed.

 

Given the strength of December performance, the Board expects EBITDA
(pre-IFRS) for the year ending 2 January 2022 to be well ahead of the market
consensus of £18.6m.

 

Trading since 3 January 2022 has been more in line with expectations and
reflects what is usually a quieter period post the festive season.

 

The Group is also continuing its discussions with the remaining landlords on
Covid-19 concessions and is optimistic that agreements will be reached in the
coming weeks.

 

The Group will report its full year results for the year ending 2 January 2022
in March.

 

Outlook

 

Despite continuing uncertainty regarding both the enduring nature of the
Covid-19 virus and macro aspects, including inflation and utility prices, the
Board remains confident in the Group's prospects for the year ahead and is
well positioned to take advantage of future growth opportunities.

 

 

 

 

Robert B. Cook, Hostmore's Chief Executive Officer, commented:

 

"We are pleased the business has continued to perform strongly through another
year of challenge and uncertainty.  The past two years have been challenging
but I believe the Group, including both my colleagues in-store and at the
support centre, have used the time productively to make meaningful and lasting
changes for the future. The improvement in our guest satisfaction scores also
bears testament to the ongoing support of the many loyal customers who
appreciate our efforts.

 

Despite the ongoing uncertainty regarding Covid and how it may affect our
lives, as well as the well documented inflationary environment, I am positive
about the future of the business. The replenishment of our balance sheet and
the goodwill of our landlord community has enabled the contracting of the
latest addition to our estate, being our first QSR store in Dundee, scheduled
to open in March 2022. Two further 63rd+1st sites, in Cambridge and Edinburgh,
and two Fridays' stores, in Chelmsford and Barnsley, are now scheduled to open
in the current calendar year, with more in the pipeline. This enables us to
continue with our planned expansion of the group, which will benefit all of
our stakeholders."

 

ENDS

 

ENQUIRIES

Hostmore plc

Robert B. Cook, Chief Executive Officer

Alan Clark, Chief Financial Officer

enquiries@hostmoregroup.com

+44 330 460 5588

 

Vico Partners

Sofia Newitt

020 3957 5045

 

NOTES TO EDITORS

Hostmore plc

Hostmore is a growing hospitality business with its current operations focused
on the American-themed casual dining brand, 'Fridays', and the cocktail-led
bar and restaurant brand, '63rd+1st'.  While Fridays has been trading for
over three decades in the UK, Hostmore was established in 2021 to provide a
platform for the development of hospitality brands under the leadership of an
experienced management team that has a track record of building businesses in
the hospitality and leisure sectors.  Hostmore's businesses are defined by
their iconic brand experience and vibrant heritage. As of 17 January 2022,
Hostmore operates 88 restaurants in the United Kingdom and Jersey, a majority
of which are in high footfall locations, including retail parks, shopping
centres and city centres.  Hostmore is exploring opportunities with TGI
Friday's, Inc., the franchisor of Fridays, to expand its existing brands into
new franchise territories and is seeking to add rapidly growing, early-stage
businesses to its portfolio of complementary hospitality brands, as well as to
extend its offering in other experience-led, leisure concepts.

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR. The person responsible for making this announcement is the Company
Secretary.

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