REG - Hostmore PLC - AGM Trading Update

HostmoreAnnouncement

07/06/2023 07:00

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RNS Number : 8724B  Hostmore PLC  07 June 2023

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Hostmore plc

AGM Trading Update

7 June 2023

 

In conjunction with today's Annual General Meeting of shareholders, Hostmore
plc, together with its subsidiaries, being the "Group", announces an update on
trading for the 22 weeks ended 4 June 2023.

Like-for-like ("LFL") revenue and total revenue for the first 22 weeks of the
year, adjusted for the variance in the VAT rate on food sales between FY22 and
FY23, remain broadly consistent with the revenue performance for the first 16
weeks of the year announced on 28 April 2023:

 

                First 16 weeks  First 22 weeks
 LFL Revenue    (1%)            (3%)
 Total Revenue  +2%             (1%)

 

The cost reduction initiatives announced on 28 April and 2 May 2023 are
benefitting EBITDA in line with the quantums and timings as previously
communicated. Further opportunities for savings are being evaluated and the
details thereof will be announced following their implementation.

 

The previously announced utilities hedging programme commenced near the end of
May 2023. Commodity spot prices have continued to decline and our decision to
delay entering the hedging market has benefited the business with the
locked-in rates being about 9%, or £1m, lower for the full year FY23 than
expected on 28 April 2023.  We have not hedged any of our remaining FY23 gas
usage yet and 46% of our remaining electricity usage remains unhedged.  We
intend to begin hedging FY24 usage in due course.

 

Pleasingly, the Team's focus on quality, relevance and simplicity continues to
deliver a significant improvement in the Guest Opinion Score for TGI Fridays.
This has increased from 68 at December 2021, to 74 at December 2022, 80 at
March 2023 and 83 at 4 June 2023.

 

In line with the revised capital allocation policy announced on 28 April 2023,
the Board's focus remains on cash flow generation to repay Group borrowings,
following which there will be an evaluation of shareholder distributions.

 

Gavin Manson, Hostmore plc's Chairman, commented:

 

"The ongoing loyalty of our guests is welcome. I am extremely grateful to all
our colleagues for their continued hard work and commitment, which has
resulted in a further improvement in the Guest Opinion Scores for TGI Fridays.
This is a great cornerstone to build upon. Our focus continues to be on
implementing high ROI organic growth initiatives and extending the lifetime
value of our guests by adding further to the guest experience through our
three pillars of quality, relevance and simplicity. This is expected to
increase the number of annual repeat visits by our customers.

 

With the revision to our capital allocation policy, to prioritise debt
repayment and shareholder distributions, I am confident that this will ensure
a reduction in net debt and an ongoing improvement in profitability.

 

As previously announced, I step down from the Board today to focus on my
executive commitment elsewhere.  I am delighted that, as previously
announced, Stephen Welker will step up to become the Chairman and Julie McEwan
and Helena Feltham will join the Board at the conclusion of the Annual General
Meeting later today.  I am confident that the leadership of the Group is in
secure hands. I wish everyone at Hostmore every success for the future."

 

 

ENDS

 

ENQUIRIES

Hostmore plc

Alan Clark, Chief Financial Officer

Email: enquiries@hostmoregroup.com (mailto:enquiries@hostmoregroup.com)

+44 330 460 5588

 

Dentons Global Advisors

Jonathon Brill / James Styles

Email: Hostmore@dentonsglobaladvisors.com

+44 (0)20 7664 5095

 

 

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