REG - Tortilla Mexcn.Grill - Half-year Report
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RNS Number : 2785B Tortilla Mexican Grill PLC 30 September 2025
30 September 2025
Tortilla Mexican Grill plc
("Tortilla", the "Group" or the "Company")
Unaudited Interim Results for the 26 weeks ended 29 June 2025
Record UK EBITDA; France conversion project progressing with adjusted
timetable
Tortilla Mexican Grill plc, the largest and most successful fast-casual
Mexican restaurant business in the UK and Europe, today announces its
unaudited interim results for the 26 weeks ended 29 June 2025 ("H1 FY25", "the
Period"). All numbers are shown on an IFRS basis unless otherwise stated.
Commenting on the results, Andy Naylor, Chief Executive Officer of Tortilla
said:
"We are pleased with the strong progress made in the UK during the first half,
where LFL sales grew by 5.0%, materially outperforming the CGA Coffer
benchmark which reported LFL revenue declines of (2.5%) and (3.4%) in Q1 and
Q2 respectively. Encouragingly this has continued into Q3 with total LFL sales
growth of 7.0% to date.
Our ongoing investment in food quality and innovation as well as brand
marketing continues to resonate with customers. New launches such as protein
pots and seasonal salads have been well received, supported by the growth of
our Burrito Society loyalty app, which has now surpassed 200,000 members.
In France, the conversion project is underway with four sites now trading
under the Tortilla brand, with a further two due to open by early October.
Whilst it's too early to comment on current post-conversion trading, we look
forward to providing an update later in the year. The sites are fully
supported by our operational Central Production Kitchen in Lille, which
provides the infrastructure for significant scale across France and
neighbouring markets.
In the UK, FY25 is forecast to be our most profitable year ever which is an
achievement the team should be proud of considering the wider challenges
reported by the sector. In France, despite the short-term challenge with the
timing of store conversions, we remain confident of the longer-term prospects
for our brand in this market following our strategic acquisition last year."
Operational and strategic highlights
· New Chief Financial Officer: The Board is today pleased to
announce the proposed appointment of Richard Haley to the Board as CFO. Josie
Whelan will return to her previous role, following the proposed change.
· Strategic (Vital 5) highlights:
o Improve UK profitability: The UK business delivered Adjusted EBITDA
(pre-IFRS 16) of £2.4m in H1 FY25, up 33% year-on-year (H1 FY24: £1.8m).
Like-for-like sales growth of +5.0% outperformed the CGA Coffer benchmark by 8
percentage points (ppt), supported by disciplined cost control. UK Gross
margin was 78.3% (HY24: 77.7%) on an underlying basis with inflationary
pressures offset by strong supplier negotiations. Delivery performance also
strengthened, reflecting increased brand visibility and promotional activity.
Momentum has continued into the second half, with LFL sales up 7.0% in Q3 to
date.
o Invest in brand to drive growth: Investment in food quality, menu
innovation and brand marketing has continued to strengthen customer loyalty
and awareness. Core menu upgrades and sourcing initiatives improved flavour
and quality, while seasonal innovation (e.g. summer salads, protein pots)
delivered strong incremental sales. The Burrito Society loyalty app has grown
to over 200,000 members, driving frequency and repeat purchase. Brand
awareness has been further supported by collaborations, partnerships and
targeted campaigns.
o Invest in team and technology: Manager retention improved by 7% to 58%,
supported by training initiatives, new induction processes and high levels of
internal promotion. The roll-out of Hospitality Guest Experience Management
(HGEM) system has improved responsiveness to feedback, with NPS scores a
focus. On the technology-front, self-order kiosks expanded by 25 new sites in
H1 (34 in total), consistently delivering strong sales uplift and rapid
payback. The Group is exploring the potential for a robotics trial in FY26, to
continue improving operational efficiency.
o Double down on franchise: We have a clearly executable franchise operating
model that continues to provide capital-light growth. SSP Group opened two new
UK travel hub sites in H1 and expansion continues in line with expectations
under the current agreement. Compass Group delivered stable performance across
higher education campuses. The Group signed Heads of Terms with Growth Kitchen
to pilot delivery-led kitchens in major metropolitan areas. Internationally,
Eathos continued to grow the estate in the Middle East, with a flagship Dubai
Mall site due to open in Q4. As of September 2025, the franchise estate
comprised 37 sites globally (UK 14, Middle East 12, France 11).
o Develop brand internationally: The conversion of stores in France is
progressing, with foundations now in place to support long-term growth.
Tortilla food has been rolled out across the estate, a full French head office
team is in place under MD Gilles Boehringer (ex-KFC France), and the 1,400
sqm Central Production Kitchen in Lille is fully operational. Six sites are
scheduled to be trading under the Tortilla brand by early October, with one
additional conversion planned for Q4 and more in FY26.
Financial highlights
· Revenue for H1 FY25 £36.0m (H1 FY24: £31.5m). This includes a
£0.6m statutory adjustment between revenue and cost of sales in relation to
Franchise Income. This has no impact on Gross Profit in pound terms (£25.4m),
but the reported Group margin rate appears lower at 77.0% compared with 78.2%
on an underlying basis.
· Adjusted EBITDA (pre-IFRS 16) 1 (#_ftn1) of £1.2m (H1 FY24:
£1.8m). The UK delivered £2.4m, an increase of 33% on the prior year, offset
by a £1.2m loss in France as the Group invests in site conversions and
brand-building across the continent.
· Loss before tax was £2.3m in H1 FY25 (H1 FY24: £0.2m loss). The UK
delivered a small loss before tax of £0.3m, reflecting resilient trading
performance and disciplined cost control. The French operations reported a
loss before tax of £2.0m, reflecting the early stage of investment in the
region, including site conversions to the Group's core brand and associated
overhead costs.
· Our adjusted net debt 2 (#_ftn2) was £9.8m at period end (H1 FY24:
£3.3m adjusted net debt). During the Period the Group successfully refinanced
its debt facilities with Santander, increasing total available facilities from
£10.0m to £12.5m, with £1.5m drawn in H1 and a further £1.0m available in
H2. At Period end, £0.9m of French bank loans remained outstanding from the
Fresh Burritos acquisition.
Current trading and full year outlook
· Current Trading in the UK is slightly ahead of management
expectations for the full year 2025, with sales benefitting from our
improvements in food, brand awareness and technology (+7.0% LFL in Q3 to date,
up from +5.9% in Q1). We also continue to see our revised delivery strategy
and cost savings initiatives improving profit conversion. While the important
Q4 trading period remains key, the Board is encouraged by the record results
being delivered in the UK.
· In France, the conversion of stores to Tortilla is moving forward
strategically. The extended planning processes in the first phase are
front-loading complexity which is expected to streamline future site rollouts.
As a result, the Board now expects Adjusted EBITDA for H1 FY25 to be below
market expectations, and the year-end net debt position is expected to
correspondingly improve, reflecting the phasing of capex expenditure into
2026. While planning process delays will temper near-term profitability at the
Group level, the Board remains confident that the conversion programme,
supported by the fully operational Central Production Kitchen in Lille, will
provide a scalable platform for European expansion and improved returns in
FY26 and beyond.
· Overall, the Board now expects adjusted EBITDA for FY25 to be
around 10 per cent below previous expectations. This reflects record results
from the core UK business, offset by continued investment in France due to the
timing of site conversions.
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.
ENQUIRIES:
Tortilla Mexican Grill PLC Via Eggmedia
Andy Naylor, Chief Executive Officer
Josie Whelan, Interim Chief Financial Officer
Panmure Liberum Limited (Nominated Adviser, Sole Broker) Tel: 020 3100 2222
Andrew Godber
Edward Thomas
Gaya Bhatt
Eggmedia Ltd (Public Relations) Tel: 07710 571452
Ian Edmondson egg@eggmediapr.com
Ross Gow ian@eggmediapr.com
About Tortilla Mexican Grill plc
Founded in 2007, Tortilla is Europe's largest fast-casual Mexican restaurant
brand. With 80 UK locations (of which 14 are franchise stores), 24 in France
(of which 11 are franchise stores) and 12 franchise stores in the Middle East,
Tortilla offers authentic California-style burritos, tacos and salads.
Through the acquisition of Chilango in the UK in 2022 and Fresh Burritos in
France in 2024, as well as franchise partnerships with SSP Group plc, Compass
UK & Ireland and Eathos, the brand continues to expand globally.
Tortilla breaks the mold of typical takeaways, combining quick service with
quality ingredients to serve affordable, made-to-order meals in under 90
seconds, in cosy environments fitting for lunch or dinner and a beer with
friends. The menu is fully customisable - there are thousands of flavour
combinations to try - with produce that's fresh, never frozen, 70% plant-based
and vegan-friendly, higher welfare meats and free from artificial flavours or
preservatives.
Emphasising sustainability, Tortilla only uses recycled and recyclable
packaging, 100% renewable electricity and sends zero waste to landfill.
Headquartered in London and listed on the London Stock Exchange (LSE: MEX),
Tortilla employs over 1,200 people.
More details at tortillagroup.co.uk
BUSINESS REVIEW
Overview
The Group delivered encouraging strategic and operational progress in the
first half, supported by continued investment in food, brand, people and
technology. The benefits of these initiatives are clearly evident following
the launch of the Vital 5 strategy in April 2024, with total UK like-for-like
sales improving from a 2.4% decline in Q1 FY24 to 7.0% growth in Q3 FY25 to
date.
The roll-out of self-order kiosks has expanded by 25 new sites so far this
year taking the total to 34, delivering meaningful uplifts with rapid
payback and more sites to be rolled out before year end. In addition, the
introduction of the guest experience management system has enabled stores to
monitor and respond to customer feedback more effectively; since May, Net
Promoter Scores have improved significantly, with the majority of sites now
recording positive results.
Internationally, the conversion of the sites acquired in France is progressing
with a focus on building the right foundations for long-term success across
the continent. While extended French planning processes have presented
challenges that have affected the timing of some conversions, the programme is
advancing, with six sites scheduled to be trading under the Tortilla brand by
early October, with one additional conversion planned in Q4 and more in FY26.
The 1,400 sqm Central Production Kitchen in Lille is now fully operational,
providing consistent food production at scale and supporting the Group's
ambition to expand across France and neighbouring markets.
The Board is encouraged by the strengthening UK performance, the ongoing
progress in France, and remains confident in the Group's ability to deliver
sustainable, profitable growth.
Strategic Progress Against The 'Tortilla Vital 5'
Improve UK Profitability
The UK business delivered a strong performance in H1 FY25, with Adjusted
EBITDA (pre-IFRS) increasing by 33% to £2.4m (H1 FY24: £1.8m). This reflects
both robust like-for-like sales growth of 5.0% and continued focus on cost
discipline. Notably, UK like-for-like sales significantly outperformed the CGA
Coffer benchmark by 8 ppt, underlining the strength of our brand and customer
proposition in a challenging market.
Gross profit margin in the UK improved to 78.3% on an underlying basis 3
(#_ftn3) (H1 FY24: 77.0%), with inflationary pressures on core produce offset
through successful supplier negotiations and procurement benefits. We have
also seen ongoing improvements in labour productivity and utility management,
which have contributed to the stronger conversion of sales into profit.
To further strengthen profitability, the Group has commenced a comprehensive
review of the UK estate to ensure that capital and management attention are
focused on high-performing, EBITDA-contributing sites. We have engaged
specialist advisors to support this process, ensuring that underperforming
locations are addressed and that the estate is optimised for long-term
returns. The closure of two stores so far this year reflects this disciplined
approach with estate optimisation remaining a strategic priority.
Delivery performance has also strengthened meaningfully, with like-for-like
delivery sales rising by 6.3% in Q2 and accelerating to 25.6% in Q3 to date,
benefitting from increased brand visibility and select promotional activity in
July and August. This positive trend is expected to continue into Q4 supported
by further marketing and promotional activity across Uber Eats and Just Eat.
Invest in brand to drive growth
The first half of the year has seen continued momentum from our investment in
food quality, menu innovation and brand marketing. These initiatives are
designed to strengthen customer loyalty, attract new guests, and reinforce
Tortilla's position as the UK's leading fast-casual Mexican brand.
We delivered a series of upgrades to our core menu, focusing on recipe
improvements and sourcing initiatives that enhanced the quality of many of our
menu items. Seasonal menu rollouts have performed particularly well, with the
new Summer Salad driving a 133% uplift in sales versus last year. New product
innovation has also gained traction, most notably our protein pots which
generated over £100k in incremental sales within the first eight weeks of
launch.
We see a significant opportunity to drive growth through increased investment
in brand awareness. Awareness of the Tortilla brand continues to build as a
direct result of targeted campaigns and activations, with initiatives such as
Live Guac Bars, seasonal promotions, and limited-time collaborations helping
us to engage both existing customers and new audiences. Partnerships with
like-minded brands, including Tubby Tom's, Sauce Shop and JAB gyms, have
broadened our reach into new consumption occasions, with the JAB collaboration
alone delivering 6.5m organic reach. Our creative strategy puts food as the
hero through bold, authentic storytelling and visuals that highlight
freshness, flavour and fuel, reinforcing Tortilla's positioning in a highly
competitive market.
We continue to build long-term advocacy through loyalty initiatives, most
notably The Burrito Society app. Since launch, the app has grown rapidly to
over 200,000 active members, with features such as stamp collection,
order-ahead functionality and exclusive rewards driving repeat purchase and
frequency. Engagement remains high, and we see a significant runway to further
leverage the app as a platform for personalised promotions, data-led
marketing, and deeper customer connection.
Looking ahead, we are confident that the combination of food innovation,
creative brand investment, community initiatives and loyalty growth will
continue to increase awareness, drive customer frequency, and underpin
sustainable long-term growth.
Invest in team and technology
We continue to place great importance on the development and retention of our
people. Manager retention has improved by 7 ppt, supported by structured
training and development programmes. During H1, 45 managers and team members
were trained through our "Centres of Excellence", ensuring a consistent
approach to onboarding. Our new induction model has already delivered tangible
results, saving managers over three hours per new hire and increasing
operational compliance training completion to 99%. Encouragingly, 40% of
Assistant and General Manager vacancies in H1 were filled through internal
promotion, underlining the strength of our internal pipeline.
As previously identified our guest feedback has also seen significant
improvement since the implementation of our new guest experience management
system, enhancing the ability of stores to monitor and respond to customer
feedback in real time.
From a technology perspective, we continue to roll out self-order kiosks, with
25 new sites deployed so far in FY25 (34 in total), and more sites planned
before year end. Early results remain highly encouraging, with kiosk sites
consistently outperforming non-kiosk sites in like-for-like sales and
achieving payback in less than six months.
We are also in discussions for a robotics partnership with Kaikaku, a
hospitality robotics specialist. In parallel, we are evolving our data
warehouse and business intelligence capabilities. These investments are
enabling us to make more informed decisions and to remain agile in a
fast-changing market environment.
Double down on franchise
Franchising remains a core pillar of the Group's long-term growth strategy,
offering a capital-light route to expansion in both the UK and international
markets. The model is supported by centralised production and established
processes, ensuring consistent food quality and brand standards across a
growing and diversified estate.
In the UK, SSP Group delivered strong growth, opening two new travel hub sites
in the Period, and remains on track to more than double its Tortilla portfolio
under the current five-year agreement with record sales achieved across
multiple stores. Compass Group maintained stable performance across higher
education campuses. The Group also signed Heads of Terms with Growth Kitchen,
a specialist multi-brand operator, for a three-site pilot to drive
delivery-led expansion in major metropolitan areas.
Internationally, Eathos continued to build momentum in the Middle East with
further estate growth and a flagship site due to open in Dubai Mall in Q4. In
Europe, the Group is progressing discussions with prospective franchise
partners, building on the Fresh Burritos acquisition.
As at September 2025, the franchise estate totalled 37 sites globally (UK 14,
Middle East 12 , France 11). The Group remains committed to working with high
calibre partners and actively exploring additional opportunities across
Europe. The recently completed 1,400 sqm Central Production Kitchen ("CPK") in
Lille provides the scale and consistency to support this growth, mirroring the
Group's established operations in the UK and creating a strong platform for
expansion into neighbouring countries.
Develop the brand internationally
On 25 June 2024, the Group announced the strategic acquisition of Fresh
Burritos, the largest fast-casual Mexican restaurant group in France and the
second largest in Europe, for a total consideration of €3.95 million. The
acquisition provided Tortilla with a footprint in continental Europe through
13 company-owned leasehold sites in Paris and other major French cities
alongside franchise rights to a current network of 11 franchised locations,
and establishes a strong platform for further franchising growth across
Europe.
Since completion in July 2024, conversion to the Tortilla brand and store
format is underway with a focus on building the right foundations for
long-term success. Progress has been impacted by the extended planning
application processes in France, which has delayed the timing of site
conversions. Notwithstanding these factors, good progress has been made:
Tortilla food offerings have been rolled out across the estate and a full
French head office team has been recruited, led by Managing Director Gilles
Boehringer (former VP of Development & Franchise for KFC France). A fully
fitted 1,400 sqm Central Production Kitchen ("CPK") in Lille was completed in
February 2025, enabling consistent food production at scale for France and
neighbouring markets, mirroring the Group's established UK model.
The conversion programme is progressing. Six sites are scheduled to be trading
as Tortilla by early October, with further conversions planned through Q4 and
into FY26. Converted locations are being delivered to the Group's refreshed
brand and store design, supporting improved presentation and customer
experience. The Board remains confident in the long-term potential of the
project to deliver attractive returns and provide a springboard for wider
European expansion.
Environmental, Social and Governance ("ESG")
ESG remains a key priority for the Group, and we continue to make strong
progress in advancing our sustainability agenda. A major focus in H1 2025 has
been the rollout of our AI-powered energy management solution across almost
all of our UK sites. Following a successful trial in 2024, which delivered a
32% reduction in energy usage across the initial test group, the solution has
now been scaled rapidly across the estate. This investment is already driving
meaningful reductions in energy consumption and supports both our
environmental goals and operational efficiency.
We are also seeing the ongoing benefits of the 60.68kWP solar PV system
installed at our UK Central Production Kitchen in 2024, reducing our carbon
emissions, underlining our commitment to minimising our environmental
footprint.
Beyond environmental impact, ESG principles remain embedded in our business
model, with continued emphasis on responsible sourcing, colleague wellbeing,
and community engagement. These initiatives not only strengthen our
sustainability credentials but also enhance operational resilience and
long-term value creation.
Finally, the Board would like to extend its sincere thanks to all colleagues
across the Group for their continued commitment, creativity and resilience.
Their efforts have underpinned the progress achieved in the first half and
will remain central to delivering on the Group's growth ambitions in the
months ahead.
FINANCIAL REVIEW
Revenue
In H1 FY25, revenue increased by 14.3% to £36.0m (H1 FY24: £31.5m) which was
attributable to the following factors:
· Total UK LFL sales increased by 5.0% in H1 FY25, contributing
£1.6m of incremental revenue.
· Franchise income delivered an additional £0.3m relative to the
prior period.
· France contributed £3.1m, reflecting the consolidation of the
Fresh Burritos acquisition and ongoing brand development in the region.
These increases were partly offset by the impact of site closures in the
period, which reduced revenue by £0.2m.
Gross profit margin
Gross profit margin was 77.0% in H1 FY25 (H1 FY24: 77.7%). This includes a
£0.6m statutory adjustment between revenue and cost of sales in relation to
Franchise Income. This has no impact on Gross Profit in pound terms (£25.4m),
but the reported Group margin rate appears lower at 77.0% compared with 78.2%
on an underlying basis (UK H1 FY24: 78.3%).
The reduction in margin reflects the addition of our French operations
together with UK inflationary pressures on core produce, partially offset by
strong supplier negotiations which delivered savings on protein pricing.
Administrative expenses
Administrative expenses increased by 21.3% to £28.9m in H1 FY25 (H1 FY24:
£23.8m). As a percentage of revenue, administrative expenses were 80.3% (H1
FY24: 75.5%).
In the UK, administrative expenses were 75.4%, a slight decrease of 0.1
percentage points compared to the prior period. Despite ongoing cost pressures
from labour, National Insurance and utilities, the Group has managed to
contain overhead growth through disciplined cost control. The movement also
incorporates a year-on-year change in share-based payments, with a charge
(£0.1m) recognised in the current period compared to a credit of £0.3m in
the prior year.
In France, administrative expenses were higher due to investment in
establishing the Central Production Kitchen ("CPK") and related
infrastructure. This included pre-opening labour and project support from UK
Head Office management during the mobilisation of the facility and the
transition of sites to the new operating model. These costs have been
separately disclosed as exceptional, as they are one-off in nature and not
reflective of ongoing operations.
Adjusted EBITDA (pre-IFRS 16)
Adjusted EBITDA (pre-IFRS 16) is the key performance metric that the Group
utilises to assess the underlying trading performance. A reconciliation of
this measure compared to profit from operations is as follows:
H1 FY25 H1 FY24
£m £m
Adjusted EBITDA (pre-IFRS 16) 1.2 1.8
Pre-opening costs (0.3) (0.1)
Share-based payments (0.1) 0.3
Depreciation and amortisation (2.3) (2.0)
Exceptional items (0.2) (0.1)
IFRS adjustment 0.5 0.8
Profit/(Loss) from operations (1.2) 0.7
Adjusted EBITDA (pre-IFRS 16) was £1.2m in H1 FY25 (H1 FY24: £1.8m). The UK
business generated £2.4m adjusted EBITDA, an increase of 33.0% on the prior
period (H1 FY24: £1.8m), reflecting strong sales momentum, disciplined cost
management and a resilient gross margin. These improvements to profit
conversion are expected to continue through H2 FY25.
The French business contributed an adjusted EBITDA loss of £1.2m in the
period, as the Group continues to invest in the conversion of sites to the
Tortilla brand and in broader brand-building activity across the continent,
positioning the business for long-term growth.
Finance expense
Finance expense of £1.2m (H1 FY24: £1.0m) is comprised of £0.9m of interest
charged in relation to Right of Use assets (a consequence of the accounting
treatment of leases under IFRS 16) and £0.3m of interest on the Group's debt
facility.
Cash flow and net cash
At 29 June 2025, the Group had borrowings of £11.8m (H1 FY24: £7.2m), drawn
against total available facilities of £13.4m. This includes £0.9m of bank
loans in France, rolled over as part of the Fresh Burritos acquisition in
2024.
In June, the Group entered into a new financing arrangement with Santander UK
plc to refinance and extend its debt facilities. Under the terms of the
refinancing, the Company has agreed a new £12.5m Senior Facility Agreement,
replacing the existing £10.0m facility which was due to mature in September
2026. The new facility provides increased headroom, a longer maturity profile
and greater flexibility to support the Group's next phase of growth. The
Group's adjusted net debt 4 (#_ftn4) was £9.8m at period end (H1 FY24:
£3.3m adjusted net debt).
Dividend
The Board did not recommend an interim dividend for H1 FY25. In line with the
previously stated policy, the Group's capital will be focused on growth over
the coming years with the dividend policy subject to re-assessment going
forward.
Consolidated statement of comprehensive income
For the 26 weeks ended 29 June 2025
Unaudited Unaudited
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
Note £ £
Revenue 36,009,868 31,546,043
Cost of sales (8,292,425) (7,028,772)
Gross profit 27,717,443 24,517,271
Administrative expenses (28,901,620) (23,819,554)
Operating (loss)/profit 3 (1,184,177) 697,717
Finance income 4 8,027 23,862
Finance expense 4 (1,159,502) (956,625)
Loss before tax (2,335,652) (235,045)
Tax on loss 281,325 -
Loss for the period and comprehensive income attributable to equity holders of (2,054,327) (235,045)
the parent company
(Loss) / earnings per share for profit attributable to the owners of the
parent during the year
Basic and diluted (pence) 5 (5.3) (0.6)
Consolidated statement of financial position
As at 29 June 2025
Unaudited Unaudited
29 June 2025 30 June 2024
Note £ £
Non-current assets
Intangible assets 7 4,925,965 2,624,887
Tangible assets 8 14,607,978 14,175,125
Right-of-use assets 6 29,071,649 29,861,287
48,605,592 46,661,299
Current assets
Inventories 482,939 321,328
Trade and other receivables 9 3,678,563 2,909,017
Cash and cash equivalents 1,647,314 3,844,326
5,808,816 7,074,671
Current liabilities
Trade and other payables 10 (9,668,029) (8,098,460)
Borrowings (2,011,491) -
Lease liabilities 6 (6,933,965) (6,077,235)
Net current liabilities (12,804,669) (7,101,024)
Total assets less current liabilities 35,800,923 39,560,275
Non-current liabilities
Loans and borrowings (9,824,599) (7,158,291)
Lease liabilities 6 (27,980,072) (29,429,493)
Deferred taxation (319,093) (617,696)
Net assets (2,322,841) 2,354,795
Equity attributable to equity holders of the company
Called up share capital 386,640 386,640
Share premium account 4,433,250 4,433,250
Share based payment reserve 578,258 543,935
Merger reserve 4,793,170 4,793,170
FX Reserve 73,056 -
Retained earnings (12,587,215) (7,802,200)
Total equity (2,322,841) 2,354,795
Consolidated statement of changes in equity
For the 26 weeks ended 29 June 2025
Called up share capital Share premium account Share-based payment reserve Merger reserve FX Reserve Profit and loss account Total
£ £ £ £ £ £ £
At 01 January 2024 386,640 4,433,250 839,978 4,793,170 - (7,567,155) 2,885,883
Loss for the period - - - - - (235,045) (235,045)
Share based payments - - (296,043) - - - (296,043)
At 30 June 2024 386,640 4,433,250 543,935 4,793,170 - (7,802,200) 2,354,795
At 29 December 2024 386,640 4,433,250 794,585 4,793,170 - (10,893,626) (485,981)
Loss for the period - - - - - (2,054,327) (2,054,327)
Share-based payments - - 144,411 - - - 144,411
Translation of subsidiaries - - - - 73,056 - 73,056
Other movements - - (360,738) - - 360,738 -
At 29 June 2025 386,640 4,433,250 578,258 4,793,170 73,056 (12,587,215) (2,322,841)
Consolidated statement of cash flows
For the 26 weeks ended 29 June 2025
Unaudited Unaudited
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
Note £ £
Cash flows from operating activities
Loss for the financial period (2,054,327) (235,045)
Adjustments for:
Amortisation of intangible assets 7 16,560 2,153
Depreciation of right-to-use assets 6 2,712,106 2,231,155
Depreciation of property, plant and equipment 8 2,242,408 1,995,873
Loss on disposal of tangible assets 8 351,692 -
Net finance expense 4 254,957 144,594
Taxation charge (281,325) -
(Increase) / decrease in inventories (64,814) 37,532
Decrease/ (Increase) in trade and other receivables 9 379,090 226,058
Increase in trade and other payables 10 (2,688,591) (1,651,045)
Share based payments 144,411 (296,043)
Finance cost on lease liabilities 6 896,518 788,168
Foreign exchange loss (26,897) -
Net cash generated from operations 1,881,788 3,243,400
Cash flows from investing activities
Purchase of tangible fixed assets 8 (2,015,569) (2,051,196)
Purchase of intangible fixed assets 7 (33,494) -
Interest received 4 8,027 23,862
Deferred consideration paid on prior year acquisitions (175,838) -
Net cash from investing activities (2,216,874) (2,027,334)
Cash flows from financing activities
Interest paid 4 (262,984) (158,800)
Payments made in respect of lease liabilities 6 (3,724,068) (3,057,614)
Loan drawdown 1,197,000 4,200,000
Net cash used in financing activities (2,790,052) 983,586
Net increase/(decrease) in cash and cash equivalents (3,125,137) 2,199,652
Cash and cash equivalents at the beginning of period 2,760,960 1,644,674
Cash and cash equivalents at the end of period (364,177) 3,844,326
For the purposes of the Consolidated Statement of Cash Flows, the closing cash
balance comprises cash and cash equivalents together with the Group's
overdraft facility with Santander, which is presented as 'Borrowings' within
current liabilities on the Consolidated Statement of Financial Position.
NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION
1. General information
Tortilla Mexican Grill plc, the "Company" together with its subsidiaries, "the
Group", is a public limited company whose shares are publicly traded on the
Alternative Investment Market ("AIM") and is incorporated and domiciled in the
United Kingdom and registered in England and Wales.
The registered address of Tortilla Mexican Grill plc and all subsidiaries is
142-144 New Cavendish Street, London, W1W 6YF, United Kingdom.
The Group's principal activity is the operation and management of restaurants
trading under the Tortilla brand both within the United Kingdom and the Middle
East and under the Chilango brand in the United Kingdom.
2. Accounting policies
Basis of preparation
The consolidated interim financial information has been prepared in accordance
with International Financial Reporting Standards, International Accounting
Standards and Interpretations (collectively IFRSs), as adopted by the UK
international accounting standards.
The Group's Annual Report and Accounts for the period ended 28 December 2025
are expected to be prepared under IFRS.
The comparative financial information for the period ended 28 December 2025 in
this interim report does not constitute statutory accounts for that period
under 435 of the Companies Act 2006.
Statutory accounts for the period ended 31 December 2024 have been delivered
to the Registrar of Companies.
The auditors' report on the statutory accounts for 31 December 2024 was
unqualified, did not draw attention to any matters by way of emphasis, and did
not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
Significant accounting policies
The consolidated interim financial information has been prepared in accordance
with accounting policies that are consistent with the Group's Annual Report
and Accounts for the period ended 29 December 2024 which is published on the
Tortilla website, located at www.tortillagroup.co.uk. At the date of
authorisation of this financial information, certain new standards, amendments
and interpretations to existing standards applicable to the Group have been
published but are not yet effective and have not been adopted early by the
Group. The impact of these standards is not expected to be material.
In adopting the going concern basis for preparing these financial statements,
the Directors have considered the business model and strategies, as well as
taking into account the current cash position and facilities.
Based on the Group's cash flow forecasts, the Directors are satisfied that the
Group will be able to operate within the level of its current facilities for
the foreseeable future, a period of at least twelve months from the date of
this report. In making this assessment, the Directors have made a specific
analysis of the impact of both the inflationary pressures currently affecting
the industry as well as consumers, and the impact of a potential recession.
Accordingly, the Directors consider it appropriate for the Group to adopt the
going concern basis in preparing these financial statements.
3. Profit from operations
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
£ £
Depreciation and amortisation 4,971,075 4,232,195
Loss on disposal of fixed assets 351,692 -
Variable lease payments 570,143 692,886
Inventories - amounts charged as an expense 8,292,425 7,028,772
Share option (credit)/expense 144,411 (261,879)
Pre-opening costs 313,599 74,422
Exceptional items 196,571 71,301
Bank arrangement fee amortisation 37,447 9,270
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
£ £
Pre-opening & site conversion costs 313,599 74,422
Number of site openings in period - 6
The Group reports costs incurred prior to the opening of a site as a separate
expense and excludes these from the calculation of adjusted EBITDA. This
approach is in line with the standard industry practice and the methodology
used by the Group's bank for the purposes of assessing covenant compliance.
The Directors view this as a better way to analyse the underlying performance
of the Group since it excludes costs which are not trading related.
The exceptional costs for the half year to June 2025 relate to:
26 weeks ended
29 Jun 2025
Nature of Exceptionals FY 2025 £
Exceptional project costs
47,191
Site Closure
69,083
Head Office exceptionals
51,014
Miscellaneous minor items
29,282
Total
196,571
4. Finance income and expenses
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
£ £
Bank interest income 8,027 23,862
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
£ £
Bank interest payable 262,984 168,457
Finance cost on lease liabilities 896,518 788,168
1,159,502 956,625
5. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
equity shareholders by the weighted average number of shares outstanding
during the period.
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
(Loss) used in calculating basic and diluted loss (2,054,327) (235,045)
Weighted average number of shares for the purpose of basic and diluted 38,664,031 38,664,031
earnings per share
Basic and diluted loss per share (pence) (5.3) (0.6)
Due to the nature of the options granted under the long-term incentive plan,
they are considered to be contingently issuable shares and therefore have no
dilutive effect.
6. Leases
Right-of-use assets Lease liabilities
£ £
At 01 January 2024 29,520,494 At 01 January 2024 (35,203,839)
Additions 2,571,948 Additions (2,572,335)
Arising from acquisition - Arising from acquisition -
Disposals - Interest expense (788,168)
Depreciation (2,231,155) Lease payments 3,057,614
Disposals -
At 30 June 2024 29,861,287 At 30 June 2024 (35,506,728)
At 29 December 2024 31,592,056 At 29 December 2024 (37,550,333)
Additions 191,699 Additions (191,699)
Arising from acquisition - Arising from acquisition -
Disposals - Interest expense (896,073)
Depreciation (2,712,106) Lease payments 3,724,068
Impairment - Disposals -
At 29 June 2025 29,071,649 At 29 June 2025 (34,914,037)
7. Intangible Assets
Computer software Leasehold rights Goodwill Total
£ £ £ £
Cost
At 01 January 2024 15,500 - 2,624,886 2,640,386
Additions - - - -
Disposals - - - -
At 30 June 2024 15,500 - 2,624,886 2,640,386
At 29 December 2024 28,077 82,928 5,510,175 5,621,180
Additions 33,494 - - 33,494
Disposals - - - -
At 29 June 2025 61,571 82,928 5,510,175 5,654,674
Amortisation
At 01 January 2024 13,347 - - 13,347
On disposals 2,153 - - 2,153
At 30 June 2024 15,500 - - 15,500
At 29 December 2024 17,910 9,482 684,757 712,149
Amortisation charge 4,859 11,701 - 16,560
At 29 June 2025 22,769 21,183 684,757 728,709
Net book value
At 29 June 2025 38,802 61,745 4,825,418 4,925,965
At 30 June 2024 - - 2,624,886 2,624,886
8. Property, plant and equipment
Long-term leasehold property Plant and machinery Fixtures and Total
fittings
£ £ £ £
Cost
At 01 January 2024 17,992,372 5,229,185 7,505,962 30,727,519
Additions 641,240 719,804 690,152 2,051,197
Disposals - - - -
At 30 June 2024 18,633,612 5,948,989 8,196,114 32,778,716
At 29 December 2024 18,363,171 9,284,566 9,077,609 36,725,346
Additions 60,139 1,506,193 834,423 2,400,754
Disposals (450,499) (58,840) (46,103) (555,443)
At 29 June 2025 17,972,810 10,731,919 9,865,929 38,570,657
Amortisation
At 01 January 2024 9,562,954 3,060,866 3,983,898 16,607,718
Charge for the period 618,052 372,211 1,005,610 1,995,873
At 30 June 2024 10,181,006 3,433,077 4,989,508 18,603,591
At 29 December 2024 11,564,322 4,517,127 5,842,575 21,924,023
Charge for the period 547,551 732,710 962,148 2,242,408
Disposals (164,664) (22,480) (16,607) (203,751)
At 29 June 2025 11,947,208 5,227,357 6,788,115 23,962,680
Net book value
At 29 June 2025 6,025,602 5,504,562 3,077,813 14,607,978
At 30 June 2024 8,452,606 2,515,912 3,206,607 14,175,124
9. Trade and other receivables
29 June 2025 30 June 2024
£ £
Trade receivables 999,435 498,221
Other receivables 1,766,566 1,183,042
Prepayments and accrued income 912,562 1,227,753
3,678,563 2,909,017
Trade debtors primarily relate to sales due from third party delivery
providers and these are settled the week immediately following the week in
which the sale was recorded. There are also amounts owed by the Group's
franchise partners, which are due within 30 days of the end of the period.
Other receivables consists of deposits held by third parties, generally
landlords, and amounts accrued but not yet invoiced to third parties. These
amounts not invoiced are franchise income and produce from the Group's central
kitchen which is sold and bought back to the Group's main food supplier, who
provides the distribution across the Group's estate.
The Group held no collateral against these receivables at the balance sheet
dates. The Directors consider that the carrying amount of receivables are
recoverable in full and that any expected credit losses are immaterial.
10. Trade and other payables
29 June 2025 30 June 2024
£ £
Trade payables (4,457,846) (2,057,430)
Other taxation and social security (1,994,163) (1,850,723)
Other payables (1,194,468) (964,655)
Accruals and deferred income (2,021,552) (3,225,652)
(9,668,029) (8,098,460)
IFRS Comparison to UK GAAP and PCG
The Group applied IFRS for the first time in the 52-week period ending 2
January 2022. The Group applied IFRS 16 using the modified retrospective
approach, with the date of initial application of 1 January 2018 and has
restated its results for comparative period as if the Group had always applied
the new standard.
Adjusted EBITDA reflects the underlying trade of the overall business. It is
calculated as operating profit plus depreciation, amortisation, impairment
losses, loss on disposal of property, plant and equipment, right-of-use assets
and software and exceptional items.
Management use Group adjusted EBITDA as a key performance measure of the
business and it is considered by
management to be a measure investors look at to reflect the underlying
business.
26 weeks ended 26 weeks ended
29 June 2025 30 June 2024
£ £
Profit / Loss (2,054,327) (235,045)
IFRS Adjustments to EBITDA
Depreciation & Amortisation of ROU Assets 2,712,106 2,231,155
Rent adjustment for IFRS 16 (3,532,859) (3,018,575)
Lease Interest Expense 896,518 788,168
IFRS 16 Adjustment 75,765 748
Profit/(Loss) Adjusted to pre IFRS 16 (1,978,562) (234,297)
Adjusted EBITDA items
Pre-opening costs 313,599 74,422
Share based payments 144,411 (261,879)
Depreciation and amortisation 2,258,969 1,995,873
Loss on disposal of assets 351,692 -
Finance income & expenses (excluding lease interest) 254,957 144,594
Taxation (281,325) -
Exceptional items, non-trading costs & FX Variance 158,989 50,775
Adjusted EBITDA 1,222,730 1,769,489
1 (#_ftnref1) defined as statutory operating profit before interest, tax,
depreciation and amortisation (before application of IFRS 16 and excluding
exceptional costs) and reflects the underlying trading performance of the
Group. The reconciliation to profit from operations is presented in the
financial review.
2 (#_ftnref2) defined as net debt / cash, cash equivalents & cash in
transit excluding lease liabilities arising from application of IFRS 16.
3 (#_ftnref3) excluding statutory adjustment of £0.6m between revenue and
cost of sales in the Statement of Comprehensive Income
4 (#_ftnref4) defined as net debt / cash, cash equivalents & cash in
transit excluding lease liabilities arising from application of IFRS 16.
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