REG - Various Eateries PLC - Trading Update & Notice of Results

Various EateriesAnnouncement

14/05/2024 07:00

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RNS Number : 2334O  Various Eateries PLC  14 May 2024

14 May 2024

 

VARIOUS EATERIES PLC

("Various Eateries" or "the Company"

and with its subsidiaries "the Group")

 

Trading Update & Notice of Results

 

Various Eateries PLC, the owner, developer and operator of restaurant,
clubhouse and hotel sites in the United Kingdom, announces an update on
trading for the 26-week period ending 31 March 2024.

 

Sales in the period grew 10.2% to £22.7m (H1 2023: £20.6m), driven largely
by new site openings. Group like-for-like sales were marginally down, against
a backdrop of one of the wettest winters since records began and with the
Company maintaining its strategy of absorbing most price increases. As
previously stated, while this strategy puts temporary pressure on margins,
management believes prioritising customer satisfaction over short-term profit
will position the Group well for substantial growth once market conditions
improve.

 

Following the successful placing in December 2023, the Group's financial
position remains strong, with cash at bank of £7.2m as at 31 March 2024 (H1
2023: £3.1m).

 

Steadily improving inflationary landscape, expected impact from minimum wage
increases

 

Encouragingly, the deceleration of food and utilities cost increases reported
at the full year has continued. The Group's primary expense challenge this
year is expected to stem from the April 2024 implementation of the
largest-ever minimum wage rate increases, with a large proportion of the
Group's workforce receiving significant pay rises. To mitigate inflationary
pressures while enhancing the overall customer experience, management
continues to actively explore initiatives such as at-table digital ordering at
some sites.

 

Maintaining a measured approach to site roll-out

 

Noci Richmond opened its doors in May 2024, consistent with the Group's
near-term strategy to focus expansion primarily on the specialist quality
pasta concept in and around London. The brand's fourth site, in the popular
Richmond area, is a 90-cover restaurant based at the heart of the
neighbourhood. The site has a similar profile to Noci Islington and is
expected to see a similar positive sales trajectory as the venue beds in.

 

Coppa Club Cardiff remains on track to open later this month. The brand's
third townhouse site is located in the city's popular leisure and shopping
destination, The Hayes, benefitting from both high footfall and proximity to
several large arenas including the Principality Stadium. Coppa Club Cardiff
brings an all-day focus to hospitality in the Welsh capital, boasting elevated
design, two bars and unique private dining spaces for events and corporate
bookings.

 

The pipeline for further new locations is strong with high levels of premium
site availability and a keenness on the part of landlords to work with the
Group. Management will continue to carefully appraise each opportunity, only
progressing those that meet its strict criteria for long-term success.

 

Confident outlook for the second half and beyond

 

Much hard work has gone on behind the scenes to enhance the Group's
proposition in the period, including the refurbishment of Coppa Club's outdoor
terraces.

 

Trading at the start of the second half has been resilient, despite the
uncharacteristically wet and dull weather, and management is optimistic ahead
of the important summer trading months.

 

While there are signs the macroeconomic picture is improving, the landscape
continues to require careful navigation. Management remains committed to
taking the necessary steps to work through it, maintaining its strategy of
prioritising customer satisfaction while improving operational efficiency.

 

Notice of Results

 

The Company's interim results for the 26-week period ending 31 March 2024 are
scheduled to be announced on or around 27 June 2024.

 

Andy Bassadone, Executive Chairman of Various Eateries, said:

 

"We remain steadfast in our approach, prioritising the preservation of the
integrity of our brands over short-term financial gain, confident that this
strategy strengthens our capacity for sustainable and profitable long-term
growth. We are seeing the goodwill generated in our communities translate into
customers returning time-and-time again, knowing they can rely on us to
continue to provide a high quality and affordable experience where others are
making compromises. With several key operational enhancements made to our
estate in the period, we firmly believe Various Eateries is well-positioned to
grow into one of the UK's leading hospitality groups, and enter the second
half with a growing sense of optimism."

 

Enquiries

 Various Eateries plc

Via Alma
 Andy Bassadone                      Executive Chairman

 Sharon Badelek                      Chief Financial Officer

 WH Ireland Limited                  Sole Broker and NOMAD       Tel: +44 (0)20 7220 1666
 Broking

 Harry Ansell
 Nominated Adviser

 Katy Mitchell
 Darshan Patel

 Alma Strategic Communications       Financial PR                Tel: +44 (0)20 3405 0205
 David Ison                                                      variouseateries@almastrategic.com (mailto:variouseateries@almastrategic.com)

 Rebecca Sanders-Hewett

 Will Merison

 

About Various Eateries

 

Various Eateries owns, develops and operates restaurant, clubhouse and hotel
sites in the United Kingdom. The Group's stated mission is "great people
delivering unique experiences through continuous innovation".

 

The Group is led by a highly experienced senior team including Hugh Osmond
(Founder), Andy Bassadone (Executive Chairman) and Sharon Badelek (CFO).

 

The Group operates two core brands across 20 locations:

 

Coppa Club, a multi-use, all day concept that combines restaurant, terrace,
café, lounge, bar and work spaces

 

Noci, a modern, neighbourhood pasta-only concept which serves very
high-quality dishes at reasonable prices

 

For more information visit www.variouseateries.co.uk
(http://www.variouseateries.co.uk/)

 

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