REG - Various Eateries PLC - Trading Update

Various EateriesAnnouncement

11/11/2024 07:00

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RNS Number : 6137L  Various Eateries PLC  11 November 2024

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
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. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

 

11 November 2024

VARIOUS EATERIES PLC

("Various Eateries" or "the Group")

 

Full-Year Trading Update

 

Various Eateries, the owner, developer and operator of restaurant, clubhouse
and hotel sites, announces an update on trading for the 52-week period ending
29 September 2024.

 

Group revenues are expected to be slightly ahead of current market
expectations(1) at £50.5m (unaudited) (2023: £45.5m) generating a small
positive adjusted EBITDA(2) also slightly ahead due to efficiency improvements
coupled with further softening of inflationary pressures. The Group's
financial position remains healthy, with cash at bank at 29 September 2024 of
£5.8m (2023: £1.9m).

 

Group like-for-like sales grew by 1% in the second half compared to the
previous year. The final quarter saw a 4% increase, despite above-average
rainfall, improving overall performance from -3% at the half-year mark to -1%
by year-end.

 

The stronger second half performance reflects the impact of various
initiatives designed to enhance the customer experience. While not yet at
pre-pandemic levels, the continued return of tourists to the UK, particularly
in London, is likely to have positively impacted trading, with Coppa Club
Tower Bridge delivering a standout performance.

 

We have been successful in elevating both outdoor and indoor spaces across the
Group in the period, exemplified by the addition of The Lobster Bar, a
canopy-covered riverside bar and BBQ at Coppa Club Streatley, along with other
well-received refurbishments. These enhancements are part of our ongoing
strategy to create exceptionally inviting and truly distinctive spaces across
all our locations.

 

Our new openings in the year, Noci Richmond and Coppa Club Cardiff, have both
made promising starts. We continue to see considerable opportunities for
expansion but remain committed to a measured and disciplined roll-out,
proceeding only with sites where we have a high degree of confidence in
long-term, sustainable success.

 

Our marketing function has now been divided into two distinct teams, with
newly appointed heads for each of the core brands, Noci and Coppa Club. This
strategic approach, which better aligns with the operations of the Group, is
already delivering positive results and a growing presence across social media
platforms.

 

In the year under review, as is the case across the hospitality sector, we
have had to navigate the continued impact of minimum wage increases. To
address this, we have intensified our focus on driving greater efficiencies
across the business. Our new head of procurement has made progress in
streamlining our supply chain and optimising supplier agreements, while a
major initiative to optimise resource allocation across the Group has been
completed.

 

Following the recent Autumn Budget, the Board's view is that above-inflation
increases to minimum wage, substantial increase in NI rates, and dramatic
lowering of the Employer NI threshold, together with changes to workers'
rights, will substantially increase the costs and administrative burden of
employing young people. As a major employer of first-time workers, the
hospitality industry will be particularly affected by these measures.

 

Various Eateries is in a strong position to mitigate these effects, but this
is still a further major blow to a struggling industry that employs more than
three million people, mostly under 25.

 

Andy Bassadone, Executive Chairman of Various Eateries, commented:

 

"It is gratifying to see the progress made, particularly in the second half of
the year, which reflects the tireless work of our teams in delivering superior
experiences to our guests. At the same time, we've achieved meaningful gains
in operational efficiency, which will help to offset government mandated cost
rises next year, all while maintaining the high standards that define our
brands.

 

While the market remains challenging, we are encouraged by the continued
easing of the pressures that have negatively impacted the industry, such as
food and utility costs, alongside signs of gradually improving consumer
confidence.

 

With a strengthened organisational infrastructure now in place, there is a
sense that momentum is returning to the business. While we will remain
cautious in our expansion, we are confident in the Group's long-term growth
prospects and look forward to building on our successes in the coming
financial year."

 

(1)Market expectations refer to analyst forecasts for FY24 of £47.8m in
revenue and £0.0m of adjusted EBITDA

(2)Adjusted EBITDA is EBITDA before pre-opening costs, share-based payments,
and exceptional costs, and is reported by the Group before the impact of IFRS
16

 

The Chief Financial Officer, Sharon Badelek, has approved this announcement
and authorised its release.

 

 Various Eateries plc                            Via Alma
 Andy Bassadone (Executive Chairman)
 Sharon Badelek (Chief Financial Officer)

 Zeus Capital Limited (Sole Broker & NOMAD)      +44 (0)20 3829 5000
 Harry Ansell (Broking)
 Antonio Bossi (NOMAD)
 Darshan Patel

 Alma Strategic Communications                   +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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