Franco Manca and the Real Greek owner reports 35% revenue rise
Investment company Fulham Shore, behind Franco Manca and the Real Greek restaurants, has reported a 35% increase in revenue despite falls in consumer confidence and market saturation.
Revenue in the year ended 25 March 2018 hit £54.7m, up from £40.4m the previous year.
Headline earnings before interest, taxes, depreciation and amortisation (EBITDA) were £7.4m, up from £7.2m, but the company recorded a post-tax loss of £150,000 compared to £1.2m profit the previous year.
Earlier this year Fulham Shore had issued two profit warnings due to slower trade and higher operating costs.
Chairman David Page said: "In last year's strategic report, I wrote that an unprecedented amount of capital had been invested in the UK restaurant sector during recent years. Restaurant supply has grown faster than demand across the country initially caused by the fall in demand for retail shop space. Landlords and agents have consequently actively sought to rent the vacant space to restaurant operators. This structural imbalance of the restaurant industry then hit the brick wall of Brexit and the subsequent fragility of consumer confidence and inflationary pressures in the UK.
"Despite this backdrop, it has been a year of growth and strategic progress for the group. We believe that this demonstrates that Fulham Shore is well placed to ride out the UK economic turbulence as a dynamic operator with strong and popular businesses and a good portfolio of sites."
The year saw the opening of nine Franco Manca pizza sites, taking the brand to 43 in the UK and one franchised restaurant on the island of Salina, in Italy, as well as three new Real Greek sites.
Two further Franco Manca openings are planned in Bath and Cambridge, while one under-performing site in Brighton Marina will be closed.
Fulham Shore has said it will continue to open further Franco Manca sites where there is demand. The company stressed the importance of finding compact sites with relatively low rents to allow the pizza brand to offer a competitive priced menu, rather than relaying on discounting.
Fulham Shore scales back expansion plans following second profit warning>>
Fulham Shore revenue grows despite weak trading in the suburbs>>
