Fulham Shore pleased with full-year lockdown performance

Fulham Shore reported a 41.3% decline in revenue in its final results on Tuesday, to £40.3m, which it put down to Covid-19-related trading restrictions in place through most of the financial year.

The AIM-traded hospitality operator reported “buoyant” trading during last summer, however, when restaurants were able to operate across eat-in and outside dining.

Headline EBITDA totalled £9.0m for the year ended 28 March, down from £15.2m year-on-year, with adjusted headline EBITDA falling to £1.9m excluding IFRS 16, from £8.3m.

EBITDA came in at £8.7m, falling from £14.3m, while adjusted EBITDA was £1.6m excluding IFRS 16, compared to £7.2m in the 2020 financial year.

Fulham Shore made a headline operating loss of £2.2m, swinging from a profit of £4.4m a year ago.

It reported an impairment charge on property, plant and equipment, and a change in fair value of investments, of £1m, rising from £0.5m, with the firm’s operating loss totalling £4.8m, compared to profit of £1.8m.

The company’s loss total before tax came in at £7.5m, widening from £0.8m at the end of the 2020 financial year.

Net debt, excluding lease liabilities recognised under IFRS 16, was £3.6m at year-end, narrowing from £9.5m 12 months earlier.

During the year, the company owned two new Franco Manca locations and one new The Real Greek restaurant in the UK, compared to seven Franco Manca and two The Real Greek openings in the prior financial period.

Since the year ended, as of August, all of Fulham Shore's 74 restaurants were fully open and trading, supported by additional safety precautions and training for restaurant staff across both brands.

Two new Franco Manca pizzerias were opened in High Holborn, London and in Glasgow, bringing the total to 55 Franco Manca and 19 The Real Greek operated by the group in the UK.

One new The Real Greek was under construction in Norwich, and one lease contract was exchanged for Franco Manca in Baker Street, London.

A further 12 sites were with solicitors, in a bid to strengthen the group's opening pipeline.

Net cash, excluding IFRS 16 lease liabilities, was £3.5m as at 15 August, as the company formed a new team to “explore and progress” the international development of both of its businesses.

“During an unprecedented year, we are pleased to have navigated through the very challenging trading conditions to deliver this good performance,” said executive chairman David Page.

“This is testament to the popularity and relevance of our Franco Manca and The Real Greek brands, the adaptability of our propositions, and the agility of our teams who I would like to take this opportunity to thank for their hard work and commitment during the year.

“Since the beginning of the current financial year commencing 29 March 2021, the group has continued to trade profitably and ahead of management expectations, driven by strong performances across our suburban restaurants.”

Page said that from July, all restaurants had been open and operating without restrictions, welcoming increasing numbers of customers as the UK's vaccination programme progressed.

Momentum was also maintained across its takeaway and delivery channels, which were continuing to outperform 2019 levels.

“In line with our long-term expansion strategy we have developed a strong pipeline of new locations, supported by favourable rental terms and the group's strong cash position.

“We plan to open 10 locations during the current financial year and have identified more than 150 additional sites in line with our medium-term plans.”

Having navigated the impact of the Covid-19 pandemic, David Page said the group was “well-positioned” to capitalise on emerging opportunities.

“We are confident that this current financial year will be the start of another exciting period of growth for The Fulham Shore.”

At 1018 BST, shares in the Fulham Shore were down 1.56% at 15.75p.