Shares in Franco Manca owner Fulham Shore rise as it serves up revenue boost
Shares in The Fulham Shore, which owns pizza chain Franco Manca, jumped more than five per cent in early trading after it posted a double-digit rise in revenue for the full year.
Read more: Pizza Express losses widen amid strain on casual dining sector
The figures
Revenue increased 17 per cent to £64m in the year to the end of March.
Pre-tax profit hit £1.4m, compared to a loss of £0.1m the previous year.
Net debt was reduced from £12m to £9.4m.
Why it’s interesting
The Fulham Shore, which also owns restaurant chain The Real Greek, has posted strong trading over the year, boosting its revenue and swinging to a modest profit.
The group behind the sourdough pizza specialist proved resilient to market pressures, which have led to the collapse of rival casual dining chains such as Jamie’s Italian. Rival Pizza Express posted an eye-watering £56m loss last year as it grappled with rising costs.
Chairman David Page did not pull his punches, saying: “Much of the capital invested in the UK restaurant sector over the past five years has not been spent wisely.”
Page said the success of his firm was down to its avoidance of high street locations, with the group instead choosing modern estates such as restored markets.
Rising rent and labour costs, coupled with a fall in the value of the pound, have put a strain on restaurant chains in the increasingly crowded market.
But Fulham Shore insisted restaurant operators can stand out from their crowd if they keep their pricing right and their financial structure stable.
The company opened four new Franco Manca locations over the year and closed one. The Neapolitan pizza chain, which first opened in Brixton Market, now has 36 central London locations.
Fulham Shore said that while the new openings contributed to the higher revenue, growth was primarily driven by improved trading and increased customer numbers at its existing sites.
As a result, the firm has decided to increase its opening programme, with a target of between eight and 10 new branches in the next financial year.
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What Fulham Shore said
“We are pleased to report the demand for both of our businesses continues to grow,” said chairman David Page.
“We will continue to open new restaurants in carefully chosen locations, conscious of the property pitfalls that others have fallen into.”
Main image credit: The Fulham Shore