Franco Manca operator Fulham Shore beats expectations in H1 2021
The operator of Franco Manca and The Real Greek beat expectations for the first half of 2021 despite the challenge of ongoing Covid restrictions.
The restaurant operator faced tough conditions during the first half of the financial year, which began on 29 March 2021 during the UK’s third COVID-19 lockdown, and was forced to trade with restrictions for 16 of the 26 weeks of the period.
The company’s financials beat expectations with revenues increasing to over £39m compared to £36m achieved during 2019, helping the company to turn a net debt position of £3.6m into net cash of £9m.
“This growth was driven by the eight new restaurants opened since September 2019, the continued increase in dine in customers since lockdown fully ended on 19 July 2021, and a strong performance across Franco Manca delivery,” Executive Chairman David Page will say at the company’s Annual General Meeting today.
In spite of ongoing restrictions Franco Manca and The Real Greek retained their popularity with customers.
In the period after restrictions were lifted on 19 July, a number of the Group’s restaurants broke trading records with revenues for the three full weeks to 26 September 2021 up 33 per cent compared to pre-pandemic levels.
With confidence levels high the company opened two new Franco Manca and, most recently, the 20th The Real Greek restaurants in the UK, taking the total number of restaurants operated by the Group to 75.
Between the company’s net cash position, a new loan facility agreement with HSBC, still in the process of negotiation, and the government’s Coronavirus business interruption loan Fulham Shore has financial headroom of £22.75m.
With strong trading and a healthy net cash position, the Board has announced it will consider introducing a dividend policy for the Group, reflecting the Board’s continued confidence in the outlook for Fulham Shore.
Read more: Franco Manca’s Fulham Shore hails rising revenues after its full-year slip