TIDMFUL
RNS Number : 2950N
Fulham Shore PLC (The)
29 September 2021
29th September 2021
The Fulham Shore PLC
("Fulham Shore", the "Company" or the "Group")
AGM statement
Trading Update, Bank Financing and Dividend Policy
At The Fulham Shore's Annual General Meeting being held at The
Real Greek, Tower Bridge at 9.00am today, David Page, the Executive
Chairman of the Company, will make the following statement:
Background to the first half of the financial year
Fulham Shore's financial year began on 29 March 2021 during the
UK's third COVID-19 lockdown. Restrictions on dine in customers
were lifted by the UK Government on 19 July 2021 and the Company's
financial half year to 26 September 2021 (the "Period"), ended
three days ago.
The Period therefore comprised 10 weeks of full trading and 16
weeks of restricted trading.
The financial year ended 28 March 2021 was heavily disrupted by
COVID-19 restrictions. It featured firstly no trading, followed by
delivery and takeaway only trading, then buoyant trading during the
'Eat Out To Help Out' scheme, before once again restrictions were
implemented that prevented the Group from trading. These changes
were implemented with little notice from the UK Government.
Due to the impact of restrictions during the 2020/21 financial
year, in line with previous trading updates trading comparatives
within this update will be the comparable period in 2019.
Current trading
Despite being able to trade without restrictions and serve dine
in customers for only 10 out of the 26 weeks of the Period, total
Group revenues increased to over GBP39m compared to GBP36m achieved
during the comparable period in 2019.
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. This performance was enhanced by
strong suburban trading in addition to the typical summer
season.
Revenues from delivery remained at this higher level after
restrictions were lifted on dining in, implying that the Group's
delivery customers have continued to choose our quality food and
value pricing.
The Franco Manca brand continued to resonate well with customers
during the Period, reflected by the ongoing growth in popularity of
the Franco Manca loyalty app, which has now been downloaded and
used by over 255,000 customers.
The Real Greek enjoyed a fantastic summer serving record numbers
of customers, with particularly good performances across sites
located outside of London which feature large covered terraces.
Bookings continue to be buoyant into the autumn.
The period post lockdown restrictions being lifted, on 19 July
2021, saw a number of the Group's restaurants around the UK
breaking trading records on a regular basis. Group revenues for the
three full weeks to 26 September 2021 averaged 33% ahead of the
same period in 2019, an improvement on the 27% reported in our
previous trading statement achieved during the three weeks to 5
September 2021. During this time, cost of sales and labour margins
continued to remain stable despite inflationary pressures.
During the Period, the Group's 17 West End of London and city
centre office locations remained behind 2019 figures but
demonstrated gradual recovery: in the three weeks to the Period end
revenues improved to only -3% behind the same three weeks in 2019.
Over the next 12 months we expect footfall in these office-centric
sites to increase and to therefore return to trading in line with
the Group's average performance. Tourists from abroad have yet to
return in any meaningful way, but when they do this should provide
further impetus to these city centre and the West End of London
restaurants.
With strong revenue growth in our first half to September 2021
compared to six months to September 2019, Fulham Shore is trading
ahead of management's expectations. This augurs well for the full
year performance and our UK wide expansion plans.
Property
So far, during the Group's current financial year ending March
2022, we have opened two Franco Manca and, most recently, the
20(th) The Real Greek in Norwich. This takes the total number of
restaurants operated by the Group to 75.
Fitting out works are ongoing on two new Franco Manca pizzeria,
in Blackheath Village (opening in October 2021) and on Baker Street
(opening in November 2021) in London. The Real Greek has exchanged
contracts for a new restaurant in Bluewater Shopping Centre, Kent
and expects to commence fitting out works imminently. 16 more
potential sites are in solicitors' hands for both Franco Manca and
The Real Greek.
Cash position
The Group's current financial year to March 2022 started with
net debt, excluding lease liabilities recognised under IFRS16, of
GBP3.6m. As of 28 September 2021 the Group had net cash, excluding
lease liabilities recognised under IFRS16, of approximately
GBP5.0m, showing net cash generation of almost GBP9m over six
months, despite opening three restaurants during this period and
building a fourth.
Financing
The Group has agreed credit committee approved heads of terms
with HSBC for a three year extension of its revolving credit
facility and an increase in this facility from GBP14.25m to
GBP17.0m ("RCF"), subject to contract. Legal negotiations have
commenced and are expected to be completed by December 2021. At the
same time the Group's GBP750,000 overdraft facility will also be
renewed.
While there is a small increase in margin with the new facility,
the Group intends to repay its GBP9.3m UK Government backed CLBIL
facility that supported the business during the height of lockdown
uncertainty. The revised RCF and renewed overdraft combined with
the current net cash position of GBP5.0m will give the Group
financial headroom of GBP22.75m.
Although we intend to finance our expansion programme largely
using our existing cash and operating cashflow, the renewed banking
facilities will enable the Group, as appropriate, to accelerate
organic growth and take advantage of opportunistic property
portfolio acquisitions.
Dividend policy
With strong trading and a healthy net cash position, the Board
believes that this is the right time to consider introducing a
dividend policy for the Group, reflecting the Board's continued
confidence in the outlook for Fulham Shore. Subject to no further
UK Government restrictions that impact the Group's trade, the Board
will update on Fulham Shore's dividend policy within the Group's
interim results which will be announced in December 2021.
For further information, please contact:
The Fulham Shore PLC www.fulhamshore.com
David Page / Nick Wong Via Hudson Sandler
Singer Capital Markets (Nominated Adviser
& Broker)
Shaun Dobson / James Moat / Kailey Aliyar
/ Hannah Woodley +44 (0) 20 7496 3000
Hudson Sandler - Financial PR fulhamshore@hudsonsandler.com
Alex Brennan / Lucy Wollam Telephone: 020 7796
4133
Investor Presentation
The Fulham Shore PLC will provide a live investor presentation
via the Investor Meet Company platform on 29(th) September 2021 at
4:30pm BST.
The presentation is open to all existing and potential
shareholders. Questions can be submitted pre-event via your
Investor Meet Company dashboard up until 9:00am the day before the
meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add
The Fulham Shore PLC via:
https://www.investormeetcompany.com/the-fulham-shore-plc/register-investor
Investors who already follow The Fulham Shore PLC on the
Investor Meet Company platform will automatically be invited.
Notes for editors
Information on The Fulham Shore PLC
Fulham Shore owns and operates "The Real Greek" ( www.therealgreek.com ) and "Franco Manca" (
www.francomanca.co.uk ) restaurants.
Fulham Shore was incorporated in March 2012. The Directors
believed that there were attractive investment opportunities within
the restaurant sector in the UK and that, given their collective
experience in the restaurant sector, they could take advantage of
the opportunities which existed.
The ordinary shares of the Company were admitted to trading on
AIM in October 2014 in order to capitalise on such opportunities
and to give the company employees, customers and public the ability
to share in the enterprise.
The Real Greek
Since its foundation in London in 1999, The Real Greek group has
grown steadily, now offering modern Greek cuisine in 20 restaurants
across London and Southern England.
The Real Greek food centres on the delicious, healthy diet of
the Eastern Mediterranean, staying true to the Greek ethos of food,
family and friends. Dishes are created using premium ingredients
sourced from Greece and Cyprus whenever possible, and developed by
Tonia Buxton, the face of Greek food in the UK.
The Real Greek's menu and atmosphere retain the spirit of eating
in Greece, encouraging diners to take their time eating amongst
friends and family, be it a relaxed dinner, family get-together, or
a fully catered party.
Franco Manca
Franco Manca opened its first restaurant in 2008 and now has 55
restaurants, primarily in London, but also with restaurants across
the UK (e.g. Edinburgh, Glasgow, Manchester, Leeds, Cambridge,
Bath, Oxford, Bristol and Exeter).
Franco Manca's pizza is made from slow-rising sourdough and is
baked in an oven that produces high heat. The slow levitation and
blast cooking process lock in the flour's natural aroma and
moisture, giving a soft and easily digestible crust. Where
possible, locally sourced and organic ingredients are used.
Franco Manca has received the following accolades:
Winner of the Casual Dining Best Family Dining Experience Award
2020
Winner of the R200 Best Value Restaurant Operator- Over 20 Sites
Award 2019 and 2017
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END
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September 29, 2021 02:00 ET (06:00 GMT)
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