Franco Manca and Real Greek operator reports post-lockdown sales at around 72% on previous year

By James Halliwell

- Last updated on GMT

Franco Manca and Real Greek operator Fulham Shore reports post-lockdown sales at around 72% on previous year

Related tags: Franco manca, Real greek

Franco Manca operator Fulham Shore has released a trading update and announced a fundraise as it looks to fight its way though the Coronavirus crisis.

It said it has 49 out of 51 Franco Manca sites open, and 14 out of 18 Real Greek restaurants open.

Though social distancing means they are only operating at between 60-70% of their previous capacity, this has “to some extent” been compensated by an increase in delivery and takeaway sales.

The group reports that in the four weeks since 6 July, like-for-like restaurant sales at reopened sites were around 72% year on year.

It said it felt conducting a £2.25m fundraise would be “prudent” given the “ever-changing” situation due to the coronavirus and the fundraise would “strengthen the Group’s balance sheet and provide additional working capital”.

It’s also entered into a new £10.75m debt facility and agreed new terms for its existing £15m banking facilities. 

The fundraise will comprise 26,140,000 Placing Shares, to be allotted and issued to new and certain existing investors pursuant to the Placing, and 9,816,000 Subscription Shares, to be allotted and issued to the Directors, their associated parties and members of senior management pursuant to the Subscription.

The fundraise is not being underwritten, and members of the public are not entitled to participate. Allenby Capital will act as broker and bookrunner.

Fulham Shore's net debt as of 5 August was £8.9m, but the changes to its banking facilities and the fundraise will give the business substantial headroom over its current net debt and position it on a sound financial footing.

It added that when the business returns to “more normal trading conditions, hopefully over the next 12 to 18 months” it plans to resume its expansion programme and potentially take advantage of attractive opportunities to acquire new sites once the pandemic recedes, as it believes that lease acquisition prices and rents will be depressed for some time so it may benefit as a result both in terms of acquisition opportunities and in respect of its own current operations.

A new Franco Manca at near Waterloo Station in London will open in September, and a new site in Glasgow will open in March 2021. There are no current plans for new restaurants until the business sees how the existing restaurants operate over the rest of the current financial year. 

It plans to announce its results for the year ended 29 March 2020 in late September 2020.

Related topics: Business & Legislation

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