Hostmore narrows losses in maiden results as publicly listed company

By BigHospitality

- Last updated on GMT

Fridays and 63rd +1st operator Hostmore narrows losses in maiden results as publicly listed company

Related tags: Hostmore, Casual dining, Multi-site, Fridays, 63rd+1st, R200

Hostmore has reported an increase in total revenues to £159m, up from £129.1m, during the 53 weeks ended 2 January 2022, versus the comparable 52-week period the year before.

In its first results as a publicly listed company, the Fridays and 63rd +1st operator saw group adjusted earnings before interest, tax, depreciation and amortisation almost double to £43m, from £23.5m; with the group ending the year with a loss after tax of £0.6m, compared to a loss of £17.3m in 2020.

Like-for-like revenue since the lifting of restrictions in May last year was 4% ahead of the comparable 2019 period, despite the impact of Omicron over the festive period.

Over the period, Hostmore opened three 63rd + 1st sites and one Fridays restaurant with six new sites to open in the current financial year including its first Fridays and Go in Dundee, which is set to launch this month​.

With regards to current trading, like-for-like revenues for the eight weeks ending 27 February 2022 are down around 3% on 2019 levels.

In order to support the development of its dine-out revenue share, Hostmore is preparing to launch a new retail beverage sales channel to target the 'at home' market.

“I am delighted to report a strong financial performance, in our maiden results as a publicly listed company, considering the challenges of the past two years,” says Robert B Cook, chief executive officer for Hostmore.

“My colleagues in-store, at the support centre, and all stakeholders, have positively contributed to trading and the strengthening of our balance sheet. Consequently, we are well prepared to meet the expansionary goals which gave rise to Hostmore.

“I am equally appreciative of the ongoing loyalty of our many guests that continued to support us by visiting our restaurants and indicated their appreciation of the improvements in quality and service which have resulted in higher and more consistent levels of guest satisfaction.

“Whilst we will no doubt face new macro-economic challenges as we proceed this year, together with the challenges raised by the Ukraine crisis, we are now well positioned to consider opportunities for both organic growth via our existing brands, including the very first Fridays and Go quick service concept restaurant which opens in Dundee later this week, and the acquisition of small disruptor brands that are seeking investment capital to grow.”

Hostmore reduced its net debt to -£12.2m, compared to -£28.6m the year before, with free cash flow of £31m, compared to £20m.

Related topics: Business & Legislation, Casual Dining

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