TGI Fridays owner reports flat sales growth
The group behind the TGI Fridays and 63rd+1st brands has reported that like-for-like revenue in the second half of 2023 against the second half of 2022 was flat. This represents an improvement on the first half of 2023, which was 2% below the comparative full-year 2022 period (adjusted for differences in VAT).
The company says that the four-week December 2023 holiday period shows further improvements, with like-for-like revenue up 4% compared to the previous December. Hostmore describes this as ‘encouraging’ owing to the fact that 65% of its estate is located in retail parks or shopping centres, many of which operated on reduced holiday hours. This, it says, resulted in a 2% impact to its like-for-like sales in December.
Hostmore forecasts that the first half of 2023 generated unadjusted EBITDA of £5.4m.
It is aiming to be debt free by dedicating all free cash flow towards repayment of borrowings. Consolidated net bank debt at the year-end was £25.1m, an improvement in line with forecast from £31.3m at 2 July 2023.
It also says it is continuing to engage existing and potential new lenders in the refinancing process.
“We have continued making good progress in executing our turnaround strategy, through disciplined capital allocation and the delivery of further cost reductions,” says chief executive. Julie McEwan.
“Our organic growth initiatives, implemented through a strong and motivated operational platform, have improved the financial outlook of the business and continue into 2024.”
Hostmore expects to publish its 2023 preliminary results in the second half of April.
