Comptoir Group PLC on Tuesday said it is successfully advancing its growth strategy despite swinging to a loss in 2023.

The London-based operator of Lebanese, Middle Eastern and North African inspired restaurants swung to a £1.6 million pretax loss in 2023 from a £902,450 pretax profit the year before.

Revenue rose 1.4% to £31.5 million from £31.0 million.

Unchanged from the previous year, the company declared no dividend as management intends to invest cash resources back into the business.

Chief Executive Officer Nick Ayerst said: ‘Our strategy to grow through organic sales, new openings and franchising is bearing fruit and I am pleased to report that each strand of these strategic pillars grew in the last year.

‘Whilst our group revenue grew, our costs increased as a result of food cost inflation, a further increase in the minimum wage and, for a period, energy bills that were three times that of years previous.’

Ayerst added that he expect it will take a further 2 to 3 years before the company can adjust pricing sufficiently to fully return to pre-Covid margins.

The portfolio continues to expand with the opening of a new site in Ealing in 2023, and more recently this year, a site in Southbank as well as a franchise store in Abu Dhabi.

The company now has 28 locations running of which 6 are franchised.

Looking ahead, the company said it will continue working towards generating labour efficiencies and improving cost management to help mitigate enduring economic challenges.

Comptoir shares were down 3.3% to 6.53 pence each in London on Tuesday afternoon.

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