- Continued strong trading in first two months of new year
- On track to open 18 new sites in FY2023
- Cost pressures mitigated
Franco Manca and The Real Greek owner Fulham Shore (FUL:AIM) said trading in the first two months of the new financial year to March 2023 continued to be in line with management’s expectations.
With both businesses rebounding strongly from the relaxing of Covid-19 restrictions the group is ploughing ahead with its expansion plans.
It is targeting prime new locations which are benefiting from ‘historically low’ rental levels.
Investors were reassured by continued strong trading and positive outlook with the shares gaining 5% to 15p.
EXPANSION ON TRACK
Executive chairman David Page commented: ‘Our new restaurant openings across the UK continue to trade very well, and we have an exciting pipeline of new sites for the remainder of the financial year.
‘We continue to be very optimistic about the significant growth opportunities for new Franco Manca and Real Greek restaurants over the coming years.’
The company opened 10 new restaurants in the year to 27 March 2022 and anticipates opening 18 new sites in the current financial year.
Three new sites have been opened sine the year end including The Real Greek in Newcastle, and two Franco Manca pizzeria in Canterbury and Kingston upon Thames.
Eight Franco Manca are being fitted out across the country including in The Trafford Centre Manchester, Stockbridge Edinburgh, and Windsor.
WELL FINANCED
Fulham Shore remains well financed with a net cash position before lease liabilities of £3.6 million and undrawn banking facilities of £15.9 million, providing total headroom of over £19 million.
The company said trading in the small number of sites located in highly populated city centres are yet to return to pre-pandemic levels but show continued improvement.
By contrast the group’s restaurants in suburban areas and shopping centres continue to see strong trading.
This has helped the company to mitigate industry-wide cost pressures along with ‘some menu inflation’ and successful negotiations on rent reviews.
The company is due to release full-year results on 27 July 2022.
