Restaurant group Fulham Shore (FUL:AIM) posted a bullish trading statement ahead of its annual general meeting setting out both its expansion plans and introducing a dividend policy for the first time.
The operator of Franco Manca pizzerias and The Real Greek restaurants reported total group sales for the 26 weeks from the start of April of over £39 million compared with £36 million in the same period of 2019, despite only being able to serve dine-in customers for 10 weeks.
This success was driven by new restaurant openings and a strong performance from its Franco Manca delivery service, which has continued at a high level since re-opening implying customers are still hungry for its offering.
ORGANIC GROWTH
Since April the firm has opened two new Franco Manca outlets and one Real Greek, taking its total number of restaurants to 75, and it says trading is ahead of management expectations.
Two more Franco Manca sites are currently being fitted out, and contracts have been exchanged for a new Real Greek outlet in the Bluewater shopping centre in north Kent. No fewer than 16 potential sites are in the pipeline which would make this year one of the most successful in terms of roll-out.
FIRST DIVIDEND
Even with its aggressive opening plan, the firm generated almost £9 million of net cash in the last six months and as of this week had a cash pile of roughly £5 million.
Given its strong financial position and healthy trading at its restaurants, the group has decided the time is right for it to introduce a dividend policy.
Assuming there are no further government restrictions which might impact the group’s operations, it will present its dividend plan with the interim results in December.
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