THE hospitality company that trades under the American-themed Fridays and 63rd + 1st brands has underlined its appetite for acquisitions and opening new outlets as it unveiled its maiden results as a stock market listed company.
Hostmore, which floated in November after de-merging from Electra Private Equity, posted an operating profit of £12 million for the 53 weeks ended January 2, returning to the back from a loss of £7.8m the year before.
The group, which opened its first New York-inspired 63rd + 1st cocktail bar in Scotland on Glasgow’s Bothwell Street in October, reported that it had seen like-for-like revenue growth of four per cent since restrictions began to be lifted in May.
This was ahead of full-year growth in 2019 despite the emergence of the Omicron variant in the key December trading period, the company said. However, like-for-like revenues for the eight weeks ended February 27 were 3% lower than in 2019.
The company, which has 87 outlets in the UK and Jersey, booked total revenues of £159m for the 53 weeks ended January 2, compared with £129.1m for the 52 weeks ended December 27, 2020.
Shares closed down 10p, or 10.9%, at 82p.
Hostmore declared that it remains “positive about our prospects for the year ahead” in spite of the “potential for ongoing uncertainties regarding Covid-19 and the Ukraine crisis”, revealing that it was keen to grow its portfolio.
The company opened three 63rd + 1st venues in 2021, in Glasgow, Cobham and Harrogate, and plans to open six new sites this year. These would include three Fridays outlets, in Chelmsford, Barnsley and Durham, two 63rd + 1st (Edinburgh and Cambridge) and an outlet in Dundee under its new Fridays and Go takeaway concept.
Hostmore’s Scottish chief executive Robert B Cook, who previously ran Malmaison and One Devonshire Gardens in Glasgow, said: “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.
"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.
“The growth of the group will provide existing and new employees the reward of enhanced career progression whilst delivering on our goals to the benefit of all stakeholders, including our loyal shareholders.”
Hostmore confirmed separately that chairman Neil Johnston will retire from the board at the end of the company's AGM on May 25. Mr Johnston is the chairman of Elecrta, and became chairman of Hostmore at the time of its demerger. He will be replaced by current non-executive director Gavin Manson, if Mr Manson's is elected as a director at the AGM.
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