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Comptoir Group full-year earnings drop but YTD trading in line
(WebFG News) - Comptoir, which is behind restaurants Yalla Yalla and Comptoir Libanais, posted a drop in full-year earnings on Monday but said that trading in the year to date has been in line with its expectations.
In the year to the end of December 2017, adjusted earnings before interest, tax, depreciation and amortisation fell 58% to £1.1m, which was ahead of the company's revised expectations, while revenue was up 38% to £29.6m.
The group attributed the drop in earnings to increased administrative costs incurred following the opening of new restaurants in 2016 and 2017. It said it continued to feel the cost pressures in the supply chain throughout the year, including the ongoing effect of the National Living Wage and Apprenticeship Levy.
During the year, Comptoir opened four new restaurants and one franchise restaurant, taking the total number of restaurants trading to 26, excluding three franchise sites. It plans to open two more restaurants this year and to continue investing in the existing sites and developing its brand.
Chief executive officer Chaker Hanna said: "Trading year to date has been in line with board expectations, and we anticipate strong sales in the second quarter.
"Sales at the new restaurants are gradually building towards the levels anticipated at maturity and the company is putting in place several marketing initiatives, including a new menu, ahead of the critical summer trading period to promote sales at both existing and new restaurants. The company is also heavily focused on building the Comptoir brand, broadening its executive team, improving quality and driving innovation."
Comptoir has secured two further international locations, one in Dubai Airport which is due to open in the first half of next year and one in Abu Dhabi Airport, which is expected to open in the second half of 2019. Both are with its current franchise partner HMS Host.
At 1250 BST, the shares were up 8.3% to 14.35p.