Fulham Shore PLC (LON: FUL) have seen their shares dip despite giving shareholders a sound update on Monday.
Fulham Shore are a group of distinct growth restaurant businesses operating in the UK, each driven by skilled and incentivised restaurant entrepreneurs. The firm boast names such as Franco Manca Pizza and The Real Greek.
Today, the firm has seen its first half revenues rise due to the launch of new restaurants and rising customer numbers.
For the half-year ended September 29, the restaurant operator posted revenue of £36 million, up 9.3% from £33.3 million in the comparative year ago period.
Pretax profit, however, slumped year-on-year to £743,000 form £1.5 million, mainly due to recognition of interest on lease liabilities under new IFRS16 accounting rules.
First half headline earnings before interest, taxes, depreciation and amortisation increased 68% year-on-year to £8.4 million.
The performance was boosted by the opening of six new six new Franco Manca pizzerias and one new The Real Greek restaurant. The launch of the Franco Manca loyalty scheme and mobile app was credited for the rise in customer numbers as over 55,000 registered users were recorded at last count.
Chair David Page said: “Looking ahead, the board remains confident that Fulham Shore is well positioned for continued growth and a great future. We look forward to continuing this positive momentum in the period ahead.”
Shares of Fulham Shore dipped 5.55% to 10p on Monday afternoon. 16/12/19 15:56BST.
Certainly, Fulham Shore can be pleased with the update that they have given shareholders today, even though share price movements may have not reflected this.
Rival, FTSE250 listed Restaurant Group (LON: RTN) saw their shares crash despite its lead brand Wagamama reporting a strong performance.
Wagamama reported strong second quarter gains, as revenues rose 11% year-on-year to £93.5 million, with like-for-like revenue growth coming in at 6.3%.
Another name in Loungers PLC (LON: LGRS) saw their shares spike just under two weeks ago, as the firm gave a bullish update to the market.
For the 24 weeks to October 6, Loungers revenue climbed 22% on the year before to £79.8 million, with the pretax loss narrowing to £2.5 million from £4.3 million. On a like-for-like basis, revenue growth was 5.4%, a figure Loungers said was “sector leading”.
Shareholders of Fulham Shore should remain confident on the update provided, however, as big guns such as J D Wetherspoon plc (LON: JDW) continue to report strong trading figures, which will make the market more competitive and saturated.
