VARIOUS EATERIES PLC

Earnings Release • May 14, 2024

National Storage Mechanism | Additional information

RNS Number : 2334O

Various Eateries PLC

14 May 2024

14 May 2024

VARIOUS EATERIES PLC

("Various Eateries" or "the Company"

and with its subsidiaries "the Group")

Trading Update & Notice of Results

Various Eateries PLC, the owner, developer and operator of restaurant, clubhouse and hotel sites in the United Kingdom, announces an update on trading for the 26-week   period ending 31 March 2024.

Sales in the period grew 10.2 % to £ 22.7 m (H1 2023: £20.6m), driven largely by new site openings. Group like-for-like sales were marginally down, against a backdrop of one of the wettest winters since records began and with the Company maintaining its strategy of absorbing most price increases. As previously stated, while this strategy puts temporary pressure on margins, management believes prioritising customer satisfaction over short-term profit will position the Group well for substantial growth once market conditions improve.

Following the successful placing in December 2023, the Group's financial position remains strong, with cash at bank of £7.2m as at 31 March 2024 (H1 2023: £3.1m).

Steadily improving inflationary landscape, expected impact from minimum wage increases

Encouragingly, the deceleration of food and utilities cost increases reported at the full year has continued. The Group's primary expense challenge this year is expected to stem from the April 2024 implementation of the largest-ever minimum wage rate increases, with a large proportion of the Group's workforce receiving significant pay rises. To mitigate inflationary pressures while enhancing the overall customer experience, management continues to actively explore initiatives such as at-table digital ordering at some sites.

Maintaining a measured approach to site roll-out

Noci Richmond opened its doors in May 2024, consistent with the Group's near-term strategy to focus expansion primarily on the specialist quality pasta concept in and around London. The brand's fourth site, in the popular Richmond area, is a 90-cover restaurant based at the heart of the neighbourhood. The site has a similar profile to Noci Islington and is expected to see a similar positive sales trajectory as the venue beds in.

Coppa Club Cardiff remains on track to open later this month. The brand's third townhouse site is located in the city's popular leisure and shopping destination, The Hayes, benefitting from both high footfall and proximity to several large arenas including the Principality Stadium. Coppa Club Cardiff brings an all-day focus to hospitality in the Welsh capital, boasting elevated design, two bars and unique private dining spaces for events and corporate bookings. 

The pipeline for further new locations is strong with high levels of premium site availability and a keenness on the part of landlords to work with the Group. Management will continue to carefully appraise each opportunity, only progressing those that meet its strict criteria for long-term success.

Confident outlook for the second half and beyond

Much hard work has gone on behind the scenes to enhance the Group's proposition in the period, including the refurbishment of Coppa Club's outdoor terraces.

Trading at the start of the second half has been resilient, despite the uncharacteristically wet and dull weather, and management is optimistic ahead of the important summer trading months.

While there are signs the macroeconomic picture is improving, the landscape continues to require careful navigation. Management remains committed to taking the necessary steps to work through it, maintaining its strategy of prioritising customer satisfaction while improving operational efficiency.

Notice of Results

The Company's interim results for the 26-week period ending 31 March 2024 are scheduled to be announced on or around 27 June 2024.

An dy Bassadone, Executive Chairman of Various Eateries, said: 

"We remain steadfast in our approach, prioritising the preservation of the integrity of our brands over short-term financial gain, confident that this strategy strengthens our capacity for sustainable and profitable long-term growth. We are seeing the goodwill generated in our communities translate into customers returning time-and-time again, knowing they can rely on us to continue to provide a high quality and affordable experience where others are making compromises. With several key operational enhancements made to our estate in the period, we firmly believe Various Eateries is well-positioned to grow into one of the UK's leading hospitality groups, and enter the second half with a growing sense of optimism."

Enquiries 

Various Eateries plc		Via Alma
Andy Bassadone  Sharon Badelek	Executive Chairman  Chief Financial Officer
WH Ireland Limited	Sole Broker and NOMAD	Tel: +44 (0)20 7220 1666
Broking     Harry Ansell
Nominated Adviser    Katy Mitchell
Darshan Patel
Alma Strategic Communications	Financial PR	Tel: +44 (0)20 3405 0205
David Ison  Rebecca Sanders-Hewett Will Merison		variouseateries@almastrategic.com

About Various Eateries   

Various Eateries owns, develops and operates restaurant, clubhouse and hotel sites in the United Kingdom. The Group's stated mission is "great people delivering unique experiences through continuous innovation".

The Group is led by a highly experienced senior team including Hugh Osmond (Founder), Andy Bassadone (Executive Chairman) and Sharon Badelek (CFO).

The Group operates two core brands across 20 locations: 

Coppa Club , a multi-use, all day concept that combines restaurant, terrace, café, lounge, bar and work spaces

Noci , a modern, neighbourhood pasta-only concept which serves very high-quality dishes at reasonable prices

For more information visit  www.variouseateries.co.uk

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTFLFVEETIVLIS