The stock fell 0.7% after the results, a broadly flat reaction. H1 performance differed by market: UK revenue and like-for-like sales increased, while the presentation highlighted challenges in France and store closures there.
- Group revenue rose 6% to £38.5m, with reported group like-for-like sales growth of 13.3%; last-12-month system sales reached £103m.
- The UK, which contributes over 90% of group revenue, recorded H1 like-for-like growth of 13.9% and revenue of £35.4m, up 7%, despite having fewer stores.
- UK gross margin was 75.5%, down 1.4 percentage points year on year: management attributed about 0.7 points to food input costs and about 0.7 points to a change in discount accounting.
- UK restaurant EBITDA was broadly flat amid higher labour costs and incremental delivery costs; adjusted EBITDA increased from £2.4m to £2.6m.
- Management said it closed underperforming French stores, including five unconverted sites, and restructured the French team and head-office costs.
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