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Sat 30th Dec 2017 - Results: Individual Restaurants, Wear Inns and Chilango
Individual Restaurants reports like-for-like sales up 1.8%, secures new £24m banking facility: Individual Restaurants has reported like-for-like sales were up 1.8% for the year ending 31 March 2017. The company, which operates the Piccolino and Restaurant Bar & Grill brands, saw turnover increase to £67,008,053 compared with £62,723,221 the year before. Ebitda was the company’s second best on record, at £7m. It reported a pre-tax loss of £951,553 compared with a profit of £1,534,233 the year before, according to accounts filed at Companies House. Gross margin improved to 75.3% compared with 74.5% the previous year. Since the year end, Individual Restaurants has secured a £24m banking facility with HSBC. The company opened the Opera Grill in Chester in August 2016 and at the year end also operated 20 Piccolino and ten Restaurant Bar & Grill sites. A report by the directors accompanying the accounts stated: “The Club Individual loyalty scheme continues to grow. As at 31 March 2017 the scheme had 715,000 members (2016: 611,000). To date we have more than 782,000 members and importantly the proportion of annual revenue attributable to Club Individual members remains consistent with previous years at more than 30% (£20m). Finance costs in the year increased by £0.35m following the increase in banking facilities in the year and the continuing amortisation of the associated refinancing costs. The company generated strong cash flows from operations of £3.1m with the free cash flow post finance and interest charges being used to fund the ongoing development capital investment programme. Depreciation in the year was £4.5m and the company incurred operating exceptional costs of £1m relating to the pre-opening costs of the two sites opened in the year. Further the board is delighted to report that following two years of record results, the company successfully negotiated a £24m banking facility with HSBC in July 2017. The board continues to have great confidence in the trading strength of all brands and has been encouraged by post year-end trading.”

Wear Inns reports like-for-like sales increase 2.4%, ‘continued good performance’ since year end: North east managed operator Wear Inns has reported like-for-like sales increased 2.4% for the year ending 31 March 2017 and has seen “continued good performance” since the year end. The company saw turnover increase 4.25% to £14,210,461 compared with £13,631,348 the year before. Ebitda before central costs was up to £3.5m compared with £3.2m the previous year. Pre-tax losses narrowed to £45,396 compared with a loss of £418,241 the year before, according to accounts filed at Companies House. A report by the directors accompanying the accounts stated: “The company continued to trade well through the financial year, achieving an overall turnover increase of 4.25% due to excellent performances in both wet and food sales. Like-for-like sales increased by 2.4% with the remainder of the increase being due to the planned changes in the composition of the estate during the year. The New Inn, Durham was sold in June 2016, with income from new acquisition The Whistlestop in Leeds coming in at roughly the same time. The Turf in Bradford was sold at the start of February 2017. The estate now comprises 25 pubs. Cost of sales increased by only 3.55% due to continuing tight control of purchase costs, although the payroll element increased by 6.30% despite effective use of staff due to higher hourly pay rates caused by the 7.46% National Living Wage rate increase from £6.70 per hour to £7.20 per hour and the knock-on effect on other pay rates. Reported gross profit therefore increased by 5.39%, and gross margin as a percentage of sales increased from 38.02% to 38.44%. The distribution costs line in the accounts, which includes pub depreciation, increased by 1.74%. Administration costs, which relate predominantly to the central management function of the company, reduced by 9.5% in the year. The key balance sheet movements in the year were the decrease in reserves from £3,947,714 at 31 March 2016 to £3,566,718 due mainly to a deferred tax charge in the year and the small loss on disposal of pubs held for resale at 31 March 2016, where net proceeds actually achieved were a little below expectations, and the increase in cash balances from £1,580,902 at 31 March 2016 to £2,783,929 at 31 March 2017. This was due to a combination of cash generated from the good trading performance, the sale of the pubs held for resale, and the receipt of key-man insurance proceeds of £500,000 in respect of the death of chairman John Weir in August 2016, less the cost of acquiring the Whistlestop, interest paid and scheduled repayments of the bank loan. During the period following the year end the company has seen continuing good performance in sales and profitability from its existing sites.” The number of employees at the end of the period increased to 1,539 compared with 1,479 the year before.

Chilango reports turnover up 38.6% as delivery spurs sales: Mexican brand Chilango has reported turnover increased 38.6% to £9,720,583 for the year ending 26 March 2017 compared with £6,969,505 the year before. Group Ebitda for the period came in at a loss of £l.3m versus a loss of £1.4m the previous year, according to accounts filed at Companies House. Pre-tax losses increased to £3,195,322 compared with a loss of £1,971,255 the year before, driven by costs associated with the closure of its Camden restaurant and delivery-only kitchen in Limehouse. Post year-end, Chilango raised £794,231 through selling 13,237,191 ordinary shares. The company stated: “During the year the company opened a further two restaurants, in Croydon and Manchester, as well as a short-term (18-month lease) delivery-only kitchen in Limehouse. The company stopped trading the delivery kitchen before its lease expiration as trading was lower than expected. The company also closed its Camden restaurant due to trade not meeting expectations. During the year the company entered the delivery market with six delivery partners and delivery sales quickly became a significant percentage of company sales. The company is satisfied with the current trading performance of its restaurants. Significant focus on cost control and margin improvement will help the company deliver a positive Ebitda result in the current financial year.” At the end of the period, the number of employees had increased to 183 from 169 the year before.

Rick Stein awarded CBE in New Year’s Honours list: Restaurateur Rick Stein has been awarded a CBE in the New Year’s Honours list for his services to the economy. Stein said: "I am so proud to receive a CBE. I think the hospitality industry, which I so much enjoy working in, is a force for good not only in the UK but everywhere. To be able to travel the world as an Englishman, fascinated by the food and culture wherever I go and bringing it back home is a dream job, but also reinforces the importance of everyone sitting down and enjoying good food together.” Stein currently operates 14 restaurants across the UK, including in Marlborough, Padstow and Winchester. Earlier this year he opened his first site in London, in Barnes.

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