Itsu full-year sales top £175m driven by continued success of grocery business, set to top £200m in 2025: Itsu, the healthy Asian food brand, saw total sales increase 9.6% in 2024 to £175,944,000, driven by the continued success of its grocery business and an improved performance from its restaurants in the second half of the year. The company said group operating losses widened from £1,605,000 (52 weeks to 28 December 2023) to £3,577,000 in the 53 weeks to 2 January 2025. Itsu said this was “a function of softer trading in the retail business during the first half, alongside higher property costs”, and ongoing investment in its training academy and central functions of both parts of its business. Group pre-tax losses for the period stood at £6,892,000 (2023: loss of £4,334,000). The restaurant division posted full-year turnover of £120,300,000 for the period (2023: £116,061,000), with a pre-tax loss of £6,669,000 (2023: loss of £4,337,000). Ebitda stood at £3,932,000 – down £1,454,000 from 2023, “reflecting softer top and bottom-line performance through the first half of the year”. Itsu said: “While gross margins increased 0.9% year-on-year, the impact of the higher property costs and ongoing investment in the academy meant a lower Ebitda out-turn than 2023; however, investment decisions taken will support increased bottom-line performance through 2025 and beyond. The directors believe with the investment in the operating model to drive stronger unit economics, ongoing effectiveness in controlling margins, mitigating inflationary pressures, and continued improvement in the customer journey (at the kiosk and the till), Itsu is set for customer growth in 2025. New sites will continue to be identified in the UK, while European franchise opportunities continue to be explored, focused on airports, stations, and retail parks. In recent years the quick service restaurant sector in the UK has been typified by weaker customer numbers and a reliance on price increases to drive growth, as well as to mitigate historically high wage increases, food inflation, and energy price volatility. Itsu delivered revenue growth of 3.7% in 2024, resisting high levels of price increases staying true to the mission of ‘healthy, affordable, Asian-inspired food’, with notably stronger transactions in the second half of 2024. Itsu’s focus in 2024 was on attracting more customers; affordability in our menu and continuous improvements to our customer experience in shop drove customer growth. App transactions grew substantially during the year, supported by a refreshed loyalty campaign, while the introduction of lower-priced items meant customers could visit Itsu despite cost-of-living pressures. Health partnerships were an area of growth; under the banner of ‘Itsu health[ier]’ we continue to focus on a healthier menu, with transparency on ingredients and nutrition to unlock opportunities. Itsu’s partnership with Vitality, a major global health insurance provider, is a clear example of this competitive advantage. Avoiding price increases, while introducing lower-priced items, meant customers could come to Itsu even where they are experiencing cost of living pressures and continuing to drive higher customer numbers remains Itsu's focus ongoing. Top-line growth, strong supplier relationships, and labour efficiency supported improved gross margins despite inflationary pressures. Effective energy procurement reduced costs, culminating in Itsu moving to 100% renewable, traceable energy sources from the second quarter of 2025. Investment in technology and our academy to support long-term growth continues; installing new tills alongside our self-service kiosks, while refining the kiosk journey will give our customers greater choice and speed up the transaction, accompanied by amazing hospitality from our teams. Itsu continued to open new shops in 2024 – large, beautiful shops in the West End (Oxford Street, Bond Street), augmented by new City of London openings (Fenchurch Street, and Monument) and a prominent site in Manchester’s Trafford Centre in early 2025.” The business said it saw a 9.7% increase in like-for-like sales across sites in travel hubs, and that grocery sales are accelerating in 2025, currently up 31% year-on-year with further product innovation set to launch this autumn. Founder and group chief executive Julian Metcalfe said: “2025 will top £200m– another record – and despite the endless challenges on the UK high street, I’m confident about Itsu’s future. We embrace healthier food and healthier living – and that’s exactly what people want nowadays. Our grocery business now sells in nearly 100,000 locations, and despite the pressures across hospitality, we managed to open five beautiful company-owned venues in the past year – including two on the UK’s most expensive street, Oxford Street, London. I think Itsu was way ahead of its time – but now the times are catching up with us.” In 2024, Itsu said it launched 68 new products across its restaurants and retail channels — including the viral sensation ‘soup dumplings’, which attracted more than 22 million views on TikTok. This summer, Itsu restaurants introduced poké bowls, helping to drive record sales in July 2025. In July last year, Itsu refinanced Its banking facilities, with the upsizing of its revolving cash facility from £20m to £30m, which runs until June 2026, with an additional one-year extension available. The company said: “This facility has given Itsu greater liquidity to continue estate expansion while providing security over the group's future liquidity. A further £6m invoicing facility for Itsu [grocery] has been in place since 2022 and is yet to be utilised.” Itsu features in the Propel Turnover & Profits Blue Book, the next edition of which will be sent exclusively to Premium Club subscribers on Friday (12 September) and feature 1,163 companies. Itsu’s turnover of £175,944,000 is the 70th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Merlin Entertainments full-year revenue down 3.2%: Merlin Entertainments has reported a 3.2% decline in revenue to £2.057bn in the year to 28 December 2024 (2023: £2.125bn), despite a 1.1% rise in visitor numbers to 62.8 million, as market headwinds continued to impact discretionary spend by consumers. The company, which has 135 attractions across 22 countries, saw Ebitda for the period drop to £540m (2023: £649m), while pre-tax losses widened from £214m to £492m. Underlying operating profit stood at £285m (2023: £408m). Fiona Eastwood, chief executive of Merlin Entertainments, said: “As we look back on 2024, we must acknowledge the challenging market headwinds – in all key geographies – that have continued to impact discretionary spend by consumers. This trend is affecting the whole industry, and we have had to adapt to this reality, not least by increasing promotions and discounts, along with marketing spend, to attract guests who are increasingly selective in where and how they spend their disposable income. Our efforts have borne fruit, with an increase in visitor numbers (compared with 2023). Nevertheless, 2024 saw a modest reduction (compared with 2023) in global revenue, which is similar to what faced by our US counterparts in the current trading environment. Notwithstanding these wider challenges, Merlin's revenue per capita continues to be significantly higher than 2019 (pre-pandemic), as the business benefits from an efficient and synergistic operating model that maximises the value of our existing estate by diversifying income. We are confident the focus on optimising Merlin's portfolio, along with targeted new openings in growth regions (such as in North America and Asia Pacific), puts us in a strong position to sustain and grow market share – and revenue – in the years ahead. In parallel to this, we have adopted a global transformational strategy, with a priority focus on reducing our operating costs and making the business more efficient and agile. The implementation of this strategy is now getting underway and will see us take advantage of our scale both in terms of our operating model and procurement. Quite simply, we are bringing our 135 separate attractions together into one united business, managed by region. As part of maximising the value of our existing estate, we are focused on upgrading our core capabilities, with investment in technology, data and insight to enhance the guest experience and drive revenue opportunities. We are also incubating revenue screams of the future, such as entering new partnerships with world famous IPs such as Minecraft and taking advantage of sponsorship opportunities at high profile attractions. As the business navigates this period of change, we will remain focused on our overall purpose: creating memorable experiences that inspire joy and build connections. Since January 2025, our three previous operating groups (Legoland Parks, Gateway Attractions and Resort Theme Parks) have come together as one. All attractions are now under leadership in four regions: North America, UK, Europe and Asia Pacific. These teams are driving our business in key markets, setting consistent standards for operational excellence and creating synergies to magnify the talent of our people and elevate the guest experience. We are also investing in technology and data to upgrade our core capabilities, which we believe will lead to more revenue opportunities, better cost management, and improved returns in the future. These upgrades will help us further improve the guest experience, including through on-site changes to achieve shorter queues and improved ‘rides per guest’ through better capacity management. 2024 was a year that saw Merlin lay the foundations for its next phase of growth. Against a challenging trading backdrop, we increased visitor numbers and sustained a healthy revenue position, by taking a proactive approach to ensure that we drove demand. We must now go further to ensure Merlin is in a strong position to grow at scale and deliver a sustainable and thriving future for the business.”

Parkdean lines up £250m Centerbridge funding: Parkdean Resorts, the UK’s largest holiday park operator, is lining up an American investment firm to provide hundreds of millions of pounds of funding firepower as it eyes opportunities to consolidate the market. Sky News reported that Centerbridge Partners, which has more than $50bn in assets under management, is in talks to inject around £250m into Parkdean Resorts. The funding, which would be provided as debt, has yet to be finalised, with sources close to Parkdean saying that other parties remained interested in leading the deal. Parkdean, which is led by Steve Richards, operates 65 sites across the UK, and during the summer peak trading period employs approximately 8,000 people. The company has been owned by Canada's Onex Corporation since 2016, although there have been persistent questions about how much of the £1.35bn purchase price it can expect to recoup. Industry sources believe that is a particularly pertinent issue amid growing financial pressures on British consumers. Onex has also ploughed further funding into Parkdean since the original deal, notably in the aftermath of the pandemic. Sources said if successfully concluded, Centerbridge would join Parkdean's capital structure alongside Ares Management Corporation, its existing senior lender. The new financing would be used to strengthen Parkdean’s balance sheet, and provide headroom to fund growth by upgrading some of its existing parks. Consolidation of the market through acquisitions, given the fragmented nature of the sector's ownership, is also said to be on the company's agenda. A spokesperson for the company said: “Parkdean Resorts is running a process to strengthen the balance sheet, and to provide firepower for continued growth and sector consolidation. We've had record trading over the summer peak, with 98% occupancy, and growth in both revenue and [earnings].” The capital-raising process is being run by bankers at Rothschild. Centerbridge declined to comment.