Tortilla Mexican Grill PLC – MEX – Trading Update

Tortilla Mexican Grill PLC – MEX – Trading Update

Tortilla, the largest and most successful fast-casual Mexican restaurant group in the UK, provides a Trading Update in respect of the financial year ended 2 January 2022 (the "Period").

 

Highlights

 

·    Group revenue increased 79% to £48.1m (FY20: £26.8m; FY19: £35.4m)

·      UK like-for-like (LFL) revenue versus 2019 increased by 23.8% despite the numerous lockdowns/restrictions.  Excluding Q1, which was significantly impacted by lockdowns, LFL revenue increased by 30.3% versus FY19

·      Further growth was driven by the addition of seven UK company-operated restaurants and two UK franchise restaurants, taking Tortilla's estate to 64 stores globally

 

·    FY21 revenue and profits are materially ahead of our expectations following stronger trading in Q4, despite the emergence of the Omicron variant of Covid-19

 

·    Strong cash generation resulted in net cash at the year end

 

·    Launch of partnership with Merlin Entertainments at Chessington World of Adventures, as well as the opening of two further sites in partnership with SSP Group plc at Gatwick Airport and Skelton Lakes motorway services

 

·    Continued investment in our people by increasing our employee pay rates and strengthening the senior management team

 

·    Admission of the Group to AIM in October 2021, raising gross proceeds of £5.0m to accelerate growth plans

 

·    Strong confidence in outlook and ability to deliver in line with expectations for FY22

 

Tortilla delivered excellent performance during the FY21 financial year, achieving a 79% increase in Group revenue to £48.1m, and a 36% increase when compared with FY19 revenues.

 

This was driven by growing customer demand across all the Group's channels of eat in, take away and delivery, and underpinned by both the increasingly relevant Tortilla brand and the continued roll-out of new sites in line with the Group's growth strategy. Tortilla is known for its customisable, high-quality, fresh products.

 

During the period, Tortilla opened new stores in Edinburgh, Exeter and Windsor, new delivery kitchens in Balham, Manchester and Brent Cross, and launched the first Tortilla site in partnership with Merlin Entertainments, taking the total company-run locations to 51.

 



 

The Group's delivery channel went from strength to strength during the year, supported by an increase in the number of delivery kitchens to five. An important pillar of Tortilla's multichannel model, delivery now comprises more than 30% of total Group revenue.

 

Note: FY21 figures are subject to audit

 

 

Current trading and outlook

 

Trading continues to be very positive despite the emergence of the Omicron variant of Covid-19. The Board remains confident that the Group will perform in line with expectations for FY22, as the reduced financial assistance from the UK Government will be offset by reduced trading restrictions. 

 

The Board also remains confident in the Group's ability to make good progress against its store roll-out strategy to open 45 new sites in the next five years.

 

 

Richard Morris, Chief Executive Officer of Tortilla, commented:

 

"We are delighted to have maintained the very strong trading momentum, outlined at the time of our IPO, to achieve an excellent full year performance. This was supported by the growing appeal of our proposition and the continued expansion of the Tortilla brand. Once again, the adaptability of Tortilla's offer supported us through the latter stages of the year to achieve a strong performance across both delivery and take away.

 

"In addition to delivering this very strong financial growth, we were pleased to achieve progress against a number of strategic objectives, including the launch and development of various partnerships, and growing our estate of delivery kitchens and traditional bricks and mortar locations, to meet the increasing customer preference for delivery of high-quality Californian-inspired Mexican cuisine."

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