Various Eateries PLC – VARE – Interim Results

Various Eateries PLC – VARE – Interim Results

Various Eateries PLC, the owner, developer and operator of restaurant, clubhouse and hotel sites in the United Kingdom, announces its results for the 27 weeks ended 4 April 2021.

 

First Half Summary

 

·    All sites closed for the majority of the period with trading under a variety of government restrictions limited to a maximum of seven weeks in the period

o  Positive like-for-like performance of +10.1% at our Coppa Club sites outside of London during October 2020, the only complete month of trading

·    Outstanding early performance of Coppa Club Cobham following opening in December 2020

·    Received business interruption insurance interim payment of £2.5m in December 2020

·    Appointed Property Director, Raj Manek (non-board position), in order to accelerate site acquisition programme

 

Post-Period Highlights

 

·    Very strong trading since reopening facilitated by large outdoor spaces

o  Better than anticipated sales across Coppa Club estate with like-for-like revenue up 11.3% in the first five weeks (12 April to 16 May) of exclusively outdoor trading versus the same period in 2019

o  Further significant uptick in sales in the five subsequent weeks (17 May to 20 June) where Coppa Club sites have been able to open indoors with like-for-life revenue up 28.3% versus the same period in 2019

o  Several Coppa Club sites have seen record levels of weekly trading despite restrictions

o  Solid performance at Tavolino Tower Bridge and Strada Southbank, despite continued absence of office workers and tourists

·    First weddings of the year in hotels and room bookings benefitting from "staycation" trend - hotels set to benefit from new rules allowing outdoor wedding ceremonies

·    Strong pipeline: large, prominent new sites for Coppa Club signed in Clifton (Bristol) and Putney, with several others in advanced stage of negotiation

·    Healthy liquidity and balance sheet puts the Group in a strong position to deliver against its growth strategy with conditions normalising

 

Half year results resilient despite impact of lengthy closure periods

 

·    Total Group revenue of £3.3m (H1 2020: £11.2m)

·    Adjusted EBITDA* of £0.0m (H1 2020: loss of £0.3m)

·    Loss after tax of £3.2m (H1 2020: loss of £3.3m)

·    Gross cash at period end of £19.3m (H1 2020: £1.3m). As of 22 June 2021, cash in the bank was £20.8m.

 

 

*Adjusted EBITDA is explained in the Appendix at the end of the Financials

 

Andy Bassadone, Executive Chairman of Various Eateries, said:

 

"Our business is primed for growth: we have used lockdown to hone our existing sites, secure new ones and ensure we have the right systems and processes in place behind the scenes to enable us to scale effectively.

 

"After prolonged periods of closures and disruption, it is heartening to see the public returning so enthusiastically to eating and drinking out. It is still early days but the response to our re-openings has been good and trading has been ramping up as we have moved through the government's roadmap.

 

"As we emerge from the crisis, we do so a well-funded operator, led by an experienced management team with an exceptional track record of building hospitality groups. Our variety of clubhouses and hospitality venues is excellently suited for the post-Covid world and our strategy is unchanged - to take advantage of the unprecedented opportunities the current environment presents."

 

Yishay Malkov, Chief Executive of Various Eateries, said:

 

"We have been delighted by the enthusiastic return of our customers over the last few weeks since reopening on April 12. Thankfully, we managed to retain most of our staff through lockdown and they have coped admirably with the incredible levels of business that we have seen recently. Although the labour market is currently difficult in terms of new hirings, we are set up and prepared to train new employees from scratch and do not believe that it will impede our ambitious expansion plans."

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