LONDON (ShareCast) - (Sharecast News) - Restaurant chain Comptoir Group posted an uplift in sales and earnings on Tuesday, but warned of ongoing stresses across the hospitality sector.


The AIM-listed business, which has 26 Lebanese and Middle Eastern-inspired, mid-market restaurants, said group revenues had strengthened 10% in the year to 29 December to £34.6m.

On a like-for-like basis, however, sales rose by just 2.0%, driven by improved trading in the second half, while adjusted earnings before interest, depreciation and amortisation nudged up to £800,000 from £100,000 a year previously.

New chief executive Chaker Hanna said EBITDA "remains short of what we expect to be delivering".

Looking to the current year, he noted that first-quarter trading had been in line with management's expectations.

But he continued: "Winning back covers is an absolute priority for the new board, and will be one of the key strategic focuses for the whole business during 2025.

"The business has a fantastic offering but we need to ensure that excellence is delivered every time and our customers feel a real sense of value for money to compete in this environment."

Chair Richard Kleiner also acknowledged that the sector was facing "significant external challenges", including ongoing cost of living pressures and higher employer costs.

Rises to the minimum wage and National Insurance contributions both came into effect in April.

"The group is well-positioned to continue to face into these challenges, but the board will make careful cash management and preservation a priority in the short term," he noted.

Hanna concluded: "The hospitality sector remains stressed from a variety of external economy factors which continue to make this a very challenging environment to operate.

"Nevertheless, there are brands which continue to success against this backdrop, and we need to ensure that Comptoir also navigates its way through to further success."

As at 1115 BST, shares in Comptoir were down 5% at 2.96p.

It was announced in January that Hanna and Kleiner would rejoin the company, following the resignation of chief executive Nick Ayerst. The two men first left in 2022 after founder Tony Kitous called on the board for their resignations. Hanna had been chief executive since 2010

However, Kitous, who is also creative director, has since pushed for Hanna's reinstatement.

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