LONDON (ShareCast) - (Sharecast News) - Various Eateries reported a significant improvement in profitability for the 26 weeks ended 30 March on Wednesday, supported by new site openings and operational efficiencies.
Revenue rose 8.8% to £24.7m, from £22.7m a year earlier, while gross profit nearly doubled to £2.6m from £1.3m.

The AIM-traded group posted an adjusted EBITDA profit of £0.1m, compared with a loss of £1.2m in the same period last year.

Site-level EBITDA increased 81%, reflecting stronger operational execution across the estate.

Like-for-like sales during the period were flat, with the company noting that the later timing of Easter had an adverse impact.

However, trading rebounded strongly after the period ended, with like-for-like sales rising 6.8% in the subsequent 12 weeks.

The company said it ended the half year with £6m in cash and net cash of £2.9m, down from £4.2m a year earlier.

It said ongoing efficiency initiatives were helping to offset wage pressures and that trading remained in line with market expectations for the full year.

"The first half of the year has been defined by steady, disciplined progress, and I'm pleased with the headway we've made," said chief executive Mark Loughborough.

"We've remained focused on enhancing the core of the business - improving the guest experience, strengthening our teams and laying solid foundations for future growth.

"One of the key reasons I joined Various Eateries was the clear potential I saw - in the strength of the brands, the loyalty of our guests, and the opportunity to scale with quality."

Loughborough said that belief had since grown.

"While the wider economic landscape remains challenging, both Coppa Club and Noci have delivered encouraging performances.

"I believe the momentum we're building is sustainable."

Reporting by Josh White for Sharecast.com.

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