VARE Various Eateries Plc

4 February 2025

VARIOUS EATERIES PLC

("Various Eateries" or "the Company" 

and with its subsidiaries "the Group") 

Final Results

52-week period ending 29 September 2024

Resilient trading with growing momentum as the year progressed

Various Eateries PLC, the owner, developer and operator of all day clubhouse, restaurant and hotel sites in the United Kingdom, announces its results for the 52 weeks ended 29 September 2024.

Financial Highlights

Operational Highlights

Post-period Highlights & Outlook

* Adjusted EBITDA is EBITDA before pre-opening costs, share-based payments, gains and losses on property and restructuring costs, and is reported by the Group before the impact of IFRS 16

Glyn Barker, Non-Executive Chairman of Various Eateries, said: 

"This year was one of steady progress and strengthening our foundations for future growth. A great deal of hard work has taken place behind the scenes to fine tune our operations and enhance our estate, all while taking steps to navigate industry challenges. In that context, returning to an adjusted EBITDA profit is a great achievement and stands the Group in good stead moving through FY25.

"The sector has experienced a tough few years, but we are encouraged by early signs of stabilisation. The measures outlined in the Autumn Budget create new challenges for businesses, but our disciplined approach to cost management and the operational efficiencies we've achieved ensure we are well-placed to manage them.

"Looking ahead, supported by a robust cash position and a strengthened leadership team, we will maintain our commitment to quality and innovation and are confident in our ability to deliver sustainable growth in the new financial year and beyond."

Annual General Meeting and Posting of Results 

The Company confirms that it intends to distribute its Annual Report and Accounts and notice of Annual General Meeting to shareholders shortly. A further announcement will be made at that time. A copy of the annual report and accounts will also be available from the Company's website at the same time (www.variouseateries.co.uk).

Contacts

About Various Eateries 

Various Eateries owns, develops and operates restaurant, clubhouse and hotel sites in the United Kingdom. The Group's stated mission is "great people delivering unique experiences through continuous innovation".

The Group operates two core brands across 20 locations:

Coppa Club, a multi-use, all day concept that combines restaurant, terrace, café, lounge, bar and work spaces.

Noci, a modern pasta-led concept which serves very high-quality dishes at reasonable prices.

For more information visit www.variouseateries.co.uk.

Chairman's Statement

Overview

FY24 was a year of steady progress for Various Eateries, marked by a solid trading performance and significant operational improvement. Despite ongoing challenges in the hospitality sector, this ongoing focus on operational improvement and service excellence enabled us to deliver a return to adjusted EBITDA profit.

The successful placing at the start of the period raised £10.1m which significantly improved our cash position. This ensures we have the liquidity to support the future roll out of new sites.

A dynamic hospitality group with compelling growth opportunities

Various Eateries' strategy is focussed on the expansion of our two core brands, Noci and Coppa Club. The distinct identity of each brand fills specific gaps in the market, which have significant potential for expansion.

Noci is our specialist neighbourhood fresh pasta restaurant. Currently our sites are in London and Greater London. Created to address the void left by the closures of many high street Italian restaurants, Noci focuses on delivering high-quality fresh food at affordable prices.

Coppa Club was founded to provide a members' club-like space without membership fees. Capitalising on remote work trends and the growing demand for all-in-one all-day venues, Coppa provides spaces to eat, drink, meet, work and stay the night. With 13 venues, from city centre to countryside locations, Coppa suits all occasions from morning through to evening.

The hospitality sector has been under pressure for several years, leading to a rise in the availability of prime sites, which in many cases includes existing high-end fit outs. Increased uncertainty in recent years provides Various Eateries with an opportunity akin to the casual dining revolution of the 1990s.

Resilient trading performance with notable improvement as the year progressed

Group revenues grew to £49.5m (2023: £45.5) and other operating income of £1.2m (2023: £nil) includes a business interruption insurance claim in relation to Covid-19. We generated a positive adjusted EBITDA of £0.3m (2023: negative adjusted EBITDA of £2.2m).

Group like-for-like sales grew by 1% in the second half compared to the previous year. The final quarter saw a 4% increase, despite above-average rainfall, improving overall performance from -3% at the half-year mark to -1% by year-end.

Both brands performed steadily overall, with some sites achieving particularly strong results offsetting those yet to reach maturity or impacted by external factors such as adverse weather. Our new Head of Operations drove meaningful progress in conversion rates, particularly across the Noci estate, with notable improvements in site profitability. Investments in the outdoor spaces across the Coppa Club estate, designed to increase all-weather use, significantly boosted footfall and are expected to continue to underpin the brand's year-round appeal.

Tavolino continued to perform strongly, delivering increased EBITDA growth of 33% year on year.

The Group's financial position remains healthy, with cash at bank at 29 September 2024 of £5.8m (2023: £1.9m).

Navigating cost pressures and driving efficiency while maintaining quality

The industry-wide pressures of increased employer National Insurance contributions and National Living Wage are being carefully navigated by management to minimise their impact, alongside an intensification of the drive towards greater efficiencies that has been underway within the Group for some time.

During the period, our recently appointed Head of Procurement successfully refined the supply chain and has started to optimise supplier agreements.

While food and utility prices continued to ease in the year, the consumer spending landscape remained uncertain, and the workforce cost increases in the 2024 Autumn Budget will increase challenges for the whole sector. Encouragingly, despite pressures on consumer spending, higher-priced menu items continued to perform well.

We will remain focussed on continuing to seek ways to streamline our operations and be more productive without compromising the quality of our offering.

Strategic expansion, innovation and greater resilience across our estate

Two new sites were opened in the period, delivering on our strategy to expand both brands when attractive long-term opportunities present themselves.

Coppa Club Townhouse Cardiff opened in May 2024 and traded well, with high footfall and revenue resulting in multiple standout weeks. The city centre position has also meant that the downstairs bar has also been able to fully capitalise on crowds attending events at the Principality Stadium.

The opening months at Noci Richmond, which also opened its doors in May, have been encouraging and we remain confident its popularity will continue to increase as its reputation grows among locals.

It was a challenging year from a weather perspective across the estate, characterised by an unusually wet spring and the coldest summer since 2015.

To counteract this and to help mitigate weather related disruption in future years, a lot of work has taken place to transform the outdoor spaces at many of our sites. This is typified by the successful addition of The Lobster Bar, a covered BBQ area by the riverside, at Coppa Club Streatley. We also introduced a new covered drinking terrace at Coppa Club Cobham and invested in more outdoor igloos across the estate.

The introduction of a winter-themed feature, including a snow machine, at Coppa Club Tower Bridge exemplifies our commitment to creative initiatives to enhance the customer experience. Already benefiting from the resurgence of tourism in central London, the site achieved its highest-ever sales week post-period.

While the Group's large outdoor spaces mean the weather will continue to be an important variable, the steps we have taken to reduce dependency on favourable conditions and balance performance across seasons stands us in good stead for the future.

We are exploring further site openings in FY25. We will continue our disciplined policy of proceeding only where our analysis provides strong support for the potential likely financial return.

Strengthening leadership for the next phase of growth

As already mentioned, we made significant progress last year on improving operational efficiency and the quality and consistency of customer experience. However, there is still much to be done in both areas and the Board decided to seek new, experienced leadership to drive forward the next phase of our development. We were delighted to announce in January 2025 the appointment of Mark Loughborough as Chief Executive Officer and a Board Director. Mark brings over three decades of hospitality experience, including an influential tenure at Young & Co Brewery PLC, where, as Retail Director, he was responsible for significant financial and operational success. His strategic vision, focus on efficiency, and proven ability to drive profitable growth align perfectly with our priorities.  

Andy Bassadone has transitioned from Executive Chairman to Executive Director releasing more time for him to focus on one of our key priorities - the development and expansion of Noci. I have assumed the role of Non-Executive Chairman having previously been Non-Executive Director.

Key areas of leadership were also strengthened elsewhere in FY24 to support the Group's long-term objectives.

Current trading and outlook

We approach the year ahead with confidence in the business and faith in our ability to navigate the continued challenges of an ever-evolving sector under our new leadership. Thanks to the substantial efforts invested in strengthening our organisational structure and enhancing our site portfolio, the Group is steadily regaining momentum.

The rises in Employer National Insurance contributions and Minimum Wage have had a negative impact on everyone in the industry and will ultimately result in reduced disposable income for consumers as costs are passed on. However, with enhanced cost discipline and a robust cash balance, we are in a strong position.

While we will remain vigilant in monitoring the trading environment and ready to adapt to any shifts, the solid start to the new financial year including a strong festive period reinforces our confidence looking forwards. We are currently trading in line with market expectations for FY25 and remain optimistic that it will be another year of progress.

Financial Review

Overview

The KPI's of the Group's performance are summarised in the table below:

Summary of financial performance for the 52 weeks ended 29 September 2024

FINANCIAL PERFORMANCE

Overall Group revenue increased by 9% (FY24: £49.5m, FY23: £45.5m). During the year the Group recognised £1.2m of other operating income which was largely derived from an business interruption insurance claim in relation to Covid-19. The Group's adjusted EBITDA increased by £2.8m, from £1.6m in FY23 to £4.4m in FY24. During the year, the Group focused on driving profitability through contract renegotiations and smarter  rostering which has significantly contributed to its EBITDA growth despite challenging market conditions.

The loss after tax has decreased from £6.7m in FY23 to £3.4m in FY24. In FY24 the Group incurred impairments to goodwill of £nil (2023: £nil), right‑of‑use assets of £0.3m (FY23: £nil) and property, plant and equipment of £0.3m (2023: £nil). The Group recognized impairment reversals to goodwill of £nil (2023: £nil), right-of-use assets of £1.2m (2023: £nil) and property plant and equipment of £0.4m (2023: £nil). The Group's depreciation and amortisation charge has decreased by £0.1m (from £5.6m in FY23 to £5.5m in FY24) and pre-opening costs have decreased by £0.6m (from £0.9m in FY23 to £0.3m in FY24). The Group's share-based payment charge has increased by £0.3m (from £0.1m in FY23 to £0.4m in FY24). See note 28 for more details on share-based payments and note 31 for details on post-year end share options issue.

Consolidated Statement of Comprehensive Income

For the 52 weeks ended 29 September 2024

The above results were derived from continuing operations.

There are no items of comprehensive income other than the loss for the period and therefore, no statement of other comprehensive income is presented.

The financial statements of Various Eateries PLC (registration number: 12698869) were approved by the Board and authorised for issue on

They were signed on its behalf by:

S Badelek

Director

Consolidated Statement of Changes in Equity

for the 52 weeks ended 29 September 2024