Trading Update and Board Change

RNS Number : 1646M

Hostmore PLC

10 January 2023

 

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This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

10 January 2023

Hostmore plc

Trading Update & Board Change

Hostmore plc ("Hostmore" or the "Company") today announces an update on trading for the financial year ended 1 January 2023 and the December 2022 period, and the resignation of Robert B. Cook as Chief Executive Officer.

Trading Update

On a statutory like-for-like ("LFL") basis, revenue for the 26 weeks ended 1 January 2023 continued at 14% below the comparative FY19 period. This result was achieved despite the impact of Her Majesty the Queen's passing, national rail strikes, the Football World Cup, and the unusually cold weather during the period.

The Company generated revenue in December 2022 of £21.3 million, slightly more than December 2021's revenue of £21.2 million. After adjusting for the Government's temporary decrease in Value Added Tax during December 2021, which had the effect of increasing revenue, LFL revenue in December 2022 was only 1% below December 2021.

The Company's consolidated net bank debt (pre-IFRS 16) at the year end was £29.5 million, which has improved from the Company's prior guidance of £32.5 million for the quarter ended 2 October 2022.

The Company's next scheduled financial update is the preliminary results announcement for the year ended 1 January 2023 on 16 March 2023.

Board Change

Hostmore also announces today that Robert B. Cook has decided to step down as Chief Executive Officer ("CEO") and as a Director of the Company with immediate effect.

The Board is pleased to announce that Julie McEwan, currently Chief Operating Officer of Fridays, has been appointed Interim CEO. Julie joined Fridays in February 2022 and, prior to that, was at Big Table Group (previously Casual Dining Group), latterly as Brand Director of Las Iguanas. She has previously held management roles at Spirit Pub Company, Premier Inn and Whitbread.

The Board has initiated a thorough search process, comprising both internal and external candidates, to find the best long-term candidate for CEO and will update shareholders once the process has been completed.

Gavin Manson, Chairman of Hostmore, said:

"On behalf of the Board, I would like to thank Robert for his efforts as CEO over the past three years, particularly in steering the business through the Covid pandemic and in rebuilding the Executive Team, and we wish him well for the future.

"We are pleased that Julie has accepted the role of Interim CEO, given her strong sector experience and operational strengths. Together, we look forward to focusing on the Group's priorities and building on its strengths in the weeks and months ahead."

Robert B. Cook, outgoing Chief Executive Officer of Hostmore, said:

"I wish to extend my sincere gratitude and thanks to the Board and the Executive Team for their support in my three years at the helm, and, most importantly, to thank all the team in the restaurants who pull on the red and white stripes every day and do such a sterling job for the brand."

ENDS

Enquiries

Hostmore plc

Gavin Manson, Chairman    Tel: [phone]

Alan Clark, Chief Financial Officer

Email: [e-mail]

MHP

Oliver Hughes, Simon Hockridge, Eleni Menikou   Tel: [phone]

Email: [e-mail]

About Hostmore

Hostmore plc is a UK hospitality business which runs the American-themed casual dining brand, 'Fridays' (formerly TGI Fridays), the cocktail-led bar and restaurant brand, '63rd+1st', and the fast casual dining brand 'Fridays and Go' .

The Group was established in 2021 to provide a platform for the development and growth of attractive hospitality brands, defined by their iconic brand experience and vibrant heritage.  Hostmore is focused on the organic growth of its existing brands, alongside expanding through new, exciting concepts which have roll-out potential.

Hostmore currently operates 91 sites in the UK, the majority of which are in high footfall locations, including retail parks, shopping centres and city centres.

https://www.hostmoregroup.com

 

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