Half Year Results

Various Eateries PLC

27 June 2024

 

27 June 2024

VARIOUS EATERIES PLC

("Various Eateries" or "the Company"

and with its subsidiaries "the Group")

Half Year Results

For the 26-week period to 31 March 2024

Various Eateries PLC, the owner, developer and operator of restaurant, clubhouse and hotel sites in the United Kingdom, announces its unaudited results for the 26-week period ending 31 March 2024.

Financial Highlights

·	Revenue growth of 10.2% to £22.7m (H1 2023: £20.6m), largely driven by new site openings
·	Gross profit increase of 138.2% to £1.3m (H1 2023: £0.6m), driven by cost savings and efficiencies
·	Adjusted EBITDA loss of £1.2m (H1 2023: loss of £1.9m)
·	Cash at bank of £7.2m (H1 2023: £3.1m)
·	Net cash of £4.2m (H1 2023: net debt of £9.8m)

Operational Highlights

·	Solid performance despite adverse weather, train strikes and economic conditions, with Like-for-Like revenues slightly down
·	Maintained our strategy of absorbing most cost increases to strengthen our long-term position
·	Enhanced customer experience through site improvements and menu updates

Post-Period Highlights

·	The significant increase in minimum wage has impacted margins and has partially been offset by food and utilities inflation which has fallen year on year
·	Successful openings of Noci Richmond and Coppa Club Townhouse Cardiff
·	Performance at the start of H2 has been steady, although we are yet to experience any real consistency in the weather

Andy Bassadone, Executive Chairman of Various Eateries, said: 

"In a tough trading environment compounded by poor weather, the performance of the Group has been resilient, and I thank our whole team for their efforts.

The opening weeks at our two latest sites are satisfying and demonstrate the continued strength of and demand for the Coppa Club and Noci concepts. Alongside this, the work that has been done to enhance existing Coppa sites positions us well to capitalise on the important summer trading months.

The majority of the Company's larger sites deliberately have large and attractive outside spaces, which generate a considerable extra volume of trade in warm weather. The Company's full year budgets therefore reflect an expectation that, at some point, we will experience a reasonable version of summer this year, rather than the inconsistent weather we've seen so far.

With the welcome signs that inflationary pressures are continuing to fall, a growing estate of high-quality sites and increasingly robust organisational infrastructure, I remain confident in the long-term opportunity."

Enquiries 

Various Eateries plc		Via Alma
Andy Bassadone  Sharon Badelek	Executive Chairman  Chief Financial Officer
WH Ireland Limited	Sole Broker and NOMAD	Tel: [phone]
Broking    Harry Ansell
Nominated Adviser   Katy Mitchell
Darshan Patel
Alma Strategic Communications	Financial PR	Tel: [phone]
David Ison  Rebecca Sanders-Hewett Will Merison		[e-mail]

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 is led by a highly experienced senior team including Hugh Osmond (Founder), Andy Bassadone (Executive Chairman) and Sharon Badelek (CFO).

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, neighbourhood pasta-only concept which serves very high-quality dishes at reasonable prices

For more information visit www.variouseateries.co.uk

Executive Chairman's Review

Like-for-Like revenues were slightly down on last year, primarily due to an unseasonably wet winter and the Company continuing to adhere to its strategy of absorbing most cost increases rather than passing them on to customers. While this strategy temporarily puts pressure on margins, it is management's belief that prioritising customer satisfaction over short-term profits will position the Group for significant growth when conditions improve.

As the Company continues its strategy to absorb price rises without passing them on to customers, it has been encouraging to see food and utility costs continue to gradually fall. The benefits of this have, however, been tempered somewhat by the impact of the minimum wage increase in April, which has been felt across the industry.

Despite this, we have continued to make good strategic progress and are generally satisfied with the performance of the Group and its brands given the mitigating circumstances.

Executing on our growth strategy

Our strategy continues to revolve around the expansion of our distinctive Noci and Coppa Club brands, which both fill specific gaps in the market.

As previously reported, we were thrilled to open two new sites in the period, Noci Richmond and Coppa Club Townhouse Cardiff. Both welcomed guests for the first time in May 2024 and we are pleased by the progress made by both in their first weeks.

Noci Richmond, the brand's fourth site since opening in Islington in 2022, is situated on the popular Richmond Hill, just a short walk from the river. As our prior experience shows, its popularity will continue to increase as the brand grows and word of mouth spreads.

Coppa Club Cardiff, the brand's third Townhouse, has enjoyed some outstanding trading weeks. Its location in the heart of the city near the Principality Stadium, the quality of food and service, and its strong start give us confidence in the site's prospects.

The pipeline for new sites is strong and we continue to see many prime opportunities for expansion. Management will continue to be cautious and thorough in its approach to growing the estate, with long-term, sustainable success the priority.

Continuing to enhance our proposition

Much hard work took place in the period to enhance our existing sites in preparation for the summer trade, including the refurbishment of outdoor terrace areas. We anticipate that these new spaces will support revenue over the warmer months, with additional footfall expected from major international sports events.

Quality food has always been at the heart of Various Eateries. During the year, we continued to work diligently to enhance our menus while working closely with suppliers to incorporate a stronger seasonal component. As well as fresher food, it is also typically more cost effective.

The enhancements to our menus have been coupled with a renewed focus on consistency of delivery across the Group, which we see as an important step to ensure customers continue to return again and again.

Solid half-year results in context

Sales grew by 10.2% across the Group compared to the same period last year, largely driven by new site openings. Gross profit increased by 138.2%, highlighting the success of cost savings and efficiencies relating to colleagues and suppliers.

Following the successful placing in December 2023, the Group's financial position remains strong, with cash at bank of £7.2m as at 31 March 2024 (H1 2023: £3.1m).

The higher minimum wage has had a significant impact on staff costs, with pay rises occurring across the business. In response, we continue to be proactive in our efforts to uncover cost-saving opportunities, leveraging technology where possible. We have recently introduced at-table ordering at some sites and are working on several further initiatives we expect to improve efficiency while simultaneously enhancing the customer experience.

We continued to see the effects of the cost-of-living crisis in customer spending patterns in the period but, encouragingly, higher priced items such as lobster have remained consistently popular, indicating that our typical customer continues to have more expendable income.  

Focus on colleague development and procurement excellence

During the first half, we made good progress in upskilling and strengthening operational management.

Investing in colleague training is a key focus area, driven in a large part by our new People Director. In a competitive and dynamic industry such as ours, it is crucial to ensure our workforce is motivated and equipped to deliver the best possible service.

We also hired a new Head of Procurement in May 2024, who has begun a process to deepen the work we have undertaken to ensure menus are comprised of in-season and, where possible, local produce. This is expected to have an incrementally positive impact on costs moving forward.

Optimistic outlook despite challenging conditions

An unseasonably wet winter hampered performance at the start of the year but trading remained resilient and, with the enhancements made in the first half, we are confident moving into the important warmer trading months.

Despite the abiding inflationary pressures being experienced in the hospitality sector, we are encouraged by their gradual easing and remain optimistic that this trend will continue through the second half.

Performance at the start of H2 has been steady and, while our full year budgets reflect an expectation that the weather improves somewhat as the summer progresses, the business is in a healthy position and its long-term prospects remain sound

Various Eateries PLC

Consolidated Statement of Comprehensive Income

for the 26 weeks ended 31 March 2024

		26 weeks ended 31 March 2024		26 weeks ended 2 April 2023		52 weeks ended 1 October 2023
		Unaudited		Unaudited		Audited
	Note	£ 000		£ 000		£ 000
Revenue		22,676		20,578		45,495
Cost of sales		(21,330)		(20,013)		(43,597)
Gross profit / (loss)		1,346		565		1,898
Central staff costs		(1,748)		(1,745)		(3,426)
Share-based payments	11	(139)		(51)		(69)
Gain on early surrender of lease		-		-		899
Loss on disposal of assets and leases		-		(37)		(37)
Other expenses		(1,860)		(1,947)		(3,472)
Operating loss		(2,401)		(3,215)		(4,207)
Finance income		-		-		-
Financing costs	4	(1,462)		(1,085)		(2,470)
Loss before tax		(3,863)		(4,300)		(6,677)
Tax		-		-		-
Loss for the period		(3,863)		(4,300)		(6,677)
Earnings per share
Basic loss per share (pence)	5	(2.3)		(5.2)		(8.1)
Diluted loss per share (pence)	5	(2.3)		(5.2)		(8.1)

Various Eateries PLC

Consolidated Statement of Financial Position

As at 31 March 2024

		31 March 2024		2 April 2023		1 October 2023
		Unaudited		Unaudited		Audited
	Note	£ 000		£ 000		£ 000
Non-current assets
Intangible assets	6	11,121		11,183		11,152
Right-of-use assets	7	24,728		25,764		24,873
Other property, plant and equipment	7	25,338		23,956		25,397
		61,187		60,903		61,422
Current assets
Inventories		1,089		899		1,078
Trade receivables	8	111		126		154
Other receivables	8	1,902		1,671		2,082
Cash and bank balances		7,220		3,111		1,902
		10,322		5,807		5,216
Total assets		71,509		66,710		66,638
Current liabilities
Trade and other payables	9	(8,156)		(7,448)		(10,089)
Borrowings	10	(6,501)		(6,009)		(16,802)
Net current (liabilities) / assets		(4,335)		(7,650)		(21,675)
Total assets less current liabilities		56,852		53,253		39,747
Non-current liabilities
Borrowings	10	(27,763)		(39,197)		(28,049)
Provisions		(357)		(357)		(358)
Total non-current liabilities		(28,120)		(39,554)		(28,407)
Total liabilities		(42,777)		(53,011)		(55,298)
Net assets		28,732		13,699		11,340
Equity
Share capital		1,750		890		890
Share premium		72,540		52,284		52,284
Merger reserve		64,736		64,736		64,736
Other reserves		(5,012)		(5,012)		(5,012)
Retained earnings		(105,282)		(99,199)		(101,558)
Total shareholder funds		28,732		13,699		11,340

Various Eateries PLC

Consolidated Statement of Changes in Equity

for the 26 weeks ended 31 March 2024

	Called-up share capital		Share premium account		Merger reserve		Employee benefit trust reserve		Retained earnings		Total
	£ 000		£ 000		£ 000		£ 000		£ 000		£ 000
At 2 October 2022	890		52,284		64,736		(5,012)		(94,950)		17,948
Share-based payments	-		-		-		-		51		51
Loss for the period	-		-		-		-		(4,300)		(4,300)
At 2 April 2023	890		52,284		64,736		(5,012)		(99,199)		13,699
At 2 April 2023	890		52,284		64,736		(5,012)		(99,199)		13,699
Share-based payments	-		-		-		-		18		18
Loss for the period	-		-		-		-		(2,377)		(2,377)
At 1 October 2023	890		52,284		64,736		(5,012)		(101,558)		11,340
At 1 October 2023	890		52,284		64,736		(5,012)		(101,558)		11,340
Share issue	860		20,256		-		-		-		21,116
Share-based payments	-		-		-		-		139		139
Loss for the period	-		-		-		-		(3,863)		(3,863)
At 31 March 2024	1,750		72,540		64,736		(5,012)		(105,282)		28,732

Various Eateries PLC

Consolidated Statement of Cash Flows

for the 26 weeks ended 31 March 2024

		26 weeks ended 31 March 2024		26 weeks ended 2 April 2023		52 weeks ended 1 October 2023
		Unaudited		Unaudited		Audited
		£ 000		£ 000		£ 000
Cash flows from operating activities
Loss for the year		(3,863)		(4,300)		(6,677)
Adjustments to cash flows from non-cash items:
Depreciation and amortisation		2,723		2,638		5,571
Gain on early surrender of lease		-		-		(899)
Loss on disposal and surrender of leases		-		37		37
Share-based payments		139		51		69
Finance income		-		-		-
Finance costs		1,462		1,085		2,470
		461		(489)		571
Working capital adjustments:
Increase in inventories		(14)		(91)		(270)
(Increase) / decrease in trade and other receivables		210		403		327
(Increase) / decrease in accruals, trade and other payables		(1,563)		(949)		1,454
Net cash flow from operating activities		(906)		(1,126)		2,082
Cash flows from investing activities
Interest received		-		-		-
Purchases of property plant and equipment		(1,408)		(3,755)		(6,845)
Proceeds on disposal of property plant and equipment		-		-		-
Costs on issue of shares		-		-		-
Net cash flows from investing activities		(1,408)		(3,755)		(6,845)
Cash flows from financing activities
Interest paid		(901)		(714)		(1,627)
Proceeds from issue of shares		9,707		-		-
Principal elements of lease payments		(1,174)		(684)		(1,098)
Net cash flows from financing activities		7,632		(1,398)		(2,725)
(Decrease) / increase in cash		5,318		(6,279)		(7,488)
Opening cash at bank and in hand		1,902		9,390		9,390
Closing cash at bank and in hand		7,220		3,111		1,902

Various Eateries PLC

Notes to the Financial Statements

for the 26 weeks ended 31 March 2024

1 General information

Various Eateries PLC, 'the Company', and its subsidiaries (together 'the Group') are engaged in the operation of restaurants and hotels in London and the South of England.

The company is a public company limited by shares whose shares are publicly traded on AIM, a market of the London Stock Exchange and is incorporated in the United Kingdom under the Companies Act 2006 and are registered in England and Wales.

The registered address of the Company is 20 St Thomas Street, London, SE1 9RS.

2 Basis of preparation

The unaudited interim financial information for the 26 weeks ended 31 March 2024 has been prepared under the recognition and measurement principles of International Financial Reporting Standards ("IFRS") based on the accounting policies consistent with those used in the financial statements for the period ended 1 October 2023, but does not contain all the information necessary for full compliance with IFRS.

The unaudited interim financial information was approved and authorised for issue by the Board on 26 June 2024. The unaudited interim financial information for the 26 weeks ended 31 March 2024 does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and should be read in conjunction with the statutory accounts for the period ended 1 October 2023. The information for the 52 weeks ended 1 October 2023 has been extracted from the statutory accounts for that year which have been delivered to the Registrar of Companies. The audit report on these statutory accounts was unqualified, did not contain an emphasis of matter paragraph, and did not contain a statement under sections 498(2)-(3) of the Companies Act 2006.

The interim financial statements are presented in Pounds Sterling because that is the currency of the primary economic environment in which the company operates. All values are rounded to the nearest one thousand Pounds (£'000) except when otherwise indicated.

Changes in accounting policies and disclosures:

There were no changes in accounting policies and disclosures during the period.

3 Segmental reporting

26 weeks ended 31 March 2024	Restaurant segment		Hotel segment		Other unallocated		Total
	£ 000		£ 000		£ 000		£ 000
Revenue	21,007		1,657		12		22,676
Trading sites EBITDA (IAS 17)	1,964		340		(3,544)		(1,240)
Pre Opening costs	(203)		-		-		(203)
Impact of IFRS 16	1,229		681		-		1,910
Total EBITDA (IFRS 16)	2,990		1,021		(3,544)		467
Depreciation & Amortisation	-		-		(2,723)		(2,723)
Financing costs	-		-		(1,462)		(1,462)
Exceptional costs	-		-		(6)		(6)
Share based payments	-		-		(139)		(139)
Profit / (loss) before tax	2,990		1,021		(7,874)		(3,863)
Tax	-		-		-		-
Profit / (loss) for the period	2,990		1,021		(7,874)		(3,863)

26 weeks ended 2 April 2023	Restaurant segment		Hotel segment		Other unallocated		Total
	£ 000		£ 000		£ 000		£ 000
Revenue	18,983		1,590		5		20,578
Trading sites EBITDA (IAS 17)	1,540		153		(3,575)		(1,882)
Pre Opening costs	(460)		-		-		(460)
Impact of IFRS 16	896		647		310		1,853
Total EBITDA (IFRS 16)	1,976		800		(3,265)		(489)
Depreciation & Amortisation	-		-		(2,638)		(2,638)
Profit / (loss) on disposal of assets and leases	-		-		(37)		(37)
Financing costs	-		-		(1,085)		(1,085)
Share based payments	-		-		(51)		(51)
Profit / (loss) before tax	1,976		800		(7,076)		(4,300)
Tax	-		-		-		-
Profit / (loss) for the period	1,976		800		(7,076)		(4,300)

3 Segmental reporting (continued)

52 weeks ended 1 October 2023	Restaurant segment		Hotel segment		Other unallocated		Total
	£ 000		£ 000		£ 000		£ 000
Revenue	41,437		4,025		33		45,495
Trading site EBITDA (IAS 17)	2,859		1,162		(6,210)		(2,189)
Pre Opening costs	(809)		-		(77)		(886)
Exceptional costs	-		-		(126)		(126)
Non-trading sites income	27		-		-		27
Impact of IFRS 16	2,492		1,253		-		3,745
Share-based payments	-		-		(69)		(69)
Total EBITDA	4,569		2,415		(6,482)		502
Depreciation & Amortisation	-		-		(5,571)		(5,571)
Profit / (loss) on disposal of assets and leases	-		-		(37)		(37)
Gain on early surrender of lease	-		-		899		899
Financing costs	-		-		(2,470)		(2,470)
Loss before tax	4,569		2,415		(13,661)		(6,677)
Tax	-		-		-		-
Loss for the period	4,569		2,415		(13,661)		(6,677)

4 Financing costs

	26 weeks ended 31 March 2024		26 weeks ended 2 April 2023		52 weeks ended 1 October 2023
	Unaudited		Unaudited		Audited
	£ 000		£ 000		£ 000
Financing costs on bank overdraft and borrowings	562		371		897
Lease liability interest	900		714		1,573
	1,462		1,085		2,470

5 Earnings per share

Basic loss per share is calculated by dividing the profit attributable to equity shareholders by the weighted average number of shares outstanding during the year. There were no potentially dilutive ordinary shares outstanding as at the reporting date.

	26 weeks ended 31 March 2024		26 weeks ended 2 April 2023		52 weeks ended 1 October 2023
	Unaudited		Unaudited		Audited
Loss for the year after tax (£ 000)	(3,863)		(4,300)		(6,677)
Basic and diluted weighted average number of shares	168,180,186		82,143,398		82,143,398
Basic loss per share (pence)	(2.3)		(5.2)		(8.1)
Diluted loss per share (pence)	(2.3)		(5.2)		(8.1)

6 Intangible assets

	Brand		Goodwill		Trademarks, patents & licenses		Total
	£ 000		£ 000		£ 000		£ 000
Cost or valuation
At 2 October 2022	2,912		26,019		25		28,956
Additions	-		-		-		-
At 2 April 2023	2,912		26,019		25		28,956
Additions	-		-		-		-
At 1 October 2023	2,912		26,019		25		28,956
Additions	-		-		-		-
At 31 March 2024	2,912		26,019		25		28,956
Amortisation
At 2 October 2022	2,788		14,954		-		17,742
Amortisation	31		-		-		31
At 2 April 2023	2,819		14,954		-		17,773
Amortisation	31		-		-		31
At 1 October 2023	2,850		14,954		-		17,804
Amortisation	31		-		-		31
At 31 March 2024	2,881		14,954		-		17,835
Carrying amount
At 2 April 2023	93		11,065		25		11,183
At 1 October 2023	62		11,065		25		11,152
At 31 March 2024	31		11,065		25		11,121

Brand relates to registered brand names and is amortised over an estimated useful economic life of four years.

Goodwill is not amortised, but an impairment test is performed annually by comparing the carrying amount of the goodwill to its recoverable amount. The recoverable amount is represented by the greater of the individual CGU's fair value less costs of disposal and its value-in-use.

7 Property, plant and equipment

	Right of use assets		Freehold property		Leasehold improve- ments		Furniture, fittings and equipment		Work in progress		IT equipment		Total
	£ 000		£ 000		£ 000		£ 000		£ 000		£ 000		£ 000
Cost or valuation
At 2 October 2022	37,588		2,294		16,293		8,535		573		2,108		67,391
Additions	985		-		1		273		3,442		40		4,741
Disposals	-		-		-		-		(37)		-		(37)
Lease modifications	(78)		-		-		-		-		-		(78)
Transfers	-		-		550		427		(1,018)		41		-
At 2 April 2023	38,495		2,294		16,844		9,235		2,960		2,189		72,017
Additions	237		-		653		662		1,749		25		3,326
Lease modifications	118		-		-		-		-		-		118
Disposals	(1,228)		-		-		-		7		-		(1,221)
Transfers	-		-		3,754		237		(4,119)		128		-
At 1 October 2023	37,622		2,294		21,251		10,134		597		2,342		74,240
Additions	805		-		-		39		1,369		-		2,213
Disposals	-		-		-		-		-		-		-
Lease modifications	275		-		-		-		-		-		275
Transfers	-		-		106		215		(345)		24		-
At 31 March 2024	38,702		2,294		21,357		10,388		1,621		2,366		76,728
Depreciation
At 2 October 2022	11,479		-		2,489		4,440		-		1,282		19,690
Charge for the period	1,252		-		473		727		-		155		2,607
Eliminated on disposal	-		-		-		-		-		-		-
At 2 April 2023	12,731		-		2,962		5,167		-		1,437		22,297
Charge for the period	1,247		138		581		775		-		161		2,902
Eliminated on disposal	(1,229)		-		-		-		-		-		(1,229)
At 1 October 2023	12,749		138		3,543		5,942		-		1,598		23,970
Charge for the period	1,225		19		618		689		-		141		2,692
Eliminated on disposal	-		-		-		-		-		-		-
At 31 March 2024	13,974		157		4,161		6,631		-		1,739		26,662
Carrying amount
At 2 April 2023	25,764		2,294		13,882		4,068		2,960		752		49,720
At 1 October 2023	24,873		2,156		17,708		4,192		597		744		50,270
At 31 March 2024	24,728		2,137		17,196		3,757		1,621		627		50,066

8 Trade and other receivables

	31 March 2024		2 April 2023		1 October 2023
	Unaudited		Unaudited		Audited
	£ 000		£ 000		£ 000
Trade receivables	111		126		154
Prepayments	719		626		946
Other debtors	1,183		1,045		1,136
	2,013		1,797		2,236

All of the trade receivables were non-interest bearing, receivable under normal commercial terms, and the Directors do not consider there to be any material expected credit loss. The Directors consider that the carrying value of trade and other receivables approximates to their fair value.

9 Trade and other payables

	31 March 2024		2 April 2023		1 October 2023
	Unaudited		Unaudited		Audited
	£ 000		£ 000		£ 000
Trade payables	1,445		1,267		3,107
Accrued expenses	4,023		3,664		4,205
Social security and other taxes	950		914		1,400
Other payables	1,738		1,603		1,377
	8,156		7,448		10,089

10 Loans and borrowings

	31 March 2024		2 April 2023		1 October 2023
	Unaudited		Unaudited		Audited
	£ 000		£ 000		£ 000
Current borrowings
Borrowings from related parties	3,018		3,006		13,511
Lease liabilities	3,483		3,003		3,291
	6,501		6,009		16,802
	31 March 2024		2 April 2023		1 October 2023
	Unaudited		Unaudited		Audited
	£ 000		£ 000		£ 000
Non-current interest bearing loans and borrowings
Borrowings from related parties	-		9,908		-
Lease liabilities	27,763		29,289		28,049
	27,763		39,197		28,049

10 Loans and borrowings (continued)

Borrowings from related parties classed as payable within 12 months includes one deep discounted bond instrument issued by VEL Property Holdings Limited until 1 October 2023 where the non-current deep discounted bond issued by Various Eateries Trading Limited was reclassed to current.

The deep discounted bond instrument issued by VEL Property Holdings Limited was rolled in 2023 with a new redemption date of 14 July 2023. In July 2023 the deep discounted bond was rolled with a new redemption date of 14 January 2024; and was rolled again in January 2024 with a new redemption date of 14 July 2024. The nominal value at 1 October 2023 and 31 March 2024 is £2,902,000. The discount is recognised on a straight-line basis between subscription and redemption date, resulting in £51,000 of accrued financing costs as at the reporting date.

The deep discounted bond instrument issued by Various Eateries Trading Limited was rolled for 12 months in February 2023 with a redemption date of April 2024. The nominal value at 1 October 2023 is £10,001,000 and at 31 March 2024 is £nil as the loan was repaid in full through proceeds of a share issue in December 2023.

11 Share based payments

As at 31 March 2024, the Group maintained one separate share based payment scheme for employee remuneration (2023: two):

·      Various Eateries Company Share Option Plan ("CSOP")

In accordance with IFRS 2 "Share-based Payment", the value of the awards is measured at fair value at the date of the grant. The fair value is expensed on a straight-line basis over the vesting period, based on management's estimate of the number of shares that will eventually vest. A charge of £139,000 (2023: £51,000) has been recognised in the income statement by the Group in the 26 week period ended 31 March 2024.

During the period, 13,483,180 options were granted into the CSOP scheme to certain directors and PDMRs of the Company. 7,517,816 options were cancelled.

12 EBITDA Reconciliation

	26 weeks ended 31 March 2024		26 weeks ended 2 April 2023		52 weeks ended 1 October 2023
	Unaudited		Unaudited		Unaudited
	£ 000		£ 000		£ 000
Revenue	22,676		20,578		45,495
Loss before tax	(3,863)		(4,300)		(6,677)
Net financing costs	1,462		1,085		2,470
Impairment	-		-		-
Depreciation and amortisation	2,723		2,638		5,571
Gain on early surrender of lease	-		-		(899)
Loss on disposal of property, plant and equipment	-		37		37
Authorised Guarantee Agreements provision	-		-		-
EBITDA before exceptional costs	322		(540)		502
Pre-opening costs	203		460		886
Share-based payments	139		51		69
Non-trading sites	-		-		(27)
Exceptional costs	6		-		126
Adjusted EBITDA (IFRS 16)	670		(29)		1,556
Adjustment for rent expense	(1,910)		(1,853)		(3,745)
Adjusted EBITDA before impact of IFRS 16	(1,240)		(1,882)		(2,189)

 

END