Business
H1 2023 Trading Update
H1 2023 Trading Update.
About this update from Tortilla Mexican Grill Ltd.
[{"type":"text","content":"\n\n \n\n \n \n \n \n \n\n\n17 July 2023\nTortilla Mexican Grill plc\n(\"Tortilla\" or the \"Group\")\n \nH1 2023 Trading Update\n \nResilient trading supports FY 2023 expectations1\n \nTortilla Mexican Grill plc (\"Tortilla\"), the largest and most successful fast-casual Mexican restaurant group in the UK, provides a Trading Update for the half year ended 2 July 2023 (\"H1 2023\", the \"Period\").\n \nHighlights\n \n· Group revenue increased by 22.0% to £32.7m (H1 2022: £26.9m), illustrating growing demand for the Group's high-quality, value-for-money customer proposition.\n \n· Continued industry outperformance with Group LFL revenue increasing by 8.4% (adjusting for FY 2022 VAT benefit), ahead of the industry Peach Coffer Tracker benchmark2.\n \n· Franchise sites performed very well with record sales being achieved in all SSP locations. Further franchise sites in the pipeline to expand on the success.\n \n· Continued delivery against strategic expansion of the Group's estate with new site openings during the Period in Derby and Greenwich alongside an additional SSP franchise site at Manchester Piccadilly, all performing well since opening. In total, there were 85 sites at end of the Period operating under the Tortilla and Chilango brands (82 at end of FY22).\n \n· First Tortilla in Northern Ireland set to open this week in Belfast, with another in Bracknell in coming weeks.\n \n· Net debt (pre-IFRS 16) of £1.6m as at 2 July 2023, in line with expectations.\n \nOutlook\n \nThe Group continues to deliver strong strategic progress and achieve good levels of revenue growth. While the widely publicised economic pressures impacting the sector remain, management has successfully implemented several efficiency and cost-saving initiatives including utilities hedging that are supporting Group profitability and these will continue in the second half. The Board is also pleased to report some easing of cost inflation in relation to certain key food ingredients.\n \nIn addition, the Group has delivered a number of new strategic initiatives to continue to grow demand including driving evening trade through the new 'Tortilla Sunsets' menu and...