In its latest semi-annual update, Hostmore, the parent company of TGI Fridays and 63rd+1st, has reported a consistent sales performance. The like-for-like revenue for the latter half of 2023 remained steady compared to the same period in 2022, indicating a positive shift from the 2% decline experienced in the first half of 2023 (adjusted for VAT variations).
The company highlights a notable increase during the December 2023 holiday season, with a 4% rise in like-for-like revenue compared to the previous December. This growth is particularly significant given that 65% of Hostmore's locations are in retail parks and shopping centres, which faced reduced operating hours during the holidays, impacting sales by 2%.
Looking at the financials, Hostmore projects an unadjusted EBITDA of £5.4m for the first half of 2023. The company is on track to eliminate debt, directing all free cash flow towards the repayment of borrowings. This approach has led to a decrease in consolidated net bank debt, down from £31.3m in early July 2023 to £25.1m at year-end, aligning with their forecasts.
Further, Hostmore is actively discussing refinancing options with current and potential lenders. Julie McEwan, the CEO, expressed optimism about the company's direction: "We have continued making good progress in executing our turnaround strategy, through disciplined capital allocation and the delivery of further cost reductions. Our organic growth initiatives, implemented through a strong and motivated operational platform, have improved the financial outlook of the business and continue into 2024."
Hostmore is set to release its preliminary results for 2023 in late April. The company's steady performance in a challenging environment reflects its commitment to a strategic turnaround and operational efficiency.
We welcome your thoughts and comments on Hostmore's financial performance and future outlook.