Various Eateries reports FY23 losses despite 12% rise in revenues
While total loss before tax was lower than the previous year at £6.7m, the group’s cash at bank depleted from £9.4m in 2022 to £1.9m by October 2023
Various Eateries has reported an adjusted EBITDA loss of £2.2m, despite revenues growing 12% to £45.5m during the year ending 1 October 2023.
The loss has been attributed to the board’s decision to absorb the majority of price rises in a bid to strengthen Various Eateries’ long-term prospects.
While total loss before tax was lower than the previous year at £6.7m, the group’s cash at bank depleted from £9.4m in 2022 to £1.9m by October 2023.
As a result, the operator of restaurants and all-day clubs has a net debt of £11.6m – up from £3.3m in 2022.
The group has also had to take a “measured” approach to expansion during 2023 with the opening of two new Noci restaurants and only one Coppa Club.
Despite suffering some losses during 2023, the group also experienced resilient like-for-like sales, which held “relatively firm” despite well-publicised industry challenges.
Andy Bassadone, executive chairman of Various Eateries, said: “Performance in the year under review was solid given the host of challenges faced by the industry. We have continued to focus on customer loyalty, brand reputation and maintaining revenue, and I am proud of our teams for all their hard work.
“Inflationary pressures have been a major thorn in the side of all hospitality businesses in the period but encouragingly there are signs they are beginning to abate, while interest rates appear to be cooling. We are not out of the woods yet by any means, but we are confident our approach is the right one to ensure the long-term prosperity of the group.”
He added: “We are excited about what we are building and look forward to the challenges and opportunities of the year ahead with confidence.”
