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Hostomer has revealed that year-to-date like-for-like sales were 10% lower than during the same 20-week period in 2023.
This comes despite the group’s EBITDA continuing to perform ahead of last year during the period to 19 May, with the first four months to the end of April being higher by £3.3m compared to the same period in 2023.
According to Hostmore CFO, Matthew Biddy, the board expects net debt to peak for the year at the end of the third quarter, which is a quarter later than typically experienced due to lower revenues.
In addition, the £3m payment related to the proposed all-share acquisition of TGI Fridays, which was announced on 16 April, remains on schedule to reach binding terms and complete before the end of the third quarter.
Hostmore’s board expectation for net debt does not give effect to completion of the acquisition, as the existing net debt is expected to be repaid on or shortly after completion of the acquisition.
Meanwhile, the group’s final two 63rd + 1st restaurants are expected to be closed by 30 June, with the brand’s supply chain and support function expenses having now been removed.
Biddy expects this to further improve Hostmore’s future EBITDA performance.
