Incipio Group FY sales rise 22% despite market pressures

Hospitality operator Incipio Group has reported a slight dip in turnover to £25.3m, from £25.9m, in the year to 29 December 2024, despite a 22% rise in like-for-like sales supported by stronger trading across its existing venues and improved profit margins. 

Adjusted EBITDA fell to £2m from £2.5m the previous year, though this was significantly ahead of the like-for-like 2023 figure of £781k. Gross profit margins also inched up to 80.3%, from 78.9% in 2023, driven by operational efficiencies across the company’s seven trading sites. 

In January 2024, the group closed Pergola Paddington following the expiry of its short-term lease and did not open new venues during the year. According to the group’s filing at Companies House, the focus had been on preparing for future developments, including five new venues at the Olympia London redevelopment, which is due to open in early 2026. Incipio expects these to double turnover at maturity.

By the end of 2024, Incipio had invested £1.2m in the Olympia project, with a further £10.5m planned for 2025. It ended the year with £341k in cash, later strengthened to £4m following a post-year-end refinancing and the issue of convertible loan notes and equity.

The company said it continued to face inflationary pressures on goods and labour costs, as well as the impact of train strikes on footfall. Directors added that exposure to variable interest rates was being managed at current Bank of England rates of 4.5%, with easing expected in the coming months.

In its strategic report, the board also noted potential risks from future government tax changes affecting the hospitality sector, alongside ongoing monitoring of financial and operational performance indicators such as sales, margins, staff retention and guest feedback.