Coffee#1 first-half lfl sales up 8%: Coffee#1, the Caffe Nero-owned business, has reported an 8% increase in like-for-like sales for the six months to November 2023, with sales of £29.5m, representing total sales growth of 18.8% over the prior year. The 118-strong company, which is the fourth largest coffee shop brand in the UK, said its like-for-like sales performance for the period was underpinned by sustained customer growth of 1.2%. Operating across Wales, the south west, the south coast and parts of the Midlands, Coffee#1 opened four new stores during the period. New openings in Godalming and Chesterfield expanded its operating footprint, while openings in Yate and Cwmbran strengthened the existing operating area. At the start of the second half of the financial year, Coffee#1 said it experienced “particularly strong Christmas trading”. It had record sales levels peaking at £1.37m during the week of 18 December, when nearly 300,000 customers were served. The new store opening programme has also continued, with openings in December in Derby and Fleet in January, and four further openings forecast this financial year, creating 35 jobs. The business said that despite inflationary pressures, it remains committed to job creation and store growth with two stores in Westbourne (Bournemouth) and Loughborough currently under construction. Coffee#1 also relaunched its store manager development programme during the period with 25 existing assistant store managers joining the program and eight succeeding into their first management roles with the company. Coffee#1 managing director, Bruce Newman said: “Once again, we are indebted to our store and support teams. They have put in the hard work required to deliver some excellent results. It takes first-class service and great teamwork, along with an outstanding menu, for our customers to want to come back time and time again. It’s been fantastic to witness that happening and to see so many of our employees progressing their careers with us in the first half of the financial year. While inflationary pressures remain, we are optimistic that our brand has broad appeal and expect to see sales build over the course of the remainder of the year.” At the same time, the business reported sales increased to £53.8m in its financial year ending May 2023, a rise of 22%, with Ebitda of £7m. It said that FY23 also saw strong store growth with 11 new stores added to its estate, creating 110 jobs. During the financial year, Coffee#1 expanded its presence in the delivery market adding Uber Eats to an already established partnership with Just Eat. Delivery was available from a total of 83 stores of the 112 trading at the end of the financial year. It said that sales of cold coffee grew to four times the size of pre-covid levels. Concurrently, the business said that its food categories performed well with sales growth of 17.5% and more customers “attaching” a food item to a drink sale than in any prior year. Newman said: “I have been delighted to see the recovery of the business after the covid pandemic with progression in sales levels, several new programmes of learning and development landing and the resurgence of energy and culture which is so important to our brand. The business has proven to be highly resilient and while we take nothing for granted, we are confident that there is remaining scope for Coffee#1 to grow sustainably and successfully.” Coffee#1 features in the Who’s Who of UK Hospitality, which is one of six databases exclusive to Premium Club members. The latest edition features 863 companies. The companies, listed in alphabetical order, have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Email kai.kirkman@propelinfo.com today to sign up.

West End landlord Shaftesbury Capital reports strong trading for hospitality and leisure tenants: West End landlord Shaftesbury Capital has reported strong trading for its hospitality and leisure tenants in its first year since the merger of Capital & Counties Properties and Shaftesbury. The company stated: “Our portfolio offers a diverse range of food concepts, from accessible casual to premium dining. Across the portfolio, we continue to introduce high quality, innovative food concepts, which in our experience, provides a halo effect on footfall, increases dwell time, and drives improved trading. Customers across the portfolio have reported strong trading. Competition for available hospitality accommodation has been strong throughout the year. With availability being constrained by strong trading prospects together with local planning and licensing policies, we are also seeing a high rate of renewals from existing customers.” A total of 37 hospitality and leisure leasing transactions were completed during the period with a rental value of £4.7m, 14.1% ahead of December 2022. Rent reviews totalled £11.6m, 9.8% above previous passing rents. It comes as the business reported annualised gross income increased 10.4% like-for-like to £192.8m (pro forma December 2022: £174.7m). Estimated rental value (ERV) growth saw a 6.9% like-for-like increase to £236.9m (pro forma December 2022: £221.4m). A total of £145m of asset disposals have been completed to date, 8% ahead of valuation, with several other assets under offer. The company stated: “Over the medium-term, we are targeting rental growth of 5%-7% per annum. With stable cap rates, this would result in average total property returns of 7%-9% and total accounting returns of 8%-10%. Despite the uncertain geopolitical and macroeconomic backdrop, our strong performance and leasing pipeline together with positive trading conditions across our West End locations provide us with confidence in the growth prospects for our exceptional portfolio.” Chief executive Ian Hawksworth said: “We set clear priorities and are pleased with the pace and performance over the first year with significant rental income growth and cost savings driving financial performance. There is strong leasing activity and pipeline across all uses with 526 leasing transactions completed at rents on average 10% ahead of December 2022 ERV.”