Exclusive – Caffe Concerto reports revenue up 45% to record £41m a year after completing CVA: Patisserie brand Caffe Concerto has reported a 45% revenue boost in the year to 31 August 2023 due to new openings and greater demand – a year after completing its company voluntary arrangement (CVA). Turnover rose from £28,248,375 in 2022 to £41,077,757. Of this, £40,634,134 came from the UK (2022: £28,248,375), £426,015 from the Middle East (2022: nil) and £17,608 from Europe (2022: nil). The company – which operates 20 sites in London, plus one in Birmingham as well as two sites in Saudi Arabia and one each in France and Qatar – saw pre-tax profit almost halve from £10,859,969 in 2022 to £5,5424,985 as costs rose by more than £10m and administration expenses were up by more than £8m. “Group revenue increased by 45% (2022: 23% increase) as a result of the addition of new stores domestically and overseas, as well as and greater demand due to new menu offerings,” said director Maher Al-Hajjar. “The group profit before tax decreased due to the absence of exceptional rent credits that arose in the prior year, and a general environment of cost inflation. The group's financial position continued to improve with a net asset position of £10,545,809 (2022: £6,265,703) net liability). Overall, the director is satisfied with the financial performance and position of the group and intends to continue this strong trajectory in the future.” Caffe Concerto entered into the CVA in April 2021, where it agreed to pay £10,000 a month for 60 months, with a minimum dividend of 14.79p in the pound paid to unsecured creditors, who were owed a total of £11,022,230. However, following a downturn in the company’s turnover in spring 2022 and the directors believing they would be unable to maintain the monthly payments, creditors agreed to a variance that saw a director borrow £200,000, allowing for a second and final dividend of 4.65p in the pound to be paid to unsecured creditors. The total dividend they received was 13.35p in the pound and meant the CVA was concluded within 18 months. Secondary preferential creditors were repaid fully. Revenue was also up on the £28,710,333 reported for the year ending 31 August 2019 – the last full year before the pandemic when the business operated 19 sites in the UK and four in the Middle East. Al-Hajjar added that in order to mitigate the loss of staff due to Brexit, the group has undertaken training programmes and introduced incentive schemes to retain key personnel. Average staff numbers rose from 289 to 497. No dividends were paid (2022: nil). Caffe Concerto features in the Premium Club Turnover & Profits Blue Book, the latest edition of which will be released tomorrow (Friday, 14 June) and feature 926 companies. Its turnover of £41,077,757 is the 232nd highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Exclusive – BrewDog founder James Watt among F&B investors in healthy drinks company: James Watt, founder of Scottish brewer and retailer BrewDog, has invested in healthy drinks company Common Functional Drinks as part of a six-figure seed investment round from pioneers in the food and beverage industry. Other investors include Neel Nagrecha, managing director of Rubicon Drinks; Ryan Kohn, co-founder of Proper Snacks; and Alex Carlton, founder of Funkin' Cocktails and Strykk Drinks. Common said the funding round underscores the confidence in its strategic vision and the “booming functional drinks market as consumers increasingly turn towards health-focused beverages”. Common said its nootropic mushroom-based range is one of the first ready-to-drink products on the market “specifically formulated towards mental performance while remaining caffeine-free”. “Common is here to deliver the highest-quality functional drinks on the UK market and we are delighted by the backing of such highly regarded partners," said Julian Liban, founder of Common. “Fundraising in the food and beverage sector in today's environment is challenging but we stand out because of our range of both CBD and nootropic (mushroom) products, that serve multiple consumer needs. We uniquely cater for both brain focus and mindfulness. We describe this as people wanting to ‘dial in as well as ‘needing to step back’, while juggling their busy lives. We have a clear sales strategy including upcoming national listings and we are grateful to our partners who have incredible networks and expertise, which we are excited to leverage.” The latest funding will drive the launch of Common’s newest range: two Lion's Mane mushroom-based nootropic drinks, “designed for enhanced mental performance”, and two CBD drinks made with cold-pressed hemp, “formulated for enhanced recovery and immunity”. Carlton said: “Common is leading the way with developing premium functional drinks – its new range has blended fantastic and sophisticated flavours in eye-catching bold cans. I have used its CBD products for a while and they work for me unlike other brands. The new mushroom range is extremely innovative and I already use it to replace morning coffees.”