Various Eateries reports ‘solid’ start to new financial year, returns to adjusted Ebitda profit: Various Eateries, the Hugh Osmond-backed business that operates the Coppa Club and Noci concepts, has reported the business has had a “solid” start to its new financial year and said the group is “steadily regaining momentum”. The company stated: “We approach the year ahead with confidence in the business and faith in our ability to navigate the continued challenges of an ever-evolving sector under our new leadership. Thanks to the substantial efforts invested in strengthening our organisational structure and enhancing our site portfolio, the group is steadily regaining momentum. The rises in employers’ national insurance contributions and minimum wage have had a negative impact on everyone in the industry and will ultimately result in reduced disposable income for consumers as costs are passed on. However, with enhanced cost discipline and a robust cash balance, we are in a strong position. While we will remain vigilant in monitoring the trading environment and ready to adapt to any shifts, the solid start to the new financial year including a strong festive period reinforces our confidence looking forwards. We are currently trading in line with market expectations for FY25 and remain optimistic that it will be another year of progress.” It comes as the group, which hired Mark Loughborough as its new chief executive last month, reported revenue increased 9% to £49.5m for the year ending 29 September 2024 (2023: £45.5m), largely driven by new site openings. The group posted an adjusted Ebitda profit of £0.3m (2023 loss of £2.2m), “due to solid trading performance and significant operational improvement”. Pre-tax losses narrowed to £3.4m from £6.7m the previous year. The company stated: “FY24 was a year of steady progress for Various Eateries, marked by a solid trading performance and significant operational improvement. Despite ongoing challenges in the hospitality sector, this ongoing focus on operational improvement and service excellence enabled us to deliver a return to adjusted Ebitda profit. The successful placing at the start of the period raised £10.1m which significantly improved our cash position. This ensures we have the liquidity to support the future roll out of new sites. Group like-for-like sales grew by 1% in the second half compared to the previous year. The final quarter saw a 4% increase, despite above-average rainfall, improving overall performance from minus 3% at the half-year mark to minus 1% by year-end. Both brands performed steadily overall, with some sites achieving particularly strong results offsetting those yet to reach maturity or impacted by external factors such as adverse weather. Our new head of operations drove meaningful progress in conversion rates, particularly across the Noci estate, with notable improvements in site profitability. Investments in the outdoor spaces across the Coppa Club estate, designed to increase all-weather use, significantly boosted footfall and are expected to continue to underpin the brand’s year-round appeal. Tavolino continued to perform strongly, delivering increased Ebitda growth of 33% year on year.” During the period, the company opened Coppa Club Townhouse in Cardiff, which has “traded well”, and Noci Richmond, where the opening months have been “encouraging”. Non-executive chairman Glyn Barker said: “The year was one of steady progress and strengthening our foundations for future growth. A great deal of hard work has taken place behind the scenes to fine tune our operations and enhance our estate, all while taking steps to navigate industry challenges. In that context, returning to an adjusted Ebitda profit is a great achievement and stands the group in good stead moving through FY25. The sector has experienced a tough few years, but we are encouraged by early signs of stabilisation. The measures outlined in the autumn Budget create new challenges for businesses, but our disciplined approach to cost management and the operational efficiencies we’ve achieved ensure we are well-placed to manage them. Looking ahead, supported by a robust cash position and a strengthened leadership team, we will maintain our commitment to quality and innovation and are confident in our ability to deliver sustainable growth in the new financial year and beyond.”