Comptoir Group – Q1 2025 trading performance has been in line with management expectations, “careful cash management and preservation a priority in the short term”: Comptoir Group, the owner of the Comptoir Libanais and Shawa brands, has said that its Q1 2025 trading performance has been in line with management expectations, as it reported a 2% like-for-like sales growth in the year to 29 December 2024. The business, which ended the year with 28 restaurants, reported group revenue of £34.6m in the 12 months to 29 December 2024, up by 10% on prior year (2023: £31.5m), with an adjusted Ebitda of £0.8m (2023: £0.1m) and a pre-tax loss of £1.9m (2023: loss of £1.6m). Post year end the group took the decision not to renew the lease for its Kenza restaurant and has also closed Comptoir Bluewater. Chaker Hanna, who returned as chief executive at the start of this year, said: “The hospitality sector remains stressed from a variety of external economic factors which continue to make this a very challenging environment to operate. Nevertheless, there are brands which continue to succeed against this backdrop, and we need to ensure that Comptoir also navigates its way through to further success. Q1 2025 trading performance has been in line with management expectations. As previously highlighted, driving covers growth through offering genuine value for money is a key focus for the management team in 2025. Succeeding on this will help secure the long-term growth of the business. At the same time, we will ensure our operations remain as efficient as possible as we work through the ever-increasing cost pressures faced by the sector, particularly labour costs. These two actions will help rebuild our cash reserves which is a priority for the board and investors. Shawa continues to present a significant growth opportunity, and there will be a focus through 2025 to look to stretch the brand expansion forwards. In order to focus management’s time on the core brands, the group has decided to not renew the lease at our Kenza restaurant post year-end and has also closed Comptoir Bluewater. The rest of the estate will continue to be proactively managed.” During the year the company opened its first franchised Shawa restaurant in Abu Dhabi and signed a new agreement with Areas Italy which saw the opening of a new Comptoir Libanais in Malpensa Airport, Milan. Other changes consisted of taking back the Avolta franchised site in Cheshire Oaks into its managed estate in March and in the second half of the year exiting its franchise site in Ashford. The board said it is “excited by the potential of further franchise agreements and sees this as a real opportunity to develop our brands globally”. The company said that the core Comptoir estate performed “for the most part in line with expectations”, with most sites delivering like-for-like growth. It said: “There are however a handful of sites which remain a focus as we move into the new financial year. Shawa continues to deliver good sales and profitability from the two sites in Westfield and Bluewater, which demonstrates a very real opportunity for further growth of the Shawa brand. Two sites (Comptoir Chelsea and Shawa Bluewater) had significant refurbishments during the year and it has been pleasing to see both sites delivering double digit like-for-like growth post-refurbishment which has continued well into the new financial year.” Richard Kleiner, chair, said: “As has been well documented, the hospitality sector continues to face significant external challenges as we look ahead to 2025 and beyond. Ongoing cost of living pressures continue to put a strain on consumer’s disposable income and makes the challenge for covers growth even more acute. The recent increases in National Minimum Wage combined with the lowering of the Employers’ National Insurance threshold will also place significant pressure on business margins. The group is well positioned to continue to face into these challenges but the board will make careful cash management and preservation a priority in the short term.”