Half-year Results

Bow Street Group (AIM: BOW), the owner and operator of “Wildwood” and “dim t” restaurants, announces its interim results for the 26-week period ended 28 June 2026 (“H1 2026” or the “Period”).

Financial highlights:

Like-for-like revenue, which excludes the impact of restaurant closures and refurbishment days, increased by 5.6%, reflecting management actions to improve the performance of the estate

Reported revenue of £14.4m (H1 20251: £15.1m), a decrease of 4.6%, primarily driven by a reduction of the Group’s estate with 29 restaurants trading at the end of the Period (29 June 2025: 32 restaurants)

Adjusted EBITDA2 of £0.5m (H1 2025: £1.2m)

Operating loss before highlighted items for the Period of £0.7m (H1 2025: loss £0.2m)

Loss after tax of £0.2m (H1 2025: loss of £7.5m)

Net cash balance at 28 June 2026 (excluding property lease liabilities) of £7.9m (29 June 2025: £2.4m)

Operational highlights:

Strong improvement in like-for-like performances delivered at restaurants where targeted capital investment has been deployed, with previously underperforming locations returning to like-for-like growth following refurbishments

New Wildwood menu introduced in May 2026 has received positive customer feedback

Investment in technology continues across the Group in-line with its growth strategy

Current trading and outlook:

Trading has continued to improve since the start of the second half of the financial year, with like-for-like sales increasing by over 8.5% during the first 8 weeks of the summer months of July and August 2026

The Group continues to manage its estate and, since the Period End, has closed 1 further Wildwood restaurant that was loss making, further reducing fixed costs within the business

The Group’s current estate comprises 25 Wildwood and 3 dim t restaurants

Current net cash (excluding property lease liabilities) of £7.5m, as at 13 September 2026

While macroeconomic pressures remain, the Group’s improving trading performance, cash resources and ongoing investment in the existing estate, position it well to deliver further progress as it heads towards the Christmas trading period

The Group has continued to progress M&A discussions and remains in active discussions with several exciting and scalable restaurant targets

1 The comparative period is 26 weeks ended 29 June 2025 (“H1 2025”)

2 Adjusted for depreciation, amortisation and highlighted items (full definition can be found in note 3 to the unaudited interim financial information)

David Page, Executive Chairman of Bow Street Group, commented:

“We are pleased that 12 months on from the fresh investment across the business, a new identity and strengthened management we are seeing clear benefits of our initiatives to refresh and improve the performance of our restaurants. The actions include investing in technology, refurbishing restaurants, smartening bar areas and terraces, improving street signage, refreshing and enhancing menus and most importantly, building morale across our fantastic teams. The result has been encouraging 5.6% like-for-like revenue growth in H1, which improved to 8.5% over the summer months as many of our restaurants delivered record turnover figures.”

“We continue to assess the market for attractive acquisition opportunities, and we remain in active discussions with several scalable restaurant businesses.”

“Whilst our sector is being presented with many challenges, the actions we are taking will continue to ensure that Wildwood and dim t are well positioned to continue to grow their sales.”

Matt Goode / George Lawson / Trisyia Jamaludin – Corporate Finance Dale Bellis / Ella Bedford – Sales and Corporate Broking

Nick Naylor / James Reeve – Corporate Finance Jos Pinnington – Sales and Corporate Broking

Alex Brennan / Harry Griffiths / Jackson Redley

investing in technology and operations; and

acquiring scalable restaurant brands that provide great food at value for money prices within environments that are casual, comfortable and fun for both our customers and staff.

Chairman's statement

Introduction

I am pleased to announce the Group’s unaudited interim results for the 26 weeks ended 28 June 2026 (“H1 2026” or the “Period”).

H1 2026 trading performance

During the Period, the Group has continued to refurbish its restaurants; £0.9m was invested in refurbishment during the Period, requiring 84 closure days across the estate. Three restaurants were also closed in the Period, and as a result the Group traded from 29 restaurants at the end of H1 2026, compared with 32 at the end of H1 2025.

As expected, in H1 2026, reported revenue decreased by 4.6% to £14.4m (H1 2025: £15.1m) primarily due to the impact of the site closures. Once closures and refurbishment days are excluded, Group revenue has continued to increase on a comparative year like-for-like basis of 5.6%.

A new Wildwood menu was introduced across all restaurants in the middle of May 2026. This has been well received by our customers. The business is also now offering a changing specials menu and a wider choice of non-alcoholic beverages. The menu launch was accompanied by a menu price increase covering the National Minimum Wage increase that took place a month earlier in April 2026.

Food inflation remained significant during the Period and in April 2026 labour costs were also impacted by the annual National Minimum Wage increase, coupled with changes in employee rights and sick pay entitlement following the implementation of the Employment Rights Act. The Group continues to manage the cost pressures through various revised menu offerings and a continued drive on labour efficiency.

The Group’s Adjusted EBITDA* for the Period was £0.5m (H1 2025: £1.2m), down as a result of the decreased revenue and site closures, while the Group incurred an operating loss before highlighted items** of £0.7m (H1 2025: loss of £0.2m). Highlighted items in the Period was a credit of £1.0m (H1 2025: charge of £6.6m) reflecting £1.3m gain from the disposal of the closed restaurants in the Period and £nil impairment losses (H1 2025: impairment loss of £7.0m). Therefore, the Group’s reports a loss after tax of £0.2m (H1 2025: loss of £7.5m).

Investment in the estate, technology and talent

The refurbishments of the Wildwood restaurants have continued. Nine restaurants have been refurbished by the end of Period, and this group of restaurants showed significant revenue growth following their reopening. The four early refurbishments that the Group last reported on in April 2026: Billericay; Ely; Epping; and Lincoln, delivered 18.6% like-for-like revenue growth in the first eight weeks over the summer months of July and August 2026.

In addition, the refurbishments of our Wantage and Telford restaurants have been completed since the half year end, and, as part of our plans to update the whole estate by spring 2027, a further 3 more restaurants are due to complete their re-modelling and will re-open within the next few weeks.

Since the beginning of the current financial year, the Group has been actively investing in its technology platform. A programme of infrastructure upgrades in each restaurant has commenced alongside restaurant refurbishments, providing staff and customers with better access to services. We expect to finish this programme by Christmas 2026. A new dashboarding system for its operations team has also commenced roll out while a new Epos system is due to go on trial in October 2026.

As part of the strategy introduced last year, the Group has also been investing in its team through the introduction of incentive plans, wider training, updated career paths and in July the recruitment of an experienced Head of Human Resources.

Current trading

Since the end of June 2026, restaurants and their customers have continued to be impacted by the ongoing political and economic uncertainty in the UK; a new prime minister was appointed in the summer, the costs of labour and supplies have continued to increase, and the impact of war in the Middle East continues. These, together with other factors, are impacting consumer confidence adversely.

The Group has closed and is in the process of surrendering the lease on 1 more underperforming site since the end of June 2026 which leaves us with a current estate of 28 restaurants, comprising 25 Wildwood and 3 dim t locations.

Group revenue for the first eight weeks of the second half of the financial year has continued to increase on a like-for-like basis of over 8.5%.

The summer holiday season was busy for the Group and many restaurants achieved record turnover figures. Lincoln, Plymouth, Llandudno and Rushden Lakes all stood out and the teams at those restaurants have done particularly well.

The World Cup, as it was mainly shown in the UK late in the evening, had a marginal negative effect on our trade. Table service restaurants do not typically perform well during sporting or other national televised events; however, this tournament was not typical due to its timings.

We passed the VAT reduction for children onto our customers by creating special menus. This was popular with families and also teenagers as we created a Ragazzi menu for them.

A recent third-party review indicated that the Wildwood dine-in revenue is now outperforming a selection of its peer group within the restaurant industry, a reflection of the new refurbishments being undertaken.

A new menu style for our three dim t restaurants was recently introduced post the half year end and the refurbishment of some dim t sites will commence in this second half.

The Group’s net cash (before property lease liabilities) was £7.5m as at 13 September 2026.

Outlook

The Group will continue to monitor the changes in consumer behaviour this autumn, including the staycation footfall and emerging custom of shorter but more frequent holiday breaks.

The Group has positive revenue growth and improving morale within the business. We are also beginning to benefit from the wide range of operational improvements and the site-by-site investment in the fabric of the business.

Restaurants are being refurbished, bar areas and outside terraces are being smartened up, and street signage refreshed.

These measures should ensure that Wildwood and dim t are well positioned and ready to face the many challenges being presented to our sector, including the impact of volatile energy markets.

The Group continues its discussions with several acquisition opportunities and looks forward to enhancing the Group’s growth prospects with completion of one or more of these in due course.

We remain confident that our restaurants will continue to grow sales due to our various ongoing initiatives.

Enhanced till systems and subsequent better analysis of sales, capital being invested in the fabric of the restaurants and newly motivated staff who are enthused to be part of a business which is increasing sales once again all position the Group to continue growing revenue.

David Page

Executive Chairman

Bow Street Group plc

* Definition of Adjusted EBITDA can be found in note 3 to the unaudited interim financial information.

** Definition of highlighted items can be found in note 4 to the unaudited interim financial information.

Bow Street Group plc

Consolidated statement of comprehensive income

for the 26 weeks ended 28 June 2026 (unaudited)

Loss per share attributable to the ordinary equity holders of the Company

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Bow Street Group plc

Consolidated cash flow statement

for the 26 weeks ended 28 June 2026 (unaudited)

Bow Street Group plc

Notes to the unaudited interim financial information

for the 26 weeks ended 28 June 2026 (unaudited)

General information

Bow Street Group plc is a public limited company incorporated in the United Kingdom under the Companies Act (registration number 05826464). The Company is domiciled in the United Kingdom and its registered address is 32 Charlotte Street, London, W1T 2NQ. The Company’s ordinary shares are traded on AIM, a market operated by the London Stock Exchange (“AIM”). Copies of this Interim Statement may be obtained from the above address or on the investor relations section of the Company’s website at www.bowstreetgroup.com.

Basis of accounting

The unaudited interim financial information for the 26 weeks ended 28 June 2026 has been prepared under accounting policies consistent with International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations as endorsed by the United Kingdom. The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Company’s latest annual audited financial statements.

The financial information for the 26 weeks ended 28 June 2026 and 29 June 2025 have not been subject to an audit nor a review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Financial Reporting Council.

The financial information for the period ended 28 December 2025 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 28 December 2025 have been filed with the Registrar of Companies. The Independent Auditors’ Report on the Annual Report and Financial Statements for the year ended 28 December 2025 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The Group has changed its allocation of expenses between Cost of Sales and Operating Expenses for the year ended 28 December 2025. This has necessitated a corresponding restatement of 26 weeks period ended 29 June 2025 comparatives in the Consolidated Statement of Comprehensive Income, with no net impact on reported profit for the prior year.

The unaudited interim financial information is presented in Pounds Sterling, being the currency of the primary economic environment in which the Group operates, and all values are rounded to the nearest thousand pounds (£’000) except when otherwise indicated.

Changes in accounting policies and disclosures

There were no changes in accounting policies and disclosures during the period.

Use of judgements and estimates

In preparing this unaudited interim financial information, management has made judgements and estimates that affect the application of accounting policies and measurement of assets and liabilities, income and expense provisions. Actual results may differ from these estimates.

Going concern

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion the Directors have considered the risks affecting the Group as detailed in the Annual Report and Financial Statements for the year ended 28 December 2025, the financial position of the Group including the significant cash balance held, forecasts, other longer-term plans and the availability of further equity funding and putting in place a moderate level of long term bank facilities. The Group monitors cash balances and the impact of inflation closely to ensure there is sufficient liquidity. Accordingly, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

Revenue, other income and segmental analysis

The Group’s activities, comprehensive income, assets and liabilities are wholly attributable to one operating segment (operating restaurants) and arise solely in the one geographical segment (United Kingdom) that the Group is located and operates in. All the Group’s revenue is recognised at a point in time being when control of the goods has transferred to the customer.

An analysis of the Group’s total revenue is as follows:

An analysis of the Group’s other income is as follows:

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Adjusted EBITDA and Adjusted Headline EBITDA are key measures for the Group as well as industry analysts as they are indicative of ongoing EBITDA generation of the businesses. Adjusted EBITDA is defined as EBITDA before share based payments and pre-opening costs, where EBITDA is defined as operating profit before depreciation and amortisation, amortisation of brand, impairment of property, plant and equipment, impairment of goodwill and intangible assets, impairment and changes in fair value of investments, COVID19 related costs, restructuring costs, costs of reverse acquisition, cost of acquisition and loss on disposal of property, plant and equipment. Adjusted Headline EBITDA is defined as Adjusted EBITDA less rent expense calculated on an accrual basis which excludes the effect of IFRS16.

The above items have been highlighted to give more detail on items that are included in the consolidated statement of comprehensive income and which when adjusted shows a profit or loss that reflects the ongoing trade of the business.

Income tax

The income tax charge has been calculated by reference to the estimated effective corporation tax and deferred tax rates of 25% (2025: 25%).

Tax charge £nil (2025: £nil). The tax charge for the period is lower than the standard rate of (2025: lower than) corporation tax in the UK due to movement in deferred tax not recognised.

Earnings per share

The basic and diluted loss per share figures are calculated by dividing the net loss for the period attributable to shareholders by the weighted average number of ordinary shares in issue during the period. The diluted earnings per share figure allows for the dilutive effect of the conversion into ordinary shares of the weighted average number of options outstanding during the period. Options are only taken into account when their effect is to reduce basic earnings per share.

Property, plant and equipment and right-of-use assets

During the 26 weeks ended 28 June 2026, the Group recognised an impairment charge of £nil (2025: £7.4m) made up of impairment of right-of-use assets of £nil (2025: £5.0m) and impairment of property, plant and equipment of £nil (2025: £2.4m). The impairment movement last year was due to the reassessment by each individual cash generating unit following a change in performance and/or change in assets. The impairment calculation is sensitive to changes in the assumptions and estimates used in the underlying forecasts of future performance and cash flows.

Lease liabilities

Lease liabilities are measured at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate of 4.5% and the Bank of England base rate at the time of any lease modification or a new lease. The average rate used for modification in 2026 was 4.95% (2025: 4.97%).

The right-of-use assets all relate to property leases. The right-of-use assets as at 28 June 2026 were £13.5m (2025: £14.9m). During the period ended 28 June 2026 the Group made a provision for impairment of the right-of-use assets against a number of sites totalling £nil (2025: £4.8m).

Included in profit and loss for the period is £0.7m (2025: £0.9m) depreciation of right-of-use assets and £0.6m (2025: £0.7m) financial expenses on lease liabilities.

Reconciliation of result before tax to net cash generated from operating activities