Half-year Results

For the 26-week period to 31 March 2024

Various Eateries PLC, the owner, developer and operator of restaurant, clubhouse and hotel sites in the United Kingdom, announces its unaudited results for the 26-week period ending 31 March 2024.

Financial Highlights

• Revenue growth of 10.2 % to £ 22.7 m (H1 2023: £20.6m), largely driven by new site openings
• Gross profit increase of 138.2% to £1.3m (H1 2023: £0.6m), driven by cost savings and efficiencies
• Adjusted EBITDA loss of £1.2m (H1 2023: loss of £1.9m)
• Cash at bank of £7.2m (H1 2023: £3.1m)
• Net cash of £4.2m (H1 2023: net debt of £9.8m)

Operational Highlights

• Solid performance despite adverse weather, train strikes and economic conditions, with Like-for-Like revenues slightly down
• Maintained our strategy of absorbing most cost increases to strengthen our long-term position
• Enhanced customer experience through site improvements and menu updates

Post-Period Highlights

• The significant increase in minimum wage has impacted margins and has partially been offset by food and utilities inflation which has fallen year on year
• Successful openings of Noci Richmond and Coppa Club Townhouse Cardiff
• Performance at the start of H2 has been steady, although we are yet to experience any real consistency in the weather

Andy Bassadone, Executive Chairman of Various Eateries, said:

"In a tough trading environment compounded by poor weather, the performance of the Group has been resilient, and I thank our whole team for their efforts.

The opening weeks at our two latest sites are satisfying and demonstrate the continued strength of and demand for the Coppa Club and Noci concepts. Alongside this, the work that has been done to enhance existing Coppa sites positions us well to capitalise on the important summer trading months.

The majority of the Company's larger sites deliberately have large and attractive outside spaces, which generate a considerable extra volume of trade in warm weather. The Company's full year budgets therefore reflect an expectation that, at some point, we will experience a reasonable version of summer this year, rather than the inconsistent weather we've seen so far.

With the welcome signs that inflationary pressures are continuing to fall, a growing estate of high-quality sites and increasingly robust organisational infrastructure, I remain confident in the long-term opportunity."

The Group operates two core brands across 20 locations:

Like-for-Like revenues were slightly down on last year, primarily due to an unseasonably wet winter and the Company continuing to adhere to its strategy of absorbing most cost increases rather than passing them on to customers. While this strategy temporarily puts pressure on margins, it is management's belief that prioritising customer satisfaction over short-term profits will position the Group for significant growth when conditions improve.

As the Company continues its strategy to absorb price rises without passing them on to customers, it has been encouraging to see food and utility costs continue to gradually fall. The benefits of this have, however, been tempered somewhat by the impact of the minimum wage increase in April, which has been felt across the industry.

Despite this, we have continued to make good strategic progress and are generally satisfied with the performance of the Group and its brands given the mitigating circumstances.

Executing on our growth strategy

Our strategy continues to revolve around the expansion of our distinctive Noci and Coppa Club brands, which both fill specific gaps in the market.

As previously reported, we were thrilled to open two new sites in the period, Noci Richmond and Coppa Club Townhouse Cardiff. Both welcomed guests for the first time in May 2024 and we are pleased by the progress made by both in their first weeks.

Noci Richmond, the brand's fourth site since opening in Islington in 2022, is situated on the popular Richmond Hill, just a short walk from the river. As our prior experience shows, its popularity will continue to increase as the brand grows and word of mouth spreads.

Coppa Club Cardiff, the brand's third Townhouse, has enjoyed some outstanding trading weeks. Its location in the heart of the city near the Principality Stadium, the quality of food and service, and its strong start give us confidence in the site's prospects.

The pipeline for new sites is strong and we continue to see many prime opportunities for expansion. Management will continue to be cautious and thorough in its approach to growing the estate, with long-term, sustainable success the priority.

Continuing to enhance our proposition

Much hard work took place in the period to enhance our existing sites in preparation for the summer trade, including the refurbishment of outdoor terrace areas. We anticipate that these new spaces will support revenue over the warmer months, with additional footfall expected from major international sports events.

Quality food has always been at the heart of Various Eateries. During the year, we continued to work diligently to enhance our menus while working closely with suppliers to incorporate a stronger seasonal component. As well as fresher food, it is also typically more cost effective.

The enhancements to our menus have been coupled with a renewed focus on consistency of delivery across the Group, which we see as an important step to ensure customers continue to return again and again.

Solid half-year results in context

Sales grew by 10.2% across the Group compared to the same period last year, largely driven by new site openings. Gross profit increased by 138.2%, highlighting the success of cost savings and efficiencies relating to colleagues and suppliers.

Following the successful placing in December 2023, the Group's financial position remains strong, with cash at bank of £7.2m as at 31 March 2024 (H1 2023: £3.1m).

The higher minimum wage has had a significant impact on staff costs, with pay rises occurring across the business. In response, we continue to be proactive in our efforts to uncover cost-saving opportunities, leveraging technology where possible. We have recently introduced at-table ordering at some sites and are working on several further initiatives we expect to improve efficiency while simultaneously enhancing the customer experience.

We continued to see the effects of the cost-of-living crisis in customer spending patterns in the period but, encouragingly, higher priced items such as lobster have remained consistently popular, indicating that our typical customer continues to have more expendable income.

Focus on colleague development and procurement excellence

During the first half, we made good progress in upskilling and strengthening operational management.

Investing in colleague training is a key focus area, driven in a large part by our new People Director. In a competitive and dynamic industry such as ours, it is crucial to ensure our workforce is motivated and equipped to deliver the best possible service.

We also hired a new Head of Procurement in May 2024, who has begun a process to deepen the work we have undertaken to ensure menus are comprised of in-season and, where possible, local produce. This is expected to have an incrementally positive impact on costs moving forward.

Optimistic outlook despite challenging conditions

An unseasonably wet winter hampered performance at the start of the year but trading remained resilient and, with the enhancements made in the first half, we are confident moving into the important warmer trading months.

Despite the abiding inflationary pressures being experienced in the hospitality sector, we are encouraged by their gradual easing and remain optimistic that this trend will continue through the second half.

Performance at the start of H2 has been steady and, while our full year budgets reflect an expectation that the weather improves somewhat as the summer progresses, the business is in a healthy position and its long-term prospects remain sound

Various Eateries PLC

Consolidated Statement of Comprehensive Income

for the 26 weeks ended 31 March 2024

Various Eateries PLC

Notes to the Financial Statements

for the 26 weeks ended 31 March 2024

1 General information

Various Eateries PLC, 'the Company', and its subsidiaries (together 'the Group') are engaged in the operation of restaurants and hotels in London and the South of England.

The company is a public company limited by shares whose shares are publicly traded on AIM, a market of the London Stock Exchange and is incorporated in the United Kingdom under the Companies Act 2006 and are registered in England and Wales.

The registered address of the Company is 20 St Thomas Street, London, SE1 9RS.

2 Basis of preparation

The unaudited interim financial information for the 26 weeks ended 31 March 2024 has been prepared under the recognition and measurement principles of International Financial Reporting Standards ("IFRS") based on the accounting policies consistent with those used in the financial statements for the period ended 1 October 2023, but does not contain all the information necessary for full compliance with IFRS.

The unaudited interim financial information was approved and authorised for issue by the Board on 26 June 2024. The unaudited interim financial information for the 26 weeks ended 31 March 2024 does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 and should be read in conjunction with the statutory accounts for the period ended 1 October 2023. The information for the 52 weeks ended 1 October 2023 has been extracted from the statutory accounts for that year which have been delivered to the Registrar of Companies. The audit report on these statutory accounts was unqualified, did not contain an emphasis of matter paragraph, and did not contain a statement under sections 498(2)-(3) of the Companies Act 2006.

The interim financial statements are presented in Pounds Sterling because that is the currency of the primary economic environment in which the company operates. All values are rounded to the nearest one 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.

3 Segmental reporting

5 Earnings per share

Basic loss per share is calculated by dividing the profit attributable to equity shareholders by the weighted average number of shares outstanding during the year. There were no potentially dilutive ordinary shares outstanding as at the reporting date.

Goodwill is not amortised, but an impairment test is performed annually by comparing the carrying amount of the goodwill to its recoverable amount. The recoverable amount is represented by the greater of the individual CGU's fair value less costs of disposal and its value-in-use.

7 Property, plant and equipment

10 Loans and borrowings (continued)

Borrowings from related parties classed as payable within 12 months includes one deep discounted bond instrument issued by VEL Property Holdings Limited until 1 October 2023 where the non-current deep discounted bond issued by Various Eateries Trading Limited was reclassed to current.

The deep discounted bond instrument issued by VEL Property Holdings Limited was rolled in 2023 with a new redemption date of 14 July 2023. In July 2023 the deep discounted bond was rolled with a new redemption date of 14 January 2024; and was rolled again in January 2024 with a new redemption date of 14 July 2024. The nominal value at 1 October 2023 and 31 March 2024 is £2,902,000. The discount is recognised on a straight-line basis between subscription and redemption date, resulting in £51,000 of accrued financing costs as at the reporting date.

The deep discounted bond instrument issued by Various Eateries Trading Limited was rolled for 12 months in February 2023 with a redemption date of April 2024. The nominal value at 1 October 2023 is £10,001,000 and at 31 March 2024 is £nil as the loan was repaid in full through proceeds of a share issue in December 2023.

11 Share based payments

As at 31 March 2024, the Group maintained one separate share based payment scheme for employee remuneration (2023: two):

Various Eateries Company Share Option Plan ("CSOP")

In accordance with IFRS 2 "Share-based Payment", the value of the awards is measured at fair value at the date of the grant. The fair value is expensed on a straight-line basis over the vesting period, based on management's estimate of the number of shares that will eventually vest. A charge of £139,000 (2023: £51,000) has been recognised in the income statement by the Group in the 26 week period ended 31 March 2024.

During the period, 13,483,180 options were granted into the CSOP scheme to certain directors and PDMRs of the Company. 7,517,816 options were cancelled.

12 EBITDA Reconciliation