LONDON (ShareCast) - (ShareCast News) - Middle East restaurant chain Comptoir Group's half-year revenue increased following going public in June, as it seeks to expand its business sites in the UK.
For the six months ended 30 June, revenue rose by 24.6% to £9.7m, compared to the same period last year, which resulted in a 10.2% increase in gross profit to £3.79m.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) expanded 9.2% to £1m.

Net cash and equivalents at the end of June stood at £8m, up from £1.3m last year, while bank borrowings of £2.3m were 21% higher.

The company said following the company's admission to AIM in June, it now has the balance sheet which will enable it to expand by opening eight new sites by December, adding to its existing 15 restaurants in London and Manchester.

Comptoir's pipeline for 2017 and 2018 included a number of other sites, the contract for one of which has already been exchanged, but is not due to be completed until the second quarter of 2017.

Following its flotation on AIM and other items, the company incurred in a pre-tax loss of £400,000.

The company's largest brand, Comptoir Libanais' revenue increased by 23.2% to £6.9m as sales from other sites rose by 25% to £2.5m.

During the period, it experienced additional costs including the implementation of the national living wage at the beginning of April, and the company said it has worked to mitigate cost pressures through efficiencies and improving the gross margin.

The basic loss per share for the period was 0.47p, compared to the 0.44p of basic earnings per share seen in 2015.

Chief executive Chaker Hanna, said: "The group continues to control its costs and improve its operational efficiencies and margins and, with the quality of the new site openings planned for the remainder of the financial year, together with the continuing solid trading that the group has experienced in July and August, there is a degree of confidence of achieving the board's expectations for the full 2016 financial year.

"However, this does assume that there are no material factors which could impact on the results including significant delays in the opening of the new sites or macro-economic factors outside the group's control."

Since the end of June, the company is in negotiations with the owner to buy the building occupied by its central production unit, £1.6m was previously agreed, but not confirmed.

Shares in Comptoir Group were up 1.01% to 80.30 at 0841 BST.

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