LONDON (ShareCast) - (Sharecast News) - Lebanese and Middle Eastern-inspired restaurant operator Comptoir Group reported improved trading results for the financial year ended 29 December on Tuesday, with revenue increasing by 9.5% year-on-year to £34.5m.
The AIM-traded firm said full-year like-for-like sales rose 1.9%, with second-half like-for-like growth of 2.9%.

It said it achieved its most successful Christmas trading period to date, recording sales of £4.6m for the six weeks ended 5 January - a 19% increase compared to the prior year.

Like-for-like sales during the period grew 8.4%.

Adjusted EBITDA for the 2024 financial year was expected to exceed £0.5 million, marking a turnaround from a loss of £0.6m in the first half of the year.

Comptoir said it ended the year with a net cash position of £5.9m, up from £4.9m at the half-year mark, despite ongoing repayment of its CBIL loan, which was on track to be fully repaid by September 2026.

The group acknowledged cost pressures from the UK's Autumn Budget 2024, estimating that increases to the National Minimum Wage and employer's National Insurance contributions would add about £0.8m to labour costs in the 2025 financial year.

Comptoir said it planned to mitigate these impacts through operational efficiencies, modest pricing adjustments, and rigorous cost control.

In a significant leadership update, the company said chief executive officer Nick Ayerst would step down at the end of February.

Founder and creative director Tony Kitous had identified former CEO Chaker Hanna as Ayerst's successor, pending regulatory approval.

The proposed reappointment of Hanna - a substantial shareholder with an 18% stake in the group - prompted the resignation of independent chairman Jean-Michel Orieux and independent non-executive director Ali Aneizi, citing concerns over the board's ability to represent all shareholders independently.

Comptoir said it was in advanced discussions with Richard Kleiner, former chairman, to return to the role, while a search was underway for an independent non-executive director.

The company said it was committed to strengthening its governance and operational foundation before pursuing further growth opportunities.

"2024 has not been without its challenges as the general economic climate and sector specific cost pressures continue to bear down on the group," said outgoing CEO Nick Ayerst.

"Despite this backdrop, the senior management team has delivered a year of both sales and profit growth.

"The performance in the second half of the year was particularly pleasing, with an increasing cash balance and a strong Christmas trading due to a concerted effort by the team to elevate the guest experience."

Ayerst added that the company had continued to invest in refurbishments, technology, sustainability and its people, where it had "industry-leading" team engagement.

"These investments, which have now concluded, together with our new managed and franchised restaurants are building a solid foundation for the group.

"We are reviewing our cost base and efficiencies and we continue to address underperforming restaurants and will take appropriate action with these where required.

"We have every confidence that the progress on like-for-like sales growth and profitability will continue in 2025 and that the company is well positioned as it enters the new year after a period of strategic investment."

At 0802 GMT, shares in Comptoir Group were up 6.15% at 3.45p.

Reporting by Josh White for Sharecast.com.

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