The Giraffe Restaurant Group Announces Record Year in 2009/10.
- Turnover increased from £24m to £29m.
- Operating costs show improvements in margins in all areas of the business.
- EBITDA before exceptionals increases to £3m.
- Acquisition and conversion of 7 Tootsies sites into the Giraffe brand.
- Opening of a further Giraffe Site in Victoria.
- Launch of new Guerilla Burgers brand in James Street, London W1.
- Operations strongly cash generative.
- Bank Facilities available for further expansion and acquisition.
Commenting, Chairman Luke Johnson said “This is a very strong performance from the Giraffe management team, who executed the Tootsies acquisition efficiently despite its complexities, and without loss of focus on the core Giraffe restaurants. The Bank facilities at our disposal will enable us to move quickly should any further similar opportunities come to the market in the next year.
Russel Joffe, Managing Director said: “These results show a resilient performance for the year to March 2010, in a challenging casual dining market. I am pleased to report a strong performance in the core estate. The acquisition of 8 Tootsies and Dexters sites from Clapham House Group was an ambitious move, but the integration proceeded speedily and all sites were re-branded within 5 months of exchanging contracts on the deal with the Administrator. As a result of the change of brand, tweaks to the restaurant layout, re-training of personnel to introduce our trademark friendly service, we have seen material sales increases in virtually all converted sites. EBITDA at these eight sites for the first few months of 2010-11 is significantly ahead of our original forecasts.”
Paul Viner, CFO commented “This year will see the group’s first opening in Scotland with the launch of our Aberdeen site in September. At 37 restaurants, the group is becoming a national business. Giraffe is cash generative, net debt is modest, and with a highly experienced management team, we will continue to grow in an ambitious but carefully managed way to our target of 50 branches.”