TIDMMEX
RNS Number : 8411X
Tortilla Mexican Grill PLC
10 January 2022
10 January 2022
Tortilla Mexican Grill plc
("Tortilla" or the "Group")
Trading Update
A very strong FY21 performance underpinned by a year of
transformational growth
Tortilla, the largest and most successful fast-casual Mexican
restaurant group in the UK, provides a Trading Update in respect of
the financial year ended 2 January 2022 (the "Period").
Highlights
-- Group revenue increased 79% to GBP48.1 m (FY20: GBP26.8m; FY19: GBP35.4m)
-- UK like-for-like (LFL) revenue versus 2019 increased by 23.8% despite the numerous lockdowns/restrictions. Excluding Q1, which was significantly impacted by lockdowns, LFL revenue increased by 30.3% versus FY19
-- Further growth was driven by the addition of seven UK
company-operated restaurants and two UK franchise restaurants,
taking Tortilla's estate to 64 stores globally
-- FY21 revenue and profits are materially ahead of our
expectations following stronger trading in Q4, despite the
emergence of the Omicron variant of Covid-19
-- Strong cash generation resulted in net cash at the year end
-- Launch of partnership with Merlin Entertainments at
Chessington World of Adventures, as well as the opening of two
further sites in partnership with SSP Group plc at Gatwick Airport
and Skelton Lakes motorway services
-- Continued investment in our people by increasing our employee
pay rates and strengthening the senior management team
-- Admission of the Group to AIM in October 2021, raising gross
proceeds of GBP5.0m to accelerate growth plans
-- Strong confidence in outlook and ability to deliver in line with expectations for FY22
Tortilla delivered excellent performance during the FY21
financial year, achieving a 79% increase in Group revenue to
GBP48.1m, and a 36% increase when compared with FY19 revenues.
This was driven by growing customer demand across all the
Group's channels of eat in, take away and delivery, and underpinned
by both the increasingly relevant Tortilla brand and the continued
roll-out of new sites in line with the Group's growth strategy.
Tortilla is known for its customisable, high-quality, fresh
products.
During the period, Tortilla opened new stores in Edinburgh,
Exeter and Windsor, new delivery kitchens in Balham, Manchester and
Brent Cross, and launched the first Tortilla site in partnership
with Merlin Entertainments, taking the total company-run locations
to 51.
The Group's delivery channel went from strength to strength
during the year, supported by an increase in the number of delivery
kitchens to five. An important pillar of Tortilla's multichannel
model, delivery now comprises more than 30% of total Group
revenue.
Note: FY21 figures are subject to audit
Current trading and outlook
Trading continues to be very positive despite the emergence of
the Omicron variant of Covid-19. The Board remains confident that
the Group will perform in line with expectations for FY22, as the
reduced financial assistance from the UK Government will be offset
by reduced trading restrictions.
The Board also remains confident in the Group's ability to make
good progress against its store roll-out strategy to open 45 new
sites in the next five years.
Richard Morris, Chief Executive Officer of Tortilla,
commented:
"We are delighted to have maintained the very strong trading
momentum, outlined at the time of our IPO, to achieve an excellent
full year performance. This was supported by the growing appeal of
our proposition and the continued expansion of the Tortilla brand.
Once again, the adaptability of Tortilla's offer supported us
through the latter stages of the year to achieve a strong
performance across both delivery and take away.
"In addition to delivering this very strong financial growth, we
were pleased to achieve progress against a number of strategic
objectives, including the launch and development of various
partnerships, and growing our estate of delivery kitchens and
traditional bricks and mortar locations, to meet the increasing
customer preference for delivery of high-quality
Californian-inspired Mexican cuisine."
ENQUIRIES
Tortilla Mexican Grill PLC Via Hudson Sandler
Emma Woods, Non-Executive Chair
Richard Morris, CEO
Andy Naylor, CFO
Liberum Capital Limited (Nominated Adviser, Tel: 020 3100 2222
Sole Broker)
Andrew Godber
Edward Thomas
Christopher Whitaker
Nikhil Varghese
Hudson Sandler (Public Relations) Tel: 020 7796 4133
Alex Brennan tortilla@hudsonsandler.com
Wendy Baker
Lucy Wollam
Charlotte Cobb
For further information , visit tortillagroup.co.uk
NOTES TO EDITORS
Tortilla is the largest and most successful fast-casual Mexican
restaurant group in the UK specialising in the sale of freshly made
Californian-inspired Mexican cuisine. The Group has 64 sites
worldwide, comprising 51 sites in the UK operated by the Group,
three sites franchised to SSP Group in the UK, and 10 franchised
sites in the Middle East.
The Group was founded in 2007 by Brandon Stephens, originally
from California who, upon his arrival in London in 2003, found it
difficult to satisfy his desire for quality burritos and tacos. As
a result, Brandon established Tortilla with a mission of offering
customers freshly prepared, customisable, and authentic
Californian-inspired Mexican food.
The brand is synonymous with an energetic, vibrant culture, and
with providing a great value-for-money proposition. It embraces
fast-growing sector trends (including eating out, healthy eating,
provenance, ethnic cuisine, delivery) across a variety of
locations, through a differentiated product offering which is
popular with a broad customer base, and a clearly defined
multi-channel marketing strategy. It benefits from flexible site
locations and formats, and a scalable central infrastructure.
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