Fulham Shore to restart expansion when normal trading resumes

In a trading update, the Franco Manca and Real Greek operator reports that during lockdown trading is at around 46% of normal levels.

Directors, however, are confident that trading will return to previous levels when the UK Government removes restrictions.

Throughout lockdown, Fulham Shore has been offering delivery and take out services at 48 Franco Manca sites and 10 Real Greek locations.

The group has now drawn down in full its Business Interruption Loan facility of £10.75m under the Government’s scheme.

It is currently in negotiations to extend the maturity date of its existing £14.75m HSBC revolving credit facility beyond March 2022.

Fulham Shore's net debt, before lease liabilities, was £5.7m as at 5 February 2021, compared with net debt of £9.5m as at 29 March 2020.

The group therefore has financial headroom within its loan agreements of around £20m.

In its update, the company has reiterated that the crisis is throwing up new site opportunities at much reduced costs.

“The well-publicised difficulties in the property and restaurant sectors are providing the group with opportunities to acquire new sites at much reduced rents and lower capital costs per site," a spokesman says.

"We are negotiating for many sites throughout the UK to restart our expansion programme as soon as full restaurant trading resumes.

“In addition to our existing commitment to open a new Franco Manca in Glasgow this summer, the group is in final negotiations to secure two more sites over the next few weeks, one for Franco Manca and another for The Real Greek. Subject to concluding these negotiations as anticipated, both these restaurants would be ready to start trading in the summer.”