Tortilla announces plans to float and open 45 new sites

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Tortilla has announced its intention to float on AIM as it looks to open around 45 new sites in the next five year.

From FY2019 to LTM June 2021, Tortilla generated 250% EBITDA growth and opened eight stores. For the 12 months to June 2021 Tortilla outperformed the Coffer Peach Business Tracker by an average of 46 percentage points.

The group is targeting circa 45 new sites over the next five years including building on the success of the existing portfolio of delivery-only ‘cloud-kitchens’. It is also targeting further franchising and licencing opportunities.

Tortilla says it is strongly positioned to capitalise on further growth opportunities in the post-Covid-19 pandemic landscape by with a rise in the number of vacant units on the market and with rent levels rebalancing to more sustainable levels. This, it says, will provide the company with ‘an unprecedented opportunity to accelerate its UK rollout strategy’.

In a statement Tortilla chief executive Richard Morris said: “We are delighted to announce Tortilla’s Intention to Float on AIM, which marks an incredibly exciting milestone in our continued growth journey. Since its launch in 2007, Tortilla has established a long-term track record of strong financial performance driven by considered expansion of the property portfolio and like-for-like growth.

“The business has shown itself to be extraordinarily well positioned throughout the pandemic, as the Tortilla product proposition is well-suited to the growing delivery market and we have proved the brand’s flexibility to operate across a range of locations and formats, including smaller sites and cloud kitchens.

“We believe that this IPO unlocks our ability to consolidate on this momentum and enables us capitalise on significant long-term growth opportunities in the post-Covid-19 pandemic landscape.”

Tortilla has also announced two new non-exec appointments. Emma Woods, former CEO of Wagamama, will join as non-executive chairwoman and Laurence Keen, CFO of Hollywood Bowl Group, will become a non-executive director.