Comptoir swings to loss as costs bite

Comptoir Group on Tuesday swung to an annual loss as a jump in revenue was offset by increased costs as the company warned of "unprecedented political and general uncertainty".

The Lebanese restaurant owner recorded revenue of £34.3m for 2018, an increase of 16% compared to the year before, though this largely offset by a 16% increases in administrative expenses and cost of sales to £15.8m and £9.6m respectively.

Consequently, Comptoir swung to a loss before tax of £0.2m, down from a profit of £0.5m the year before.

The AIM traded company said costs had still been carefully controlled but pressures arose from the ongoing effect of the UK minimum wage and Apprenticeship Levy, rising general labour costs, input food costs and property related charges.

Sales growth had been achieved despite "challenging" economic conditions and "a continued decline in high street footfall which has directly impacted the dining-out sector".

Chaker Hanna, chief executive of Comptoir, said: "Like for like sales growth has continued each month as newer restaurants reach anticipated maturity levels and the company is continuing to take a cautious approach to selecting new site openings, enabling focus on the existing estate and further development of the brand whilst ensuring the most efficient operating model is maintained."

Cash and cash equivalents stood at £4.6m at the end of the year, down from £5.6m at the same point the year before, while no dividend was proposed for the year.

While the group acknowledged that it cannot be immune to the impact of the current uncertainty across the UK economy, the group "has proven its resilience and is in a strong financial and cash position, taking a cautious approach to selecting new site openings, enabling focus on the existing estate and further development of the brand whilst ensuring the most efficient operating model is maintained".

Comptoir Group's shares were down 1.52% at 8.74p at 1217 BST.