Tortilla reports record revenue in first post-IPO results

Tortilla Mexican Grill reported on what it called a “transformational year” on Monday, with revenues increasing 79.5% to a record £48.1m.

The AIM-traded restaurant operator said it achieved that result in spite of Covid-19-related closures and restrictions, and due to a “strong performance” across its existing estate and the addition of new sites.

Like-for-like revenue was ahead 23.8% year-on-year for the period ended 2 January, while adjusted EBITDA pre-IFRS 16 rocketed 262.5% to £8.7m.

Tortilla said it had a “strong” balance sheet, with net cash of £6.7m at period end, which the board said would support the company’s self-funding of its roll-out plans.

Looking ahead, Tortilla said its strong trading momentum had continued into 2022, with like-for-like growth of 20.1% for the year-to-date, in line with expectations.

One new site was opened in the first quarter of 2022, another in April, and “at least seven” further site openings planned, underpinning the board's confidence in delivering the group's target of 45 openings by the end of 2026.

Tortilla also said it had successfully launched a franchise partnership with Compass Group, with four locations now trading and plans to open at least 10 more over the next five years.

The company said it was “well-positioned” to navigate macroeconomic pressures, supported by its strong brand, value-for-money proposition and flexible operating model.

Tortilla described a “very strong platform” for continued growth and strategic progress.

“Capping off a transformational year for Tortilla, we are very pleased to announce a record financial performance for the group's maiden annual results following its successful initial public offering in October,” said chief executive officer Richard Morris.

“During the year we made excellent progress in delivery of our long-term growth strategy.

“We opened further sites in line with our UK roll out plans, expanded our delivery kitchen estate to fulfil growing customer demand, and both extended and launched franchise partnerships which introduced the Tortilla brand to even more customers across the UK.”

Morris said the company’s “strong financial and operational momentum” had continued into 2022.

“Underpinned by our flexible model, value-for-money offer and clear long-term growth strategy, we are very excited to capitalise on the growth opportunities presented by the post-pandemic landscape.

“We remain confident of delivering our exciting plans for Tortilla to the benefit of all stakeholders.”

At 1219 BST, shares in Tortilla Mexican Grill were up 2.33% at 169.88p.