FUL shares are trading down 2% today, continuing their punishing in the back half of 2017.
Companies: Fulham Shore Plc
Fulham Shore's (LON: FUL) Interims have left the market feeling underwhelmed today after a slow summer has impacted its results.
The stock has taken a battering in the back half of 2017, along with many of its restaurant group peers as consumer confidence dwindles, inflationary cost pressures swell and labour costs grow.
In H1 18 the Group behind brands such as Franco Manca The Real Greek reported Revenues of £27.5m £19.5 in the same period last year, while Net Profit growth for the period was flat at £0.6m compared to £0.5m in H1 17.
Higher costs, which Management first flagged in September as well as weaker than expected summer trading have left a big dent in the Group's numbers:
"Our pre-2017 estate, while profitable, is contributing less, on an average site by site basis, than last year. We will respond to the economic climate in the next 24 months as we find it, as we believe these factors will continue to affect the restaurant sector in the coming years, limiting our visibility for the second half and beyond."
Cash flow for the period was almost half that of H1 17 (£3.3m versus £6.4m) primarily due to:
"...the Group benefiting last year from an increase in trade and other payables."
The Group has continued to expand, however, opening three The Real Greek restaurants, seven Franco Mancas in the UK as well as the bold move to open a Franco Manca on the southern Italian island of Salina.
Shares in FUL were down 2% to 11.5p on Friday morning.
Management said while they thought the Interim results were "satisfactory", full-year performance will depend on a number of factors:
"Our full year Headline EBITDA* to 25 March 2018 will depend on how our suburban estate performs in the second half of the year and also on the timing and performance of new openings."
Today's current share price of 11.5p represents a 95% price drop since May this year. It trades on a 12-month forecast PE ratio of 17x and ranks 33/100 according to Stockopedia's StockRank tool.