28 March 2008
Trading Update
The Clapham House Group PLC (“Clapham House” or the “Company”)
Trading update and Board change
Clapham House, owner and operator of Gourmet Burger Kitchen (“GBK”), The Bombay Bicycle Club (“BBC”), The Real Greek (“TRG”) and Tootsies, today provides the following trading update in advance of the release of its preliminary results for the year ending 30 March 2008.
Trading update
The Company expects to report results for the year in line with market expectations and comfortably ahead of those reported for the previous year.
GBK has continued to deliver good sales performance and excellent returns on capital invested. We have opened 2 GBK restaurants to date in 2008 in Cardiff and Didsbury, both of which have commenced trading very strongly. This brings the total number of GBKs in the UK to 43, of which 26 are within Greater London and 17 are nationwide. Since the purchase of 6 London based GBK restaurants in November 2004, we have opened 37 restaurants throughout the UK from Edinburgh to Brighton. Based on the evidence of our diverse existing estate, we are convinced of GBK’s national roll-out potential to at least 150 restaurants across the UK.
Recent initiatives at Tootsies, including the introduction of new menus, have been well received. We are encouraged by resultant trading, in particular in the refurbished high street estate where we have seen improved sales performance. Trading at Tootsies in retail and leisure centres is showing some signs of stabilising.
Opening programme
We plan to expand all of our businesses in the next financial year at rates appropriate for their stages of development and the current economic climate. In particular, we will continue to focus on the growth of GBK both directly in the UK and under franchise internationally.
During the financial year to 30 March 2008, the Company opened 23 GBKs, of which 21 are in the UK including the conversion of Tootsies in Canary Wharf, which has seen a significant uplift in sales. The other 2 GBK openings were an initial GBK under franchise in Istanbul, Turkey and our fourth GBK under franchise in the Middle East.
We have also exchanged contracts on 10 UK properties for the financial year to March 2009, comprising 7 GBKs, 2 TRGs and 1 BBC. These are expected to include the two delayed properties at Spitalfields Market where we still await confirmation of a final handover date. Internationally, we expect our partners to open at least 5 GBK restaurants under franchise during the financial year to March 2009.
We have signed a contract which we expect to result in the opening of the first Tootsies restaurant in a UK regional airport in 2008. This will be operated under franchise and represents a further development of the Tootsies business model.
Board change
Sarah Willingham has resigned from the Board and will leave the Company at the end of this financial year in order to spend more time with her young family. Management of Tootsies, BBC and TRG will now report directly into Paul Campbell, Chief Executive.
Outlook
We are confident that our expansion plans for the next financial year are appropriate for current market conditions. Despite our expectation that conditions will remain tough, we plan to continue to grow our business over the next twelve months.
Enquiries
The Clapham House Group PLC
David Page, Executive Chairman 07836 346934
Paul Campbell, Chief Executive 07785 228299
Nick Wong, Group Finance Director 020 7489 6888
Noble & Company Limited 020 7763 2200
Nick Naylor
Hogarth Partnership Limited 020 7357 9477
Julian Walker
Ian Payne
NOTE TO EDITORS:
The Clapham House Group PLC (www.claphamhousegroup.com)
Gourmet Burger Kitchen (www.gbk.co.uk)
GBK offers a range of nutritious, delicious and sophisticated burgers (Harden’s London Restaurants 2006: “Best Burger”, Time Out 2007: “the first and remains our favourite gourmet burger chain”) using quality, fresh ingredients to create each burger including oversized sourdough buns, 100% Aberdeen Angus Scotch Beef patties, English chicken and other fresh produce delivered to the restaurants each day. GBK offers a variety of 34 burgers including Beef, Chicken, Lamb, Venison and Chorizo, as well as 5 Vegetarian burgers, Junior Beef, Chicken and vegetarian burgers and delicious flavour combinations such as the Pesterella Burger (Beef, Mozzarella and Pesto). GBK has signed an exclusive partnership with the renowned organic and biodynamic farm at Laverstoke Park and now offers wild boar and buffalo burgers. The 43rd GBK restaurant in the UK opened in Didsbury in January 2008. The fifth international GBK opened in Istanbul in December 2007.
Tootsies (www.tootsiesrestaurants.co.uk)
Tootsies first opened its doors to London diners in Holland Park back in 1971 and rapidly built up a loyal local following. Over the past 37 years, Tootsies has opened many more restaurants throughout London and the United Kingdom, offering high quality, freshly prepared food in a friendly atmosphere. The menu is renowned for its legendary breakfasts and brunches, whilst the char-grill offers steaks, ribs and a superb selection of award winning burgers, including the famous Jalapeno (avocado, Monterey Jack cheese and Mexican hot sauce). Children are very welcome and are offered an organic children’s menu and the renowned freshly blended Tootsies milkshakes. (Zagat 2007: “the staff are cheerful and friendly even when your children aren't”, Hardens 2007: “a great family destination”).
The Bombay Bicycle Club (www.thebombaybicycleclub.com)
The Bombay Bicycle Club operates three restaurants and fifteen delivery kitchens and has built an outstanding reputation for quality Indian cuisine over a period of 20 years using the freshest ingredients and providing excellent service, regularly receiving positive plaudits from leading food critics (Zagat 2007: “posh takeaways are good value especially when delivered to your door”, Hardens 2007: “light, fresh and well-crafted curries”). The Bombay Bicycle Club home delivery service currently provides quality, freshly prepared food to more than 10,000 customers a week in the comfort of their own homes.
The Real Greek (www.therealgreek.com)
The Real Greek offers highly acclaimed traditional Greek cooking (Time Out 2007: “faultless Souvlaki…perfectly char-grilled”, Harden’s 2007: “revolutionalised our notions of Greek cooking”) using fresh and seasonal ingredients served in an informal setting and accompanied by specially imported Greek wines. The Real Greek concept derives its style from Greek “Street Food” and operates from six locations, including a landmark restaurant on London’s South Bank.