Food and Drink Group seeks consolidation
The Food and Drink Group, operator of Henry J Beans and Jamies bar brands, says it is looking for a "substantial corporate transaction".
Despite a 2.4% increase in like-for-like sales, the company said that it believes the Group is "sub-scale and its current capital structure inappropriate for a more uncertain economic climate".
It added: "Consequently, all non-essential capital expenditure will be put on hold and the Group is actively looking for a substantial corporate transaction.
"The aim is to create a business of sufficient scale to cover its necessary central cost base more efficiently than the Group is currently able to achieve."
The results for the year end to 29 September show turnover also up 2.4% across the 33-strong estate to £20.8m.
Profit before tax was £0.6m compared to £0.9m for the year before.
Food sales increased by 5% across the estate which now includes the Puzzle Pubco sites acquired for £1.2m.
Terms have also been agreed for an additional £2.5m in banking facilities.
Chairman Stephen Thomas said: "The invested bars business is showing good returns and we plan to focus on improving the performance of the uninvested bars business over the months ahead.
"The Puzzle sites have integrated well and the refurbished units are delivering improved performance which is encouraging.
"Whilst there has been some softening in trading in the current year as a result of consumer concerns in the wider market, the Directors remain confident that the Group has a portfolio of brands with significant untapped future potential."
