Drake & Morgan sees LFL growth despite cost rises

Drake & Morgan, the London-based bar and restaurant group backed by Bowmark Capital, has announced its financial results for the year ending March 2018.

Turnover increased by 15.9% to £49.7m (52 weeks to 25 March 2018), and like-for-like turnover rose by 1.2%. Adjusted EBITDA was flat at £5m, and adjusted pre-tax profit stood at £1.3m.

Three sites opened during the period: The Sipping Room in Canary Wharf, The Listing in the City of London, and The Allegory in Shoreditch.

Trading in the current financial year has been positive with good like-for-like sales and EBITDA growth. The Anthologist One St Peter’s Square in Manchester opened in summer 2018, and a further two Corney & Barrow Bars were refurbished and are performing well.

CFO James Sherrington said, “2017/18 was another year of progress for the business as the market faced challenging trading conditions.

'Despite this, like-for-like sales were positive and although margins were impacted by cost inflation in staff, food costs and property costs, we were able to maintain EBITDA in line with the previous year whilst making investments to support future growth.

'Trading in the current year has been positive with good like-for-like sales and EBITDA growth.”