20 May 2025

Comptoir Group Plc

("Comptoir", the "Group" or the "Company")

 

FY 2024 Results

 

Comptoir Group Plc (AIM: COM), the owner and/or operator of Lebanese and Middle Eastern inspired restaurants announces its audited annual results for the 52 week period ended 29 December 2024.

 

Highlights:

 

·    Group revenue of £34.6m, up by 10.0% on prior year (2023: £31.5m), 2.0% increase on like for like ("LFL") basis

·    Gross profit of £27.8m, ahead of previous year by £3.1m (2023: £24.7m)

·    Adjusted EBITDA* before highlighted items of £0.8m (2023: £0.1m)

·    IFRS loss after tax of £1.9m (2023: loss of £1.6m)

·    Adjusted net cash** at the end of year of £3.0m (2023: £4.7m)

·    The basic loss per share for the year was (1.58) pence (2023: (1.30) pence)

·    The Group exited 2024 with 22 owned restaurants, with a further 6 franchised restaurants across 3 partners.

·   Post year end the Group has taken the decision, after careful consideration, not renew the lease for our Kenza Restaurant and has also closed Comptoir Bluewater.

 

Annual Report and Notice of AGM

The Company confirms that it has posted its 2024 Annual Report and Accounts to shareholders together with the 2025 Notice of AGM. The AGM will be held at 9.45 a.m. on 19 June 2025 at 6^th floor, Winchester House, 259-269 Old Marylebone Road, London NW1 5RA.

The 2024 Annual Report and Accounts and Notice of AGM are available on the Company's website.

*Adjusted EBITDA is a non-GAAP measure and is calculated from the (loss)/profit before taxation adding back net interest, depreciation, share-based payments and non-recurring costs (note 4)

 

** Adjusted Net Cash is a non-GAAP measure and is a metric used by the Board to review the capital position of the Group after adjusting for non-recurring fluctuations to Net Cash. The metric is presented pre IFRS-16 and as such lease liabilities are not considered an adjustment to net debt.

 

 

 

 

Enquiries:

 

Comptoir Group plc                                                                                          0207 486 1111

Chaker Hanna - Chief Executive Officer

James Fisher - Finance Director

Tony Kitous - Founder / Director

 

Cavendish Capital Market Limited (Nominated Adviser and Broker)

Corporate Finance: Katy Birkin / Elysia Bough                                               0207 220 0500

Corporate Broking: Tim Redfern

 

 

 

Notes to Editors

  

Comptoir Group PLC owns and operates 26 Lebanese and Middle Eastern inspired restaurants, six of which are franchised, based predominantly in the UK. The flagship brand of the Group, Comptoir Libanais, is a collection of 22 restaurants located across London, nationwide and international Travel Hubs, including cities such as Manchester, Bath, Birmingham, Oxford, Dubai and Milan.

 

The name Comptoir Libanais means Lebanese Counter and is a place where guests can eat casually and enjoy Lebanese and Middle Eastern food, served with warm and friendly hospitality and a bright vibrant environment.

 

The Group also operates Shawa, serving traditional shawarma through a counter service model in Westfield and Bluewater shopping centres and Abu Dhabi, and Yalla-Yalla with a branch near Oxford Circus.

 

The Group has expanded internationally with its franchise partners Avolta and Areas, with restaurants in the Netherlands, Qatar, UAE and Italy.

 

Chair's Statement

 

Highlights:

·    Group revenue of £34.6m, up by 10.0% on prior year (2023: £31.5m), 2.0% increase on like for like ("LFL") basis

·    Gross profit of £27.8m, ahead of previous year by £3.1m (2023: £24.7m)

·    Adjusted EBITDA* before highlighted items of £0.8m (2023: £0.1m)

·    IFRS loss after tax of £1.9m (2023: loss of £1.6m)

·    Adjusted net cash** at the end of year of £3.0m (2023: £4.7m)

·    The basic loss per share for the year was (1.58) pence (2023: (1.30) pence)

·    The Group exited 2024 with 22 owned restaurants, with a further 6 franchised restaurants across 3 partners.

·   Post year end the Group has taken the decision, after careful consideration, not renew the lease for our Kenza Restaurant and has also closed Comptoir Bluewater.

As announced in January 2025, a new Board has been formed subsequent to year-end, and it gives me great pleasure to return as Chair of the Group. Comptoir Group has always been known for a unique offering of healthy food of an excellent quality, served in vibrant environments and I remain excited about the future opportunities for the business, albeit still against a backdrop of a very challenging economic environment.

 

The Group delivered a full year Adjusted EBITDA of £0.8m in 2024 and LFL sales growth of 2.0%. Whilst it is promising that LFL sales growth has improved from 0.9% achieved in the first half of the year, the Board is fully aware that increasing LFL growth, driven through increased covers, is a critical focus moving forward. The Group has an adjusted net cash balance of £3.0m and rebuilding our cash balance after the investments of recent years, which are now complete, is another important focus area.

 

During 2024 the Group opened a new Comptoir Libanais site in Southbank and has brought back into the managed portfolio from our franchise partner the Comptoir site in Cheshire Oaks. The transaction attracted a consideration equivalent to a four-year rent contribution to the Group of £1.0m as part of the deal structure which was settled up front and has led to a cash contribution during the year. Our Yalla Yalla Soho site closed during the year and subsequent to the year-end we have taken the decision to close our Kenza site and Comptoir Bluewater.

 

Our franchise business remains an exciting opportunity with two new openings during the year. The first Shawa franchise opened in Abu Dhabi in March 2024 with our partner Avolta, and a Comptoir Libanais was opened in Milan's Malpenza airport with our new partner Areas Italy. Both are trading ahead of expectations. We exited our franchise site in Ashford in July 2024.

 

As has been well documented, the hospitality sector continues to face significant external challenges as we look ahead to 2025 and beyond. Ongoing cost of living pressures continue to put a strain on consumer's disposable income and makes the challenge for covers growth even more acute. The recent increases in National Minimum Wage combined with the lowering of the Employers' National Insurance threshold will also place significant pressure on business margins. The Group is well positioned to continue to face into these challenges but the Board will make careful cash management and preservation a priority in the short term.

On behalf of the Board, I would like to thank our teams who continue to work tirelessly in an ever-changing and challenging environment to deliver excellence in both product and service for our customers. We would also like to thank our investors, customers, suppliers and landlords who continue to support the business.

 

*Adjusted EBITDA is a non-GAAP measure and is calculated from the (loss)/profit before taxation adding back net interest, depreciation, share-based payments and non-recurring costs (note 4)

 

** Adjusted Net Cash is a non-GAAP measure and is a metric used by the Board to review the capital position of the Group after adjusting for non-recurring fluctuations to Net Cash. The metric is presented pre IFRS-16 and as such lease liabilities are not considered an adjustment to net debt.

 

 

Richard Kleiner - Chair

19 May 2025

 

 

 

 

Chief Executive's Review

 

For the period ended 29 December 2024

 

In my first Chief Executive's review since rejoining the Group post year-end, I wanted to begin by expressing my excitement at rejoining the Group, having previously spent 12 years as Chief Executive up until August 2022. I look forward to working again with the whole team to help the business capitalise on its full potential in the years to come. My priority since returning has been to work with the team on assessing our current position and identifying the opportunities in the marketplace, despite challenging external conditions.

 

2024 saw the Group finish with LFL sales growth of 2.0%, which was heavily driven by strong trading in the second half of the year. Winning back covers is an absolute priority for the new Board and will be one of the key strategic focuses for the whole business during 2025. The business has a fantastic offering, but we need to ensure that excellence is delivered every time and our customers feel a real sense of value for money to compete in this environment.

 

The core Comptoir estate performed for the most part in line with expectations, with most sites delivering LFL growth. There are however a handful of sites which remain a focus as we move into the new financial year. Shawa continues to deliver good sales and profitability from the two sites in Westfield and Bluewater, which demonstrates a very real opportunity for further growth of the Shawa brand.

 

Our managed estate saw the addition of Comptoir Southbank in April 2024. We also took the Comptoir Cheshire Oaks site back from our franchise partner in the early part of the year. As part of our simplification of operations, we closed Yalla Yalla Soho in January 2024. Two sites (Comptoir Chelsea and Shawa Bluewater) had significant refurbishments during the year and it has been pleasing to see both sites delivering double digit LFL growth post-refurbishment which has continued well into the new financial year.

 

Adjusted EBITDA* of £0.8m for the year is an improvement on the challenges of 2023 but still remains short of what we expect to be delivering. Whilst a return to covers growth across the estate will help move the dial on our bottom line, we need to ensure this is delivered in conjunction with efficient operations. There are undoubtedly significant external challenges which are impacting the margins of every retail and leisure business, notably labour costs which saw a 9.8% increase in the National Minimum Wage in April 2024 and will see further increases in 2025, but managing these costs to deliver the right EBITDA is critical.

 

The Group maintains an adjusted net cash** balance of £3.0m at the year-end after significant investment in recent years. Whilst strategic investments will always be considered, for the time being, the focus from the business is on protecting our cash balance and rebuilding reserves. With the challenging backdrop the Board feels a robust balance sheet is key to navigate the environment.

 

People

I would like to thank our amazing teams for their hard work through the year. Our people are critical to our business and we will continue to strive to create a culture and work environment that attracts motivated employees who feel recognised and rewarded for their efforts. Our annualised staff turnover levels were below 60% at the year-end which is comfortably ahead of the industry average and a testament to the work which has gone into ensuring our teams feel valued and incentivised.

 

*Adjusted EBITDA is a non-GAAP measure and is calculated from the (loss)/profit before taxation adding back net interest, depreciation, share-based payments and non-recurring costs (note 4)

 

** Adjusted Net Cash is a non-GAAP measure and is a metric used by the Board to review the capital position of the Group after adjusting for non-recurring fluctuations to Net Cash. The metric is presented pre IFRS-16 and as such lease liabilities are not considered an adjustment to net debt.

 

Technology

The Group will continue to look into opportunities to develop our technology stack as we strive to enhance our customer experience as well as deliver efficient operations. During the year the business has commenced the implementation of new guest-facing technology, including pay-at-table and add-to-order features which will streamline service, boost productivity and drive increased customer spend.

 

Franchising

Franchising is an integral part of the Group's strategy and there were a number of developments through 2024. Our first franchised Shawa restaurant was opened in Abu Dhabi in March 2024 and we signed a new agreement with Areas Italy which saw the opening of a new Comptoir Libanais in Malpensa Airport, Milan in June. Other changes consisted of taking back the Avolta franchised site in Cheshire Oaks in the managed estate in March and in the second half of the year we exited the franchise site in Ashford.

 

The Board is excited by the potential of further franchise agreements and sees this as a real opportunity to develop our brands globally.

 

Outlook

The hospitality sector remains stressed from a variety of external economic factors which continue to make this a very challenging environment to operate. Nevertheless, there are brands which continue to succeed against this backdrop, and we need to ensure that Comptoir also navigates its way through to further success. Q1 2025 trading performance has been in line with management expectations.

 

As previously highlighted, driving covers growth through offering genuine value for money is key focus for the management team in 2025. Succeeding on this will help secure the long-term growth of the business. At the same time, we will ensure our operations remain as efficient as possible as we work through the ever-increasing cost pressures faced by the sector, particularly labour costs. These two actions will help rebuild our cash reserves which is a priority for the Board and investors.

 

Shawa continues to present a significant growth opportunity, and there will be a focus through 2025 to look to stretch the brand expansion forwards.

 

In order to focus management's time on the core brands, the Group has decided to not renew the lease at our Kenza restaurant post year-end and has also closed Comptoir Bluewater. The rest of the estate will continue to be proactively managed.

 

Finally, I would like to thank all my colleagues for their contributions through the year. The Group has strong foundations with its current estate, focus and an excellent team. There is plenty of opportunity to be realised over the upcoming years.

 

Chaker Hanna

Chief Executive Officer

19 May 2025

 

 

2024 Financial Highlights - FD Review

 

Overview

2024 was another challenging year for the Group but positive progress was seen through the second half of the year, with some encouraging momentum to carry into 2025. The Group saw LFL revenue growth of 2.0% over the course of the year, with a particularly positive Q4. A positive adjusted EBITDA* of £0.8m was delivered (2023: £0.1m) but there is still a way to go before the Group is delivering the results that the Board feel it should be capable of, albeit in a very challenging macro-economic environment.

Adjusted net cash** at the end of the financial period stood at £3.0m (2023: £4.7m). The Group has seen significant capital expenditure over the last two years, both on new sites and refurbishments of the core estate. The expectation is that we now start to see the benefit of, and a return on, that investment. Careful cash management and cash preservation and rebuilding of cash reserves is at the forefront of the Board's agenda as we move into 2025.

The KPIs of the Group's performance are summarised below:

 

		29 December 2024	31 December 2023	Variance
Revenue		£34.6m	£31.5m	10.0%
Gross profit		£27.8m	£24.7m	12.5%
Other Costs		£29.7m	£26.3m	13.1%
Loss for the period		£(1.9m)	£(1.6m)	(21.5%)
Cash generated from operations		£5.1m	£2.3m	123.6%
Adjusted EBITDA (Pre IFRS 16)*		£0.8m	£0.1m	1,142.7%
Adjusted Net Cash**		£3.0m	£4.7m	(36.2)%

 

Revenue

Revenue of £34.6m, up from £31.5m in 2023, an increase of 10.0%. On a like for like basis, the Group saw growth of 2.0% over the year. At the half year, our like for like growth stood at 0.9% so there has been some good progress through the second half of the year.

The Group entered 2024 with 21 equity restaurants. Yalla Yalla Soho closed in January 2024, we took back our Comptoir Cheshire Oaks site into the managed portfolio in March 2024 and opened Comptoir Southbank in April 2024. Our franchised estate saw opening of a Shawa in Abu Dhabi and a Comptoir Libanais in Milan, whilst we exited the site in Ashford. At year end our franchised estate stood at 6 sites.

 

Including franchise and equity restaurants, total system revenues of £46m were delivered through 2024.

 

*Adjusted EBITDA is a non-GAAP measure and is calculated from the (loss)/profit before taxation adding back net interest, depreciation, share-based payments and non-recurring costs (note 4)

 

** Adjusted Net Cash is a non-GAAP measure and is a metric used by the Board to review the capital position of the Group after adjusting for non-recurring fluctuations to Net Cash. The metric is presented pre IFRS-16 and as such lease liabilities are not considered an adjustment to net debt.

 

 

Gross Profit

Gross Margin percentage of 80.3%, up by 1.8% from 78.5% in 2023. In response to the ongoing cost pressures elsewhere in the income statement, notably labour, the Group has increased menu pricing in 2024 which is the main driver of the margin increase. Whilst the cost challenges will not ease in 2025, the Board is mindful of how much more price can be increased to offset costs moving forward.

The team continues to work closely with our key suppliers on managing the efficiency of our supply chain and in December 2024 we signed an agreement with Equinoxe Solutions to support this further in 2025.

Other Costs

Our other costs continue to be a significant pressure in the income statement, increasing by £3.4m year on year. £1.6m of the increase is due to higher depreciation and impairments of sites which closed post year-end however there remain key ongoing challenges elsewhere.

Labour has seen the most significant movements in the year with the increase in National Minimum Wage by 9.8% in April 2024 driving pressure across the retail sector. The Group continues to focus on efficiently deploying its labour (whilst never compromising guest experience) and has made progress in the second half of the year. However a further 6.7% increase in National Minimum Wage in April 2025 and crucially the lowering of the Employer's National Insurance threshold, will continue to make managing labour efficiently a challenge for 2025 and beyond.

One area which has eased are utility costs. The Group is fully contracted to September 2025 (albeit at rates higher than before the energy crisis) and has started taking a position for future years too.

Adjusted EBITDA

	Post IFRS 16	Pre IFRS 16	Post IFRS 16	Pre IFRS 16
	29 December 2024	29 December 2024	31 December 2023	31 December 2023
	£'000	£'000	£'000	£'000
Sales	34,619	34,619	31,481	31,481
Adjusted EBITDA:
Loss before tax	(1,924)	(1,449)	(1,645)	(1,411)
Add back/(deduct):
Depreciation & amortisation	4,122	1,389	3,329	1,125
Finance costs	1,245	121	1,019	137
Finance income	(152)	(152)	(94)	(94)
Impairment of assets	944	324	107	-
EBITDA	4,235	233	2,716	(243)
Share-based payments (credit) / expense	(31)	(31)	31	31
Restaurant opening costs	323	323	166	166
Restaurant closing costs	249	249	77	77
Loss on disposal of fixed assets	-	-	9	9
Exceptional legal and professional fees	188	188	101	101
Other exceptional items	(192)	(192)	-	-
Adjusted EBITDA	4,772	770	3,100	141

 

Cash flow and balance sheet

Cash generated from operations increased to £5.1m in 2024 (31 December 2023: £2.3m). An element of the increase is due working capital timings with the end of month supplier run. Our capital expenditure of £2.6m included spend on our new site in Southbank and two significant refurbishments during the year. Payment of lease liabilities has increased by £0.9m as compared to the prior year. Included within financing activities is a £1.0m receipt equivalent to a four-year rent contribution which formed part of the transaction whereby the Group took Comptoir Cheshire Oaks back into its managed portfolio.

 

Financing and net debt

The Group had a cash and cash equivalents balance of £6.0m on 29 December 2024 and an adjusted net cash position of £3.0m (31 December 2023: £4.7m) The Group debt consists of a CBIL loan attracting no covenants, of which £0.6m was paid down through 2024. This has a six-year term with a maturity date in 2026. The loan had an initial interest-free period of 12 months followed by a rate of interest of 2.5% over the Bank base rate.

Balance sheet restatement

As explained further in note 1 to the accounts, the Group has identified several historical accounting adjustments that are required in respect of leases and impairments. The adjustments are non-cash related and do not have a material impact on the income statement for 2023, however the balance sheet for 2023 has been restated to reflect the correct position.

 

Impairments

During the year the Group has recognised an impairment charge of £0.9m in respect of its Kenza restaurant and Comptoir Libanais Bluewater, both of which were closed subsequent to year-end.

 

Dividend

The Directors do not recommend the payment of a dividend, believing it more beneficial to use cash resources to invest in the Group in line with our strategy.

Going concern

Upon consideration of this analysis and the principal risks faced by the Group, the Directors are satisfied that the Group has adequate resources to continue in operation for the foreseeable future, a period of at least twelve months from the date of this report. Accordingly, the Directors have concluded that it is appropriate to prepare these financial statements on a going concern basis.

 

 

Strategic Report

 

For the period ended 29 December 2024

 

The Directors present their strategic report for the period ended 29 December 2024.

Business model

The Group's principal brand is Comptoir Libanais, a Lebanese and Middle Eastern focused casual dining brand. The restaurants offer an all-day dining experience based around healthy and fresh food in a friendly, colourful and vibrant environment, which delivers value for money to a broad demographic of guests. Lebanese and Eastern Mediterranean food is a popular food trend due to its flavoursome, healthy, low fat and vegetarian-friendly ingredients as well as the ability to easily share the food with friends.

 

We seek to design each Comptoir Libanais restaurant with a bold and fresh design that is welcoming to all age groups and types of consumers. Each Comptoir Libanais restaurant has posters and menus showing an artist's impression of Sirine Jamal al Dine, an iconic Arabian actress, providing a Middle Eastern café-culture feel.

Shawa is a Lebanese shawarma grill concept-serving lean, grilled meats, rotisserie chicken, homemade falafel, halloumi and fresh salad, through a service counter offering, located in high footfall locations, such as shopping centres.

Strategy for growth and future developments

Given the recent Directorship changes, a detailed review of the Group's overall strategy is currently under review. Whilst this process is still ongoing, it is clear that providing a genuine value for money offering is pivotal for the Group moving into 2025.

 

We are not shying away from the challenges that face the industry, particularly around cost pressures in procurement and labour. The new Board considers a prudent approach to capital management is key over the next twelve months to further strengthen the Group's cash position and position it for growth beyond 2025. As a result of the challenging backdrop facing the Company and industry, the management team are increasingly focused on operational efficiency improvements, striving to challenge existing business processes to position the Company for success in what is a difficult period for hospitality across the UK.

 

We continue to believe that there is considerable potential to grow the Group's franchised operations and we see this as a complementary and relatively low-risk route to extend the presence of our brands, both within the UK and in overseas territories.

Whilst the strategic direction of the new Board is still being shaped, the goal of the Group remains the same, offering a genuine value for money, pleasant unique offering to our customers.

Review of the business and key performance indicators (KPIs)

The continuing macro-economic pressures, high inflation and cost of living impacts outlined below continue to have a dampening impact on the hospitality sector as a whole. Despite these, the Group delivered a full year adjusted EBITDA of £0.8m in 2024 and LFL sales growth of 2.0%.

 

Overall Group revenue improved 10% to £34.6m (31 December 2023: £31.5m) through a combination of the LFL growth mentioned above and addition of new sites in Southbank and Cheshire Oaks. The Groups post tax loss increased to £1.9m (31 December 2023: loss of £1.6m).

 

The Board considers adjusted EBITDA, a non-GAAP measure, an appropriate metric for reviewing performance against comparative years. Adjusted EBITDA excludes non-recurring items and costs incurred in connection with the opening & closing of new restaurants and on this measure, the underlying earnings of the group were £0.8m (31 December 2023: £0.1m) despite the macro-economic pressures facing the industry.

 

The Board and management team use a range of performance indicators to monitor and measure the performance of the business. However, in common with most businesses, the critical KPI's are focused on growth in sales and EBITDA, and these are appraised against budget, forecast and the levels achieved last year.

As outlined in both the Chairmans and CEO Statements, the new Board considers a prudent approach to capital management key over the next twelve months to further strengthen the Groups cash position and set it up for growth beyond 2025. Adjusted Net Cash, a non-GAAP measure, is a metric used by the Board to review the capital position of the Group after adjusting for non-recurring fluctuations to Net Cash. The metric is presented pre IFRS-16 and as such lease liabilities are not considered an adjustment to net debt.

	Pre IFRS 16	Pre IFRS 16
	29 December 2024	31 December 2023
	£'000	£'000
Cash & Cash Equivalents	5,971	7,049
Adjusted for:
Borrowings	(1,000)	(1,600)
Working capital impact of period end date*	(1,213)	-
Cash held in reserve against known liabilities**	(777)	(707)
Adjusted Net Cash	2,981	4,742

 

*The accounting period for the Group runs to the closest Sunday to 31 December each year. The consolidated financial statements for the current period have been prepared to 29 December 2024 and the comparative period to 31 December 2023. The Group has certain statutory & other obligations due on 31 December 2024 that were unpaid at period end date. For comparison to 2023 these have been adjusted against Net Cash. These obligations were settled on or before 31 December 2024.

 

**The Group holds certain cash in reserve against known liabilities expected to be settled in the ordinary course of business. These funds are held in a separate bank account and the liabilities tracked separately from accruals & other payables. As such, Net Cash is adjusted to reflect the cash held in reserve to settle these known obligations.

 

Further explanation of the performance of the business over the period is provided in the Chair's Statement and the Chief Executive's Review.

 

Principal risks and uncertainties

The Board has overall responsibility for identifying the most significant risks faced by the business and for developing appropriate policies to ensure that those risks are adequately managed. The following have been identified as the most significant risks faced by the Group; however, it should be noted that this is not an exhaustive list and the Group has policies and procedures to address other risks facing the business. Further detail on climate-specific risks are outlined later in this strategic report and as such these are not separately highlighted below:

 

Macro-Economic Conditions

Prevailing market conditions, including cost of living rises & economic uncertainty, and their impact on guest confidence to spend have an impact on the Group in terms of footfall and sales. Although trading was impacted over this period, the Group's underlying trading remained positive, and management has continued with selective investment to continually be able to embrace market growth. Continued focus on customer relations through targeted and adaptable marketing initiatives help the Group retain and drive sales where footfall declines.

 

Consumer demand

Any weakness in consumer confidence could have an adverse effect on footfall and customer spend in our restaurants. As mentioned above, the current macro-economic conditions continue to place strain on consumers disposable income. These macroeconomic factors such as employment levels, interest rates and inflation can impact disposable income and consumer confidence can dictate their willingness to spend.

 

The management team's focus continues to be offering a genuine value for money, pleasant unique offering to our customers. The core brands within the Group are positioned in the affordable segment of the casual dining market. A strong focus on superior and attentive service together with value-added marketing initiatives can help to drive sales when customer footfall is more subdued. This, together with the strategic location of each of our restaurants, helps to mitigate the risk of consumer demand to the business.

 

Input cost inflation

Inflationary pressures continue to have an impact on the Group's cost of sales, packaging and other raw input costs. The Company has engaged Equinoxe Solutions to provide procurement support for the Group, and we are currently in the process of a review of our current supply chain to identify any opportunities in what are challenging and volatile market conditions for fresh produce suppliers.

 

Labour cost inflation

The recent increases in National Minimum Wage combined with the lowering of the Employer's National Insurance threshold place significant pressure on business margins. The management team is proactively engaged in driving efficiency in our labour deployment without compromise on service delivery, and we believe we are well positioned to navigate through these statutory changes.

 

Strategy and execution

The Board recognises the importance of establishing a clear and ambitious long-term strategy for the Group. With a new Board of Directors in place, a comprehensive strategic review is currently underway, focusing on growth priorities, operational performance, and long-term value creation. The outcome of this review will inform a refreshed strategic direction, which the Board intends to communicate to shareholders and stakeholders later in the year.

 

Environmental, Social and Governance Strategy

 

ENVIRONMENT:

Comptoir Group PLC have included the recommendations set out by the Task Force on Climate change (TCFD) in this year's report. These recommendations help businesses to focus on the likely direct and indirect impacts of climate change for individual organisations, their operations, services and customer base.

 

The TCFD framework utilises four key pillars which have been adopted by Comptoir Group as the key areas of focus. Aligned to these four pillars are 11 recommendations, which provide guidance as to how to ensure that management processes, analyses and business planning give sufficient consideration to the impact of climate change on the operation. Each of these four pillars and the underlying recommendations are outlined in detail below:

 

1.       Governance

The organisation's governance around climate-related risks and opportunities

 

At present, The Board of Directors has overall responsibility for overseeing climate-related risks and opportunities, in line with its broader risk management and strategic oversight functions. Given the recent Board changes, further changes to Comptoir's governance structure are still under review with the new Directors. The ESG Committee has not yet met formally under the current Directorships. Given this, ESG strategy, including assessment of risks and opportunities to the Group as a whole, is still under review.

 

Despite the Board changes, updates on ESG are included and will continue to be included in the monthly report to the board. The Audit Committee is specifically tasked with reviewing climate-related disclosures and ensuring that relevant processes are in place for the identification, assessment, and mitigation of climate risks.

 

Day-to-day responsibility for identifying and managing climate-related risks and opportunities rests with the Group Executive Team. Each Executive is responsible for integrating climate considerations into day-to-day operations of the Group, through decisions such as sustainable menu planning and capital expenditure decision making. The Company has partnered with Equinoxe Solutions to support sustainable Group procurement, with the Executive team working directly with Equinoxe Solutions on issues such as sustainable supplier selection and supply chain efficiencies. The outcome of this work is then cascaded upwards to the Board of Directors for consideration.

 

2.       Strategy

The actual and potential impacts of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning

 

To identify actual and potential impacts of climate-related risks and opportunities on the organisation's processes, strategy, and financial planning, in 2023 Comptoir Group embarked on an audit with the support of Sustainable Restaurant Association (SRA). This took the form of a detailed investigation on all operations which has enabled Comptoir Group to identify potential risks & opportunities and set realistic goals for improvement.

 

The 'Food Made Good' rating uses a framework of questions, which are derived from the 10 key areas of the UN's Sustainable Development Goals to audit all operational processes and systems. Performance against these criteria is then assessed and awarded an overall rating. Comptoir Group was awarded 1 out of 3 stars. After this outcome, we implemented a roadmap to target a 2-star rating by August 2025. Given the recent Board changes, the new Directors are currently assessing how to progress towards the initial 2-star target and any involvement with SRA moving forward.

The Company has engaged Amber Energy to support climate related initiatives & opportunities, as well as providing prudent consultancy to ensure we are sufficiently protected from a risk management perspective.

 

Climate risks are categorised into two groupings:

Physical risks: such as extreme weather events (flooding, heatwaves) that could disrupt site operations or impact our central production unit.

Transition risks: including regulatory changes (e.g. energy efficiency mandates, carbon reporting), shifts in consumer expectations, and energy market volatility.

 

The Directors consider the following to be key climate-related risks which will impact the Group over the short (<2 years), medium (2-5 years) and long term (5+ years):

 

Risk	Risk Type	Impact	Time Frame
Supply Chain Disruption	Physical	Supply chain disruption and shortages of impacted crops: we source salad, citrus, chillis, aubergine and pomegranates from regions which are potentially at risk in the case of a temperature increase of 2 degrees.	Short Term
Rising Energy Costs	Transition	Higher energy costs due to increased demand for artificial heating / cooling and irrigation.	Short Term
Acute Weather Events	Physical	Physical risks from acute weather events impacting our supply chain and central production unit (CPU), which plays a pivotal role in the overall production process.	Short Term
Carbon Tax	Transition	The Department for Business, Energy and Industrial Strategy has calculated that a carbon tax of £80 per tonne would have the desired impact on carbon emissions. The liability for Comptoir Group would be in the region of £80k p.a. based on current emissions levels, if this was introduced.	Medium Term
Energy Efficient Capital Decisions	Transition	Increasing costs of energy efficient investments in the existing estate and future investment opportunities.	Medium Term
Perception of Centralised Production	Transition	Centralised production may be perceived as unsustainable and waste-intensive if more sustainable procurement models are available.	Medium Term
Growth Opportunities	Transition	Increased competition for new sites which offer public transport accessibility, infrastructure resilience in the light of extreme weather events, and access to renewable energy.	Medium Term
Existing Site Improvements	Physical	Infrastructure and buildings will require increased investment to withstand changing weather patterns and an increase in extreme weather events, particularly flooding.	Long Term
Travel Disruptions	Physical	Weather related travel disruption impacting customers and staff.	Long Term

 

The summary above is not exhaustive and only the most material climate-related risks have been included. In compliance with ESOS requirements, an action plan has been submitted outlining a number of opportunities and actions for the Company, and projects are currently underway for certain optimisation opportunities across Air Conditioning, Gas and Boilers among other projects identified during ESOS review & submission. As part of the work with Amber Energy, the Group collects electricity & gas data for the majority of the estate and is working towards energy savings across all sites through a combination of behavioral shifts and investment in low energy equipment.

 

As part of the work undertaken throughout 2024, Comptoir has identified the following climate-related opportunities:

·    Partnering with Equinoxe Solutions on sustainable procurement and supplier selection. A review of our existing supply chain is in process and any opportunities identified will be considered based on their improvement to the Groups overall carbon footprint and sustainable sourcing strategy.

·    Our work with Equinoxe Solutions extends beyond sustainable raw ingredients procurement, we are in the process of reviewing sustainable packaging solutions and have already begun implementing recommendations provided by Equinoxe Solutions across our sites.

·    We source specialist ingredients from smaller, low intensity producers who prioritize the preservation of local ecosystems, thus enhancing long term opportunities for sustainable sourcing.

·    More than half of our menu items across all brands are plant based, without any highly processed ingredients.

·    The Group's Central Production Unit (CPU) plays a pivotal role in the supply chain and stable operation of each site. A detailed review of CPU operations, including the costs to ship produce to our regional sites and any energy-efficiency projects at the site is currently underway.

·    Comptoir continues to partner with Too Good To Go, providing a sustainable solution for surplus and unsold food.

 

The consideration of climate related risks & opportunities is integral to all our decision making. ESG considerations are now given priority consideration in all operational decisions, longer term strategy & financial planning as a matter of course. We will continuously strive to ensure that the Group remains adaptable, to anticipate and respond to climate related risks and opportunities.

 

3.       Risk Management

The processes used by the organisation to identify, assess, and manage climate-related risks

 

The Board of Directors have overall responsibility for overseeing climate-related risks and opportunities, in line with its broader risk management and strategic oversight functions. Day-to-day management of climate-related risks is the responsibility of the Chief Executive Officer and as delegated to the Executive Team.

 

Climate-related risks are integrated with the Group's broader risk register and risk management process. Each risk whether climate or operational, is assigned a responsible executive lead. Climate-related risks are assessed alongside other business risks such as rising labour costs, IT and inflation using consistent methodology.

 

 

Whilst largely outlined above, our process for managing climate-related risks can be summarised broadly into the following key initiatives:

 

Supply Chain:

Partnering with Equinoxe Solutions on sustainable procurement and supplier selection. Challenging existing norms and historical business processes to strive for continuous improvement in sustainable sourcing and procurement.

 

Energy & Emissions:

Working with Amber Energy to support identified climate related initiatives & opportunities, as well as providing utility cost & usage information across the majority of our estate. This work extends to ESOS submissions and achievement of our identified action plans for reducing our emissions and carbon footprint.

 

Operational Process & Asset Planning:

As mentioned above, the Group's Central Production Unit (CPU) plays a critical role in delivering a consistent, scalable menu offer across our estate. Climate-related risks such as supply chain disruption, extreme weather events, and energy cost volatility have been identified as key exposures. In response, we are exploring low-carbon technologies for food production, investing in waste reduction and energy efficiency, and engaging suppliers on climate resilience. The centralised nature of the CPU also presents opportunities for systemic improvements in carbon footprint, packaging sustainability, and menu innovation.

 

4.       Metrics & Targets

The metrics and targets used to assess and manage relevant climate-related risks and opportunities

 

The Group has begun to establish a structured approach to measuring and managing its climate-related risks and opportunities. As part of this, we are using compliance under the Energy Savings Opportunity Scheme (ESOS) as a fundamental component of our climate-related performance metrics.

 

Our most recent ESOS submission includes a detailed assessment of the Group's total energy consumption, energy efficiency opportunities, and associated emissions across our estate, including the Central Production Unit and venues. This data forms the basis of one of our key performance indicators (KPIs) - total annual energy consumption (kWh) - which we are using to monitor progress in improving operational energy efficiency. As outlined above, some of these projects completed during the year include:

 

·    Optimised Air Conditioning (AC) within various areas of the business.

·    Optimised boilers where applicable.

·    Continued to replace lighting fixtures with LED options where available.

·    Reduced immersion heater operating hours.

 

In future reporting periods, we intend to build upon the ESOS data to develop a broader set of climate-related KPIs, including expanding on the energy intensity ratios outlined below, Scope 1 and 2 emissions tracking, and emissions reductions linked to specific initiatives. These KPIs will be used to assess progress against emerging targets and to inform capital investment decisions related to energy efficiency and resilience.

 

As a hospitality business, we consider both turnover and total covers to be useful metrics to track financial progress and make informed decisions on. The below chart converts our emissions data into an intensity ratio using these metrics as a base, and is a tool used to track progress and comparison over time and with similar hospitality businesses.

 

Intensity Ratios for the period ended 29 December 2024

Carbon Emissions per Business Metric	Current Reporting Year	Comparison Year
	01/01/2024 - 29/12/2024	01/01/2023 - 31/12/2023
Emission per Turnover (kgCO2e/£m)	31,503	32,167
Emission per Covers (kgCO2e/number of units)	0.7	0.8

 

Our overall energy & usage data is summarised below. Estimation has been required in some areas where data has not been available, using standard estimation methods (pro-rata, direct comparison).

 

Greenhouse gas emissions and energy use data for the period ended 29 December 2024

Annual Energy Consumption (kWh)	Current Reporting Year	Comparison Year
	01/01/2024 - 29/12/2024	01/01/2023 - 31/12/2023
Scope 1	1,925,393	2,381,158
Stationary Combustion	1,871,744	2,317,934
Mobile Combustion	53,649	63,224
Process Emissions	N/A	N/A
Fugitive Emissions	N/A	N/A
Scope 2	3,541,834	2,514,088
Purchased Electricity	3,541,834	2,514,088
Purchased Steam, Heat, Cooling	-	-
Scope 3 (Grey Fleet)	2,455	19,230
Grey Fleet	2,455	19,230
Total	5,469,681	4,914,477

 

 

SOCIAL:

Comptoir is committed to building a positive and inclusive culture that supports our people, customers, and the communities we serve. Social responsibility is integral to our operations, and we are proud to highlight the initiatives below:

 

Employee Training and Development

We believe that investing in our people is essential to delivering high-quality hospitality and retaining top talent. Our internal training framework provides structured onboarding, role-specific skills training, and progression pathways for both front-of-house and kitchen teams, as well as head office staff. We continue to invest in leadership development and our digital learning platform to enhance accessibility and engagement.

 

Charitable Giving - Feeding Hope Fund

Through our dedicated charitable initiative, the Feeding Hope Fund, we raise money to support various community initiatives. The Feeding Hope Fund helps support meals, education & work experience in the UK for refugees, homeless & those living in poverty, as well as charities overseas who support communities suffering due to war & natural disasters.

 

During 2024 the Group raised and donated over £70,000 and continues to make selective donations to charitable causes that align with both the Company's values and those of our consumers.

 

We are proud to support causes like the Ramadan Tent Project by donating food and team members time to help engage the wider community in helping to forge new friendships whilst spreading the better understanding of diverse cultures and customs.

 

Customer Engagement and Feedback

We prioritise continuous improvement of the guest experience through structured feedback mechanisms. This includes working with HGEM, a hospitality guest experience management platform, operating a Mystery Diner programme across our venues. Insights gathered from both tools help us monitor service standards, menu satisfaction, and customer sentiment, ensuring we remain responsive and agile.

 

Employee Wellbeing

Recognising the physical and emotional demands of hospitality work, we place strong emphasis on staff wellbeing. We are proud of our flexible approach to scheduling that supports work-life balance. Participation in our employee engagement surveys and platforms continue to be strong and the management team continues to strive for improvements in our employee experience based on feedback provided.

 

We believe that listening to our employees and responding meaningfully to their feedback is fundamental to long-term retention, performance, and a strong team culture. As part of our evolving ESG strategy, we are working to embed wellbeing as a key performance theme across the business.

 

As outlined in the CEO's review, our annualised staff turnover levels were below 60% at the year-end which is comfortably ahead of the industry average and a testament to the work which has gone into ensuring our teams feel valued.

 

 

 

Community Engagement

In addition to our charitable partnerships, we support local communities by sourcing ingredients from regional suppliers where possible, offering local employment, and exploring opportunities to partner with local councils and community partners on discount programs in our regional locations.

 

GOVERNANCE:

Strong governance is fundamental to the long-term success of the Group and underpins our approach to environmental and social responsibility. The Board is committed to maintaining high standards of integrity, accountability, and transparency across all aspects of the business.

Given the recent Board changes, further changes to Comptoir's governance structure are still under review with the new Directors'. One of the Board's early priorities has been to strengthen governance structures to support a sustainable growth strategy. This includes the formalisation of the ESG Committee and enhanced focus on measuring and tracking against defined ESG measures.

 

 

On Behalf of the Board

 

 

 

Chaker Hanna

Chief Executive Officer

 

19 May 2025