Coppa Collective reports narrower first-half losses

(Sharecast News) - Coppa Collective said on Wednesday that first-half losses narrowed as like-for-like sales growth at its core Coppa Club brand helped offset continued pressure across the wider hospitality sector. The AIM-traded hospitality group, formerly Various Eateries, said revenue rose to £25.0m in the 26 weeks ended 29 March, from £24.7m a year earlier.

Group like-for-like sales increased 1.8%, excluding Tavolino, where landlord works reduced trading capacity, while Coppa Club like-for-like sales grew 3.2%.

Gross profit increased 20.6% to £3.1m, while adjusted EBITDA rose to £0.3m from £0.1m. The loss before tax narrowed to £1.7m from £2.2m.

The company ended the period with £2.6m of cash, down from £6.0m a year earlier, after funding the £11.25m acquisition of The Linwood Collection, which added a premium pubs-with-rooms brand and took the group to 24 locations.

Chief executive Mark Loughborough said the company had outpaced the market and turned growth into improved profitability, supported by a leaner platform and cost discipline.

Since the period ended, the group has simplified its estate further, converting 31 Below into Coppa Club Marylebone and starting the conversion of Tavolino into Coppa Club London Bridge, which is expected to relaunch by the end of July.

Coppa said trading since the half-year update had been affected by the Tavolino works and more variable weather, but underlying consumer demand remained resilient.

It said the second half remained weighted towards the summer months, its peak trading period.

At 0939 BST, shares in Coppa Collective were down 5.26% at 13.5p.

Reporting by Josh White for Sharecast.com.

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