Bow Street Group (BOW) H1 2024 earnings summary

Executive summary

• Revenue declined 12.0% to £19.1m for H1 2024 compared to H1 2023, mainly due to 14 restaurant closures as part of a major restructuring plan.

• Adjusted EBITDA rose to £1.9m (H1 2023: £1.1m), and profit before highlighted items was £0.6m (H1 2023: loss £1.0m).

• Profit after tax was £13.4m, a £19.6m improvement year-over-year, driven by a £15.4m gain on lease modifications and reduced impairment charges.

• Restructuring Plan included immediate closure of 14 restaurants, resulting in about 160 redundancies and a £750,000 loan to support the process.

• Board change announced: Harald Samúelsson to step down as Non-executive Director effective 1 October 2024.

Financial highlights

• Revenue: £19.1m (H1 2023: £21.7m), down 12.0%.

• Adjusted EBITDA: £1.9m (H1 2023: £1.1m).

• Operating profit before highlighted items: £0.6m (H1 2023: loss £1.0m).

• Profit after tax: £13.4m (H1 2023: loss £6.2m), mainly due to non-cash lease modification gains.

• Cash balance at period end: £3.0m (H1 2023: £2.8m).

Outlook and guidance

• Cautious outlook for H2 2024 due to cost of living crisis, declining consumer confidence, and ongoing restructuring.

• Focus remains on staff retention, cost control, and navigating inflationary pressures.