Bow Street Group (BOW) H2 2024 earnings summary

Executive summary

• Completed a major Restructuring Plan in 2024, closing 16 restaurants and reducing workforce by 300 to restore profitability and ensure long-term stability.

• Secured a £750,000 loan, later converted to equity, and received a £2.5m insurance settlement post year-end.

• Ended the year with 36 restaurants and approximately 700 employees.

• Like-for-like sales declined 4.5% year-over-year, with total revenue down 21.9% to £36.6m due to closures and a shorter reporting period.

• Reported profit after tax of £16.0m, driven by an £18.6m gain on lease modifications and disposals.

Financial highlights

• Revenue: £36.6m (down from £46.9m in 2023, a 21.9% decrease).

• EBITDA before highlighted items: £3.6m (2023: £4.4m).

• Operating profit before highlighted items: £0.4m (2023: £0.3m).

• Profit after tax: £16.0m (2023: £14.5m loss), including £18.6m gain on lease modifications, £1.9m impairment, and £2.5m insurance receipt offset by £1.8m restructuring/legal fees.

• Net cash inflow from operations: £1.9m (2023: £2.5m).

• Cash at year-end: £3.3m (2023: £4.2m).

Outlook and guidance

• Cautious outlook for 2025 due to ongoing cost-of-living crisis, increased National Living Wage, and National Insurance contributions.

• Board expects modest sales uplift and return to profitability once restructuring disruption subsides.

• Focus on operational excellence, cost efficiencies, and exploring new concepts and partnerships.