Ed’s Easy Diner, the fast-growing, market leading operator of seventeen 1950’s themed American diners throughout the UK, has announced strong results for the year to 30 September 2012, together with an encouraging post year end trading update.
In summary, the results are:
- Total sales grew by 58% to £9.4 million (2011: £6.0 million)
- Group EBITDA nearly doubled to £972,000 (2011: £458,000); ROCE of 40% on diners
- Ed’s is now profitable, recording an operating profit of £35,000, reflecting a turnaround of over £200,000 from the previous year
- Positive like for like sales growth which increased 12% year on year
- Underlying cashflow of £984,000 (2011: £76,000)
- Four new diners opened during the year in Birmingham, Basingstoke, Cheshire Oaks and Leicester, as well as three Shake Stands, plus two units in Cape Town operating under the Joe’s Easy Diner brand; additionally the unit at Bluewater was extended and refitted
- 25th anniversary of the first Ed’s Easy Diner which opened in Soho in 1987. Since the business was acquired in 2009, 14 diners have subsequently been opened
- 11 diners were trading at the year end with just over 720 seats in aggregate
Post 30 September 2012 year end
- A further six new diners have opened in the current year in Swindon, Wandsworth, Bridgend, Southampton, Reading and in the Metrocentre in Gateshead, together with Ed’s Shakes ‘N’ Dogs units in Bluewater, in Selfridges (Oxford Street), and an airstream unit outside Cheshire Oaks
- Excellent pipeline of new sites in place with an increased rate of expansion planned for 2013. Four additional sites have already been agreed including locations such as Gloucester Quays and Meadowhall, Sheffield, as well as a number of sites where heads of terms are agreed, taking the Group towards its target of 10 new diners in 2013
- Like for like sales growth in excess of 10% for the period to 30 April 2013
- 17 diners trading currently
Ed’s is backed by an investor base controlled by the directors and supported by friends and family shareholders
Stephen Greene, Chairman of Ed’s Easy Diner Holding Limited, commented:
“2012 has been a landmark year for Ed’s in which the new management team has delivered profitable growth, increased customers 57% to 1 million, perfected the operational template, and begun a phased roll out programme whilst launching innovative concepts based on the core brand as supporting trading units for different types of location. With no material bank debt, an increasingly strong covenant, and a brand with impressive broad appeal, the Group now has the springboard to significantly accelerate its development.”
Customer numbers and spend
The number of customers served in the year grew 57% from 640,000 to hit the 1 million mark. At the year end, the Group had 11 diners with just over 720 seats in aggregate. From that platform, Ed’s anticipates serving more than 1.5 million customers in 2013 from the 17 diners operating currently.
With current average spend of £10.70 (including VAT) which is on a rising trend, Ed’s remains well placed to capitalise on its value for money positioning and the growing appeal for Ed’s unique diner experience in the UK. Ed’s Club, for the Group’s cult following of customers who want enjoy the fun of staying up-to-date with events at Ed’s and be kept informed of exclusive offers, now boasts over 150,000 loyal members.
Current Trading and Outlook
Ed’s has continued to trade well in the current year with like for like sales growth up in excess of 10% for the period.
Looking further ahead, the Group has a strong pipeline of potential new sites in place and is on track to grow its estate by 50% to have 22 diners trading by the end of 2013.
The strategy for the development of the Ed’s brand is to open new diners in high footfall, premium shopping centres, transport interchanges such as railway stations and airports, together with busy tourism centres.
Currently expanding at a rate of 10 diners per year, the Group has the infrastructure and operational capabilities to support a significantly larger business and has the intention to double the size of the estate over the next few years.
Whilst the challenging consumer trading outlook remains, the Directors anticipate that Ed’s timeless appeal, value for money price point, quality food offer, friendly service and unique entertainment value will continue to see Ed’s make further progress across all aspects of its business, and management remains confident of another year of good growth and profitable expansion.