Megan’s reports strong trading ahead of 20th opening

By Shwetali Sapte

- Last updated on GMT

Megan’s reports strong trading ahead of 20th opening

Related tags Megan's Casual dining Multi-site R200

Megan’s Restaurants has reported annual turnover of £22.7m in the year to 31 March 2022, up 193% from £7.7m in 2021.

The restaurant and café concept said its growth was supported by the successful opening of five new sites during the financial year as well as the easing of lockdown restrictions.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to £4.1m from £1.7m in 2021, with an operating margin of 17.8%.

The chain further said it is on track to deliver sales growth of 70% in its current financial year as it prepares to open its 20th site in Guildford in May, with a pipeline of a further 10 locations in place outside London.

The news comes following the announcement it had secured £5m in bank debt to finance its expansion.

Gill Clements, Megan's finance director, said: “Despite another year of challenging market conditions, we’ve continued to deliver exceptional results because of the quality of our offering, our ability to truly trade all day from brunch through to dinner, and our fantastic teams.

“Our performance to March 2022 and the strength of our balance sheet has enabled us to continue to invest in our business. Our 20th site will open its doors in Guildford in April, and we remain focused on our existing estate, with a number of exciting capex projects ongoing. This wouldn’t be possible without our teams, and we are recognising that by continuing to invest in our team pay structures and opportunities.

“The business continues to grow at an impressive pace and we’re on track to deliver further sales growth of 70% in the year to come. We have proven our success across the suburbs of London and our focus now shifts towards those areas beyond, particularly the home counties. Our current three ‘out-of-London’ sites are significantly exceeding expectations, and we have a strong pipeline of over ten locations to continue our expansion in this key market.”

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