Underlying profits grows as sales recover at burrito chain Boojum

Mexican burrito restaurant chain Boojum says the outlook for the business is bright as revenue jumped by 29 per cent to £24.06 million (€27.46 million) last year.

The group’s directors said its improved performance “can be predominantly attributed to more favourable conditions following the significant and sustained squeeze on volumes caused by Covid-19 trading restrictions”. Boojum also opened one new store during the year.

However, accounts just filed for Boojum’s holding company, Modern Restaurant Concepts Ltd, show pretax profits were down 10 per cent to £1.73 million (€1.97 million) in the 12 months to the end of April last. It said this was due mainly to a sharp decline in Covid-19 wage subsidy scheme payments – from £1.92 million in 2021 to £214,245 last year.

Despite the pretax figure, directors said there was an increase in underlying profits last year.

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Turnover in the Republic was £15.3 million with revenue of £8.7 million coming from its Northern Ireland business.

Delivery and collection sales accounted for a greater share of revenue “and consequently digital-first and true omnichannel functionality are essential to maximise customer reach”, the directors said in their report, adding that like-for-like order volumes had increased as market conditions normalised.

They also note that “although on a positive trend, key market metrics relating to office occupancy, retail activity and consumer spending have still not returned to previous benchmark levels”.

Numbers employed at the restaurant chain increased from 332 to 376 as staff costs went up from £6.5 million to £7.35 million. Directors’ pay increased to £240,239.

Due to the impact of Covid-19, the company said, four outlets had remained closed for more than one year, with two of these shut permanently during the year. The directors said management had “adapted legacy trading models, optimising the business for the new hospitality landscape that is emerging from the pandemic period”.

“Bank borrowings have been repaid and net debt effectively eliminated,” directors said, with the group last year repaying borrowings of £2.48 million and bank loans of £2.9 million.

At the end of April last, the group had a shareholders’ deficit of £1.14 million. The group’s cash funds declined from £4.36 million to £1.2 million during the year.