Boost Juice narrows losses in ‘transitional' year
The chain’s EBITDA slightly increased.
Business Growth Fund-backed Boost Juice Bars reported an increase in EBITDA and a reduction in losses following a transitional year in which it closed loss-making stores and negotiated better deals for marginal sites with landlords.
The chain, which operates some 30 sites, said that its turnover was down 1% to £10,184,897 for the year ending 26 September 2018, compared with £10,299,618 the previous year.
EBITDA before onerous lease charges rose to £435,344 compared with £424,947 the year before. Operating losses reduced to £213,032, compared with £920,057 the previous year after a depreciation and impairment charge of £625,147 and an onerous lease expense of £23,229.
Pre-tax losses were also down to £218,824, compared with £926,032 the year before. Gross margin improved to 75.79% compared with 75.26% the previous year, according to its accounts filed at Companies House.
The company is currently “dual concept” sites in which a Boost Juice Bar and its sister brand Shake Lab are placed side by side in the same unit to “drive operational efficiencies, minimise premises costs and maximise return on investment”.
“The company spent a significant amount of time discussing the profitability of its portfolio with landlords. As a result, we have negotiated favourable outcomes in several locations, be that a reduction in rent, the return of a rent deposit, support with relocating a shop within a scheme or a capital contribution to a refit. Just as important as store openings is the profitability of our existing estate,” the directors stated in the report accompanying the accounts.
