Lebanese restaurant owner Comptoir Group plc (LON:COM) swung to a loss in 2018 as higher revenue was offset by cost pressures.
The company, which owns the Comptoir Libanais and Shawa restaurants, made a loss before tax of £210,000 last year, compared to a £460,000 profit in 2017.
Comptoir said it continued to feel cost pressures from higher wages, input food costs and rents.
READ: Comptoir hit as diners turn cautious
Revenue rose 16.1% to £34.3mln as three new restaurants were opened in the year, including two owned by Comptoir and one franchised store.
“The directors believe the group's current Comptoir Libanais restaurant estate continues to have significant potential for organic growth and will continue to explore further franchise opportunities, alongside the already agreed terms reported at the half-year results to open three additional franchised sites with HMS Host in the second half of 2019; in Ashford (Kent) and our second and third international franchised operations in Dubai and Abu Dhabi Airports,” chief executive Chaker Hanna said.
Hanna said trading at the start of the new financial year has been in line with expectations with like-for-like sales growth in each month of the first quarter.
The group expects this momentum to continue in the second quarter.
However, given the uncertainty surrounding Brexit, the company is taking a cautious approach to new site openings.
“Economic conditions have remained challenging in 2018 and confidence levels have remained subdued due to continued uncertainty around Brexit and the economic outlook as a whole,” Hanna said.
“The general retail sector has witnessed a continued decline in high street footfall which has directly impacted the dining-out sector, however, we are still able to report like for like sales growth each month throughout the year. “
In morning trading, shares fell 1.5% to 8.74p.