BurgerFuel in the black

Friday 10th June 2011

BurgerFuel Worldwide made it into the black in the year to the end of March, reporting a full year net profit of $33,500 after a loss of $553,000 the year before.

Factors behind the improvement included solid trading in the Middle East where store expansion was under way, consolidation of stores in this country, cost efficiency initiatives, and closure of the company-owned Kings Cross store in Sydney and a cut in overheads in Australia.

Revenue was down 5% from a year earlier to $8.3 million.

During the year the group opened its second Middle East store under a master licence agreement in Dubai, adding to its first store in Saudi Arabia.

Both stores were trading well and a further four stores had been confirmed for Dubai, BurgerFuel said today. The group had $4.1 million of sales in the region in the latest year.

In this country system sales were up 0.9% to $27 million, which was lower than expected due to the closure of the Bayfair store in April 2010 and the subsequent relocation to Mt Maunganui last December.

Although economic conditions remained uncertain, some new franchised stores may open in New Zealand this year.

In Australia system sales were down 18.6% to $1.9 million, with the decline due to the closure of the Kings Cross store last November.

Future success was largely based on its ability to open stores, but stores and partners had to be carefully selected, BurgerFuel said.

At March 31, the company's net asset position was $3.2 million, including cash reserves of $1.2 million and no debt.

BurgerFuel's share price was up 5c to 45c.

NZPA

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