Interim report
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RNS Number : 6561WTortilla Mexican Grill PLC29 September 2026 29 September 2026 Tortilla Mexican Grill plc ("Tortilla", the "Group" or the "Company") Unaudited Interim Results for the 26 weeks ended 28 June 2026 Tortilla Mexican Grill plc, the largest fast-casual Mexican restaurant business in the UK and Europe, today announces its unaudited interim results for the 26 weeks ended 28 June 2026 ("H1 FY26", "the Period"). All numbers are shown on an IFRS basis unless otherwise stated. Strong H1 FY26 sales growth across both in-store and delivery, with UK LFL sales materially outperforming the restaurant sector · Total Group system sales[1] reached £100.9m on a twelve-month trailing basis, an all-time high. · Group revenue in H1 was £38.5m, an increase of £2.1m or +5.9% vs H1 FY25[2]. · Total UK LFL sales grew +13.9% in H1 FY26 with in-store sales +6.5% and delivery sales +32.7%. · UK LFL momentum strengthened in the Period, helped by the re-introduction of a multi-aggregator delivery model in week 13: o In the 12 weeks to 22 March[3], LFL sales were +6.7%, with in-store +6.0% and delivery +8.2%. o In the 14 weeks to 28 June, LFL sales were +19.7%, with in-store +6.9% and delivery +54.1%. Progress in France and positive indicators from converted stores · Seven former Fresh Burritos sites now trading under the Tortilla brand, with three Fresh Burritos stores closed during H1, and a further two since the Period end, significantly reducing losses in the division and leaving one unconverted Fresh Burritos store. · LFL sales in the converted Tortilla stores were +18.2% in H1 FY26, with Q1 +14.0% and Q2 +22.1%. · Store level gross margin in the converted Tortilla stores reached 70% at the end of H1. · Head office restructured to reduce people costs by half on an annualised basis. · While considerable work is still to be done to align the France division's profitability with that of the UK, management is confident that a renewed 'One Tortilla' approach to France coupled with a comprehensive 'levelling-up' programme will drive further sales and margin improvements. Food and menu innovation · Launched our year-round innovation strategy of four seasonal and limited-time-offer menus a year. The successful Summer Edit Menu, led by the Cali Caesar Wrap, tested wraps as a new category alongside Hibiscus Lemonade, the first of a new house drinks range.
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· Launched a limited-edition collaboration with independent hot sauce brand Thiccc Sauce for autumn, introducing our Ghost Chilli Chicken. Winter Menu to include Quesabirria, three Horchatas and the national rollout of churros, further building out our drinks and dessert categories. · Continued investment in the core menu, with improvements to key proteins, salsas and other toppings, with trials underway for the launch of a preservative-free tortilla wrap. Embracing technology · Commenced migration to Oracle's market-leading EPOS platform in UK and France which is due to complete in Q4 and which provides a solid foundation for further enhancements to the Company's tech stack. · Overhauled digital kiosk ordering systems which will result in simplified and more personalised kiosk and delivery customer journeys. · All suitable stores now have self-ordering kiosks. · Deployment of a fourth menu screen is complete across all French stores, improving product display and providing step-by- step ordering guidance; now being scoped for UK rollout. · Additional technology initiatives include a comprehensive integration of data feeds into the Company's data warehouse, agentic-AI reporting to streamline financial operations, harmonisation of the French division's Sage accounting platform with that of the UK, deployment of an upgraded facilities management platform, and the development of an enhanced delivery reporting platform. Financial position · Group adjusted EBITDA (pre‑IFRS 16)[4] for H1 FY26 was £0.5m (H1 FY25: loss £0.4m). · The UK business generated £2.6m adjusted EBITDA, an increase of £0.2m over the prior half year (H1 FY25: £2.4m), reflecting strong sales growth, offset by investment in the business and £0.5m of employment cost headwinds. Improvements to profit conversion remain a key focus for H2 FY26 and beyond. · Group adjusted net debt[5] was £12.4m at Period end (H1 FY25: £9.9m). Current trading and outlook · Trading in the UK since the Period end continues to be strong with LFL sales of +19.4% for the 13 weeks to 27 September, with in-store +9.1% and delivery +45.2%. · In France, sales growth at our seven converted Tortilla stores has accelerated, with LFLs of +24.4% for the 13 weeks to 27 September, including in-store +19.5% and delivery +88.4%. · Total Group system sales reached £102.9m on a twelve-month trailing basis at August 2026. Brandon Stephens, Founder and Group CEO of Tortilla, commented: "I am thrilled that the Group achieved a significant milestone of trailing twelve-month system sales surpassing £100m in June 2026. This was supported by strong progress made in the UK during the first half, where LFL sales grew by 13.9%, materially outperforming the CGA NIQ RSM Hospitality Business Tracker benchmark which reported that sector LFLs grew only 1.0%. Encouragingly this momentum has continued into Q3 with UK LFL sales growth of 19.4% for the 13 weeks to 27 September, fuelled by in-store LFL growth of 9.1% and delivery LFL growth of 45.2%. This momentum, together with a focus on driving Average Unit Volume[6] ("AUV") across the portfolio, will start to lead to improved profit conversion in the future. Our ongoing investment in food quality, technology and brand marketing continues to resonate with customers. The Summer Edit Menu introduced our latest products, a Cali Caesar Wrap and Cali Caesar Salad, inspired by the classic Caesar - originally developed in Tijuana, Mexico but given a Tortilla twist - and a new range of summer drinks. Both have been well received, supported by the growth of our Burrito Society loyalty app, which now has over 385,000 members. In France, the transformation has moved at pace with seven restaurants now trading under the Tortilla brand, following decisive action to close five loss-making Fresh Burritos stores. LFL sales in the converted Tortilla stores were up 18.2% in H1 FY26. This momentum has carried on into Q3 with LFL sales up 24.4% in the 13 weeks to 27 September. We are making solid progress on each of the Ten Key Objectives outlined in the 2025 Annual Report & Accounts, with long-term food and technology roadmaps in place, further brand enhancements and improvements to customer journeys across all channels,
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additional interest from franchisees following a renewed outreach programme, estate rationalisation where required, improved unit economics in both the UK and France, a reset of our governance and financial forecasting principles, and the development of a comprehensive Value Creation Plan. We have strong momentum." ENQUIRIES: Tortilla Mexican Grill plc - Via Eggmedia · Brandon Stephens, Founder & Group CEO · Richard Haley, Chief Financial Officer Eggmedia Ltd (Public Relations) - Tel: 07710 571452 · Ian Edmondson - ian@eggmediapr.com Panmure Liberum Limited (Nominated Adviser, Sole Broker) - Tel: 020 3100 2222 · Edward Thomas · Ailsa MacMaster · Gaya Bhatt About Tortilla Mexican Grill plc Founded in 2007, Tortilla is Europe's largest fast-casual Mexican restaurant brand. Through the acquisition of Chilango in the UK in 2022 and Fresh Burritos in France in 2024, as well as franchise partnerships with SSP Group plc and Compass Group UK &Ireland Limited in the UK, and Eathos in the Middle East, the brand continues to expand globally. Tortilla breaks the mould of typical takeaways, combining quick-service with quality ingredients to serve affordable, made-to-order meals in under 90 seconds, in cosy environments catering for lunch or dinner, and for beers with friends. The menu is fully customisable, with thousands of flavour combinations to try, and features only higher welfare meats. Toppings are preparedusing fresh ingredients that are free from artificial flavours and preservatives, with 70% of the toppings plant-based and vegan-friendly. Emphasising sustainability, Tortilla only uses recycled and recyclable packaging, 100% renewable electricity and sends zero waste to landfill. Headquartered in London and listed on London's Alternative Investment Market (AIM: MEX), Tortillaemploys over 1,200 people. As at 28 June 2026, the Group operated 64 corporate restaurants and 14 franchised restaurants in the UK, 10 corporaterestaurants and seven franchised restaurants in France, and 12 franchised restaurants in the UAE, giving a total estate of 107sites. Business review TORTILLA'S TEN KEY OBJECTIVES - PROGRESS IN H1 FY26 Six months into our reset strategy, we are encouraged by the progress made across the estate. System sales passed £100m on atrailing twelve-month basis for the first time in H1 FY26, and the Board is pleased with the momentum building behind our TenKey Objectives. 1. Reach best-in-class parity on productMenu innovation continued at pace through H1. Fuel Bowls launched in March, and our Summer Edit Menu range: the Cali CaesarWrap and Salad, Hibiscus Lemonade, and a canned Mirror Margarita - our first alcohol-adjacent drink available on delivery -launched in June to strong trading, with delivery taking a materially higher share of sales than previous launches. A churros trialis substantially complete and on track for wider rollout, alongside a new preservative-free, frozen-supply-chain tortilla wrap andnew salsa recipes currently in development. Refinement of recipes for various toppings has been ongoing and has contributed tostrong in-store LFLs. Additional quarterly limited time offers (LTOs) are in development, with our latest Ghost Chilli burritocampaign having just launched. 2. Build emotional connection with our customersNational Burrito Day delivered a step-change in brand reach early in the Period, adding over 40,000 new Burrito Society membersand taking the app to the number one position in the UK Apple App Store's Food & Drink category. Burrito Society membershiphas grown to over 385,000 by June, with revenue from members up roughly 50% in the Period. The Board approved a three-yearloyalty growth strategy during H1 FY26, and further brand-building initiatives are planned for H2 to build on this momentum. 3. Embrace technology and AIUnder the leadership of the Founder and the Technology Director, we deployed Anthropic's Claude across our support office earlyin the Period, integrated with our core business systems, and have developed an initial suite of AI-driven tools - includingautomated reporting and competitor-pricing insight - with support from two AI-focused interns. We signed contractual terms fora Group-wide Oracle EPOS and kiosk platform upgrade during the Period, with a successful trial completed and estate-widedeployment underway. We successfully completed a full disaster-recovery test of our core infrastructure, are integrating multipledata feeds into our data warehouse for more insightful and actionable reporting, are in the process of harmonising our Sageaccounting platforms across the UK and France, and are in the planning phase of a camera deployment programme to measurefootfall, improve customer throughput, optimise labour costs, and counter erroneous missing orders claims from our deliverychannel.
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4. Grow UK and Ireland franchise partnershipsWe held constructive discussions with several prospective UK franchise partners during the Period, including established multi-site operators, and shared indicative unit-economics models to support their evaluation. Compass Group will be opening a newfranchise site at Addenbrooke's Hospital in the coming weeks, and we look forward to updating shareholders on further franchiseprogress as agreements are concluded. 5. Complete the brand conversion in FranceThe estate in France now includes seven stores trading as Tortilla with a single Fresh Burritos site remaining following theclosure of five unconverted Fresh Burritos stores. This has significantly reduced losses in the French division while clusteringmuch of the estate in Paris for operational viability. 6. Prove a compelling unit economic model for Western European franchisingLFL sales in our converted French stores grew 18.2% in H1 FY26, accelerating to 24.4% since the Period end. With gross marginsin the France estate moving from 57.8% in H1 FY25 to 65.5% across H1 FY26 and reaching 70% by the end of H1 FY26, theconverted French sites are increasingly demonstrating that the Tortilla model can work well once fully embedded. While the costbase remains above UK levels, a comprehensive action plan is underway to bring this further in line and to prove a franchisablefour-wall economic model - a key priority as we look toward wider European franchise opportunities. 7. Address the short tail of underperforming UK sitesFollowing the closure of three sites in FY25, a further two UK equity sites closed in H1 FY26 as part of our ongoing estaterationalisation. Encouragingly, due to product quality improvements and improved local marketing efforts, previously loss-makingstores launched in secondary and tertiary locations during 2022 and 2023 are now showing robust growth, effectively reducingthe number of sites on the 'watch list', with comprehensive turnaround plans in place for the reduced number of sites thatcontinue to fall short of our target returns. 8. Modernise the UK estate with "Tortilla 2.0"We opened a new site in Leeds during the Period showcasing our refreshed branding and store design, including a dedicatedproduction line for digital orders, effectively doubling order-throughput in that store. In parallel, we are in the process of finalisinga comprehensive brand standards manual and associated cost modelling across three store formats, giving us a clear blueprintfor upgrading and refreshing our estate as capital allocation allows. 9. Build a three-year Value Creation PlanA comprehensive, bottom-up review across every functional department during Q1 identified a substantial pipeline of growth andefficiency initiatives. These have been categorised, prioritised and sequenced, with the personnel resources required to deliverthem mapped over the coming years. Management is now finalising the cost plan and quantified upside, with clear financialmilestones attached to each workstream. Board approval is expected in early Q4. 10. Set realistic targets - and hit themTortilla's Board has agreed a governance approach on disciplined budgeting, proper capital allocation, and targets that aredeliverable. FINANCIAL REVIEW Revenue In H1 FY26, revenue increased by 5.9% to £38.5m (H1 FY25: £36.3m). Growth was driven by the following factors: · Total UK revenue was £35.4m (H1 FY25: £33.0m), with LFL sales up by 13.9% fuelled by delivery LFL of 32.7% whichaccelerated after the return to a multi-aggregator model; · France revenue was £3.1m (H1 FY25: £3.3m), with LFL sales from the Tortilla converted stores up 18.2% vs the priorPeriod; and · Franchise income, included in total Group and UK revenue, was £0.7m, £0.2m lower than the previous Period due to theongoing conflict in the Middle East. Gross profit margin Gross profit margin was 74.7% in H1 FY26 (H1 FY25: 75.2%). The reported reduction principally reflects the reclassification of£0.3m of discounts into cost of sales, which were included in administrative expenses in H1 FY25 (£0.2m). On a comparablebasis, gross margin was in line with the prior Period. In the UK, food inflation, particularly in produce and meat, reduced marginby around 0.6 percentage points, partly offset by improved drinks purchasing and central production unit efficiencies. Lowerfranchise royalty income, as a result of the conflict in the Middle East, reduced group margin by around 0.2 percentage points.These headwinds were offset by a significant improvement in France, where gross margin increased from 57.8% to 65.5% as theconverted Tortilla stores became established. Administrative expenses 26 weeks ended28 June 2026 26 weeks ended29 June 2025 UK France Group UK France Group £'000 £'000 £'000 £'000 £'000 £'000 Administrative expenses 24,960 3,948 28,908 24,898 5,330 30,228 Exceptional items and pre-opening costs (815) (423) (1,238) (175) (373) (548)Administrative expenses beforeexceptional items 24,145 3,525 27,670 24,723 4,957 29,680
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Administrative expenses of £28.9m in H1 FY26 (H1 FY25: £30.2m) declined £1.3m year on year and from 83.2% of sales to 75.2% of sales, driven by lower depreciation and amortisation charges following FY25's impairment and the actions taken to reduce costs in France. Administrative expenses incorporate several items that are excluded from Adjusted EBITDA. These include: exceptional costs totalling £1.1m comprising store closure costs of £0.6m, restructuring costs of £0.4m, legal and professional fees of £0.1m; and pre-opening costs of £0.1m. Administrative costs after adjusting for these items were £27.7m (H1 FY25: £29.7m) a reduction of £2.0m. In the UK, administrative expenses were broadly flat at £25.0m (H1 FY25: £24.9m). Delivery-driven costs, principally aggregator commissions, promotions and packaging, increased by £0.9m in line with delivery sales growth, while above inflationary increases in employer's National Insurance and the National Living Wage added £0.5m of labour costs. These increases were offset by £1.1m lower depreciation and a £0.5m gain on the write back of lease liabilities on disposal, cost savings from the store closures and a lower share-based payments charge. Additionally, discounts totalling £0.3m (H1 FY25: £0.2m) have been included in cost of sales for H1 FY26; these were included in administrative expense in H1 FY25. Excluding depreciation, disposals, exceptional items and share-based payments, UK administrative costs grew more slowly than revenue. In France, administrative expenses reduced from £5.3m to £3.9m as the actions to reset the business started to yield cost benefits during the Period. The business benefitted from lower depreciation on right-of-use assets and tangible fixed assets of £0.5m, a £0.4m gain on disposal of fixed assets and lease exits and £0.5m from the reset of the French business including head office costs, and restaurant costs and legal and professional fees. There is further opportunity to bring store administrative expenses closer to the benchmark metrics of the UK business. Adjusted EBITDA (pre-IFRS 16) Adjusted EBITDA (pre-IFRS 16) is the key performance metric that the Group utilises to assess the underlying trading performance. A reconciliation of this measure compared to loss from operations is as follows: 26 weeks ended 26 weeks ended 28 June 2026 29 June 2025 £'000 £'000 Operating loss (186) (2,901) Adjusted EBITDA items Pre-opening costs 117 314 Share-based payments 14 144 Depreciation and amortisation 3,959 4,971 (Gain)/loss on disposal of assets (856) 352 FX loss 3 50 Exceptional items 1,121 234 Adjusted EBITDA 4,172 3,164 Total IFRS Adjustments (3,670) (3,533) Adjusted EBITDA (pre-IFRS 16) 502 (369) Group adjusted EBITDA (pre-IFRS 16) was £0.5m in H1 FY26 (H1 FY25: loss £0.4m). The UK business generated £2.6m adjusted EBITDA, an increase of £0.2m over the prior Period (H1 FY25: £2.4m), reflecting the benefits of strong sales momentum tempered by investment in the business and employment cost headwinds. Focus remains on driving efficiencies and maximising EBITDA flow through from the strong sales growth via initiatives to drive AUV across the portfolio. The French business contributed an adjusted EBITDA loss of £2.1m in the Period (H1 FY25: loss £2.8m). Transformation has moved at pace with five out of the six non-converted stores now closed, stemming losses and seven restaurants now trading under the Tortilla brand, positioning the business for long-term growth.
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Finance expense Finance expense of £1.4m (H1 FY25: £1.2m) is comprised of £0.9m of interest charged in relation to lease liabilities (a consequence of the accounting treatment of leases under IFRS 16) and £0.5m of interest on the Group's debt facility. Cash flow and net debt Net cash generated from operations increased by 80% to £3.6m (H1 FY25: £2.0m). This was driven by a significant improvement in underlying trading with the loss for the Period narrowing by £2.2m to £1.6m (H1 FY25: £3.8m) and a £0.6m working capital inflow (H1 FY25: £0.6m outflow). The Period also includes a non-cash gain of £0.9m on the exit of leases and write back of lease liabilities, arising from the store closures in France and the UK, which has been deducted in arriving at operating cash flow. The Group invested £1.2m in tangible fixed assets (H1 FY25: £2.0m) to support the growth of the business. This included two new site openings (our "Tortilla 2.0" restaurant in Leeds and a compact site in Wembley BoxPark), as well as the roll-out of self- ordering kiosks. With the restructuring of the French estate now largely complete, capital is being deployed in a disciplined way into the formats, technology and locations that deliver the strongest returns. Net cash used in financing activities was £4.5m (H1 FY25: £2.9m). Lease payments were broadly unchanged at £3.7m (H1 FY25: £3.7m), while interest paid increased to £0.5m (H1 FY25: £0.3m), reflecting higher average borrowings. Overall net cash and cash equivalents decreased by £2.1m in the Period (H1 FY25: £3.1m). As at 28 June 2026, the Group had adjusted net debt of £12.4m (H1 FY25: £9.9m), drawn against total available facilities of £14.4m. Adjusted net debt 28 June 2026 29 June 2025 £'000 £'000 Statutory net debt (44,622) (45,231) Less IFRS 16 lease liabilities 31,969 34,914 Delivery cash in transit 283 407 Adjusted net debt (12,370) (9,910) Dividend The Board is not recommending an interim dividend for H1 FY26. The Group's capital remains focused on the funding of the strategic agenda including product and ambience, customer, wider European growth, optimising and modernising the UK estate and strengthening the balance sheet. The Group's dividend policy will be kept under review as the Group's underlying profitability and cash generation develops over time. Consolidated statement of comprehensive income For the 26 weeks ended 28 June 2026 Unaudited UnauditedRestated* 26 weeks ended 26 weeks ended 28 June 2026 29 June 2025 Note £'000 £'000
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Revenue 38,454 36,316 Cost of sales (9,732) (8,989) Gross profit 28,722 27,327 Administrative expenses (28,908) (30,228) Operating loss 4 (186) (2,901) Finance income 5 4 8 Finance expense 5 (1,423) (1,160) Loss before tax (1,605) (4,053) Tax on loss 3 281 Loss for the Period and comprehensive income attributableto equity holders of the parent company (1,602) (3,772) FX translation 150 73 Total other comprehensive income for the Period 150 73 Total comprehensive income for the Period (1,452) (3,699) Loss per share attributable to the owners of the parentduring the Period Basic and diluted (pence) 6 (4.1) (9.8) * The comparative Period has been restated to correct for revenue and certain operating costs that had been recorded in the balancesheet instead of being recognised through the income statement as well as to correct misclassifications in the statement of financial position. See Note 3. Consolidated statement of financialpositionAs at 28 June 2026 Unaudited Audited UnauditedRestated* 28 June 2026 28 December 2025 29 June 2025 Note £'000 £'000 £'000 Non-current assets Right-of-use assets 7 22,596 24,567 29,072 Finance lease receivable 8 155 201 - Intangible assets 9 1,886 1,894 4,926 Tangible assets 10 12,157 12,847 14,608 36,794 39,509 48,606 Current assets Inventories 422 550 419 Trade and other receivables 11 4,030 4,163 5,027 Cash and cash equivalents 1,527 1,609 1,601 Finance lease receivable 8 93 93 - 6,072 6,415 7,047 Current liabilities Trade and other payables 12 (13,046) (12,706) (12,543) Lease liabilities 7 (6,612) (6,656) (6,934) Loans and borrowings (3,784) (12,190) (2,012) (23,442) (31,552) (21,489) Net current liabilities (17,370) (25,137) (14,442) Total assets less currentliabilities 19,424 14,372 34,164 Non-current liabilities Loans and borrowings (10,396) (407) (9,906) Lease liabilities 7 (25,357) (28,853) (27,980) Deferred taxation (954) (957) (319)
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Net liabilities (17,283) (15,845) (4,041) Equity attributable to equityholders of the company Called up share capital 387 387 387 Share premium account 4,433 4,433 4,433 Share based payment reserve 805 791 578 Merger reserve 4,793 4,793 4,793 FX reserve (95) (245) 73 Retained earnings (27,606) (26,004) (14,305) Total equity (17,283) (15,845) (4,041) * The comparative Period has been restated to correct for revenue and certain operating costs that had been recorded in the balancesheet instead of being recognised through the income statement as well as to correct misclassifications in the statement of financialposition. See Note 3. Consolidated statement of changes in equityFor the 26 weeks ended 28 June2026 Calledup sharecapital Sharepremiumaccount Share-basedpaymentreserve Mergerreserve FXreserve Profit andloss accountRestated* Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 At 30 December 2024 387 4,433 795 4,793 - (10,894) (486) Loss for the Period - - - - - (3,772) (3,772) Share-based payments - - 144 - - - 144 FX translation - - - - 73 - 73 Other movements - - (361) - - 361 - At 29 June 2025 -Restated* 387 4,433 578 4,793 73 (14,305) (4,041) At 29 December 2025 387 4,433 791 4,793 (245) (26,004) (15,845) Loss for the Period - - - - - (1,602) (1,602) Share-based payments - - 14 - - - 14 FX translation - - - - 150 - 150 At 28 June 2026 387 4,433 805 4,793 (95) (27,606) (17,283) For the 52 weeks ended 28 December2025 Calledup sharecapital Sharepremiumaccount Share-basedpaymentreserve Mergerreserve FXreserve Profitand lossaccount Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 At 30 December 2024 387 4,433 795 4,793 - (10,894) (486) Loss for the Period - - - - - (15,110) (15,110)Share-based payments - - (4) - - - (4)FX translation - - - - (245) - (245) At 28 December 2025 387 4,433 791 4,793 (245) (26,004) (15,845) * The comparative Period has been restated to correct for revenue and certain operating costs that had been recorded in the balance sheetinstead of being recognised through the income statement as well as to correct misclassifications in the statement of financial position. SeeNote 3. Consolidated statement of cash flows For the 26 weeks ended 28 June 2026 Unaudited UnauditedRestated*26 weeks ended 26 weeks ended 28 June 2026 29 June 2025
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Note £'000 £'000 Cash flows from operating activities Loss for the financial Period (1,602) (3,772) Adjustments for: Amortisation of intangible assets 9 14 17Depreciation of right-of-use assets 7 2,106 2,712Depreciation of property, plant and equipment 10 1,839 2,242(Gain) / loss on disposal of non-current assets 10 (856) 352Decrease in finance lease receivable 8 46 -Net finance expense 5 502 255Taxation (credit) (3) (281)Decrease / (increase) in inventories 128 (129)Decrease in trade and other receivables 11 132 1,194Increase / (decrease) in trade and other payables 12 340 (1,643)Share-based payments 14 144Finance cost on lease liabilities 7 917 897 Net cash generated from operations 3,577 1,988 Cash flows from investing activities Purchase of intangible fixed assets 9 (6) (34) Purchase of tangible fixed assets 10 (1,162) (2,015) Interest received 5 4 8 Deferred consideration paid on prior year acquisitions - (176) Net cash from investing activities (1,164) (2,217) Cash flows from financing activities Interest paid 5 (506) (263)Payments made in respect of lease liabilities 7 (3,712) (3,724)Loan drawdown - 1,116Loan repayments (280) - Net cash used in financing activities (4,498) (2,871) Net decrease in cash and cash equivalents (2,085) (3,100) Cash and cash equivalents at the beginning of Period (305) 2,761 Foreign exchange gain / (loss) 133 (72) Cash and cash equivalents at the end of Period (a) (2,257) (411) For the purposes of the Consolidated Statement of Cash Flows, the closing cash balance comprises cash and cashequivalents together with the Group's overdraft facility with Santander, which is presented as 'Borrowings' within currentliabilities on the Consolidated Statement of Financial Position. * The comparative Period has been restated to correct for revenue and certain operating costs that had been recorded in the balance sheet instead of being recognised through the income statement as well as to correct misclassifications in the statement of financialposition. See Note 3. (a). Reconciliation to cash flow statement The above figures reconcile to the amount of cash shown in the statement of cash flows at the end of thePeriod as follows: 26 weeks ended 26 weeks ended 28 June 2026 29 June 2025 £'000 £'000 Cash at bank and in hand 1,527 1,601 Bank overdraft (3,784) (2,012) (2,257) (411) NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION 1. General information Tortilla Mexican Grill plc, the "Company" together with its subsidiaries, "the Group", is a public limited companywhose shares are publicly traded on the Alternative Investment Market ("AIM") and is incorporated and domiciled inthe United Kingdom and registered in England and Wales. The registered address of Tortilla Mexican Grill plc andall subsidiaries is 142-144 New Cavendish Street, London, W1W 6YF, United Kingdom. The Group's principal activity
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is the operation and management of restaurants trading under the Tortilla, Chilango and Fresh Burritos brands inthe United Kingdom, France and the Middle East. 2. Accounting policies Basis of preparation The consolidated interim financial information has been prepared in accordance with International FinancialReporting Standards, International Accounting Standards and Interpretations (collectively IFRSs), as adopted by theUK. Unless otherwise stated, all amounts in this condensed consolidated financial information are presented inthousands of pounds sterling (£'000). The Group's Annual Report and Accounts for the Period ending 27 December 2026 are expected to be preparedunder IFRS. The comparative financial information for the Period ended 28 December 2025 in this interim report does notconstitute statutory accounts for that Period under section 435 of the Companies Act 2006. Statutory accounts for the Period ended 28 December 2025 have been delivered to the Registrar of Companies. The auditors' report on the statutory accounts for 28 December 2025 was unqualified, did not draw attention to anymatters by way of emphasis, and did not contain a statement under section 498(2) or 498(3) of the Companies Act2006. Significant accounting policies The consolidated interim financial information has been prepared in accordance with accounting policies that areconsistent with the Group's Annual Report and Accounts for the Period ended 28 December 2025 which ispublished on the Tortilla website, located at www.tortillagroup.co.uk. Going concern In adopting the going concern basis for preparing the consolidated interim financial information, the Directors haveconsidered the business model and strategies, as well as taking into account the current cash position andfacilities. As a result of the identification of the accounting issues within the French business during FY25 and therequirements to restate Adjusted EBITDA within our covenants tests, the Group retrospectively breached its netleverage and fixed charge cover covenants at the December 2025 and March 2026 quarterly test dates. Thebreaches arose retrospectively from an accounting misstatement in the French business, in which £2.7m ofrevenue and operating expenditure had been incorrectly recorded in the Group's French balance sheet. Thecorrection of these errors reduced Group FY25 Adjusted EBITDA Pre IFRS 16 to £1.1m. Santander UK plc formallywaived the breaches at both test dates and agreed revised covenant thresholds for June, September and December2026, reverting to original levels from 2027. The facility remains fully available. The breach entitled Santander UKplc to require repayment on demand at the covenant test dates. On that basis, the Group did not have the right at 28December 2025 to defer settlement of the affected borrowings for at least twelve months after the reporting date.Accordingly, those borrowings were classified as current liabilities in the consolidated statement of financialposition at 28 December 2025. Following covenant waivers received in the Period, the term loan is no longer repayable on demand. The Group was compliant with its banking covenants as at 28 June 2026 and therefore has presented the portionof bank borrowings due after 12 months from the reporting date as non-current liabilities. On 8 May 2026 the Groupagreed an incremental short-term overdraft facility, repayable on demand, of £1.3m with Santander UK plc toprovide additional liquidity headroom. The Group has access to other sources of funding, if required in the event ofthe overdraft ceasing to be available. Together with the Group's ongoing working capital management, the Directorsconsider that the Group has access to sufficient resources to meet its liabilities as they fall due. The Group initiated a structural reset of the French business to address its losses and accelerate the path toprofitability. Actions already taken include a significant reduction of support office costs, estate rationalisation -five sites have been exited to date - and actions to drive further growth in converted stores. Management has prepared detailed cash flow forecasts covering 12 months from the date of approval of theconsolidated interim financial information, including a base case, and a downside case incorporatingManagement's quantification of plausible adverse scenarios. The base case demonstrates compliance withbanking covenants at each quarterly test date. In reviewing the downside scenarios and assessing the mitigatingactions available to management, a key mitigating action would be for the Group to exit the French business in fullthrough a liquidation or administration process. This could immediately stem any cash losses and their associatedcash outflows from the Group's forecasts and would discharge most of the liabilities of the French business,further reducing forecast cash outflows. This would leave the Group with a strong, cash generative UK businessand provide significant headroom on the Group's financial covenants. Having considered these matters, the Directors have a reasonable expectation that the Group has adequateresources to continue in operational existence for at least 12 months from the date of approval of the consolidatedinterim financial information. Accordingly, the consolidated interim financial information has been prepared on agoing concern basis. 3. Restatement of prior Period comparatives The comprehensive review of the Group's French business in early 2026 found that revenue and certain operatingcosts totalling £2.7m had been recorded in the balance sheet instead of being recognised through the income
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statement in the relevant reporting Periods for the whole of FY25. Whilst the FY25 financial statements correctlyrecorded the required adjustments, the prior interim consolidated financial information has been restated to reflectthose elements of the FY25 adjustments relating to H1 FY25 as well as to correct misclassifications in thestatement of financial position at H1 FY25. The impact of the restatements totalling £1.7m in H1 FY25 is set out inthe tables below. Consolidated statement of comprehensive income For the 26 weeks ended 29 June 2025 As previouslyreported Restatement As restated 26 weeks ended 26 weeks ended 26 weeks ended 29 June 2025 29 June 2025 29 June 2025 £'000 £'000 £'000 Revenue 36,010 306 36,316 Cost of sales (8,292) (697) (8,989) Gross profit 27,718 (391) 27,327Administrative expenses (28,902) (1,326) (30,228) Operating loss (1,184) (1,717) (2,901) Finance income 8 - 8 Finance expense (1,160) - (1,160) Loss before tax (2,336) (1,717) (4,053) Tax on loss 282 (1) 281 Loss for the Period and comprehensive incomeattributable to equity holders of the parent company (2,054) (1,718) (3,772) Loss per share attributable to the owners of theparent during the Period Basic and diluted (pence) (5.3) (4.5) (9.8) Consolidated statement of financialpositionAs at 29 June 2025 As previouslyreported Restatement As restated 29 June 2025 29 June 2025 29 June 2025 £'000 £'000 £'000 Non-current assets Right-of-use assets 29,072 - 29,072 Finance lease receivable - - - Intangible assets 4,926 - 4,926 Tangible assets 14,608 - 14,608 48,606 - 48,606 Current assets Inventories 483 (64) 419 Trade and other receivables 3,679 1,348 5,027 Cash and cash equivalents 1,647 (46) 1,601 Finance lease receivable - - - 5,809 1,238 7,047 Current liabilities Trade and other payables (9,668) (2,875) (12,543) Lease liabilities (6,934) - (6,934) Loans and borrowings (2,012) - (2,012) (18,614) (2,875) (21,489) Net current liabilities (12,805) (1,637) (14,442) Total assets less currentliabilities 35,801 (1,637) 34,164 - Non-current liabilities - Loans and borrowings (9,825) (81) (9,906) Lease liabilities (27,980) - (27,980) Deferred taxation (319) - (319) Net liabilities (2,323) (1,718) (4,041)
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Equity attributable to equityholders of the company Called up share capital 387 - 387 Share premium account 4,433 - 4,433 Share based payment reserve 578 - 578 Merger reserve 4,793 - 4,793 FX reserve 73 - 73 Retained earnings (12,587) (1,718) (14,305) Total equity (2,323) (1,718) (4,041) 4. Operating loss 26 weeks ended 26 weeks ended 28 June 2026 29 June 2025Restated £'000 £'000 Depreciation and amortisation 3,959 4,971 (Gain)/loss on disposal of assets (856) 352 Variable lease payments 506 683 Inventories - amounts charged as an expense 9,732 8,989 Share option expense 14 144 Pre-opening costs 117 314 Exceptional items 1,121 234 Bank arrangement fee amortisation 29 37 26 weeks ended 26 weeks ended 28 June 2026 29 June 2025 £'000 £'000 Pre-opening & site conversion costs 117 314 Number of site openings in Period 2 - The Group reports costs incurred prior to the opening of a site as a separate expense and excludes these from thecalculation of adjusted EBITDA. This approach is in line with the standard industry practice and the methodologyused by the Group's bank for the purposes of assessing covenant compliance. The Directors view this as a betterway to analyse the underlying performance of the Group since it excludes costs which are not trading related. The exceptional costs for the half year to June 2026 relate to: 26 weeks ended 26 weeks ended 28 June 2026 29 June 2025 Nature of exceptionals £'000 £'000 Store closures 573 69 Legal and professional fees 113 - Restructuring costs 403 98 Other 32 67 Total 1,121 234 5. Finance income and expenses 26 weeks ended 26 weeks ended 28 June 2026 29 June 2025 £'000 £'000 Bank interest income 4 8 26 weeks ended 26 weeks ended
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28 June 2026 29 June 2025 £'000 £'000 Bank interest 506 263Finance cost on leaseliabilities 917 897 1,423 1,160 6. Loss per share Basic earnings per share is calculated by dividing the profit / (loss) attributable to equity shareholders by theweighted average number of shares outstanding during the Period. 26 weeks ended 26 weeks endedRestated 28 June 2026 29 June 2025 Loss used in calculating basic and diluted loss (£'000) (1,602) (3,772) Weighted average number of shares for the purpose of basicand diluted earnings per share ('000) 38,664 38,664 Basic and diluted loss per share (pence) (4.1) (9.8) Potential ordinary shares have been disregarded in the calculation of diluted EPS as their inclusion would reducethe loss per share and they are therefore anti-dilutive. 7. Leases Right-of-use assets Lease liabilities £'000 £'000 At 30 December 2024 31,592 At 30 December 2024 (37,550) Additions 192 Additions (191) Disposals - Interest expense (897) Depreciation (2,712) Lease payments 3,724 Impairment - Disposals - At 29 June 2025 29,072 At 29 June 2025 (34,914) At 29 December 2025 24,567 At 29 December 2025 (35,509) Additions 193 Additions (193) Disposals (42) Interest expense (917) Depreciation (2,106) Lease payments 3,712 Impairment - Disposals 898 FX (16) FX 40 At 28 June 2026 22,596 At 28 June 2026 (31,969) 8. Finance lease receivable 28 June 2026 28 December2025 29 June 2025 £'000 £'000 £'000 Current (due within one year) 93 93 - Non-current (due after morethan one year) 155 201 - 248 294 - The finance lease receivable represents the present value of future minimum payments receivable. The currentportion represents amounts due within twelve months of the balance sheet date.
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9. Intangible assets Computer software Leaseholdrights Goodwill Total £'000 £ '000 £'000 £'000 Cost At 30 December2024 28 83 5,510 5,621 Additions 34 - - 34 At 29 June 2025 62 83 5,510 5,655 At 29 December2025 45 83 5,403 5,531 Additions 6 - - 6 At 28 June 2026 51 83 5,403 5,537 Amortisation andimpairment At 30 December2024 18 9 685 712 Amortisation charge 5 12 - 17 At 29 June 2025 23 21 685 729 At 29 December2025 22 39 3,576 3,637 Amortisation charge 2 12 - 14 At 28 June 2026 24 51 3,576 3,651 Net book value At 28 June 2026 27 32 1,827 1,886 At 28 December2025 23 44 1,827 1,894 At 29 June 2025 39 62 4,825 4,926 10. Tangible assets Long-term leaseholdproperty Plant and machinery Fixtures andfittings Total £'000 £'000 £'000 £'000 Cost At 30 December 2024 18,363 9,285 9,078 36,726 Additions 60 1,506 834 2,400 Disposals (450) (59) (46) (555) At 29 June 2025 17,973 10,732 9,866 38,571 At 29 December 2025 18,090 11,242 10,082 39,414 Additions 415 267 480 1,162 Disposals (575) (210) (473) (1,258) FX (1) (12) (15) (28) At 28 June 2026 17,929 11,287 10,074 39,290 Depreciation At 30 December 2024 11,564 4,517 5,843 21,924 Charge for the Period 548 733 961 2,242 Disposals (165) (22) (16) (203) At 29 June 2025 11,947 5,228 6,788 23,963 At 29 December 2025 13,172 5,514 7,881 26,567 Charge for the Period 363 806 670 1,839
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Disposals (575) (210) (473) (1,258) FX - (3) (12) (15) At 28 June 2026 12,960 6,107 8,066 27,133 Net book value At 28 June 2026 4,969 5,180 2,008 12,157 At 28 December 2025 4,918 5,728 2,201 12,847 At 29 June 2025 6,026 5,504 3,078 14,608 11. Trade and other receivables 28 June 2026 28 December2025 29 June 2025Restated £'000 £'000 £'000 Trade receivables 1,416 817 1,734 Other receivables 1,453 1,224 1,708 Prepayments and accrued income 939 1,179 1,145 Other taxation and social security 222 943 440 4,030 4,163 5,027 Trade receivables primarily relate to sales due from third party delivery providers and these are settled the weekimmediately following the week in which the sale was recorded. There are also amounts owed by the Group'sfranchise partners, which are due within 30 days of the end of the Period. Other receivables consist of deposits held by third parties, generally landlords, and amounts accrued but not yetinvoiced to third parties. These amounts not invoiced are franchise income and produce from the Group's centralkitchen which is sold and bought back to the Group's main food supplier, who provides the distribution across theGroup's estate. The Group held no collateral against these receivables at the balance sheet dates. The Directors consider that thecarrying amount of receivables is recoverable in full and that any expected credit losses are immaterial. 12. Trade and other payables 28 June 2026 28 December2025 29 June 2025Restated £'000 £'000 £'000 Trade payables (4,399) (5,109) (5,729) Other taxation and social security (3,470) (2,490) (2,237) Other payables (2,084) (1,821) (2,466) Accruals and deferred income (3,093) (3,286) (2,111) (13,046) (12,706) (12,543) 13. Alternative performance measures (Non-GAAP) 26 weeks ended 26 weeks ended 28 June 2026 29 June 2025Restated£'000 £'000 Operating loss (186) (2,901) Adjusted EBITDA items Pre-opening costs 117 314
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Share-based payments 14 144 Depreciation and amortisation 3,959 4,971 (Gain)/loss on disposal of assets (856) 352 FX loss 3 50 Exceptional items 1,121 234 Adjusted EBITDA 4,172 3,164 Total IFRS Adjustments (3,670) (3,533) Adjusted EBITDA (pre-IFRS 16) 502 (369) Adjusted EBITDA (pre-IFRS 16) is an alternative performance measure (APM). It is defined as statutory operating profit before interest, tax, depreciation and amortisation (before application of IFRS 16 and excluding exceptional costs), includes other income, and reflects the underlying trade of the Group. Management use Group adjusted EBITDA (pre-IFRS 16) as a key performance measure of the business and it is considered by management to be a measure that investors look at to reflect the underlying business. Adjusted net debt 28 June 2026 29 June 2025 Restated £'000 £'000 Statutory net debt (44,622) (45,231) Less IFRS 16 lease liabilities 31,969 34,914 Delivery cash in transit 283 407 Adjusted net debt (12,370) (9,910) Adjusted net debt is an APM. It is defined as net debt / cash, cash equivalent and cash in transit (including cardand delivery receipts), excluding lease liabilities arising from application of IFRS 16. Management consider thismore accurately reflects the underlying net debt of the Group. [1] System sales represent the sum of all sales (excluding VAT) made by both franchised and corporate stores to consumers in UK, France and the UAE. [2] The comparative period has been restated to correct for revenue and certain operating costs that had been recorded in the balance sheet instead of being recognised through the income statement as well as to correct misclassifications in the statement of financial position. [3] Timeframes stated are tied to the trading periods before and after the introduction of the multi-aggregator delivery model rather than Q1 and Q2 to provide clarity around the impact of this strategic change to sales. [4] Adjusted EBITDA is defined as statutory operating profit before interest, tax, depreciation and amortisation (before application of IFRS 16 and excluding exceptional costs), includes other income, and reflects the underlying trade of the Group. [5] Defined as net debt / cash, cash equivalents & cash in transit excluding lease liabilities arising from application of IFRS 16. [6] Average Unit Volume is the average annual sales generated by a restaurant site and is calculated by dividing total sales from all restaurants by the number of restaurants. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END