BurgerFuel profit jumps 33%

Total unaudited system sales were up 25 per cent to a record $82.8 million for the 12-month period said chief executive Josef Roberts. Photo / Doug Sherring

Shares in gourmet burger company BurgerFuel jumped more than 10 per cent after the company reported strong full-year growth and said its global strategy was on track.

In the year to March 31, net profit after tax for BurgerFuel Worldwide rose 33 per cent to $532,170, with group operating revenue up 30 per cent to $18.7 million.

The company said it had achieved a number of records for the year including opening 17 new restaurants - the equivalent of one every three weeks - and purchasing its second company-owned store in Henderson.

Total unaudited system sales were up 25 per cent to a record $82.8 million for the 12-month period and chief executive Josef Roberts said he was extremely pleased with the results despite it being a hectic year.

"You can imagine how busy the company has been and then on top of that we've managed to secure a big partner in Subway and Franchise Brands [in the US] and get that relationship warmed up, on top of business as usual with the 17 new restaurants as well," Roberts said.

BurgerFuel's shares closed up 35c, or 10.9 per cent, at $3.55 yesterday.

The company said it was pleased to have delivered a profit for the period, had no debt and cash reserves of $7.7 million.

"We had told the market we would be investing quite considerably this year and it was quite possible we would be making a loss and to expect that," Roberts said. "As it turns out, we managed to turn a profit."

He said this was due to several factors including the company's slow and steady approach to the US market, which had resulted in less expenditure than had been planned for, and strong group sales growth and managing of costs.

The latest partnership announced last week with OhCal Foods, which services more than 2100 Subway restaurant outlets, was its next strategic move.