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ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2013
All forecasts point to a slight easing of the pressure on
domestic demand in the Iberian market, but the need to
maintain the fiscal consolidation measures will continue
to affect the growth of the food service market. Howev-
er, if the signs of a pick-up in the economy continue in
2014, sales can be expected to continue the trend seen
in the fourth quarter. The pressure on prices will contin-
ue, so margins will continue to contract.
As regards funding, the increase in liquidity seen at the
end of 2013 can be expected to continue through 2014.
The selective release of funds to the economy has been
apparent in the approach most Banks have taken to-
wards the Group, offering new credit lines or expressing
a willingness to extend existing facilities. Consequently,
we anticipate a reduction in the spreads on loans in Por-
tugal and Spain.
As regards expansion, we will remain alert to opportuni-
ties to strengthen the competitive position of the brands
we operate and expect Ibersol to open 5 units and re-
model more than 10 in 2014, possibly also closing some,
especially those units where renegotiation of the fran-
chise agreement makes the operation unviable given the
level of sales.
In Angola, with the business now more firmly estab-
lished, we envisage the opening of one or two more
restaurants.
Outlook
