Byron’s profits shrink but launch of 13 new stores lifts revenues

Byron Burger

Hamburger chain Byron has seen its rate of growth slow due to increasing competition in the sector and the timing of new openings over the past year, but still saw the volume of its sales swell by almost £12m.

The company booked sales of £80.4m for the 12 months to June 2016 compared with £68.9m in the same period a year previously.

13 new restaurants were opened by the firm, including further expansion outside London and the first sites in Scotland, as it took its estate to 65 properties.

Byron accelerated its capital investment programme and spent £1.8m refurbishing older restaurants, while the launch of a delivery service augmented the sales growth seen through new openings and the performance across the existing estate.

In order to support the growth, the number of employees has increased from 1,369 to 1,706, according to annual accounts filed with Companies House last week.

Gross profits at the firm reached £9.7m but overall income was just £91,000 compared with £4m the previous year due largely to an increase in administrative expenses and exceptional costs. This included a £2.9m increase in impairment charges, increased investment in the central office teams to support its expansion and £1.5m worth of costs relating to senior management restructuring and consultancy fees for a full review of its supply chain.

“The directors will continue their journey to turn the UK into a nation of “proper hamburger” lovers and to open further restaurants across the UK,” the company said. “The directors intend to continue the roll-out of restaurants for the foreseeable future, to grow national brand awareness of Byron, as well as continuing to focus on organic growth.”

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