Gordon Ramsay Group returns to profit following £2m loss

WEST HOLLYWOOD, CA - JUNE 04:  Chef Gordon Ramsay poses in the kitchen at the celebration opening party of his new Los Angeles restaurant The London, on June 4, 2008 in West Hollywood, California  (Photo by Frazer Harrison/Getty Images)

The Gordon Ramsay Group has returned to profit and boosted its revenue after a ‘strong period’ of trading following a £2m loss in 2015.

The group, which has 16 sites, recorded post-tax profits of £739,000 – the first time since 2012 the restaurant group delivered a net profit. A pivotal moment for the group follows years of loss incurred from “the wrong type of expansion”.

Meanwhile, the restaurant group’s revenue rose 3% to £52m and revenue from international operations was up 24% to £3.6m the year ending 31 August 2016.

But it was reported that EBITDA were down £4.4m against £5.5m in 2015 due to rent reviews and investment in new restaurant sites.

The group maintains that it is “well-prepared” for challenges amid an “uncertain environment”. Business rates, rising energy costs and levees are a concern for many major operators, particularly in London.

Stuart Gillies, CEO of the group, told City A.M.: “We are not feeling an immediate Brexit impact in our environment. Since the Brexit vote, the tourism has been phenomenal. London attracted a wave of visitors following the vote and we capitalised on that. “We are also very light-footed so we can change very quickly if need be.”

“The US market, which Gordon and I love, goes from strength to strength. We’ve got brilliant restaurants there. And of course we have the rather helpful identity of Gordon as an international media star there which helps enormously with growing the restaurant business,” he added.

Authors

HAVE YOUR SAY...

*

Related posts

Top