Prezzo today said it has completed its CVA process and remains pleased with the performance of the restaurant refurbishments it has carried out in 2018 – as its published 2017 financial accounts provided a painful reminder of the troubles it has faced.
The company’s annual report for the 12 months to 31 December 2017 was only signed off by the board and filed with Companies House this week. It revealed that the company’s revenues fell from £219m to £212m last year, while it racked it up losses of more than £54m versus a net profit of £3.8m the year before.
Given the level of restructuring created by the CVA process at the start of 2018, Prezzo chose to use the 2017 financial report to comment on developments since the end of that accounting period.
It confirmed that it now has a ‘core’ estate of 190 restaurants having closed 104 sites this year, including all Chimichanga, Caffe Uno, Cleaver and MEXIco stores.
By the end of 2018 it will have refurbished 11 restaurants with a new look and feel. The financial returns of the nine restaurants completed to date are “encouraging and ahead of the investment case”, it stated.
“The focus for the remainder of 2018 and beyond is the ongoing rejuvenation of the Prezzo brand through the development of a more appealing, trusted, better quality and distinct customer proposition which differentiates us from our peers and keeps our customers coming back.”
The company said it had launched a new food menu in September, which has improved its offering and it remains “very encouraged” by the revenues generated from the refurbished restaurants, which are “significantly out-performing” the rest of the Prezzo portfolio.
Its CVA saw the firm close loss-making and marginally profitable restaurants, as well as restructure its existing £155m debt facility with reset financial covenants.