The Gordon Ramsay Group of restaurants boosted revenues and returned to profit for the year ending 31 August 2016, it announced today.
Revenue at the restaurant group rose 3.2 per cent to £51.9m following "strong trading" during the period. Meanwhile, revenue from international operations was up 23.6 per cent to £3.6m during the period.
The group reported a profit after tax of £739,000 during the period compared to a £2m loss in 2015. This was the first year since 2012 the restaurant giant delivered a net profit.
However, adjusted earnings before interest, tax, depreciation and amortisation (ebitda) were down to £4.4m versus £5.5m in 2015 due to "rent reviews" and investment in restaurants.
Why it's interesting
The group said it boosted earnings despite uncertainty following the Brexit vote.
An analysis by accountancy firm Moore Stephens found that over 5,500 restaurant companies have a 30 per cent chance of going bust by the end of 2019 as the pound's fall will make food prices more expensive. Meanwihile, Ramsay's rival Jamie Oliver restaurant group announced earlier this year that it is shutting six of its outlets because of a "tough market" following the EU referendum.
However, Gordon Ramsay Group remains "well-prepared" for challenges amid an "uncertain environment".
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," Gillies added.
The group was able to boost revenue through new openings in Bordeaux, Hong Kong and Dubai. It also signed six new deals signed for restaurant launches in the US and Canada.
"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," the group's CEO added.
What did Gordon Ramsay Group say:
Gordon Ramsay, chairman of Gordon Ramsay Group, said:
“Our last financial year was a pivotal one for the Group. Our strategy of creating and incubating exciting new restaurant brands in London, like Bread Street Kitchen, and launching them across the world has been highly successful. This is all down to our massively talented team – from our head chefs to our hard-working waiting staff. Thanks to all of you."