The Gordon Ramsay Group toasted healthy full-year results today, as revenue at the London-based, international restaurant firm grew more than 10 per cent
Revenue at the restaurant group was up 12.6 per cent to £50.3m in the year to 31 August 2015, up from £44.7m in 2014.
The group posted an operating loss of £1m in 2015, driven by £4m in exceptional charges, including legal costs from a US joint venture. In 2014, the operating loss was £1.4m, while in 2016 the company has said it is expecting operating costs to break even.
Like-for-like restaurant sales grew by 4.2 per cent year-on-year, while the company's adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) was up 41.1 per cent to £5.7m, up from £4.1m in 2014. Like-for-like Ebitda was up 33.4 per cent.
In the UK, the group launched two new restaurants in London – Heddon Street Kitchen and Maze Grill Park Walk. A major refurbishment at Foxtrot Oscar also finished, with the venue reopening as Maze Grill Royal Hospital Road.
The group's international operations, which includes 16 restaurants across France, Italy, the US, Hong Kong, Singapore, Qatar and the United Arab Emirates, posted revenue of £2.9m.
This was more than a 26 per cent increase on 2014, and reflected strong trading performance at the group's licensed restaurants in Las Vegas, Versailles, Italy and Doha, as well as new openings in Atlantic City, Hong Kong and Singapore.
Why it's interesting
The group describes the last five years as a "huge transformation" for the firm, after a period of over-expansion and hits felt across the industry from the financial crisis.
A number of significant hires were made in the most recent financial year to "re-energise" the group, including David Kerr as finance director, who moved from the same role at Home House, and People Director Charlie Glynn, who moved from Harris+Hoole.
Outside of the UK, expansion has been tipped at three new restaurants all in the US, although the sites have yet to be specified. In the UK there are no immediate plans to launch any new restaurants, although the group has told City A.M. it is considering key urban hotspots outside of London, such as Manchester, Birmingham and Leeds, for future domestic expansion.
What the Gordon Ramsay Group said
Chief executive Stuart Gillies said:
The strong revenue and profit growth that we achieved in 2015 was driven both by the improved performance of our UK restaurant portfolio and by the development and opening of restaurants overseas. In an extremely competitive dining scene, we continue to maintain a high level of investment in both our restaurants and our people in order to deliver service levels that exceed our customers' expectations.
The current financial year has started well and we see enormous opportunities for the expansion of our concepts both in the UK and around the world.