Business

Gordon Ramsay Restaurants swings to £5.1m loss

Consolidated turnover at the company also fell 36.9% year-on-year to £34.5m for the year ended 31 August 2020

Gordon Ramsay Restaurants has announced that the group swung to a £5.1m loss before tax in FY20, down from £15.2m profits the previous year.

Consolidated turnover at the company also fell 36.9% year-on-year to £34.5m for the year ended 31 August 2020.

The celebrity chef’s restaurant group attributed the decline in turnover to a “three-and-a-half-month closure and the further two months of restricted trading”.

The period also saw net liabilities widen at Gordon Ramsay Restaurants from £11.7m to £16.9m at the period end.

In a filing to Companies House, signed by Andy Wenlock, managing director at the group, the company recognised the “significant impact” that Covid-19 had during the financial year.

FY20 saw the group continue to hold an interest in 25 London-based restaurants, as well as 11 sites in various international locations.

Looking ahead, it added: “The directors are comfortable that the business is operating profitably with the ability to withstand reasonably foreseeable severe downside scenarios should they arise.”

A spokesperson at the company said: “There isn’t a business in the world that hasn’t been affected over the last 18 months, by the Covid-19 pandemic. With long lockdowns and restaurants closed, losses were inevitable.

“Despite all these challenges and with the full support of both its owner Gordon Ramsay and its banking facilities, Gordon Ramsay Restaurants has not allowed the pandemic to derail its ambitious growth strategy at home and abroad.”

They added: “With 12 new restaurants opening since lockdown lifted in April and more planned, we are supporting city centres and local high street economies as well as creating hundreds of new jobs.”

Back to top button