News Column

Restaurant Group Richoux's Annual Profit Drops As Expansion Continues

April 28, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - Restaurant Group Richoux Group PLC Monday reported a lower pretax profit for its last financial year, as the group continues to spend money on expanding its portfolio of restaurants.

Richoux group, which operates the Richoux, Dean's Diner, Villagio and Zippers restaurant brands, reported a pretax profit of GBP740,000 million for the year ended December 29, 2013, down from GBP879,000 the prior year.

Excluding pre-opening costs, and profit on the disposal of assets held for sale and impairment, its operating profit for the year rose 14% to GBP903,000, up from GBP791,000 a year earlier.

Revenues for the year however, rose 17% on the back on new restaurant openings, to GBP11.5 million, up from GBP9.9 million the prior year.

The group opened five new restaurants during the year, and spent GBP2.79 million in the year, predominantly on the fit-out costs for the new sites. Richoux now operates from 18 restaurants across its brand portfolio, most of which are its Italian Villagio Ristorante restaurants and Dean's Diners.

Richoux said that it has now exchanged contracts for a sixth Dean's Diner site in Trowbridge which should open in July, and it is in advanced stages of negotiations on two further sites.

"We are also progressing our pipeline for openings in 2015 and 2016," the company said in a statement.

Richoux did not propose the payment of a dividend for the year.

Shares in Richoux Group dropped 9.7% Monday morning, trading at 28.00 pence per share.

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Source: Alliance News

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