Gaucho, the Argentinean steakhouse concept led by Zeev Godik, reported flat EBITDA growth in its last financial year, as accrued interest from loan notes and the closure of its Beirut site impacted turnover.
The group, which is backed by Intermediate Capital Group and currently operates 17 restaurants in the UK, plus one in the UAE and Holland, saw EBITDA fall from £10.5m to just over £10m during the year.
It saw turnover decline from £55.6m to £53.7m in the year to 31 December 2011, as pre-tax losses widened from £10.3m to £13.1m, on the back of higher sales costs and interest payments of c£14m.
It is thought that it wrote off c£1.5m in closing its Beirut site and that trade since the start of this year has picked up.
It also closed its site in Lebanon during the period.
In accounts filed at Companies House, Gaucho, which counts Carluccio’s chairman Stephen Gee and Cote co-founder Andy Bassadone amongst its directors, said that it wished to maintain the growth of turnover in its acquired businesses “through continued expansion of restaurants”
Earlier this week, M&C Report revealed that Charlie McLean, the highly-regarded managing director of CAU Restaurants and the Gaucho Group finance director, was to leave the company later this year.
Since June 2011, McLean has been overseeing the development and growth of CAU, the group’s casual dining format, which has already grown to four restaurants with a further three signed for late 2013/early 2014.
It is thought that group chief executive Godik will now oversee the running of CAU, with the brand’s operations director Graham Hall, formerly of All Star Leisure.
Gary Mann, Gaucho’s current head of finance, will step up to finance director.
Gaucho also recently acquired a stake in Sucre, an award-winning tapas-style restaurant in Buenos Aires, which could be the prelude to more sites opening in the region under the name.
The group said that part of its decision to invest in the business came from the fact that the restaurant’s executive chef Fernando Trocca has for the past seven years also acted as a consultant to the Gaucho.
