Ping Pong, the London-based dim sum chain led by Art Sagiryan, has reported a narrowing of losses in the year to 31 March after it closed three restaurants in the period, which also removed all bank debt.
Loss before tax was £296,000, compared to £1.8m in the previous year (the most recent trading year covered 53 weeks against 52 in 2011/2012). Turnover fell 7.6% to £14.4m for the company, which recently secured its 10th site in Stratford for an opening next year.
EBITDA (before franchise fee) was £1.2m (2012: £1.6m).
The company said: “Ping Pong closed three restaurants during the financial year due to changes in business model strategy. The trading environment continues to be challenging and remains very competitive. Despite this, the directors are satisfied with the company’s core restaurant operating performance.”
Ping Pong is to introduce an evolved design for its next opening at Wembley’s Design Outlet in two weeks. Regarding the new design roll-out, Sagiryan told M&C Report last month: “We are going to do it gradually.” There could be one more in this current financial year and maybe be two or three in the following year, he suggested.
In its latest results, the firm said: “Following the disposal of three sites and resultant removal of all bank debt, the company is set for the next stage of growth in its UK-based estate.
“Two specific larger sites have been identified to develop and are expected to open in 2013-14, potentially as two of the smaller existing sites. The new sites are planned to open as part of a revitalised branding strategy, with a view to then updating the remaining UK estate.”
Ping said it would “continue to evaluate opportunities outside London in high footfall, mixed-use developments”. It said its Ping Pong NOW take-away concept “continues to be re-evaluated” and there are “on-going discussions regarding a potential franchise arrangement”.
Earlier this year, the group placed three of its sites in London on the market through CBRE, including its Now takeaway site in Liverpool Street. It is thought that offers have been made on the three restaurant sites.
Ping Pong stated in its accounts: “With continued consolidation and focusing on reducing central costs, the directors are confident about the prospects for the brand both in the UK and internationally.”
