Wasabi, the London-based sushi and bento chain led by Dong Hyun Kim, saw turnover top £70m in the 16 months to December 2013, a period in which it opened seven new sites and helped develop sister brand Kimchee.
The company said that this year should see it explore additional funding options to complete anticipated store openings “in order to achieve the best commercial advantage to the company” and that it continued to have the support of its bank HSBC despite breaching some of its banking covenants in 2013.
The 39-strong brand is set to ramp up its regional expansion plans this year, including the launch of its first airport site at Luton Airport and a unit at the Lion Yard Shopping Centre in Cambridge.
Turnover stood at £70.1m in the 16 months compared to £40.7m in the 12 months prior. Pre-tax profit was £480.6k compared to £2.84m the year before on the back of new openings and a “reorganisation of the operating group”.
Gross profit was £25.9m (1012: £16.5m), representing 37% of sales (2012: 41% of sales), whilst EBITDA was £3.49m (2012: £4.6m) representing 5% of sales (2012: 11%).
The company said: “One-off costs were incurred in 2013 of approximately £950,000, comprising the write-off of irrecoverable loan balances to former group companies, more remediation work than expected on discontinued locations, higher than anticipated repairs, especially in branches where high transaction volume placed strains on equipment and infrastructure and actual costs exceeding accruals in 2012.”
During 2013, HMRC completed a VAT inspection which concluded that the company had not complied with VAT regulations and suspended penalties of £210.8k were imposed on the basis that conditions prescribed by HMRC are met by the company. The company asserts that it is now in compliance with the HMRC conditions so no provision is required, but it is waiting for HMRC to confirm the penalty does not apply.
Wasabi will open its second site in New York at 7 Westfield World Trade Center next March. A first site in New York was opened in February last year.
There are currently three Kimchee in operation in London, one restaurant site and two “on-the-go” units.
It is thought that a second Kimchee restaurant is being lined up to open in King’s Cross.
