Chapman Group, the West Sussex-based pub, restaurant and hotel operator, saw pre-tax profits more than halve in the year to 31 March 2013 after administrative costs grew by 10.6% to £5.3m.
Pre-tax profit was £302,505 (2012: £721,292) on sales up c3% to £8m. The group, which operates a number of outlets under the Relax Innz brand, attributed the rise in sales to the “continuing efforts of the company and a slight improvement in the economy”.
The rise in administrative expenses also affected operating profits, which fell from £1.5m to £1.1m. Meanwhile, return on capital employed fell from 6.6% to 4.78% and the gross profit percentage remained consistent at about 78%.
“On-going reviews of each of the outlets within the company is being undertaken by the management to improve performance in all of the areas of the company,” Chapman Group said.
It described the business environment as “challenging”. “The market is very competitive and margins continue to be tight.
“With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.”
Net debt fell from £15.6m to £15.2m at the period end.
