Neville Abraham, the man brought back to turn around the troubled Groupe Chez Gerard restaurant group, struck an upbeat note this morning, despite the company reporting pre-tax loss of £3.4m for the year to June 30.
Abraham, who has taken on the role of executive chairman, said: “Our recovery programme is in full swing. All of our restaurants are much more competitive than a few months ago.” The core mainly London-based Chez Gerard brand was showing only marginally negative like for likes in the second half, he added.
“Despite the difficult trading environment we are a strongly cash generative business: based on the second half to June 2002, the continuing business is generating over £4m cash (EBITDA) annually. Our current sound financial position looks set to improve in the months ahead,” he predicted.
The group saw sales for the year flat at £37.6m compared to £37.7m in 2001. Restaurant contribution fell to £4.5mfrom £6.6m the previous year and pre-tax profit before exceptionals was £900,000 compared to £2.0m
The one-off exceptionals that produced the final loss for the year, included re-organisational costs associated with the closure of restaurants and the restructuring of the head office, and an impairment charge of on the carrying value of five other restaurants, Abraham added.
During the year the company disposed of five site. As part of Abraham’s recovery plan there is also a freeze on new developments. Second half central costs were reduced by 22% to £1.2m and net debt had been further reduced to £4.8m following year end, he said.
The estate has now been rationalised down to 25 sites, and three distinct businesses: 12 Chez Gérards, 10 Livebaits and three Bertorellis. “Their performance is managed differently from the position of 12 months ago and now all our restaurants compete in the group's league tables whose criteria are customer satisfaction and staff turnover, as well as financial performance against budget,” Abraham said.
Abraham, who has taken on the role of executive chairman, said: “Our recovery programme is in full swing. All of our restaurants are much more competitive than a few months ago.” The core mainly London-based Chez Gerard brand was showing only marginally negative like for likes in the second half, he added.
“Despite the difficult trading environment we are a strongly cash generative business: based on the second half to June 2002, the continuing business is generating over £4m cash (EBITDA) annually. Our current sound financial position looks set to improve in the months ahead,” he predicted.
The group saw sales for the year flat at £37.6m compared to £37.7m in 2001. Restaurant contribution fell to £4.5mfrom £6.6m the previous year and pre-tax profit before exceptionals was £900,000 compared to £2.0m
The one-off exceptionals that produced the final loss for the year, included re-organisational costs associated with the closure of restaurants and the restructuring of the head office, and an impairment charge of on the carrying value of five other restaurants, Abraham added.
During the year the company disposed of five site. As part of Abraham’s recovery plan there is also a freeze on new developments. Second half central costs were reduced by 22% to £1.2m and net debt had been further reduced to £4.8m following year end, he said.
The estate has now been rationalised down to 25 sites, and three distinct businesses: 12 Chez Gérards, 10 Livebaits and three Bertorellis. “Their performance is managed differently from the position of 12 months ago and now all our restaurants compete in the group's league tables whose criteria are customer satisfaction and staff turnover, as well as financial performance against budget,” Abraham said.
