West Cornwall Pasty Company, the Gresham-backed retailer, reported a loss for the year to 24 February 2012, on the back of a “tidying up” of its estate.
The company reported a pre-tax loss for the year of £606.5k, compared to a profit of £374.5k in the previous year. Turnover for the year fell from £26.8m to £24m, while it reported an operating loss of £608.1k compared to a £554.1k profit in 2011.
EBITDA was £2.25m against £2.36m in the previous 12 months. It said it retained a string balance sheet with cash of £3.7m.
The c70-strong group said that its aim over the forthcoming year was to significantly expand its trading outlets both in high street locations and travel hubs and to conclude on-going discussions regarding new routes to market.
It said it continued to expand its operations outside its core retail environment. The company said it is currently in discussions with a number of contract caterers and “new opportunities and partnerships are being pursued”.
To this end, it will open a new unit at the Shard in October and second site in Windsor this month. It has made successful offers on two other high street sites, which are currently in legals.
The group said that its franchise agreement with Moto Hospitality, which started in January 2011, had now grown to 14 sites, which was ahead of target. It operates four units at Twickenham and supplies to 10 other sites in the stadium, which are due to be rebranded during this summer.
During the 12 months, the company said it had focussed customer service and experience. Store opening hours had been extended at a number of sites and new products had been introduced and trialled throughout the year.
The company said that a significant element in the reduction in turnover was due to “proactive tidying up” of underperforming sites. It said that it expected the economic environment to remain challenging during the year ahead.
