Ping Pong, the dim sum chain, has reported a 3% increase in like-for-like sales for the year to 25 March 2012, a period during which it described as challenging and “very competitive”.
The group said turnover climbed slightly from £15.5m to £15.6m, while EBITDA (before franchise fee) climbed from £1.3m to £1.58m. Pre-tax losses widened from £809k last year to £1.8m, on the back of royalty charges and impairment entries in relation to four sites in London it has since marketed for disposal.
It said that since the year end it had taken a decision to focus on its UK-based estate as it looks to start the next stage of its growth, this will include evaluating opportunities outside London in high-footfall, mixed-use developments.
The group said: “The short to medium term outlook remains uncertain with volatility experienced in the sector as a whole. The company has focussed on increasing its brand value in the casual dining restaurant sector. Average spend per head remains competitive and future focus will be placed on the core profitable UK sites. After a period of consolidation and focusing on reducing central costs, the directors are confident about the prospects for the brand both in the UK and internationally.”
Since the year end, chief executive Jean-Michel Orieux has stepped down as managing director and replaced by Paul Sarlas, while James Horler, the former chief executive of La Tasca, who stepped down as non-executive chairman after carrying out a six-month strategic review of the business.
Of the four sites it has marketed through CBRE, K10 has secured the Appold Street for £140k,Truffle Hunting, the restaurant Management & Consultancy firm, acquired the Goodge Street site and Byron took its Spitalfields unit. It currently operates eight restaurants in the UK.
It has since decided to take its takeaway sub-brand concept Now at Liverpool Street off the market and its future is currently being revaluated.
Proceeds from the sale of the Goodge Street and Spitalfields sites were used to repay a £900k bank loan, leaving the group with a revolving credit facility of £1.1m.
At the year end the business, which also operates one site in Dubai, two in Brazil and two in the US in Washington DC, had a net book value of £8.3m against £10.5m the previous year.
The company has reportedly signed a deal to open its first site in India by the end of this year.
According to reports in India, the chain has signed a franchise agreement with Mirah Hospitality to open the first Ping Pong outlet in December at the Bandra-Kurla complex in Mumbai. It is thought that up to 15 restaurants could be opened under the agreement.
