D&D London, the upscale restaurant group, reported a 2% increase in like-for-like sales for the three months to 31 December 2007, but forecast a tough year ahead.
The company, which was spun out of Conran Holdings, said that the increase during the month was at a more modest level than in previous quarters and follows a record breaking 2006 final quarter, which saw sales up 13% on the same period in 2005.
Sales for the final three months of the year climbed 25%, while sales for the nine months to 31 December were up 22%.
It said that some of its restaurants had experienced a cutback in corporate spending on Christmas parties and in the quarter to December generally, but that this was offset by continued growth in revenues at other venues.
The group said it had seen strong contributions from the Skylon, which opened in London in May, and Custom House in Copenhagen, which opened in December 2006.
It also said it had reported strong performances from the recently refurbished Bluebird and Cantina de Ponte, Coq d’Argent, the Paternoster and Butlers Wharf Chop Houses.
Des Gunewardena, chief executive, said: “Since the acquisition of the restaurants from Conran Holdings some 15 months ago we have grown sales and underlying cash profits by around 30% without increasing bank debt.
“We are now having to work harder to maintain that momentum and there is no doubt that 2008 is likely to be a pretty tough year.
“I do however believe that the long-term prospects for our restaurants remain excellent and we have a number of new projects planned for this year.
“These include the relaunch of Launceston Place in March, the refurbishment and expansion of space at Guastavino’s, our events venue in New York, also in March, and the opening this summer of The Modern Pantry, a joint venture with ex-Providores Chef Anna Hansen.”
The group, which acquired Image Restaurants last year, said there was no immediate plans for further acquisitions.
Entrepreneur and founder Sir Terence Conran still holds about a 51% stake in the business.
