GBK recorded an operating loss of £7.8m in the year to 28 February, its parent company has confirmed.
Famous Brands, which also owns Wimpy, will reveal its annual results next week but updated the South African stock exchange yesterday that its earnings per share will be down by as much as 96%.
It is set to report an impairment of intangible assets at group level of £17.9m; an impairment of property, plant and equipment of £4.2m for GBK and a provision for property related expenses of £2m at GBK.
The board said in the statement that it remained “confident that the interventions being implemented in the business will ensure that GBK returns to profitability in the medium term”.
The 91-strong brand slashed its expansion targets towards the end of last year amid declining like-for-like sales.
Chief executive Alisdair Murdoch stepped down at the end of last year, with responsibility for the brand passing to new managing director, Derrian Nadauld.
Famous Brands acquired GBK in October 2016 for c£120m,