Hakkasan, the group backed by Tasameem, a property arm of the Abu Dhabi Investment Authority, reported a loss of £4m in the year to May 2012 against a profit of £7k the year before and said it had received a cash injection of £49.5m to finance working capital and fund the build of new Hakkasan operations in the US and China.
The group, which parted company with chief executive Niall Howard earlier this year, saw turnover clim 34% to £28.1m. EBITDA was minus £158k compared to £1.45m the year before. Sales grew year-on-year by £7.2m (34%).
The company said: “Overall profitability has been impacted by significant pre-opening and development costs as the Hakkasan brand is expanded.”
It currently operates 13 restaurants in total – nine Hakkasans, two Yauatchas, Sake No Hana and HKK. Further Hakkasan restaurants are due to open in Los Angeles and Shanghai this year.
Earlier this year, the group has announced ambitious brand development and expansion plans under the new umbrella HKK Hospitality.
The group, which recently opened Hakkasan Las Vegas at the MGM Grand Hotel & Casino, plans to open boutique hotels, a resort concept, spas, day clubs and additional nightclubs and restaurants under the new venture that will be led by chief executive Neil Moffitt.
The plans, which the group said reflected the vision of prominent Emirati businessman and Hakkasan’s chairman, Khadem Al Qubaisi, involve the development of a “multifaceted global lifestyle company operating under the Hakkasan banner. The expansion will include further Hakkasan restaurants and elite nightlife venues at select locations around the world.
Its other restaurants brands Yauatcha, Sake no Hana and HKK brands are anticipated to grow as part of the expansion, while it said certain new brands may also be developed.
The company said that in order to achieve its ambitious growth plans, Hakkasan has engaged HKK Hospitality to oversee both its existing portfolio as well as the evolution of the brand in line with the strategic vision of Al Qubaisi.
