Itsu, the London-based Japanese sushi bar chain, has reported a pre-tax loss for the year to 31 December 2010, on the back of a “rapid shop-opening programme” which saw the group increase its estate by 30%.
The company reported a pre-tax loss of £710,450 during the 12 months compared to a profit of £640,257 in the previous year. Turnover for the year stood at £30.59m, up from £25.877m in 2009.
The group, which was co-founded by Julian Metcalfe and Clive Schlee at the end of 1996, opened five new sites under its smaller, fast casual format during the year and one new restaurant.
It said that its results were negatively impacted by “a rapid shop-opening programme between September 2009 and April 2010”. The group said that of particular significance was the time taken to bed down its new restaurant in Notting Hill.
In accounts filed at Companies House, the group said: “Whilst the market is not forecast to grow significantly in 2011, the company is well placed to continue increasing its revenues by virtue of its growing brand strength and consumer appetite for fast healthy food. The directors have confidence that the company will trade more strongly in the coming year.”
The company adjusted its hot food operations during the 12 months, moving away from self-service cabinets to staff serving hot food to order. The group believes this is an important step forward and will allow it to prosper outside “intense Monday to Friday lunchtime periods within the City of London”. It said it was already seeing the benefit of this change with positive trading in early 2011.
The company’s total bank loans increased during the year from £2,672,947 to £4,617,751. The loans are secured against a number of first mortgages taken out on leasehold properties owned by the group and a personal guarantee from Schlee and Metcalfe with a combined value of £1.5m.
As revealed by M&C Report, Schlee, the current chief executive of Pret a Manger, reduced his stake in the chain during the year, entering into a share purchase agreement with Metcalfe. The agreement saw him transfer 295 shares in the company to Metcalfe, leaving him with 200 shares and raising Metcalfe’s stake to 790 shares.
At the year end, the group appointed Gerard Loughran, who worked with Metcalfe for a number of decades at Pret a Manger, where he was chief operating officer in the UK, before becoming president of Pret in the US, as its new managing director. Loughran, who has also taken a small stake in the business, replaced David Haimes, who remains a consultant to Itsu.
Since the year end, the group has opened the 25th site under its smaller format in London, in Mayfair. It has also disposed of its restaurant site in Soho’s Wardour Street to Banana Tree Canteen, the pan-Oriental restaurant concept.
The company plans to take its estate past the 40 mark over the next 18 months, which will include the launch of its first outlet outside the capital. The 27-strong chain plans to open four new sites in total this year and is targeting a further 10 to 12 openings in 2012.
All the new openings are expected to be under the group’s smaller, fast casual format. It is thought to be working on joint venture vehicles to expand the chain into Paris and UK shopping centres.
