The Richoux Group, the operator of the eponymous brand, Dean’s Diner and Villagio has reported a 5.7% rise in revenue for the 28 weeks to 10 July to £7m, but a fall in EBITDA as it warned of difficult trading conditions.

The 23-strong operator saw adjusted EBITDA fall to £280,000, from £790,000 last year. It also recorded a loss after tax of £580,000 and recognised impairment charges against three underperforming sites.

The group has opened two new Dean’s Diners and one new Villagio but the handover of what will be the tenth Dean’s Diner, in Bromley, has now been delayed until 2017 because of delays on the part of the developer.

The three impaired sites are the Dean’s Diners in Bicester and Trowbridge and the Villagio in Chislehurst.

The group said its current focus was on improving performance of the three principal trading formats at existing sites but would continue to evaluate new sites for further acquisitions as and when suitable opportunities presented themselves.

Philip Shotter, chairman of Richoux Group, said: “In line with a number of other restaurant groups, trading conditions have been difficult during the period as we continue to face the challenge of increased competition at a number of sites as well as increased property and staff costs, the latter due largely to the impact of the living wage.”