Richoux Group, the AIM-listed restaurant operator, has reported a pre-tax loss of £2.7m for the year to 25 December 2011, against a £505k profit in the previous 12 months, and announced that it had completed the disposal of five underperforming sites. Turnover at the group for the year increased from £5.84m to £9.01m. Gross profit from continuing operations reduced to £250k (2010: £610k) during the 12 months, while there was also a decline total group restaurants' gross profit before pre-opening costs percentage from 14.7% to 4.5%. The group said that administrative expenses for continuing operations (before impairment and onerous lease provision) of £510k (2010: £470k) were in line with expectations. The company said that significant provisions of £2.47m (2010: £nil) had been made for impairment, which related to the disposal of the Zippers site in Bexhill-on-Sea, Dean's Diner sites in High Wycombe, Basingstoke and Slough and the Villagio site in Barnet, as well as the rebranding of the Dean's Diner site in Basildon. The group currently has four Richoux restaurants in London, which it said continued to trade in line with expectations. It has one remaining Zippers site in Chatham, which continues to trade in line with expectations. During the year, the company surrendered the lease of the Zippers site in Bexhill-on-Sea and the Zippers sites in Andover and Barnet were rebranded as Villagio. The group has three remaining Dean's Diner restaurants in Chatham, Port Solent and Braintree. In November 2011, the Dean's Diner site in Slough was closed and subsequently disposed of this February. Since the year end, the company has also disposed of the underperforming sites in High Wycombe, in February and Basingstoke, in April. In addition the Dean's Diner site in Basildon was rebranded as a Villagio restaurant in March. The group now has four Villagio sites, its modern local style Italian format, in Hammersmith and Berkhamsted and the rebranded sites in Andover and Basildon. Since the year end, the group has disposed of the underperforming site in Barnet. The company invested £2.6m during the period predominantly on the fit out of new Dean's Diner restaurants in Port Solent and Braintree and the Villagio restaurants in Hammersmith and Berkhamsted. At the end of last month, the company completed the sale of its central kitchen property for a total consideration of £900,000 payable in cash. At the end of the year, the group held cash of £1.04m (2010: £3.61m). Earlier this year, the group appointed Ed Standring, formerly of Relish Restaurants, as managing director. Philip Shotter, chairman of Richoux Group, said: “The core Richoux restaurants are trading well and continue to be the bedrock of the Group's business. The performance of the restaurants trading under the Group's newer Villagio, Zippers and Dean's Diner concepts had been mixed and a decision was taken to dispose of a number of underperforming sites and that process has now been completed. The group will continue to focus on improving the offer at the remaining sites while assessing the opportunities for any further openings.”