The restaurant and pub business run by high-profile chef Rick Stein says it actively continues to seek new investment opportunities as it reports a 3% rise in turnover to £15.2m in the year to 1 January.
Pre-tax profit for the group fell from £1.6m to £626,000 after a £700,000 CAPEX spend, mainly on refurbishing its cafe, hotel rooms and production unit. Operating profit fell from £1.6m to £733,000, although the company said this was slightly above budget and a 55% reduction on the previous year.
“Gross profit margins were slightly down at 68.1% and higher wages and overheads were incurred as a result of opening a new central warehouse facility, a full year charge for the two new outlets in Falmouth and a strengthening of management and admin functions.”
The company described its performance as “satisfactory” given the “continuing difficult economic conditions in the UK hospitality sector”.
“The directors are confident that such satisfactory performance will continue into the foreseeable future given the investments made during the period, ongoing maintenance to existing sites and tight cost control procedures adopted throughout the group.”
A final dividend of £450,000 was paid, against zero in the previous year.
The firm took out a new loan of £3.6m in December 2011. It said: “The company continues to actively seek future business investment opportunities that will increase its cash flows and, in February 2012, acquired a leasehold property on South Quay, Padstow next to Stein’s Fish and Chips and Stein’s Deli, which will operate as a fishmongers trading as Stein’s Fisheries.”
The business includes four restaurants in Padstow, Cornwall, plus one in Falmouth - Rick Stein’s Fish restaurant - and a pub, the Cornish Arms in St Merryn. It also operates four shops and a cookery school.
