Wimpy Restaurant Group, the operator of the hamburger chain in the UK, says it’s undergoing a process of consolidation as it reports a 25.7% fall in pre-tax profits to £606,660 in the year to 28 February.
Revenues fell 6.8% decline to £6.2m in the year in which the group closed 12 restaurants opened two; it had 110 sites, all operated by franchisees, at the period end.
Operating profits fell from £794,650 to £580,464 as operating profit margin declined from 11.9% to 9.3%.
The group, which is owned by Famous Brands, said: “Strategically, the brand is undergoing a process of consolidation with a short term view to renovating and modernising the network.
“Other marginal sites are being considered for conversion as in the case of Clapham Junction where the iconic South African burger brands Steers successful announced its arrival in July. It has performed remarkably well despite trading in an intensely competitive category which has traditionally been dominated by the global burger giants.”
The company described the fall in revenue as “disappointing”, coming amid growth in the branded restaurant market.
“Despite the volume shortfall, total expenses as a percentage of revenue increased by only 2.6% to 90.7% against 88.1% in the previous year, a result of vigilant operational and expense controls.”
