Wimpy UK, the quick service burger chain, has reported a decline in revenue for the year to 28 February 2011, as trading conditions remained “extremely tough”. The chain saw revenue fall 16.2% during the year to £8.14m, with operating profit down from £1.53m last year to £1.08m. However, the group, which saw its UK estate reduced in total from 160 to 131 sites during the year, swung into profit during the 12 months, posting a pre-tax profit of £1.09m, against a loss of £221,333 in 2009. Operating profit margin reduced from 15.8% to 13.3%. In accounts filed at Companies House, the company said: “Trading conditions in the UK remained extremely tough following the global credit crunch and related recession. This was exacerbated by the loss of an important franchisee, who operated multiple (23) sites.” The group said the decline in revenue was restricted by providing franchisees with competitive pricing, which “increased our cost of sales percentage”. The company, which is owned by South African firm Famous Brands, said that the key risk and uncertainties it faced were maintaining its franchisee base and controlling costs in tough trading conditions. It said that capital expenditure commitments of £8,800 had been budgeted for its current financial year and that a “satisfactory profit after taxation, albeit at a moderately reduced level”, was forecast for the year ahead. Of the 131 Wimpy stores in the UK, only one in Marlow, Buckinghamshire, near the group’s head office is company owned. The company is continuing to update the branding across its UK estate. The refresh programme, which started at the end of 2009, sees its old yellow and red colours being replaced with a red logo on a silver background. The speed of the roll out is dependent on each franchise owner investing in the rebranding.