Bank sell-off will allow BGR to focus on Fish!

BGR (Bank Group Restaurants) chairman Tony Allan has confirmed that talks are progressing with a consortium interested in buying the group's Bank and Zander restaurants (Caterer, 17 August, page 5).

His statement was made in the company's interim results to 30 April, which revealed a 10% boost in pre-tax profits (before exceptionals) to £1.1m on turnover 13% ahead at £10.5m.

These figures exclude the Crestport IT division, offering restaurant reservations and electronic point of sale systems, which was demerged into QuadraNet in March. Its flotation on the Alternative Investment Market in April in a four-for-one share offer netted BGR shareholders £22m.

The three restaurants for sale are Bank in Aldwych, London, and two newcomers - the Birmingham Bank which opened in December, and Zander, which opened in Westminster in March.

The Aldwych Bank turned in a consistent performance, despite increased competition, while the newcomers have exhibited a strong growth in sales and have made profit contributions since the half-year's end.

Underlining its plans to concentrate on Fish!, BGR has hired a new operations director to oversee the Fish! expansion.

The Borough Market branch in London, which traded much better than last year, was joined by new restaurants in Battersea (December) and Canary Riverside (April). Both have now reached profitability and the Battersea branch achieved the expected 40% return on capital while the newest restaurant did even better.

A new Fish! opened in County Hall, London, last week, and will be followed shortly by others in Birmingham and Guildford.

Overall, the restaurant division increased pre-tax profits by 22% to £1.1m while turnover climbed by 60% to £5.6m.

Meanwhile, the specialist food preparation division saw a 15% fall in turnover to £5.1m, mainly because of the closure of the wholesaling arm in Billingsgate, while operating profits declined by 40% to £300,000. Performance, however, has already improved "significantly" in the second half of the year. by Angela Frewin