Belgo leaves the Big Apple

Restaurant group Belgo said trading conditions continued to be competitive as it announced its financial results for the 26 weeks ended 31 December 2000.

Belgo owns Belgian-style chains Belgo and Bierodrome, along with the Strada pizza chain and London restaurants such as the Ivy, Le Caprice, J Sheekey and Daphne's.

It said it had closed its Belgo restaurant in New York because it failed to provide the expected returns. Belgo operated the restaurant through a joint venture with its US partner, Avado Brands.

Nick Fiddler, finance director, said: "The closure of New York enables management to focus on the business in the UK and was necessary to avoid ongoing losses."

Belgo has 22 restaurants in the UK and one in Ireland. Its Belgo restaurant in Dublin continues to fall short of the company's original financial targets and is not expected to make a positive contribution to profits until the next financial year.

For the interim period, excluding the closure of the New York restaurant, Belgo reported pre-tax profits of £2.2m, up 13% on the £1.9m reported for the same 26 weeks last year. Turnover was £19.88m, 17% higher than last year's £16.96m.

The company said trading had been difficult in some of its restaurants over the past two months.

Andy Bassadone, chief executive, said: "The London restaurant market is more competitive than ever."