Conran profits bounce back
Pre-tax profits were down by 8% at Conran Restaurants in the year to 31 March 2000 but the group says it has experienced a strong recovery in the first financial quarter of this year.
The privately-owned group's figures were hit by the costs of the new openings of the Great Eastern Hotel in London and Guastavino's restaurant in New York.
Turnover for the group was unchanged at £55.2m, but this included £1.5m from New York and the Great Eastern, so like-for-like turnover was also down on the year.
But between April and June this year the group said like-for-like profits had increased by 20%, against last year's 8% fall in the same period.
Conran Holdings chief executive Des Gunewardena added that the group was particularly pleased with the performance of London restaurants Orrery, Coq D'Argent and Mezzo, which had all increased profits by more than 35% in the first quarter of 2000 compared with 1999.
Conran is now predicting turnover of more than £75m for the restaurant group in the current year.
The Great Eastern is now said to making a profit after all fixed costs including depreciation and interest, while Guastavino's has started to make an operating profit.
Alcazar, the group's Paris restaurant, is still not making money, but should break even this year. Gunewardena said it was more difficult to make a profit in Paris because of higher staff costs.
by David Harris david.harris@rbi.co.uk
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