Casual Dining Group brands report mixed fortunes in latest results
Casual Dining Group has reported a mixed set of results across its portfolio with the company revealing an overall pre-tax loss of £60m.
In the 52 weeks to 28 May 2017 the group's total revenue was up 10% to £329m, while like-for-like sales across the group increased by 2.2%. Despite this increased operating costs saw the group make a loss.
Documents filed with Companies House outlined a "difficult trading environment for the casual dining market" with the national living wage, apprenticeship levy, pension contributions, food cost increases, the devaluation of the pound and business rate rises all taking their toll.
A high number of new openings and a decline in consumer confidence have also impacted results, with director Steve Richards saying "brand development remains an ongoing priority" in a challenging time for the sector.
Breaking down the brands, La Tasca recorded losses of £2.05m, despite revenues of £14.4m. The 66-week period ended 29 May 2016 had seen a loss of £11.9m with revenues of £39.5m.
La Tasca attributes the reduction in revenue to 2016 being a 66-week period and a reduction in sites from 24 in 2016 to 14 in 2017. An impairment of £410,000 was identified in assets held at loss-making restaurants.
Las Iguanas made a profit of £1.7m on revenues of £76.1m, compared to a loss of £393,000 with revenues of £75.9m in the 61-week period ended 29 May 2016.
It credited its profit increase to additional sites, growing from 51 in 2016 to 53 in 2017, "offset by 2016 being a 61-week period and 2017 a 52-week period".
Bella Italia saw revenue increase to £101.6m from £88.1m in 2016 and profit before tax was £6.6m up from a 2016 loss of £1.6m.
Cafe Rouge made a pre-tax loss of £10.1m on revenue of £79.5m compared to a £9.4m loss on a revenue of £80.2m in 2016.
It blamed the loss on "higher administrative costs during the current period" and a "tax credit of £2.2m in the prior period."
An impairment review was conducted across the whole company which highlighted sites in both brands which "management consider to have onerous fixed cost obligations" for which a charge of £26,000 at La Tasca, £836,000 at Las Iguanas and £789,000 at Cafe Rouge was recorded.
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