Carluccio’s has reported pre-tax losses of £27.7m in the year to 24 September 2017 due to “increasing competition and a material increase in costs”.
The company reported that turnover fell 2% to £138.2m, with adjusted EBITDA of £6.5m, in the months preceding its decision to enter a Company Voluntary Agreement (CVA).
Flies posted to Companies House read: “Decline in profit was due to a combination of increasing competition and a material increase in costs across most categories. This included the weaker sterling hitting input cost, higher payroll costs from the National Living Wage, rising pension contributions and the introduction od the apprenticeship levy whilst property costs have substantially increased in particular rents and business rates.”
Carluccio’s entered a CVA earlier this year, which saw it exit 30 loss making sites.
Earlier this week it announced that a 28-day “challenge period” following the agreement had ended, triggering a £10m investment, which will be used to upgrade 60 existing sites.
Commenting on the 2017 figures, which include an an impairment of £22.3m reflecting pending closures, CEO Mark Jones said: “While these numbers are somewhat historical now, the decrease in underlying profit last year did graphically illustrate the requirement for us to create a more focused group; to divest from lossmaking sites; and to invest significantly in our core business, and I am pleased to be able to report this progress in the intervening period.”