Caribbean restaurant and bar group Turtle Bay has reported a £2.3m fall in pre-tax profits in the year ended 24 February 2018, but said it has “outperformed” the market.
The profit fall comes despite sales growth of 6.9% and an increase in turnover to £68.1m, up from £63.7m the previous year.
The fall in pre-tax profits to £5.9m from £8.2m the previous year includes £2.1m of one-off costs.
During the year seven restaurants opened in the UK and a second in Germany bringing the group’s portfolio to 44.
The financial report filed with Companies House stated: “During a year of significant challenge for the restaurant sector, contributing overall to many competitors being forced to close restaurants and adopt increasingly aggressive tactics, to maintain sales the group has continued to outperform the market.”
The report continued: “Despite the challenging environment, we will continue to open new restaurants and have a healthy pipeline of opportunities. The main challenges to the business are the dynamic and competitive nature of our sector, finding the right people to work in our sites and a general increase in costs.”