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Hakkasan reports pre-tax loss of $145m following decline in revenue

28 August 2018 by
Hakkasan reports pre-tax loss of $145m following decline in revenue

Global hospitality firm Hakkasan has reported pre-tax losses of $145m (£112m) following a fall in revenue and one-off expenses.

Financial results for the year to 30 June 2018 show a 7% dip in global turnover to $313.6m (£242m), with an 11% decline in the UK.

Hakkasan Group, which takes its name from the Michelin-starred restaurant in London's Bloomsbury (pictured), has 60 sites across North America, Europe, Middle East, Asia and Africa, including 11 Hakkasan restaurants.

The fall in UK revenue was attributed to the weak performance of the group's HKK restaurant, which closed in October 2017.

Pre-tax losses of $145m (£112m) compared with losses of $56m (£43m) the previous year.

Adjusted EBITDA was at $2.2m (£1.7m) compared with $18.7m (£14.5m) the previous year, a decrease of 88% which was attributed to a reduction in turnover and increasing administrative costs.

The streamlining of assets to focus on core performing sites saw $31m (£24m) of tangible and intangible assets impaired during the year.

The owner of Hakkasan Group, Abu Dhabi investment company Alliance International Investment, is reported to be in talks to sell the business after merger negotiations with US-based hospitality company SBE Entertainment Group fell through earlier this year.

SBE-Hakkasan merger falls through but owner still in sale talks>>

Hakkasan Group CEO to step down>>

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