Failing restaurant group hit profits across Jamie Oliver's business in 2018
Jamie Oliver's businesses saw pre-tax profits almost halved in 2018, with the ill-fated UK restaurant empire costing the group more than £25m.
Financial results for the year to 31 December 2018 incorporate the celebrity chef's production, publication, endorsement, product and franchising arms.
The group experienced a slight fall in turnover from £46.2m in 2017 to £43.5m in 2018. However earnings before interest, tax, depreciation and amortization, before exceptional items, saw a slight uptick from £17m in 2017 to £17.8m in 2018. Pre-tax profits fell from £14.4m in 2017 to £7.8m in 2018.
During the year parent company Jamie Oliver Holdings had provided £4.8m of new financing to the UK restaurant business, bringing total funding to £15.9m at the end of the year. Results were further hit by exceptional items of £9.9m related to the restaurant group.
All but three of Oliver's UK restaurants were closed when the business fell into administration in May 2019, however internationally the chef's franchised concepts were opened in 12 further locations during 2018, taking the portfolio to 62 restaurants.
Paul Hunt, CEO of Jamie Oliver Holdings said: "The strength of the Jamie Oliver portfolio allowed the group to weather the challenges of 2018 meaning that we were able to deliver a resilient set of results and a 4.9% increase in pre‐exceptional EBITDA.
"We are a commercial business with social purpose running through everything we do. We have emerged from the past six months with complete clarity around our vision and values, as well as a renewed focus on what we want to achieve in the coming years."
Earlier this year Oliver outlined plans that would put campaigning at the centre of the group's efforts, particularly around the chef's 2030 project to halve childhood obesity in a decade.
The attention coincides with the a bid to gain B Corp certification, which is granted to companies that meet the highest standards of social and environmental performance, public transparency, and legal accountability to balance profit and purpose. It is awarded by non-profit institution B Lab.
Oliver's businesses declared dividends of £5.2m in 2018, down from £8.6m the previous year.
