Profits fall at the Ivy Collection amid sale rumours

The Ivy Collection has reported a fall in profits as owner Richard Caring looks to sell off the business as part of a £1b deal.

The casual dining chain, which operates around 40 UK restaurants, saw pre-tax profits drop to £32.2m in the 12 months to 5 January 2025, down from £39.5m the previous year.

However, the group said this was due to an increase in pre-opening costs and one-off exceptional charges.

Revenue rose from £314.7m to a record £327.1m, while adjusted EBITDA also increased from £57.5m to £61.9m.

The Ivy Collection opened a further five restaurants during the year and made plans for further expansion.

Writing in its accounts, director Chris Robinson said it showed a “strong foundation” for future expansion.

“The business plans to increase market share with additional sites, develop its menu offering and uphold customer service levels in the next 12 months,” he wrote.

The group’s current joint bank facility, of which £229m was outstanding in January, was extended for a further 12 months until 29 April 2026.

No dividend was paid to directors during the period.

The results come after Caring publicly apologised to suppliers of his hospitality businesses, including the Ivy and Bill’s, after they were sent a letter earlier this month telling them a mandatory 2.5% discount would be applied to their invoices.

Caring said the letter was “totally incorrect”, but it has been reported his businesses have not completely reversed the decision and will be speaking with individual suppliers.