Gordon Ramsay's restaurant group set to announce £6.4m loss

09 June 2014 by
Gordon Ramsay's restaurant group set to announce £6.4m loss

Gordon Ramsay Group is set to announce a £6.4m loss after taking a hit on its York & Albany pub and hotel in London, according to reports.

The Sunday Times said that accounts due to be published this week would show that Kavalake, the holdings company for Ramsay's restaurant empire, moved from a £2m profit last year to a £6.4m loss in the most recent 12 months as a result of £9m of one-off costs.

It said the largest part of the £9m exceptional costs was attributable to a £6.7m provision on the York & Albany lease, signed in 2007.

Ramsay is pursuing legal action over the contract, disputing the validity of the lease. The site's owner has described the claim as "absurd". The exceptional costs of Ramsay's company also include £2m of legal expenses.

Sales across his business rose 4% to £44.8m in the year to August 2013 while earnings before interest, tax and other charges climbed 3% to £5m.

Meanwhile, Ramsay is set to announce a new restaurant just off Regent Street in London and is also expected to open a new venture this year on the site of what was his debut restaurant, Aubergine, in Chelsea.

Profile: Stuart Gillies, managing director, Gordon Ramsay Group >>

Gordon Ramsay buys site of Aubergine restaurant >>

Gordon Ramsay's London House to open on 4 February >>

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