Gourmet Burger Kitchen saw pre-tax profits fall by £9.9m before CVA
Gourmet Burger Kitchen experienced a £9.9m drop in pre-tax profits prior to the announcement it was pursuing a Company Voluntary Agreement (CVA).
Accounts filed with Companies House for the year ending 26 February 2018 showed a pre-tax loss of £5.8m, falling from a profit of £4.1m the previous year.
The company suffered exceptional charges of £5.9m from impairments and associated property expenses, while other figures held steady on the previous year.
Gross profit suffered only a slight fall from £33m to £32.7m while revenue increased by 5% to £81.7m. The groups expansion plans were continued during the period with 10 new openings, the cost of which fell by 68% on the year before "due to efficiencies identified in the opening process".
The full-year statement said the results were considered to be "reasonable performance" in the wake of Brexit negotiations, consumer uncertainty and market saturation.
However, in October Gourmet Burger Kitchen's parent company Famous Brands announced it was seeking a CVA , with 17 sites earmarked for closure. Shareholders approved the plans in November.
Later financial reporting revealed that, in the first six months of 2018, the brand recorded operating losses of £2.6m.
Gourmet Burger Kitchen recorded losses of £2.6m in first half of 2018>>
Gourmet Burger Kitchen seeking CVA with 17 sites earmarked for closure>>
