The Caterer

TGI Friday's makes pre-tax loss following acquisition

15 June 2016 by
TGI Friday's makes pre-tax loss following acquisition

Casual dining restaurant and bar chain TGI Fridays slipped to a £12.5m pre-tax loss in 2015, as it shouldered the costs associated with its acquisition by private equity firm Elektra Partners.

Sales at the business, which has in excess of 70 sites, rose strongly, up 11% to £193.5m of the year to 27 December 2015.

The company also pointed to EBITDA (earnings before interest, taxation, depreciation and amortisation) of £30.5m for the year, before a share-based payment of £1.3m and interest totalling just under £11.3m on loan notes associated with its acquisition helped push it into a pre-tax loss.

Elektra acquired the UK franchise of TGI Fridays in December 2014, and invested £100m of equity into the business.

The restaurant chain continues to be run by chief executive Karen Forrester, who in 2015 won a Catey in the Group Restaurateur of the Year category.

The company opened six sites during the year and plans more openings in 2016 and beyond.

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