Profits down but sales up at Clapham House Group

By Emma Eversham

- Last updated on GMT

Related tags: Clapham house group, Economics, Hamburger

Profits down but sales up at Clapham House Group
Promotional activity hits profits at Clapham House Group, but sales are buoyant for the first quarter of the next financial year leaving the company positive about the coming year

Pre-tax profits dropped 18 per cent at Clapham House Group​ last year, but executive chairman David Page said an increase in sales for the first quarter of this financial year meant the company was positive about its prospects for this year.

Preliminary results for the Gourmet Burger Kitchen, The Real Greek and Tootsies owner show that revenue increased by 16.7 per cent to £62.2m for the year ending March 29, but pre-tax profits fell from 5m in 2008 to £4.1m.

Page said the ‘significant escalation in promotional activity’ across the sector had affected margins and would continue to do so in the current financial year, but reported that CHG sales for the first quarter of FY10 were 6 per cent higher than in the same period last year.

“We remain positive about the mid term market prospects for the UK eating out market and in particular the future expansion of GBK across the UK,” he said.

Six new GBK sites and two new Real Greek sites opened in the UK last year and Page said CHG’s opening programme this year would be cautious.

“Our expansion strategy in the immediate future is to consider only prime locations which we can occupy on advantageous lease terms,” he said.

The results, released today, also show impairment of goodwill and intangible assets relating to Tootsies of £24.2m.

Related topics: Business & Legislation



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