Corrigan group swings to loss despite rise in revenue

In its latest financial report for the year ended 31 December 2022, the group, whose estate includes London restaurants Bentley’s and Corrigan’s Mayfair, as well as the Virginia Park Lodge in Cavan, Ireland, and The Park Café in Dublin, reported turnover of £15.7m, up from £9m the year before.

Turnover also exceeded pre-pandemic levels, up on the £11m figure reported in the year ended 31 December 2019.

However, despite the rise in revenue, the group swung to a pre-tax loss of £216,897 for the year, down from a profit £156,109 in 2021.

Writing in the accounts, Corrigan said that converting revenues into profit had become a ‘much harder task’.

“Although Covid-19 related challenges continued into the beginning of 2022, the full year saw revenue exceed pre-pandemic levels,” he said.

“However, converting those revenues became a much harder task, with material cost pressures across all parts of the business, and pre-opening costs of new openings also impacting profits for the year.

“Our prime assets continued to trade very strongly, which has helped mitigate the wide-ranging challenges the entire sector continues to face.”

Corrigan went on to describe 2022 as being ‘very much a one-off’ in terms of revenue, adding that the group doesn’t expect to see those levels again ‘for the time being’.

“Despite those challenges, which continued to impact the entire hospitality sector up to end of 2021, and into the first quarter of 2022, the group traded well when it could,” he said.

“It is fair to say now that 2022 was very much a ‘one-off’ in terms of revenue and we do not expect to see those levels again for the time being. And 2023 continues to be further impacted by the ongoing strikes, which have an enormous impact on our London trading.

“Despite that, the business remains in a strong position supported by its board, supported by its strong asset base and ever evolving and growing customer base.”