Train strikes knock profits at Drake & Morgan as sales rise
For the year ended 26 March 2023 (FY23), the London-based bar and restaurant group, which is backed by Bowmark Capital, reported a turnover of £43.3m, up from £35.9m the year before.
However, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) dipped from £5m to £4.1m.
The group says sales have continued to rise over the current trading period, driven by new ‘immersive’ weekend events.
Additionally, ‘record’ Christmas bookings have been recorded across the group’s 18-strong estate and are up more than 20% on last year.
“We have been extremely pleased with the underlying performance of the business with our core weekday trade now being complemented by some fantastic weekend events, helping to deliver continued sales growth,” says, David King, CFO at Drake & Morgan.
“This is further reflected in our bookings for Christmas 2023, which look set to deliver a record festive season.
“This performance has been delivered despite ongoing industrial action on the railways which we estimate impacted sales and EBITDA by £2.5m and £1.4m respectively in FY23.”
Ongoing investment in its terraces has continued to support revenue post-summer, according to the group, with igloos installed at The Sipping Room (pictured) and a revamped outside bar at The Parlour, both in Canary Wharf.
It successfully exited its CVA in June 2023, and has extended its back facilities to December 2025.
“We remain confident in our ability to offer all our customers - leisure and corporate - exceptional experiences and look forward to an exciting year ahead,” adds King.
