FishWorks revises down profit forecast as new stores underperform

Seafood restaurant and fishmonger chain, FishWorks, has said group pre-tax profit will be lower than expected, due to some underperforming new sites.

FishWorks now expects pre-tax profit to be £1.45m lower than the £2.2m originally forecast, around £750,000 for the year ending 31 July 2007.

The company, which currently has 12 sites, said the pace of expansion, with six new openings in nine months, combined with the winding up of the company’s Harvey Nichols concession and the purchase of supplier Channel Fisheries had “detracted from the successful execution of the FishWorks model”.

This had led to the underperformance of some of the newly-opened sites, which are smaller in size and not as profitable as its star performers. 

Recent openings have included Battersea, Parsons Green, Primrose Hill and Chelsea in London. 

Separately, one unnamed “key” site, originally due to open in September 2006, has been delayed until May 2007.

Roy Morris, executive chairman, said: “We now feel that a short period of consolidation is the correct choice to ensure execution is optimised across our estate and that we maximise profit generation from these sites.”

The planned opening of three new restaurants will now take place in the second half of the year ending July 2007.

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FishWorks ditches Harvey Nichols to concentrate on its growing restaurant business >>

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FishWorks predicts a return to profit >>

By Chris Druce

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