Gourmet Holdings reports second half losses

A strong performance at the Richoux restaurant chain was not enough to prevent increased losses for owner Gourmet Holdings in the second half of last year, it was revealed today.

Although there was a small rise in turnover in the 28 weeks to 7 January - credited to the four-strong Richoux brand – exceptional items and the delay in selling its Bel and the Dragon pub group hurt the company’s performance.

Gourmet Holdings said company turnover was £5.97m compared with £5.6m a year ago. Gross profit rose to £800,000 from £430,000 in 2005.

However, including exceptional items of £580,000 relating to provision for an onerous lease, an impairment charge to do with a badly performing site and bad debt provision to do with a failed business transfer, Gourmet made a pre-tax loss of £730,000 (2005: £170,000 loss).

The Four-strong Bel And The Dragon group was put back on the market for £9m to £9.5m earlier this month after talks with gastropub group Cross Oak Inns ended.

The Bel and The Dragon outlets, all in the Home Counties, were initially put up for sale last September following poor performance.

Since the year end Gourmet has signed a franchise deal to launch Richoux in Egypt. The company is also looking at another central London location.

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by Kerstin Kuhn

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