28th Sep 2018 12:16
LONDON (Alliance News) - Restaurant operator Richoux PLC said Friday its interim loss narrowed despite a revenue decline as new store costs fell whilst industry-wide trading conditions remained tough.
For the six months ended July 1, Richoux's pretax loss narrowed 11% to GBP988,000 despite revenue falling 8.9% to GBP5.1 million.
Profit performance was helped by a fall in costs during the period. Gross losses narrowed to GBP556,000 from GBP770,000 after cost of sales fell faster than revenue primarily due to pre-opening costs for new stores falling during the period.
Meanwhile, administrative costs at Richoux - which owns 18 restaurants under the Richoux, Villagio, Friendly Phil's, and Broadwick brands - were cut to GBP422,000 from GBP586,000 the year before.
Chairman Simon Morgan explained "in line with a number of other companies in the sector, the group has seen continued pressure on trading during the period, with further impact from temporary restaurant closures due to conversion or refurbishment."
"In view of these continued headwinds, the group has remained focused on cost reduction and, where necessary, refinement of both its brand and property portfolio," Morgan added. "We do not expect to see any material improvement in trading over the balance of the current financial year."
"The group had been in negotiation regarding a potential lease sale for one of the group's restaurant locations in Central London," Morgan continued. "However, we have concluded that the disposal of this lease on the terms available is not in the best interest of the group at this time and we have terminated those negotiations."
Shares in Richoux were untraded Friday, last quoted at 7.75 pence each.