June 1 (Bloomberg) -- Gordon Ramsay Holdings Ltd., the company that operates the chef’s restaurants and bars, said profit jumped by 182 percent last year after it cut costs.
Net income in the period ended Aug. 31 rose to 1.46 million pounds ($2.4 million) from 515,373 a year earlier. Revenue at continuing operations slumped 19 percent as diners shunned Gordon Ramsay at Claridge’s and spent less at Maze. Total sales fell 13 percent to 27 million pounds as Boxwood Cafe closed.
Ramsay’s accounts, published by Companies House today, are for the last full year under Chris Hutcheson, the chef’s father-in-law, who was dismissed on Oct. 16. Other senior managers followed him out the door. Gordon Ramsay Holdings has since acquired Petrus restaurant from Hutcheson.
“Significant legal and professional costs have been and are likely to be incurred in the coming year to resolve the many issues that have subsequently arisen,” the company said. “The group is expected to produce a robust trading performance in the coming year that will be aided by the acquisition of Petrus.”
Restaurant Gordon Ramsay, the flagship in Chelsea, saw an increase in average spending by customers during the year and achieved budgeted profit margins, the company said.
The number of diners at Gordon Ramsay at Claridge’s, which lost its Michelin star in January 2010, dropped 6.3 percent. Maze and Maze Grill attracted 5 percent more diners but they spent less, resulting in a drop in revenue. Sales also declined at the Narrow, where cost-cutting led to an increase in profit.
“Gordon Ramsay continues to actively support the development of the company and its subsidiaries and has provided unsecured interest-free loans to the company of some 7.4 million pounds as of Aug. 31, 2010,” the statement said.
Separate accounts are scheduled to be published later today for Gordon Ramsay Holdings International, the company that groups newer businesses. GRH and GRHI were consolidated in September 2010 and the group said if the accounts for the year that ended Aug. 31 were consolidated, they would show pretax profit on ordinary activities of 200,000 pounds, compared with a loss of 7.7 million pounds for the same period in 2009.
“Despite the continued challenging conditions for the hospitality industry, the group has reported a substantial turnaround for consolidated profits before tax,” a spokeswoman said in an e-mailed release. “The economic climate remains uncertain but the group’s performance for the coming year is robust and meeting expectations.”
All limited companies in England, Wales, Northern Ireland and Scotland are registered at Companies House, an executive agency of the Department for Business, Innovation and Skills.
(Richard Vines is the chief food critic for Muse, the arts and leisure section of Bloomberg News. Opinions expressed are his own.)
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