Signature Restaurants, the group behind upmarket restaurant The Ivy, has reported a slump in profits at its Belgo and Bierodrome outlets and said it will close one of its upmarket bars.
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Like-for-like sales at the Belgo and Bierodrome restaurants and bars fell by 18% in the six months to 30 December, prompting new CEO Andy Bassadone to sell the Collection bar-restaurant on the popular Brompton Road, acquired just three years ago.
Belgo’s like for like sales decline, currently hovering at around 10%, is said to be lessening, but the brand is still hurting, although the upmarket standalones The Ivy, J Sheekey and Le Caprice remain strong.
Despite the problems with Belgo, Signature plans to continue the gradual expansion of its newer Strada pizza-pasta brand, where like-for-likes rose 4%.
Group pre-tax profits in the half-year under review slipped to £1.5m (US$2.2m) from £2.2m, while sales remained flat at £19.9m.
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By GlobalDataBassadone has decided that shareholders will not be paid a dividend, with the money instead being poured back into the business and devoted to reducing net debt worth £4m.
