London steak concept Flat Iron saw pre-tax profits fall in the company’s full-year results for 2018, despite a £2.7m increase in turnover year on year.
The seven-site chain reported a pre-tax profit of £322,000 in its results for the year ending 26 August 2018, falling from £456,000 the previous year.
However, the firm, which was ranked 39th for sales growth by The Sunday Times in its 2018 Fast Track 100 listing, reported an increase in turnover for the period, from £11.7m the previous year to £14.5m.
Gross profit also increased, rising from £3.9m to £4.5m – but adjusted earnings dipped slightly, falling from £1.35m to £1.3m.
The results follow a year in which no new Flat Iron sites were launched, due to turbulence in the sector.
Finance director Stuart McNamara – who joined the chain from Côte in August 2018 – said directors had “decided to slow the opening of new sites to monitor the increased availability of prime locations being offered to the company”, adding that while delays at a proposed site had slowed growth, new sites in London’s Caledonian Road and Tooley Street were trading “ahead of expectations”.
Founder Charlie Carroll said: “In a climate where there is an ever-growing squeeze on resources within the hospitality industry, staff retention and wellness remains a huge priority for us. We’re constantly investing in the training and development of our 300-plus employees and are proud to have made The Sunday Times 100 Best Companies.”