Richoux warns ‘no financial improvement expected this year' after reporting 10.3% drop in revenue
French Brasserie brand Richoux Group has reported a drop in revenues of 10.3% in their interim results up to 1 July 2018, falling to £5m.
The company mitigated some financial woes experienced in the same period for the previous year, cutting EBITDA losses to £0.75m from £0.9m and operating a net loss of £0.9m, an improvement on the previous year's loss of £1.1m.
However its report stated they expected little financial improvement in their full annual results.
The company, operating 18 sites after disposing of one and rebranding two others, said it had focused on cost reduction to tackle the difficult restaurant climate.
In the statement, it said: "‘as indicated in our trading update on 29 August 2018, 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.'
Richoux added: "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. We do not expect to see any material improvement in trading over the balance of the current financial year."
Richoux was reportedly in talks to sell off one of its central London leases, but has declined to continue negotiations.
