The Ivy Collection grows profits despite industry headwinds

The Ivy Collection has reported a rise in sales and profits despite “inflationary pressures” hitting the restaurant sector.

The Richard Caring-backed chain, which the tycoon is rumoured to be looking to sell for £1b, saw pre-tax profits hit £37m in 2023, up from £29m the previous year.

Revenue rose to £314.7m, up from £302.9m the year before, while adjusted EBITDA jumped from £54.7m to £57.4m.

This was despite no new Ivy Collection restaurants opening during 2023.

The original Ivy restaurant opened in London’s West End in 1917. Since 2014, around 50 Ivy spin-off restaurants have launched across the UK and Ireland, while eight have opened under the sister Ivy Asia brand.

Companies House filings for the Ivy’s parent company said that while “inflationary pressures reduced consumer confidence” the restaurant chain offered “compelling value” which contributed to “another impressive year”.

“This is notable considering the cost headwinds faced in the first half of the year from energy prices and knock-on costs from the supply chain and interest rate hikes,” the filings said.

The average number of employees across the Ivy Collection dropped from 5,962 in 2022 to 5,663 in 2023.

However, staff costs rose from £130m to £137m over the same period, partly driven by the rise in the national minimum wage and staff training.

The group extended its existing bank facility with HSBC, under which it is a joint borrower, for a further 12 months until 29 April 2025.

Caring, who is a major shareholder, has said he will provide emergency funding at short notice to the business if required.

Last year, Caring was rumoured to be looking to sell the Ivy casual dining empire to London-based investors Si Advisers for £1b. However, no deal has yet gone through.

The price tag is a testament to the success of the expanding brand. In 2005, Caring bought the Caprice Holdings, then owner of the original Ivy, for £31.5m.