Turnover up 5% at D&D London's restaurants

Published: 18 October, 2011

D&D London, which operates landmark London restaurants Quaglino's and Le Pont de la Tour, has reported turnover up 5% to £73.7 million, and cash profits level with last year.

In the year ending March 31 2011, the group, which operates restaurants in London, Paris, Copenhagen, New York and Tokyo, as well as an events business in New York, posted EBITDA of £8.3 million, while EBITDA minus exceptional items was £6.5 million, level with last year. Overall cash profits after financing hit £3.8 million, level with the previous year - the group said profits were affected by increased costs associated with marketing and strengthening management ahead of 2012's expansion.

The group says plans are progressing well for the spring 2012 opening of the Old Bengal Warehouse, which will comprise two restaurants, outdoor terraces, bars and a specialist wine shop, in the City. Its first hotel, which will have 80 rooms, a number of bars and two restaurants, is also scheduled to open in summer 2012 at South Place, also in the City.

It has also concluded agreements with Land Securities to open two restaurants next to the new Trinity Shopping Centre in Leeds in 2013.

The group says the £3.3 million increase in turnover was due to the economies of London and other overseas cities continuing their recovery from the recession. The strongest performers in the capital were Avenue, which saw revenue up 13%, Royal Exchange +12%, Bluebird +11% and Skylon +8%.

Guastavino's, D&D's events business in New York, performed well posting revenue growth of 50% compared with the prior year.

The group said trading in 2011 since the year end has continued to be strong despite
the poor summer, the August riots in August and uncertainty in financial markets.

London restaurants' revenues for the six months to end September were up 5% and up 6% for the month.

Des Gunewardena, chairman chief executive of D&D London said: "Despite a continuing fragile economic environment generally, our London restaurants continued to perform well in the year to March 2011. And, though we had a disappointing summer in terms of weather and despite the doom and gloom in the financial markets, our revenues have continued to increase in the current financial year. But we are cautious about the short term future and are monitoring our revenues closely in the critical run in to Christmas.

"Long term however we continue to believe that the prospects for our restaurants, for London, and for eating out generally are good. And that is why we are continuing to expand our business in London and in other cities."

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