D&D London announced today its financial results for the year ended 31 March 2018 and a trading update for 2018 to date. Highlights were as follows:
2017/18
- Turnover +6% to £132.2m. (2017 £125.0m)
- EBITDA¹ -11% to £11.6m. (2017 £13.1m)
- Like for like sales +1%
- New restaurant launches of Issho and East 59th in Leeds (July 2017), Fiume at Battersea Power Station (November 2017) and 20 Stories in Manchester (March 2018)
2018/19 to date
Acceleration of revenue growth since last financial year-end with significant contribution from new openings. Current year revenues +17% overall, +4% like for like compared with prior year
Current year strong like for like sales from:
- Coq d’Argent +17%
- Madison +15%
- Orrery +15%
Since year-end a Bluebird café opened at Television Centre White City (April 2018) and a Bluebird restaurant/café/bar opened at the Time Warner Centre, Columbus Circle in New York (September 2018)
Des Gunewardena, Chairman and CEO of D&D London commented:
“In spite of current challenges to the hospitality industry with Brexit looming, I am pleased with where the business is at the moment and can confirm that we remain confident in the long term success of D&D. That is why we continue to invest both in the UK and overseas. We have had great success with 20 Stories in Manchester which is already one of D&D’s highest grossing restaurants and our recently opened Bluebird in New York has been very well received and is trading strongly. It is also reassuring to see City restaurants such as Coq d’Argent and Madison shrugging off Brexit worries and trading significantly ahead of last year. Turning to the future we have recently committed to opening a 10,000sf rooftop restaurant at 120 Fenchurch Street in London next Spring, and we will be opening a second New York restaurant in the Hudson Yards development on the west side of Manhattan in March.
While earnings for the year to 31 March 2018 fell, mainly as a result of costs (business rates, salaries, food and wine due to sterling’s depreciation) outpacing underlying revenue growth, but also due to initial losses of ventures launched during the financial year, the current financial year has been a different story. Like for like sales (+4% to date) are running ahead of inflation, and those new openings are now contributing strongly to increased revenues (+17% to date overall) and growth in earnings (running c.+20% ahead of last year).”