Azzurri Group posts £16.5m net loss in FY2019
The casual dining company says it sees no financial difficulties ahead given its “robust” balance sheet.
Azzurri Group, owner of the ASK Italian, Zizzi, Coco di Mama and Radio Alice restaurant brands, has reported an improved net loss of £16.5m in FY 2019 compared with £25.6m in the previous year, attributed to “strong” trading performance.
The casual dining company also posted a £16.3m loss before tax in the same period compared to £23.4m in 2018.
The group said in a statement that the net loss “relates entirely to standard private equity ownership structure, mainly the roll up of internal debt between us and our owners.”
It added that it sees no financial difficulties ahead given the company’s “robust” balance sheet and increased profits.
Meanwhile, Azzurri’s external debt has reached £155m against an EBITDA of £38.1m. Debt currently matures in 2022, but the group says they are in "advanced talks" with their banks who have broadly agreed to extend it to 2024.
Citing a “challenging time” in the casual dining industry, Azzurri says acquiring and converting the healthy restaurant brand Pod enabled them to “accelerate growth” of Coco di Mama in the London food-to-go market. Currently, there are three converted Pod restaurants which the group said is “trading exceptionally well.”
“We’re also very selective about the new restaurants we open and don’t have any vanity projects,” it said.
Earlier this year, the group has expanded into China with the launch of its first restaurant in Shanghai, which it claims to be well in “exploratory phase.”
