Wimpy profits up before lockdowns
It warned its revenues faced "material diminution" as a result of enforced closures.
Burger chain Wimpy saw profits rise before the pandemic forced restaurants to close.
Wimpy Restaurants Group reported revenues of £6.56 million for the year ending February 29, 2020, up from £6.25m the year before. Pre-tax profit was at £1.31 million last year, up from £926,319 in 2019.
The company warned its revenues faced "material diminution" as a result of enforced closures at its burger restaurants across the UK.
“Of particular relevance to the Company is the fact that lockdown mandates the closure of all eat-in restaurants,” Kelebogile Ntlha, on behalf of Wimpy’s board, said in the directors’ report.
“While some of the company’s franchisees have been able to continue to trade as delivery-only operations, a significant number have been forced to close entirely...Both of these have led to a material diminution of the Company’s revenue and negative working capital movements.”
“The ability of the company’s franchisees to recommence trading when the lockdown is lifted will be critical to the company’s future success,” Ntlha added.
Wimpy recently opened two dark kitchen sites in Slough and Southampton so it can sell burgers via delivery apps, along with announced refurbishments at the Wimpy restaurants in Colchester and Kings Lynn.
