LEON Restaurants has reported a total loss of £1.8m for the year ending 31 December 2017, compared to a profit of £44,967 in 2016.
While gross profit was revealed as £40.9m, the company saw total administrative expenses of £41.6m.
Turnover increased £14.2m from £42.1m to £56.3m and like-for-like sales grew 0.9% compared to 7.6% in 2016. EBITDA increased slightly from £3.5m to £3.6m.
The company grew its owned sites by five to 39 and franchise sites grew from nine to 13.
“It was a challenging year for the hospitality industry, during which the sector saw subdued customer spending together with increased costs driven by currency devaluation, business rates revaluations, rent reviews, wage inflation and the new apprenticeship levy – all of which contributed to significant sector margin erosion,” says LEON CEO John Vincent. “LEON was not immune, reporting only slight EBITDA growth despite solid expansion-led sales increases.”
However, Vincent comments that the business’s performance so far in 2018 has been a strong one.
“LEON has experienced eight months of strong positive like-for-like growth with 2018 first half year like-for-like sales growth of 10.1%, and restaurant EBITDA also back in good growth.
“During 2017, LEON raised £7m new equity in order to both progress international restaurant openings and to strengthen the balance sheet. We welcomed new investor Spice Private Equity as a significant part of this transaction.
“Management continue to make considered but ambitious international growth plans for LEON – in both Europe and the U.S. with our first restaurant opening in Washington D.C. later this summer – alongside our UK expansion.
“LEON is providing more naturally fast food to more guests in more cities around the world.”