Gordon Ramsay Holdings (GRH), parent company of the chef’s British restaurant portfolio, has reported that pre-tax profits soared to 816,000 pounds in the year to August 2007.
By Ellie Duncan
The figures, which were published March 4, eight months late, show a nine percent increase in turnover to 41.6 million pounds.
While news emerged of Ramsay’s profits, the accounts also revealed that the company had breached banking covenants and that it is in talks to ensure loan agreements continue.
GRH has a 10.5 million pound banking facility with the Royal Bank of Scotland but as of August 2007, it owed its banks 3.4 million pounds – a figure that is now likely to have increased.
HOLDING COMPANY
Despite this, both Ramsay and Chief Executive Chris Hutcheson, who is also his father-in-law, were paid 2.01 million pounds between them.
Unusually, Ramsay’s holding company has lent 4.4 million pounds to his U.S. venture, although it is not a subsidiary of the business and has paid none of the 30,000 pound interest due on the loan.
Accounts also show that suppliers are owed about five million pounds by the holding company.
While GRH tripled its profits in 2007, experts warn that Ramsay’s portfolio of restaurants may start to struggle as consumers cut back on spending. Increasingly, restaurants are offering promotions and meal deals to lure paying customers.
Ramsay is said to be the highest earning chef in the world with an estimated fortune of 60 million pounds.