Unfortunately, today’s bra blog text will not be about slice of pizza exactly, but about a quite large slice taken out of profits one of the famous pizza making companies.
Pizza Express, as this is a star of today’s blog text, has blamed business rates, rent prices and drastically rising food prices for a fall in earning last years. The company remains seriously cautious about the future of the business.
According to the information found on the internet, “the restaurant group’s operating profit dropped 8.9% in the year to December 31, falling to £94.6 million.
Sales inched up 0.4% on a like-for-like basis in the UK and Ireland and jumped 8.2% in the company’s international division.”
Jinlong Wang, group chairman and company’s chief executive, is seriously concerned with the cost of food, last business rates increase and rise in commercial rent and utility bills.
Mr Wang is also concerned that very similar, large restaurant group was forced to close down due to financial pressure. Also that the other restaurant group have been forced to use a Company Voluntary Agreement.
What is CVA – Company Voluntary Agreement, you might ask? If your limited company is insolvent, it can use CVA to pay creditors over a fixed period. If creditors agree, the limited company can continue trading.
The companies who used this agreement were for example Jamie’s Italian and Prezzo.
Still fancy pizza? I’m not hungry anymore…
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