Living Ventures Group cuts losses

BARS and restaurants operator Living Ventures managed to reduce pre-tax losses and pay down debt in the year to March 31, 2010 despite operating from a lower number of outlets.

The company, which includes the Blackhouse Grills and former Gusto sites shared with The Restaurant Group, but not some of the newer ventures such as The Alchemist and Suburbia owned by founders Tim Bacon and Jeremy Roberts directly, cut pre-tax losses to £671,000 (2009: £1.1m) during the period as sales increased by 7.5% to £24.1m (£22.4m). Like-for-like sales (discounting a prior-year contribution from a Harrogate restaurant sold in September 2008) were 8.7% higher.

Moreover, the company said that in the first eight months of 2010 to December “sales continue to grow and profit margins improve”.

Notes accompanying accounts filed by directors said: “The group continues to be strongly cash generative and surplus cash continues to reduce bank debt.”

The firm’s net debt position improved by £816,000 and stood at around £17.3m at its year end – almost £10.4m of this takes the form of loan notes owed to The Restaurant Group, £2.5m is owed to directors and £4.6m is owed to its bank.

Accounts also show that during the year the firm spent £173,000 on the launch of its Gusto At Home delivery service.