According to the accounts that have been filed at Companies House, the celebrity Chef, Gordon Ramsay has posted a return to profit which means that things are looking up for him after a terrible couple of years for his business.
In the previous accounts, the turnover had fallen quite steeply at his restaurant in Claridge’s hotel and there was a reduction of how much each person was spending at his Maze restaurant, which showed that people have cut back their spending on eating out.
With the falling out with his former business partner and father-in-law, Chris Hutcheson, the business year could also be financially hit. Hutcheson was said to be the financial brains behind the business and was the former mentor to Ramsay for 13 years, was discovered to be leading a double life with another woman and fathered two children, was sacked.
In the coming year, significant professional and legal costs will have been and are likely to be incurred to resolve issues. Despite this, Ramsay has however significantly improved financially after struggling a few years ago by cutting costs.
Ramsay cut costs by finding the best agreements with suppliers, restaurant insurance providers, reducing staff and trimming the salary bill from £11 million to £9.3 million. Neither Hutcheson nor Ramsay took a salary during the year and pre-tax profit for Gordon Ramsay Holdings was £2.05 mill in 2010 compared to £567,000 in 2009.
Murano, the popular Italian restaurant was also sold to its head chef Angela Hartnett for £2.5 million, helping Ramsay’s business.
Gordon Ramsay Holdings International stretches over two separate sets of accounts. The second set of accounts includes Ramsay’s more newly opened restaurants, including the bistro Foxtrot Oscar based at Heathrow. The accounts show that he has managed to cut losses at these places.
In the 12 months to August 2010 losses were £1.85 million compared to in the previous year when losses totalled £8.3 million.
Adding the two businesses together, Gordon Ramsay Holdings International has returned to a profit of £0.2 million, up from a loss of £7.7 million the year before.
“Gordon Ramsay Holdings International’s performance for the coming year is healthy and meeting expectations despite the economic climate remaining uncertain. The group has reported a considerable turnaround for combined profits before tax, regardless of the hospitality industry facing challenging conditions” explained a spokesperson of the group.
However, Ramsay has lent the business £7.9 million during the year, which shows that the company is relying heavily on personal loans made by him.