Pizza Express slices value by over £40m as sales slide
Pizza Express slashed its value by more than £40m in 2024, it has been revealed, as its sales also dipped.
The restaurant chain’s pre-tax losses went from £7.9m to £40.7m while new accounts filed with Companies House also show its revenue slipped from £454.5m to £442.1m over the same period.
In the UK and Ireland, the chain’s sales fell by 2.7 per cent and by six per cent in its international markets.
On its losses, Pizza Express said its profit before tax exceptional charges for 2024 was £4.3m, up from a loss of almost £2m in 2023.
The company said it decided to take a provision of £41.8m against the carrying value of the brand to reduce it to £421.7m which was recognised as an exceptional charge.
A statement signed off by the board said: “During 2024, our primary market of the UK and Ireland continued to operate in a challenging macroeconomic environment.
“There has been continued consumer caution driven by economic uncertainty and the lasting impacts of the cost-of-living crisis, coupled with cost inflation across food, labour and central costs.
“In Hong Kong, 2024 has seen a challenging macro climate as the market continues to normalise following post-pandemic restrictions easing mid-2023.
“Hong Kong continues to experience a significant net outflow of people, impacted by both higher than pre-pandemic outbound tourism and lower than pre-pandemic inbound tourism.
“However, the focus in Hong Kong has been on execution of a turnaround plan, including estate management central cost reduction and achieving lower food and labour costs.
“In the UAE, the level of tourism continues to be strong with an increase in international visitors compared with 2023, aiding footfall at key retail and hospitality venues.”
Pizza Express secures £55m boost
The accounts come after City PM reported in April that Pizza Express had secured a boost worth £55m after agreeing a refinancing deal which was to significantly cut its debt.
The restaurant chain negotiated a £55m par debt paydown which was to see its debt position reduced to £280m.
As part of the deal, shareholders including Bain Capital Special Situations will inject £20m equity into the company’s parent company, Wheel Topco.
At the time, Pizza Express added that it had received “strong support” to extend the maturity of its senior secured notes from July 2026 to September 2029.
The refinancing deal came just over 18 months after the business considered a takeover bid for The Restaurant Group, which includes Wagamama. A deal was ultimately not pursued.
The chain is chaired by Allan Leighton who also holds the same position at Asda.