Drake & Morgan sees profits dip in run up to lockdown

29-Mar-2021 - Last updated on 29-Mar-2021 at 09:55 GMT

Slice of profit: Drake & Morgan said while the outlook remained uncertain, the recently announced Government roadmap to the way out of the pandemic gave some clarity and had led to strong demand and a high level of reservations.

Drake & Morgan is hoping to rebuild the London-based bar and restaurant group with the easing of Covid-related restrictions, according to reports by MCA Insight.

The comment from chief finance officer David King, who joined from Fuller’s earlier this year, came on the back Drake & Morgan’s latest financial update, which revealed adjusted full-year pre-tax profit of £1.5m, down from £1.9m the previous year, for the year ended 29 March 2020.

Adjusted EBITDA fell from £6.3m to £4.3m. Turnover dipped from £56m to £50.2m.

The Bowmark-capital backed group said while the outlook remained uncertain, the recently announced Government roadmap to the way out of the pandemic gave some clarity and had led to strong demand and a high level of reservations.

King said the year had been “incredibly challenging” for the sector.

“The run-up to lockdown 1.0 and the subsequent closure of hospitality significantly impacted trading,” he said.

However, with high demand for its al fresco terraces from 12 April and the further easing of restrictions on 17 May, “we are looking forward to re-building the business”.

Six terraces are lined up for opening from 12 April – The Sipping Room, West India Quay, Canary Wharf; The Refinery Bankside, London Bridge; The Parlour, Canary Wharf; Devonshire Terrace, Liverpool Street; The Happenstance, St Paul’s London and Drake & Morgan at King’s Cross.

The company declined to release anything further on trading since the year end.