CGL saw turnover fall to £109.3m in the year ended 30 September 2023 from £112.3m in 2022, according to documents filed to Companies House this week.
However, D&D London co-founder and outgoing CEO David Loewi tells Restaurant the figures do not include that of other subsidies within the D&D London collection including German Gymnasium and Madison in London and its ‘highly profitable’ Queens Yard restaurant in New York.
He says turnover across the whole D&D London collection has increased on a like-for-like basis from £129m in 2022 to £133m in its 2023 financial year.
EBITDA fell from £11m, including positive exceptions from overseas, in 2022 to £5m in 2023.
CGL’s pre-tax losses widened dramatically over the period from £5.8m to £64.5m, much of which appears to be as a result of ‘exceptional administrative expenses’.
Loewi says the loss is predominantly attributed to unrecoverable paper debt relating to the group’s previous parent company, Panther Partners, and restructuring costs of £52.4m coupled with interest of £7.9m.
“The business didn’t have trading losses, but incurred a provision for the debt relating to its parent [company] as this will not be paid,” Loewi adds.
Over the 2023 financial period, CGL closed several D&D London restaurants across the UK and US including Avenue, Radici and Plateau in London, East 59th in Leeds, Klosterhaus in Bristol, and Bluebird New York, which Loewi says also impacted the figures.
CGL says each restaurant had been impacted by changes to working patterns and footfall post Covid, and the decision to close them had left the group with ‘a core of cash flow positive sites that gives the platform for future expansion and a strong EBITDA performance’.
The group describes 2023 as being part of a ‘continuing transitional period’ with the core estate ‘performing strongly, but challenged by train strikes and poor unseasonal weather’.
Post year end the group notes that its acquisition by Calveton and Breal Capital, which bought D&D London in October 2023 in a deal that valued the business at £60m, has led to ‘further strategic development of the brands and technology, with a focus on driving revenue and improving efficiencies to offset inflationary pressures’.
This, CGL claims, is resulting in ‘sustained EBITDA and signs of year-on-year growth’.
It adds that it is ‘continuing to assess the performance and viability of locations’, which post year end has led to the closure of Leeds restaurants Issho, Angelica and Crafthouse, bringing an end to D&D London’s presence in the city.
However, with the backing of Calveton and Breal Capital, it says it now has ‘the financial backing and strategic support to accelerate growth both in the UK and internationally’.
“The group’s strategy is to continue to develop its core restaurant brands through targeted investment and guest experience,” writes Loewi.
“Following the investment by Breal Capital and Calveton, the business has been able to continue this development and is now looking forward to the next phase of growth both in the UK and internationally as it consolidates on the strength of the core brands it has.
“The prospects for the D&D group are excellent.”
In a statement to Restaurant, Loewi adds that the group is line to have ‘a record beating Christmas with sales considerably up and a number of restaurants breaking new records’.
Last month it was announced that Loewi, who created D&D in 2007 when he and Des Gunewardena led a management buyout of his previous employer Conran Restaurant Group, is to step down as CEO and board director of D&D London at the end of the year.
He has led the group since the departure of Gunewardena in September 2022.
Loewi will serve as advisor to the board with a particular emphasis on international expansion while a new CEO is appointed.
