Ivy Collection reports turnover increases to record £327m but profit falls amid sales talks: The Ivy Collection, the Richard Caring-backed restaurant brand, has reported turnover increased to a record £327,126,000 for the year ending 5 January 2025 compared with £314,744,000 the year before. This included £104,000 in franchise income compared with £143,000 the previous year. Adjusted Ebitda was up to £61,869,000 from £57,484,000 the year before. Pre-tax profit fell to £32,273,000 from £37,695,000 the previous year, which the company said was substantially impacted by an increase in pre-opening costs and one-off exceptional charges of £3,938,000. This included £3,587,000 in other professional fees, £176,000 in management restructuring and other employee related costs and £175,000 in contract terminations. In his report accompanying the accounts, director Christopher Robinson stated: “Trading surpassed the prior period with additional site openings contributing to growth. Although consumer confidence was dented by various conflicts and uncertainty following a new government, the company’s proposition proved compelling value for our customers which contributed to another impressive year. Changes to legislation and increases in living wages put pressure on achieving like-for-like labour margins without compromising customer service levels. Pleasingly, adjusted Ebitda improved compared to the prior year. These results reflect the group’s ability to deliver consistent top­line growth and strong Ebitda while navigating a dynamic economic environment, including rate rises and inflation. The group remains focused on long-term value creation through disciplined and operational excellence. Subsequent to the period end, the expiry date of the term loan and revolving credit facility, under which the company is a joint borrower, was extended for a further 12 months through to 29 April 2026. At the period end date, the amount outstanding under the facility was £229m (31 December 2023 – £216m). The business plans to increase market share with additional sites, develop its menu offering and uphold customer service levels in the next 12 months.” No dividend was paid (2023: nil). Earlier this month, Caring apologised to suppliers of his restaurant businesses after a letter was sent out informing them there would be a “mandatory” 2.5% cut to their invoices. Caring’s restaurant empire, which includes The Ivy Collection and Bills, wrote to suppliers earlier this month telling them that “to ensure our business can remain strong” a 2.5% “discount” would be applied to their accounts. After suppliers baulked at the unilateral demand for a discount, Caring told The Times that the letter had not been approved and apologised for it, adding that it was “totally incorrect”. Caring is reportedly in advanced talks to sell a significant portion of his UK hospitality empire – which includes The Ivy Collection and London private members’ club Annabel’s – to an entity controlled by the Abu Dhabi royal Sheikh Tahnoon bin Zayed al-Nahyan. The FT reported that talks between Caring and Sheikh Tahnoon’s holding company IHC may result in a deal that could exceed more than £1bn.

UK worker rights overhaul among Bills delayed until at least autumn: Several major pieces of government legislation including Labour’s flagship employment rights overhaul will not become law until at least the autumn after being caught up in the “grindingly slow” parliamentary process. Bills on employment rules and reforming the rental market were widely expected to achieve “final assent” that makes them law before the summer recess, when MPs disappear on holiday from late July until early September. Ministers had also hoped to publish the draft audit reform bill “no later than summer recess”, but this is now not expected until later in the year, reports the FT. Officials insist the timetables were never set in stone, and blame a “choked” legislative schedule for their progress slipping into the next parliamentary session. But the policies have also met stiff opposition over their potential to backfire. Debates over the employment rights bill, the government’s sweeping overhaul of workers’ rights, have dragged on in the House of Lords because of concerns that key provisions – including bans on zero-hour contracts and so-called fire and rehire practices – will be unworkable. The delay means the bill will not be ready to receive royal assent by the summer as the government had intended, and means businesses face a longer wait before having to implement the changes. Ministers have promised extensive consultation on regulations to put the zero-hour ban and new protections against unfair dismissal into effect.