Thu 29th Aug 2013 - Breaking News - Losses at Paul UK increase, changes strategy Losses at Paul UK increase, changes strategy: Losses at 30-strong bakery café chain Paul UK have deepened after the company’s trading patterns in London were affected by last summer’s Olympics and Royal events. The company, which launched its first site in Covent Garden in 2000 and operates more than 300 sites in France, will now embark on a plan to evolve its UK sites, all in London, to a larger footprint. Overall transaction value reduced by 1.4% in 2012 compared to 2011. Turnover for the year to 31 December 2012 rose from £22,675,402 to £23,366,832. However, the company’s operating losses rose sharply to £1,243,581 from £462,583 the year before. Pre-tax losses were £1,227,750 compared to £571,982 in 2011. The company said it is working on a three year strategy that will focus on driving sales and growth through the acquisition of larger shops which can offer customers a complete food and beverage offer in “an environment which will encourage a longer dwell time and increase average transaction values”. It added: “A programme of shop refits will be implemented to improve existing environments and maximise the opportunities to encourage customers to purchase product. Where existing shops do not fit in to the strategy and can’t be turned into profitable units a structured closure programme will be implemented.” The 2012 results include a provision of £475,000 for the closure of non-profitable shops that do not fit the focus of the business moving forward. The company said that its “geographical focus in London meant its trading patterns wee significantly impacted during the year under review by Royal events in the capital and the Olympic Games”. It opened sites at London Kingsway in October 2012 and Bankside in December 2012. The company added: “The company recognises the growth potential is in larger shops which can offer the customer a full range of products for both eat-in and takeaway. Where the company has smaller stores which have not proved successful in this very competitive takeaway market a strategy will be developed for the disposal of any shops which can’t be returned to profitability or do not fit with the company’s focus moving forward.” The company also reported that external funding had become more expensive after a new loan agreement with BNP Paribas and Credit Lyonnais.