Sat 10th Dec 2016 - Nando’s reports turnover passes £800m Nando’s reports turnover passes £800m: Nando’s Group Holdings has reported turnover rose to £809m in the year ending 28 February 2016, up from £587m the year before, driven by its newly acquired overseas companies and organic growth in the UK and Ireland. Pre-tax profit dropped to £21.3m compared with £44.6m the year before. The company opened 50 new restaurants in the year taking the total to 946. The company stated: “In February 2015, the company acquired a number of overseas Nando’s operating entities in various countries and continued to invest in its global leadership team. This has helped create a more integrated group structure and closer brand alignment, which will facilitate long-term sustainable growth as Nando’s expands its restaurant footprint globally. This reorganisation and focus has been further demonstrated in post-balance sheet events, with the disposal of Gourmet Burger Kitchen and the acquisition of an increased stake in the company’s Singaporean, Malaysian and Indian operations. Revenue for the 53-week period was £808.6m (2015: £587.3m). This increase of £221.3m is driven by the newly acquired overseas operating companies and organic UK /Irish growth. Gross profit at £198.6m represents a margin of25% (2015: 26%). Prior year gross margin has been restated to bring the group in line with a single measure of gross profit. Profit before tax for the period was £21.3m (2015: £44.6m). The current year results include revenue and costs from smaller developing overseas markets, which have restaurant expansion programmes in place. The businesses operating in overseas markets have not fully matured and the number of restaurants in these markets still needs to reach critical mass. Management expects significant growth potential in these markets and will continue to invest in opening new restaurants. In addition to the investment in overseas markets, the group incurred Intellectual Property amortisation costs of £25.6m (2015: £3,000) and financing costs £49.1m (2015: £25.0m). At the year-end, the group had net-assets of £42.4m (2015: £60.4m). The restaurant expansion programme continued, with net 50 new restaurants being opened during the 53 week period. The number of restaurants in operation rose from 896 at 22 February 2015 to 946 at 28 February 2016. This total includes the owned restaurants in the UK and Ireland, a further 299 that are owned internationally and 284 that are run on a franchise basis internationally. The average number of employees during the year has grown from 12,126 in 2015 to 16,101 in February 2016. Group capital investment for the year rose from £63.3m in 2015 to £104.1m in 2016. This capital investment was focused on extending the restaurant footprint globally in addition to refurbishing existing restaurants where necessary. Our opening programme is still progressing strongly, particularly in our overseas markets. We increased the number of restaurants around the world, with all showing favourable results.”