DURBAN – JSE-listed food franchisor Famous Brands has flagged that it expected to report further losses in the year to end February, negatively impacted by its UK subsidiary Gourmet Burger Kitchen (GBK), which had failed to deliver since its acquisition in 2016.
The group told investors in a trading guidance yesterday that GBK would record an operating loss before non-operational items of £4.6 million (R86.86m) from last year’s £3.7m.
Famous Brands said the fall in GBK profits would result in a basic loss a share of between 432 cents a share and 528c compared to last year’s basic earnings per share of 22c.
It said GBK had impairments of R873.9m before tax as published in the half-year results for the six months to end August.
Famous Brands acquired GBK for £120m in October 2016 in a move the group explained as furthering its goal to diversify its earnings and expand its geographical footprint.