DURBAN – Famous Brands’ UK subsidiary, Gourmet Burger Kitchen (GBK), continued to put pressure on the overall performance of the group in the six months to August, despite despite undertaking a turnaround strategy last year.
System-wide UK sales slid by 12.5 percent, however, on a like-for-like basis sales increased by 8.6 percent compared to a decline of 9.7 percent reported last year.
Famous Brands – Africa’s largest branded food services franchisor with brands such as Steers, Debonairs Pizza, Wimpy and Mugg & Bean – has found conditions in the UK very challenging in the past two years, with impairment charges on GBK jumping to R899 million in the year to end February compared to R373m reported a year ago.
The results reported by GBK were in line with management's expectations.
“The business continued to benefit from the extensive range of operational improvements, together with the company voluntary arrangement (CVA) restructuring programme completed in the past year,” the group said.