Pizza Express has witnessed losses surge to over £40m in 2024, newly released figures have disclosed, whilst turnover also declined.
The restaurant operator’s pre-tax deficit expanded from £7.9m to £40.7m, with fresh accounts lodged at Companies House revealing turnover dropped from £454.5m to £442.1m during the corresponding timeframe, as reported by City AM.
Across the UK and Ireland, the brand’s takings decreased by 2.7 per cent, whilst international operations saw a six per cent decline.
A board statement declared: “During 2024, our primary market of the UK and Ireland continued to operate in a challenging macroeconomic environment.
“There has been continued consumer caution driven by economic uncertainty and the lasting impacts of the cost-of-living crisis, coupled with cost inflation across food, labour and central costs.”
“In Hong Kong, 2024 has seen a challenging macro climate as the market continues to normalise following post-pandemic restrictions easing mid-2023.
“Hong Kong continues to experience a significant net outflow of people, impacted by both higher than pre-pandemic outbound tourism and lower than pre-pandemic inbound tourism.
“However, the focus in Hong Kong has been on execution of a turnaround plan, including estate management central cost reduction and achieving lower food and labour costs.
“In the UAE, the level of tourism continues to be strong with an increase in international visitors compared with 2023, aiding footfall at key retail and hospitality venues.”
Pizza Express secures £55m boost
The accounts follow City AM’s April report that Pizza Express had secured a £55m boost after finalising a refinancing agreement designed to substantially reduce its debt burden.
The restaurant operator negotiated a £55m par debt reduction which was set to bring its debt position down to £280m.
Under the arrangement, shareholders including Bain Capital Special Situations will pump £20m equity into the company’s parent firm, Wheel Topco.
Pizza Express confirmed at the time that it had garnered “strong support” to push back the maturity of its senior secured notes from July 2026 to September 2029.
The refinancing agreement emerged just over 18 months after the business weighed up a takeover approach for The Restaurant Group, which owns Wagamama.
A deal was ultimately abandoned.
The chain is chaired by Allan Leighton who also holds the same role at Asda.
