25/02/2004
Restaurant operator Bank is still feeling the effects of a slump in the London tourist trade, but thanks to cost-cutting measures, losses before tax have shrunk significantly. For the year to October, turnover fell slightly from £9m to £8.6m, while pre-tax losses dropped 85.5% to £346,000. Blaming the war in Iraq for adversely affecting the London tourist/theatre industry as well as the introduction of the congestion charge, chairman LG Collins admitted Bank Aldwych experienced lower sales than the year previously. The restaurant is to be refurbished in April. Bank's other London restaurant, in Westminster, fared better, enjoying a 5% improvement in like-for-like sales while Bank Birmingham reported a 4% increase in like-for-like sales. In order to improve its situation, the company has engaged in strengthening its name by high profile promotions alongside the cost-cutting measures. In August, Bank raised £600,000 by placing 30m shares at 2p per share. Conran Holdings made a strategic investment in the company - it now owns 29.9% of Bank but has declined to make an offer for the company. Instead, it is supporting Bank in its sales and marketing efforts. Net debt in October stood at £2.4m but the company has secured a new long-term bank facility. Current trading is recovering but apparently much depends on the success of Bank Aldwych. Speculative stuff.
| Market cap: | £1.81m |
| PE Forecast: | n/a |
| Share price: | 2.5p |
| AIM | 0pm |
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| 25/02/2004 |
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