The Ivy Collection has posted an increase in both sales and profits, despite ongoing “inflationary pressures” affecting the restaurant industry.
The Richard Caring-backed chain, which is reportedly being considered for sale at £1 billion, reported pre-tax profits of £37 million in 2023, up from £29 million the year before.
Revenue increased to £314.7 million, up from £302.9 million the previous year, while adjusted EBITDA rose from £54.7 million to £57.4 million.
This growth occurred despite no new Ivy Collection restaurants opening in 2023.
The original Ivy restaurant, which opened in London’s West End in 1917, has since seen the launch of around 50 Ivy spin-off locations across the UK and Ireland since 2014, along with eight restaurants under the sister brand, Ivy Asia.
According to Companies House filings for the Ivy’s parent company, while “inflationary pressures reduced consumer confidence,” the restaurant chain provided “compelling value,” which helped deliver “another impressive year.”
The filings said: “This is notable considering the cost headwinds faced in the first half of the year from energy prices and knock-on costs from the supply chain and interest rate hikes.”
The average number of employees across the Ivy Collection decreased from 5,962 in 2022 to 5,663 in 2023.
However, staff costs increased from £130 million to £137 million during the same period, partly due to the rise in the national minimum wage and investment in staff training.
The group extended its current bank facility with HSBC, where it is a joint borrower, for an additional 12 months, lasting until 29 April 2025.
Caring, a major shareholder, has stated that he will provide emergency funding to the business on short notice if needed.
Last year, there were rumors that Caring was considering selling the Ivy casual dining empire to London-based investors Si Advisers for £1 billion. However, no deal has been finalised.
The price tag reflects the success of the growing brand. In 2005, Caring acquired Caprice Holdings, the former owner of the original Ivy, for £31.5 million.
