The Hakkasan Group, who recently announced it is to close the most recent addition to its portfolio, Chrysan, after just six months of operating, has now plunged to a loss of £4,048,000 on turnover of £28,129,000 in the year to May 2012.
The international company, which was founded in London by Alan Yau and owned by Abu Dhabi-based Tasameem since 2007, made a small pre-tax profit of £58,000 on turnover of £20,933,000 the year before. The company is also thought to have seen losses from the failed opening of Chrysan, which then closed in April, as well as from other sites around the world. Hakkasan reported it is reviewing options for the Chrysan site but that its Chinese fine dining restaurant HKK, which opened in December 2012, is ‘trading satisfactorily’.
Ebitda in the year reported at Companies House was minus £158,000 compared to £1,453,000 the year before. Turnover of £28.19m was a 34% increase on the year before driven by the first full year of operations from Hakkasan Mayfair, which opened in November 2010.
During the same year period the company received a £49.9m cash boost from its owner to finance working capital and fund the build of new Hakkasan operations in the US and China.
The company also settled a long-running dispute with HMRC in December 2011 over its National Insurance contributions relating to its tronc system – a £546,000 provision was written back to profit.