Thu 9th Oct 2014 - Hakkasan reports reduced losses Hakkasan reports reduced losses: Hakkasan reduced its pro rata losses to $14.1m in the seven months to 31 December 2013 from $50.1m the full year to 31 May 2013 – the company has also begun reporting figures in dollars to reflect its growing US business. Turnover grew to $97.9m in the seven months compared to $74.9m for the full year prior. Sales grew by 31% ($23m) year-on-year, principally reflecting the growth of its nightclub in Las Vegas, together with a full-year contribution from restaurants in Las Vegas and San Francisco and the initial revenues from Los Angeles. Adjusted Ebitda has improved by $8.9m in the period, now making an overall positive contribution from the portfolio. Hakkasan’s nightclub in Las Vegas has made a significant contribution to the improvement, together with a continued strong contribution from the UK portfolio, offset by a weaker but improving performance in the core US portfolio of restaurant sand initial losses from a Los Angeles opening. The closure of Chrysan also accounted for part of the improvement year-on-year. The company now has accumulated losses of $93.8m (2012: $78.5m). The UK provided $31.5m of turnover in the seventh months while the US provided $66.4m. Franchise and management fees provided income of $1.3m in the seventh months (2013: $1.8m). The company runs two Hakkasans in London, one Yauatcha site, one Sake No Hana and HKK in London. There are four Hakkasans run under management contracts in Miami, Dubai, Abu Dhabi and Doha. There are four Hakkasans in the US – New York, Los Angeles, Las Vegas and San Francisco. There are three Hakkasans and two Yauatchsa operated under franchise in India. Of the seven months, the company stated: “Whilst a short period, the substantial increase in revenue from $74.9m to $97.9m ($23m or 31%) and gross profit from $29.3m to $53.9m ($24.6m or 84%) has been driven mainly by the continuing success of the Las Vegas nightclub, together with a full period’s contribution from our restaurants in Las Vegas (opened in May 2013) and San Francisco (opened in December 2012) and the initial revenues from Los Angeles (opened in September 2013). Our London restaurants have also continued to trade well. The period to May 2013 also included the revenue from Chrysan in the UK which was closed in April 2013. We are pleased to report the significant improvement of $8.9m in Adjusted Ebitda to $5.5m for the period, which is the measure of the cash profit generated by the underlying business.”