![]() It said that discussions with landlords were ongoing at a number of other sites. Since then, it has closed an additional 23 sites due to break rights being inserted into lease agreements that were compromised as part of the CVA, giving landlords the opportunity to terminate leases. The company has cut circa 2,400 jobs since the crisis began and in September shut 73 restaurants after securing the approval of a company voluntary arrangement (CVA) from its landlords and other creditors. Squeezed margins meant that Ebitda fell 11% to £71m, while interest charges of £92m and impairments on its balance sheet helped push it to a pre-tax loss of £348m. Revenues for the year to the end of December 2019 increased 1.1% to £548m, but stripping out the impact of opening new restaurants, takings were down 0.6%. Like many of its peers, PizzaExpress had been struggling before covid-19 as oversupply in the market was compounded by changes in consumer dining habits and increasing overhead costs. A second ‘severe but plausible’ scenario drawn up by the group assumes further sales reductions of 15%-20% in 2022, where additional funding would be required. It also assumes delivery sales will remain stable, and then increase slightly over 2021. It forecasts sales will be 40% lower throughout 2021, with a slow recovery assumed in 2022. But in a worst-case scenario, in which they included a further month-long national lockdown and additional trading restrictions, it would have to cut capital expenditure and draw down £20m from a new debt facility in order to conserve cash. PizzaExpress said it had enough liquidity to see it through 18 months of low dine-in sales and some regional lockdowns. Like many companies in the sector, it added that continuing restrictions and additional lockdowns would cast “significant doubt” on its ability to continue as a going concern Accounts published for the year to 29 December 2019 showed climbed steeply from £51m a year earlier, which the chain blamed on property and labour cost pressures and one-off charges totalling £286m. In its accounts for 2019, the chain also warned that the coronavirus crisis had “a significant impact on the liquidity of the group” and that it was “very challenging” to assess how curbs would affect the business. PizzaExpress fell to £350m loss even before pandemic: PizzaExpress reported a £350m loss even before the pandemic restrictions impacted the businesses.
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