Pret A Manger has booked a goodwill impairment cost of £553m, blaming larger prices in its core UK enterprise and a extra unsure world economic system.
The sandwich and low chain, which has 717 shops in 21 markets however earns the majority of its revenues within the UK, reported an working lack of £451.5m for 2024 regardless of a ten% rise in world gross sales to £1.2bn.
It had made a £28.3m revenue over the earlier 12 months.
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Pret blamed the reverse on the non-cash cost.
The retailer, majority-owned by European funding group JAB Holding, had £912m of goodwill on its stability sheet, when it modified arms in 2018.
Pret stated the cost mirrored the “uncertain global macro-economic environment, the additional bills introduced as aresult of the (UK) National Autumn Budget in 2024, and results in part from the use of a higher discount rate than was used in previous calculations.”
The funds’s measures included raised employer nationwide insurance coverage contributions and minimal pay thresholds.
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Pret’s plans embrace a UK meal deal providing. File pic: Reuters
Each kicked in throughout April.
UK retailers worry additional price rises from this yr’s funds, which chancellor Rachel Reeves will ship in late November.
Pret boss Pano Christou stated of the working loss determine: “It’s no reflection on how the business is doing as we lookto now and in the future.”
Pret is aiming to develop its UK footprint from 500 to round 1,500 shops and an enormous enlargement in the US.
The corporate is eyeing the potential of a stake sale or flotation.
“There is potential for an IPO (initial public offering) certainly,” Chairman Jose Cil added.
Pret additionally revealed a plan to trial meal deal presents.
The chain stated it might take a look at the format within the remaining three months of this yr as a part of efforts to spice up lunchtime commerce.
There was no info on pricing or the place the initiative would launch.
Pret up to date on its plans as one in every of its primary rivals is prepped on the market.
Costa trades from greater than 2,000 shops within the UK, and properly over 3,000 globally, in keeping with the most recent obtainable figures.
