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Mezzanine Group to de-list
The Mezzanine Group, owner and operator of Smollensky’s restaurants, intends to de-list from the AIM market.
The move follows talks between the company and its banks on ways of reducing costs and was taken after consideration of the size of the business and the expense of maintaining Mezzanine’s public status.
Assuming shareholders approve the proposal, de-listing will take place on 9 January 2004, with the last day of trading being 8 January.
Final results for the year to 1 June show gross profits at Mezzanine down 8.8 per cent to £8.1m and a total operating loss from continuing operations of £6.2m, compared with a loss of £6.1m last year. Turnover on continuing operations rose 21 per cent to £8.5m.
A strong performance from the Smollensky’s in Canary Wharf compared with mixed results from the others. A former Drakes wine bar in Carter Lane was refurbished and reopened in May under the Smollensky’s format and trading so far has been encouraging.
The disposal of non-core sites included the sales of Soho club Attica for £3.4m, Southend’s Storm night club for £1m and of two Drake’s wine bars for a total of £0.24m. The company also plans on selling Kartouche and Mezzanine night clubs for £1m and has received an offer of £1m for the Goat in Boots and Room sites.
The company is also selling its Finchley Road, London, Smollensky’s, whose performance had not been up to expectations.
The proceeds of the sales have been used to reduce group debt – £16m as at 1 June – and Mezzanine will now focus on its core Smollensky’s restaurant business.
Roddy Sutherland, chair, said he believed that “the general economic climate appears to be improving and this should improve the underlying performance of the group’s five remaining restaurants”.