Clapham House restaurants see better trading on the menu

Clapham House reported an improved August although the week-by-week performance has been volatile amid uncertain UK trading conditions.

The company recently reported a 50 per cent rise in profits in the year to March 28 but then saw demand slip during June and the early part of July as the World Cup tournament and sunny summer weather put Britons off dining out.

Clapham issued its trading update on the day it opened another new Gourmet Burger Kitchen (GKN) restaurant, at the O2 complex in Greenwich, London. Another site will open at the Trafford Centre in Manchester next month and will be followed by a further outlet before the end of this financial year in March.

Clapham now operates 53 GBK restaurants in the UK and 15 internationally, as well as six under The Real Greek brand.

The group asked shareholders for cash in May so it could fund expansion and take advantage of cheaper rents. It also launched its first new range of GBK-branded retail burgers, available through Waitrose and online store Ocado.

Clapham House chairman David Page said the roll-out of new outlets was progressing well. He added: "The UK trading environment and outlook remain challenging and although August has shown signs of a return to the improved pre-World Cup sales trends, weekly performance remains volatile."

Clapham House, which held its annual meeting yesterday, also said it remained in discussions with an undisclosed suitor about a possible offer for the company, which has a market value of just under 30m.

The bid interest first emerged at the end of July and has been followed by last week's 90.3m takeover of Italian restaurant chain Carluccio's by Middle Eastern retail giant Landmark Group.