Gordon Ramsay Holdings, the business that co-ordinates the chef’s expanding portfolio of restaurants and bars, has reported that its profit rose by an impressive 182 per cent, a level achieved as a result of cost-cutting.

Net income for the period to 31 August increased to £1.46 million from its 2009 position of £515,373. Revenue, however, witnessed a 19 per cent decline as diners moved away from Ramsay’s Claridge’s restaurant and spent less at his Maze venues, with sales falling 13 per cent to £27 million following the closure of Boxwood Cafe.

Claridge’s is said to have lost its Michelin star in January last year, which may have been one of the factors contributing to the 6.3 per cent drop in sales for the eatery. Although Maze and Maze Grill managed to maintain their throughput of visitors and actually increase this by 5 per cent, those frequenting the venues are said to have spent less, therefore contributing to the business’s overall drop in revenue. Sales also fell at Ramsay’s Narrow venue but cost-cutting there helped to lift profits.

And despite the drop in sales for the year, the chef achieved a considerable increase in profits across the board, but this was not without drastic action. The chef’s father-in-law, Chris Hutcheson, was dismissed in October, with other members of senior management close to follow suit.

Gordon Ramsay Holdings has now acquired the restaurant Petrus from Hutcheson, which it is hoped will produce a strong trading performance this year. However there will be “significant legal and professional costs” in 2011 to “resolve the many issues that have subsequently arisen.”

Posted by Matt on the 13th June 2011