Gordon Ramsay’s £2.7m worth of shares to group boss proves solid sales performance

Earlier this year, Ramsay appeared in court after accusing his father-in-law, Christopher Hutcheson, of using a “ghost writer machine” to forge his signature on a 25-year rental agreement. 

The judge ruled against him, claiming that Hutcheson “was acting within the general authority conferred on him by Ramsay”. It was noted that Ramsay was personally liablefor $1.2m in annual rent owed to the York & Albany pub, which resulted in a pre-tax loss of £6.4m.

This is not the first time the two have been on separate sides in a court battle. Ramsay fired Hutcheson in 2010 for “gross misconduct”. He also accused him of stealing £2.2m and hacking into his computer. 

This was followed by news that cockroaches had been found in one of his restaurants and that, during an appearance on radio Capital Xtra, prime minister David Cameron declared he would sooner take world leaders to dine at chicken chain Nando’s than to one of Ramsay’s restaurants.

Turnover at Ramsay’s 26 restaurants fell to £44.7m from £44.8m in the same month of 2013, according to accounts filed by Kavalake, his holding company.

Figures now show Kavalake has reduced its operating losses to £1.5m from £5.5m after a lease provision at York & Albany.

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Ramsay said that “performance was solid”. This is partially due to a number of new openings in south London , as well as the end of his contract at Claridges Hotel.

Kavalake added that “significant investment in central management costs” would made expansion possible.

Like-for-like sales rose 5.7 per cent, with Ramsey attributing the success to his Las Vegas burger joints.

He also gave Stuart Gillies, the managing director of Ramsay’s restaurant group, £2.7m in shares.

Gillies received half the share-based award immediately, and will be able to cash the rest in five years.

Ramsay has also invested £836,000 in Gordon Ramsay Holdings, his management company, owned by Kavalake. 

By Shané Schutte

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