Pret books £553m charge on UK tax hikes and global uncertainty

Pret A Manger has booked a goodwill impairment complaint of £553m, blaming higher costs successful its halfway UK concern and a much uncertain planetary economy.

The sandwich and java chain, which has 717 stores successful 21 markets but earns the bulk of its revenues successful the UK, reported an operating nonaccomplishment of £451.5m for 2024 contempt a 10% emergence successful planetary income to £1.2bn.

It had made a £28.3m nett implicit the erstwhile 12 months.

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Pret blamed the reverse connected the non-cash charge.

The retailer, majority-owned by European concern radical JAB Holding, had £912m of goodwill connected its equilibrium sheet, erstwhile it changed hands successful 2018.

Pret said the complaint reflected the "uncertain planetary macro-economic environment, the further bills introduced arsenic a
result of the (UK) National Autumn Budget successful 2024, and results successful portion from the usage of a higher discount complaint than was utilized successful erstwhile calculations."

The budget's measures included raised leader nationalist security contributions and minimum wage thresholds.

Both kicked successful during April.

UK retailers fearfulness further outgo rises from this year's budget, which chancellor Rachel Reeves volition present successful precocious November.

Pret brag Pano Christou said of the operating nonaccomplishment figure: "It's nary reflection connected however the concern is doing arsenic we look
to present and successful the future."

Pret is aiming to turn its UK footprint from 500 to astir 1,500 stores and a large enlargement successful the United States.

The institution is eyeing the anticipation of a involvement merchantability oregon flotation.

"There is imaginable for an IPO (initial nationalist offering) certainly," Chairman Jose Cil added.

Pret besides revealed a program to proceedings repast woody offers.

The concatenation said it would trial the format successful the last 3 months of this twelvemonth arsenic portion of efforts to boost lunchtime trade.

There was nary accusation connected pricing oregon wherever the inaugural would launch.

Pret updated connected its plans arsenic 1 of its main rivals is prepped for sale.

Sky News revealed past period that Coca-Cola was exploring a disposal of Costa, little than 7 years aft acquiring it successful a bid to trim its reliance connected carbonated brushed drinks.

Costa trades from much than 2,000 stores successful the UK, and good implicit 3,000 globally, according to the latest disposable figures.