Chez Gerard plans to expand after float: Restaurant chain founders set to be multi-millionaires

TWO founders of the restaurant chain Chez Gerard will become multi-millionaires next month when the company is floated on the Stock Exchange.

Chez Gerard is expected to have a market capitalisation of pounds 17m. It is wholly owned by Neville Abraham, the chairman and chief executive, and Laurence Isaacson, the deputy chairman and marketing director.

The company runs six restaurants, all in central London. There are Chez Gerard branches in Charlotte Street, Dover Street and Chancery Lane, as well as Bertorelli's in Covent Garden, Cafe Fish in Haymarket and Soho Soho in Frith Street. It also has a 25 per cent stake in a curry house called Chutney Mary in Chelsea.

Mr Abraham and Mr Isaacson opened their first restaurant in 1980 but Chez Gerard was started in 1986. It will use cash proceeds from the flotation to expand the business and hopes to double in size in three years.

Mr Abraham said yesterday: 'The future strategy will be to concentrate on the demonstrated strengths of the company, namely acquiring or building high-quality, good value and profitable restaurant brands in central London.'

Profit before tax in the year to last June rose to pounds 942,000 from pounds 585,000 the previous year. Turnover grew to pounds 9.25m from pounds 7.9m in the same period.

The company is likely to come to market via a placing of shares with institutions. Greig Middleton has been appointed financial adviser and stockbroker to the issue.

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