Chef Ramsay sees profits dive 90%

Gordon Ramsay has seen his company profits dive by 90 per cent

Profits at Gordon Ramsay's UK restaurants have plunged nearly 90% in a "turbulent" year in which the celebrity chef was forced to pump his own money into the business.

Ramsay's latest company accounts show that the restaurant empire came close to the brink as revenues collapsed while debt and tax bills mounted up.

The precarious situation caused the TV chef and his father-in-law and business partner Chris Hutcheson to inject the business with £5 million.

Ramsay's business problems were blamed on ambitious expansion as well as the closure of key London restaurants like the Savoy as pre-tax profits tumbled from £3.05 million in 2007 to £383,325.

The Savoy Grill was shut because of refurbishment at its host hotel, while the Connaught lease expired. The two restaurants alone accounted for a £9.5 million reduction in revenues.

A statement from the firm said that, after a restructuring of operations, it was confident the group had "successfully undergone change for the better" and was now "well-placed to grow its operation with a more stable capital base and a more manageable overall structure".