KLE Group, the operator of Usain Bolt’s Tracks and Records (UBT&R), has blamed the road repairs along Constant Spring Road in Kingston for losses of more than 15 per cent in budgeted revenue for its year ended December 2018.

“Restaurant sales performed to budget for the first half of 2018. The second half of the year saw a drastic reduction in revenue performance of more than 15 per cent below budget,” Chief Executive Officer Gary Matalon said in a statement accompanying the company’s year-end results.

KLE absorbed a $12-million loss from its associate company T&R Restaurant Systems Limited, trading as Franchise Jamaica, which was a significant contributor to its net loss position. Franchise Jamaica reported total revenue of $19 million for the year 2018.

According to Matalon, the revenue reported by Franchise Jamaica came from a full year of operation from the Ocho Rios franchise and just over a half year from Montego Bay, which opened on May 16th, 2018.

Revenue from the first London location, which opened on November 14, 2018, is expected to be a major contributor to the franchising revenues going forward.

“This sets the stage for an exceptional year even without considering additional locations currently being pursued. Unfortunately for the 2018 financial performance, most of the expenses associated with getting the Montego Bay and London franchises opened were recorded without the resulting revenues. Fortunately, this bodes well for the 2019 year,” Matalon said.

Total revenue for the KLE was $219.9 million for the 2018 financial year, compared to $226.8 million in 2017.

KLE Group hopes to capitalise on the value created over recent years.

“The company is positioned to take advantage of the very roadwork which proved such a challenge for the 2018 financial performance. The results from this are expected to be evident in the first half of 2019,” Matalon said.

Franchise Jamaica is also poised to take advantage of the two new restaurants which were opened in 2018. According to Matalon, the added revenue streams will contribute throughout the entire year, while the start-up expenses for those locations fell in 2018.

Meanwhile, the Bessa project design updates are also on target to be completed in early 2019. Matalon noted that the full contract is being issued and ground-breaking on the balance of the project is scheduled for the first quarter in 2019.

“Overall, the company is very pleased with the outlook for the coming year and beyond,” he said.