A restaurant chain set up in Bath by celebrity chef MitchTonks has netted a £5.5 million loss over the past year.

FishWorks – which has restaurants in Clifton and Bath – said it had suffered as a result of the uncertain economic conditions but was ready to cope with the tough year ahead.

According to the company, full-year pre-tax losses grew considerably but tough controls on profit margins and supplier negotiations were likely to "impact results positively for the coming year".

The pre-tax loss rose to £5.5 million from £1.6 million at the same time a year before.

Turnover rose six per cent to £9.7 million while like-for-like sales increased 5.1 per cent. However, the company took a blow from under-performing sites of £3.4 million.

According to the company the highlights included the opening of a new format restaurant in Swallow Street, London, and the sale of subsidiary Channel Fisheries at full value.

The board of the company has also been strengthened with the appointment of a new full-time finance director and the introduction of a new stock control and payroll control system.

Chairman Gary Ashworth said: "The year has seen the comprehensive overhaul of the FishWorks business.

"Significant cost savings have been achieved centrally, whilst operational controls within restaurants are now delivering improvements in margin whilst also dropping payroll costs."

The company believes the new format concept at its flagship restaurant in Swallow Street has demonstrated the future potential for the brand.

But the company said it remained cautious as a result of the uncertain financial outlook.

Although current market conditions are extremely tough the board of directors believe they will also present good opportunities in the coming months.

"Against a backdrop of cost-price inflation considerable focus has been placed on margin control and supplier negotiations and the directors anticipate that this will impact results positively for the coming year.

"The current turmoil in the global economy makes forecasting very difficult at present. Uncertainty in the market and a lack of visibility means that the focus has been on ensuring consistent delivery of product, keeping retail prices competitive and closely controlling all costs and margins within the business."