SANJAY Majhu's Harlequin Leisure Group, best known for its Ashoka Indian restaurants, notched up a solid after-tax profit in its last financial year to March 2011 as it kept a tight rein on costs in a difficult economic environment.

Mr Majhu told The Herald that Glasgow-based Harlequin Leisure Group, which has a portfolio of 11 restaurants in Scotland, had more than doubled earnings before interest, tax, depreciation and amortisation to £552,920 in the year to March 31, from £264,401 in the prior 12 months.

He added that the business had made a bottom-line profit, after tax, of about £194,000. This was a significant improvement on a net loss of £193,020 in the prior 12 months.

Commenting on the reasons for the improved financial performance, Mr Majhu said: "We have had a successful year. It is definitely a measure of cost control. I wouldn't say it is a measure of increased sales."

Predicting continued difficult economic conditions, he added: "I think it is going to be awful for a while. I think it will be bleak for a couple of years."

However, he projected that Harlequin Leisure Group, which operates the vast bulk of its restaurants through franchise agreements, would be debt-free by the middle of 2014.

This is slightly earlier than his expectation, when he spoke to The Herald a year ago, of being debt-free around the end of 2014.

Mr Majhu, who bought the Harlequin business from entrepreneur Charan Gill in 2005, said: "It looks like we will be debt-free now in the middle of 2014 because we have hammered the loans a bit faster. Our group EBITDA has doubled from last year. We are in a comfortable position now.

"It is another positive result for Harlequin under tough trading circumstances. It just goes to show how fantastic a business Harlequin is."

He acknowledged the support he had received from lender Bank of Scotland, at a time when bank funding remains a contentious issue for many other businesses.

Mr Majhu said: "All the money we make pretty much goes off to pay the bank."

He added: "Bank of Scotland have been excellent, supporting our business."

However, Mr Majhu declared that the Government should move to freeze the minimum wage in light of the difficult economic backdrop.

He said that he was having to do more promotion, in terms of price, to get customers in the door. He estimated that, against this backdrop of promotions, diners' spend in Harlequin Leisure Group's restaurants was down by £1.50 to £2-a-head.

Mr Majhu added that, at the same time, the salary bill and food costs were increasing.

He highlighted strong interest in the Ashoka Cook School, which was launched in partnership with Motherwell College in the autumn.

He said about 1000 people had booked into this, and highlighted the cook school's success in attracting people back.

Mr Majhu is also excited by the potential for his "Yes Deal On" offers venture.

He noted that promotional offers for Harlequin's restaurants were now available through this online channel.

Harlequin Leisure Group's portfolio comprises the Ashoka and Ashoka Shak chains, the Green Chilli Cafe in Glasgow, and the Las Ramblas Spanish restaurant in Bearsden, north of Glasgow.

Mr Majhu pointed out that the Green Chilli Cafe was operated directly by Harlequin rather than through a franchise arrangement.

He added that he was "happy" with the results of Harlequin Leisure Group, but "still nervous about the general climate".

Mr Majhu also owns the Apple Healthcare business, which has nine pharmacies.

He said of the pharmacy business: "The portfolio is doing very well. They (government) are making us work 10 times harder to get the money.

"It is getting harder to make money in pharmacy than it is in restaurants."