Prezzo profits up as group set to open 20 restaurants

The group’s interim results for the 26 weeks to 3 July 2011 saw revenue leap from £48.4m in the same period last year to £59.6m, with profits up 17 per cent from £6.2m.

Gross profit rose to £8.3m from £7m last year, with EBITDA increasing to £9.9m off of £8.3m in 2010.

During the period Prezzo opened seven new restaurants, three of which were acquired in 2010, and closed two venues. It also agreed to acquire six further leaseholds from Caffe Uno Brasseries, which are now undergoing refurbishment and rebranding ready for opening in the second half of the year.

Three of the Caffe Uno sites have already relaunched in Q3 along with four others, taking Prezzo’s total estate to 172 restaurants, although four are currently closed for refurbishment.

Prezzo intends to have opened around 20 new restaurants by the end of the year, remaining on track to achieve chief executive Jonathan Kaye's rapid expansion plans to bring the group up to 320 sites within the next five years.

Economic health worries​

Kaye added that although trading is in line with board expectations, the outlook for the remainder of the year remained fraught with challenges.

“While trading patterns have been relatively stable over the first half of the year, there remains considerable uncertainty about the general health of the economy and consumer confidence,” he said in a statement.

“Nevertheless, we believe that our value proposition combined with our continued commitment to developing and strengthening our offer, leaves us well-positioned in these more challenging times. Consequently, the board is confident of delivering a positive outcome for 2011 as a whole.”