Prezzo sees 2008 profits fall

Italian restaurant chain Prezzo reported a `robust` 2008 despite profits dropping by almost half since the previous year.

The company posted pre-tax profits of £3.9m for the 52 weeks to December 28, compared to £7.7m for the same period in 2007. A £7.6m charge for non-trading items, including costs involved in terminating three leases was blamed for the fall.

Chairman Michael Carlton said the casual dining market had become more competitive over the past year and the group had slowed down its opening schedule as a result of market conditions. The company opened 17 new restaurants over the course of the year and closed four.

Nevertheless, Carlton said he was confident about trading in 2009, reporting a `positive start` in the first quarter.

He said: "We believe that our market positioning and conservative financial position, debt-free and with growing cash resources, leave us well-placed amongst our peers and we will respond to the challenges of this changing climate in order to optimize the performance of our business."

In the trading statement, Carlton said just a `handful` of new restaurants would open this year with the company instead focusing on improving its existing estate.

He said: "We have been successful in re-branding two sites during the year and we will consider similar opportunities where we believe a similar exercise would deliver improved results for a relatively modest incremental capital investment."

The company, which welcomed former ASK founders Adam and Sam Kaye to its board as non-executive members in December, took £85.9m in revenue and posted and adjusted pre-tax profits of £11.5m, an 8 per cent rise on the previous year.

Prezzo opts for slow roll-out despite first half profit