Piccolino owner Individual Restaurant Company (IRC) is to keep expansion plans on hold as it anticipates another tough year of trading.
Announcing full-year results to 31 December 2009, IRC said another challenging year was in store for the sector, with the recent resumption of discounting a threat to profitability.
Steven Walker, chief executive of IRC, said: “I am pleased to announce another set of robust results in what has proved to be a challenging year.
“The group’s performance is all the more credible in that we intentionally refrained from mass discounting evident elsewhere across our industry.”
Walker added that given the tough market IRC would concentrate on organic growth this year but was ready to return to the expansion trail once conditions in the economy improved.
Full year revenue at the 33-strong group increased 1.7 per cent to £53.3m (2008: £52.5m). Group EBITDA was £5m compared with £5.3m a year ago.
The company made a pre-tax loss for the year, due to restructuring charges and costs associated with onerous leases, of £806k compared with profit of £516k.
During the trading year it successfully renegotiated its banking facilities, raised £2.6m of equity funding and achieved cost savings of £2.1m.