7th Oct 2008 07:00
7 October 2008
Carluccio's PLC
Trading Update
Carluccio's PLC (the "Company"), the leading UK based group of authentic Italian restaurants with integrated food shops, announces an update on trading ahead of its preliminary results announcement for the 53 week period ending 28 September 2008.
Despite very poor weather throughout the summer months the Company's stores have traded satisfactorily and in line with the Board's expectations. In the 53 weeks to 28 September 2008, turnover grew by 21% over the prior year.
Six new Carluccio's were opened during the 2008 financial year, meeting the Company's minimum annual opening target. The Company now trades from 39 locations having opened in Stratford-upon-Avon, Central Manchester, Dublin under franchise, Heathrow Terminal 5, St. Pancras International train terminal, Cambridge and since the year-end, Leicester.
The Company's opening programme for 2009 is weighted towards the first quarter of the financial year with Leicester, where the Board is pleased with early trading, having opened on 29 September. Bristol is scheduled to open on 20 October and Earlsfield before Christmas. The weighting, however, of the 2009 opening programme, means that the majority of the pre-opening costs for these stores will be expensed in the 2008 financial year resulting in profit before tax slightly below the Board's expectations.
Carluccio's is debt-free; the 2009 opening programme is unaltered and will be financed out of internally generated cash flow. The directors believe that the flexibility offered by the Company's positive cash position has the potential to allow an accelerated roll out should opportunities arise in a weaker property environment.
The Board continues to hold its positive view of the long-term prospects for the sector. Notwithstanding this view, the Board recognises that the current pressure on the UK economy and the UK consumer is without precedent in recent times. In this context, the Company expects trading conditions to remain very challenging over the coming months for all consumer facing businesses. The Board, however, believes that the Company's business model will continue to prove beneficial in such conditions.
Carluccio's offer remains unique in the casual dining sector, trading all day from a business combining a restaurant and retail at a mid market price point of £12 per head in the restaurant. This provides considerable opportunity and significant differentiation in the medium and longer term.
The Company is pleased to announce the signing of a second franchise agreement with the Landmark Group, one of the largest retail conglomerates in the Middle East. The agreement is to develop the brand in six countries in this region and the first store is expected to open in 2009. The Company's first franchised store in Dublin continues to trade well.
The Company's preliminary results will be announced on 9 December 2008. They will be stated in accordance with International Financial Reporting Standards (IFRS).
-ENDS-
For further information please contact:
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Carluccio's PLC |
Tel : 020 7580 3050 |
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Simon Kossoff, Managing Director |
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Frank Bandura, Finance Director |
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Hogarth Partnership Limited |
Tel : 020 7357 9477 |
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Andrew Jaques |
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Fiona Noblet |
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Altium Capital Limited |
Tel: 020 7484 4040 |
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Ben Thorne |
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Sam Fuller |
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