8th Oct 2009 07:00
8 October 2009
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 52 week period ending 27 September 2009.
The Company has experienced good trading with turnover growth of 8% over the prior year (53 weeks ending 28 September 2008). Despite 2009 being a challenging year for the economy as a whole, the Company expects to deliver underlying profit before tax slightly ahead of Board expectations.
The Company's financial position and strong operating cash conversion continue to allow the new restaurant opening programme to continue unabated. Six new Carluccio's were opened during the period, with the majority of openings outside of London including the first in Dubai, under a franchise arrangement. This clearly demonstrates the continued strength of the brand both on a national and international basis. The Company now trades from 45 locations with the 45th opening last week in Exeter, the first new location of the current financial year. Early trading in Exeter is ahead of the Board's expectations.
Our franchise stores in Dubai and Dublin continue to trade well. In Dubai our franchisee is targeting two further stores in 2010. In Ireland, onerous lease terms and the difficulties of the Irish economy are hampering progress but with minimal financial impact to the Company.
The Board maintains its positive view of the long-term prospects for the business. Notwithstanding this view, the Board recognises that pressure on consumer spending will remain for some time with trading conditions for the sector remaining challenging. The Board is undertaking its usual annual impairment review which is likely to result in a provision being made against the carrying value of two stores. This is a non-cash provision which will not alter the Company's cash position or its cash generating ability.
Carluccio's is debt-free with its 2010 opening programme unaltered. Stores will be financed out of internally generated cash flow and the Board believes that the Company's strong positive cash position has the potential to allow an accelerated roll out when opportunities arise in a weaker property environment.
Carluccio's offering remains unique in the casual dining sector, trading all day via a business model combining 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's preliminary results for the 52 week period ending 27 September 2009 will be announced on 8 December 2009.
-ENDS-
For further information please contact:
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Carluccio's PLC |
Hogarth Partnership Limited |
KBC Peel Hunt Limited |
|
Simon Kossoff, Managing Director |
Fiona Noblet |
Garry Levin |
|
Frank Bandura, Finance Director |
Matthew Tyler |
|
|
Tel: 020 75803050 |
Tel: 020 73579477 |
Tel: 020 74188900 |
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