Prezzo put the brakes on new openings

10th September 2008, 11:28am

Prezzo has today announced that profits have sunk to a three-year low reporting a pre-tax profit of £2.9m for the first half of this year, down 51% on the same period last year.

Jonathan Kaye, Chief Executive of Prezzo plc, commented: "New openings are performing well and whilst further cost challenges lie ahead, we remain confident of a satisfactory outcome for the current year."

During the first six months of 2008, Prezzo opened 10 new restaurants and closed three units, bringing the total number of restaurants trading at the end of the period to 134.

In a statement the company said a buyout could be on the cards should funding be available and added that growth was expected from new venues: "We have been pleased with the initial performance of new units, particularly against a weaker consumer backdrop and we expect further growth from them over the remainder of the year."

Highlighting the difficulties the company faces the board has taken the decision to delay their roll-out programme.

The statement concluded: "The combination of weaker consumer spending and inflationary pressures within the cost base of the business is likely to continue - further cost challenges lie ahead in 2009 and beyond in the shape of proposed changes to legislation in connection with the UK minimum wage and also potentially significant increases to restaurant utility bills when existing fixes run out in the final quarter of 2009. As a result, pressure on margins is unlikely to be alleviated in the short-term.

Nevertheless we believe that we are well positioned in the marketplace to cope with these more challenging conditions and we have confidence in the quality of our offering and the skills and commitment of our staff. Providing that trading continues at existing levels, the Board expects to deliver a satisfactory outcome for the current year."

Related Articles:

• 13 Apr 2011 - Recruitment drive at Prezzo after it purchases Caffe Uno chain restaurants
• 06 Apr 2011 - Prezzo displays confidence as yearly sales rise 15%
• 16 Feb 2010 - Prezzo acquires second Hertfordshire freehold within one month
• 11 Aug 2009 - Prezzo named UK's best pizza chain

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