Carluccio's eyes further growth

Trendy Italian restaurant group Carluccio’s served up a tasty boost in profits today and unveiled plans to open more branches in UK city centres.

The company – floated by celebrity chef Antonio Carluccio in December – said a 24% increase in turnover to £45.8m (€67.9m) during the 12 months to September 24 had helped pre-tax profits climb 6% to £3.4m (€5m).

The sites, which are open from 8am to midnight, offer customers the chance to eat and drink in the restaurant as well as shop for Italian food at its delicatessen counter.

Stephen Gee, executive chairman, said: “I am delighted to report a fifth year of uninterrupted, double digit growth in turnover, operating profit and earnings per share.

“We now have 28 stores, all of which are profitable, and have assembled a management team capable of building and running a business, which is substantially larger than it is today.”

The eateries have battled the creeping cost of utility bills and pressure from higher business rates, but said margins had still been maintained.

Carluccio’s was given a helping hand from five new outlets during the year at Oxford, Brighton, Chiswick, Richmond and Westbourne Corner in West London. A branch is expected to open in Walton-on-Thames in the spring.

However, the group also announced it plans to develop three city centre sites in Spitalfields, East London, Trafford Centre, Manchester and Covent Garden.

The company insisted it can fund the openings without resorting to borrowings, which means it is protected from any potential increase in interest rates.

Frank Bandura, finance director, said the chain had looked to open five new outlets each year, but may now look to nudge up openings by up to two or three more a year.

He said: “There is no doubt we are benefiting from being in the fastest growing eating out sector – casual dining – as up to a third of the population are now choosing to eat out regularly.”

The firm is also working on developing its internet business and hopes to see more people log on and buy food ahead of the Christmas break.

Greg Feehely, an analyst at Altium Securities, said: “Carluccio’s is a truly unique proposition in the UK eating out market. All-day trading drives industry-leading returns and at current rates we see a further ten plus years of UK development opportunities alone.”

However, Matthew Gerard, analyst at Investec Securities, warned: “(Carluccio’s) operates in a competitive segment of the high street food retail market.”

Mr Carluccio and his wife Priscilla opened their first restaurant in Covent Garden 33 years ago. The couple stepped down from the board of the company at the time of the flotation, although they retained both a stake in the business as well as a consultancy role.

Shares were down almost 4% – or 3.51p – at 165p today.