Carluccio's bucks trend with profits boost

Italian restaurant chain Carluccio’s flagged up better than expected profits today as trading proved resilient through the recession.

Carluccio's posted profits before tax of £5.6m (€6m) for the 53 weeks to September 2008, although consensus forecasts put the firm's profits this year at £4.5m (€4.9m).

Carluccio’s said turnover was 8% ahead of the previous year in the 53 weeks to September 28, with profits “slightly ahead” of board hopes despite the tough economic climate.

The chain combines a restaurant with a retailing business and hopes its low £12 (€13) average spend per head will help it weather the downturn in good shape.

Although Carluccio’s expects pressure on consumer spending to remain for some time to come, it continued with expansion plans during the year.

The chain opened six new stores in the year to September, including its first outlet in Dubai. Last week it also opened an outlet in Exeter in England, which is already trading ahead of expectations.

The firm boasts a debt-free balance sheet, funding stores through its existing cash flow. This could also provide opportunities to accelerate roll-out plans as it takes advantage of weaker property prices.

Carluccio’s was founded in 1991 by Antonio and Priscilla Carluccio with the aim of offering quality, authentic Italian food at reasonable prices.

Antonio Carluccio, a leading chef and writer on Italian food, has been a regular face on television cookery programmes. He has a “working relationship” with the chain, but is no longer involved in its day-to-day running of the business.

Seymour Pierce analyst Hugh-Guy Lorriman said: “This area has been under pressure in recent weeks. Carluccio’s, based on this statement, seems to have - at least marginally – bucked the trend.

“We note also that Carluccio’s is the only UK quoted restaurant group which has not reduced its opening programme over the last two years of consumer downturn.”