Bank/Zinc acquisition boosts Individual Restaurant Group
Steve Walker, chief executive of the Individual Restaurant Company (IRC), acknowledged the eating out market was getting more "challenging" but said the group was "well placed" for the future.
"People are expecting this year to be more difficult, but we're prepared for the challenging times. If things get tougher we're ready, and if they ease a bit we're well placed [for any upturn]," he added.
IRC's menus were priced to match a range of spending patterns, Walker said, and while there could well be a softening in terms of spending he believed the various price points would help drive footfall.
Walker was speaking as IRC reported trading "marginally ahead" of expectations for the 14 months to December 31, 2007.
IRC's revenues, boosted by the acquisitions of Zinc and Bank restaurant chains just before Christmas 2006, rose 273 per cent to £50.9m.
Pre-tax profits for the period came in at £2.6m, versus a loss in 2006 of £1.6m.
The group opened six new restaurants - four Piccolinos and two Bar & Grills - during the period, taking its estate to 28 sites.
IRC's opening programme would continue, Walker said, but added that the group was taking a "cautious stance" regarding short term prospects.
"We're not immune from variations in the economy but we've revised our forecasts and we're confident about our plans for the future," he added.
The group said current trading was 24 per cent up on the same period last year, although it declined to give details on like-for-like sales.
Douglas Jack, of City brokers Panmure Gordon, reckoned IRC's like-for-likes were "likely to be negative", although he added that the group had "plenty of potential", albeit with a limited track record.
