December sales up 11% at IRC
Sales at the Individual Restaurant Company (IRC) – the operator of the Piccolino and Bar & Grill brands – increased by 11% in December.
Announcing a pre-close trading update for the year prior to 31 December 2008, the company said sales had been impacted by the addition of six new restaurants during the year, including five Piccolino’s; in Birmingham, Bristol, Clitheroe, Hale, and York and one Bar & Grill in Harrogate.
Not being drawn into “discount based promotions” meant IRC had not seen erosion in its gross profit margins for December.
The company said it expected results for year to be in line with current market consensus at a trading level – but that higher depreciation and interest charges would affect its performance at the profit before tax level.
It warned that gross profit margins would come under pressure, especially in the first half of 2009, as suppliers looked to offset their costs.
IRC hoped that the added ebitda from its six new sites would help the company in the year ahead and remained “confident out the medium term prospects for the group”.
Stephen Walker, chief executive of IRC, said: “I am pleased to report positive trading over the Christmas period. We have taken a number of strong measures to ensure that we continue to be able to expand and are operating more efficiently in the current market environment.
“Whilst we remain cautious in our outlook for the year ahead in line with other operators, both of our brands have gained stature over the year. We remain confident that the broad appeal of both brands will continue to underpin a resilient performance from the group over the medium term.”
IRC has signed on four sites for the year ahead including Aberdeen, City of London, Dorking and Knutsford and it said: “Openings in 2009 will be funded out of cash flow and the existing bank facility. The quantum and timing of openings will be determined by trading performance and available headroom in our banking facilities.”
It was financed by an £18.5m loan facility, of which £2.7m was unused at the year-end, and the company is not planning on increasing its banking facilities in the current year.
