Individual Restaurant Company this morning reported a 5.9% increase in full-year ebitda to £10.2m.
Trading for the first 13 weeks of the current year was described as "slightly ahead of management expectations".
The group, which operates 34 sites under the Piccolino and Restaurant Bar & Grill brands, said that it was "confident" about future prospects in the light of ongoing "tight cost control".
IRC said it would not follow a policy of discounting, with chairman Robert Breare commenting: "The group will continue with its strategy of avoiding the margin erosion resulting from such policies, concentrating instead on the quality of its people, food, customer service and restaurant cleanliness."
Revenue for the period increased by 17% to £52.5m with profit before non trading costs down by 28% to £1.8m. The group attributed the drop to a £500,000 depreciation in 2008 to £2.6m.
Steven Walker, the company's chief executive, said: "Whilst trading conditions are likely to remain tough particularly in the first half of 2009, current trading is slightly ahead of management expectations."
IRC said that it was "financially strong", with year-end net debt to ebitda just under three times multiple and interest covered five times by ebitda, The group also successful renegotiated it £18.5m banking facility.
During the year the group opened six new restaurants, five under the Piccolino brand (in Birmingham, York, Hale, Bristol and Clitheroe) and one Bar & Grill (Harrogate).
The properties were trading 7% higher than the level forecast in its templates.
Additional leases have been signed in Aberdeen, Knutsford, the City of London and Dorking.
Capex investment of £9.2m was made in the estate during the period.
Restaurant ebitda as a percentage of revenue was 19.5% (2007: 21.3%). The 1.8% fall in margin resulted from three factors: a 0.9% reduction in gross margin due to cost pressures on food and beverage supplies; a 0.7% reduction in margin due to like-for-like increases in fixed costs and a 0.2% reduction in margin due to a decrease in like for like restaurant ebitda of £200,000 (before the impact of like for like fixed costs).
