Individual Restaurant Company (IRC), the operator of the Piccolino and Restaurant Bar & Grill has announced a 21% increase in sales.
The update on trading for the 26 weeks prior to September 29, excludes the disposed Bank restaurant in Aldwych and the closed Zinc restaurant in Birmingham, compared with the sales last year.
In a pre-close trading update statement IRC said: “The group's restaurants have performed well and trading is in line with the board's expectations.
“Given the challenging consumer environment, this performance demonstrates the ongoing appeal of both the Piccolino and Restaurant Bar & Grill brands.
“With the widely publicised pressures on the UK economy and consumer spending, it is likely trading conditions will remain challenging over the coming months.
“Despite this, the board remains confident that the Group's business model will continue to prove both beneficial and resilient in such conditions.
IRC said the sales growth had been driven by the opening of six restaurants in 2007. It said four Piccolino restaurants were opened in, Sheffield, West Didsbury, Ilkley and Exchange Square in the City of London.
It added that two Restaurant Bar & Grills were being opened in Liverpool and in Tunbridge Wells.
It also said that it remained confident IRC would achieve its target of seven new restaurant openings for the year.
Two Piccolino restaurants, in Birmingham and York, opened in June and July respectively and two further Piccolino restaurants, in Hale and Bristol, are expected to open in Q3, added IRC.
Three more sites have been secured for 2008, said IRC. Harrogate will get a Bar & Grill and Clitheroe and Aberdeen will see the openings of Piccolino restaurants.
Altium Securities issued a buy recommendation following the update.
Analysts said its 28.5% growth assumption still seemed attainable and added: “Whilst consumer facing stocks are likely to remain 'unloved' for some time, IRC would make an ideal acquisition or take-private candidate in our view.”
