Individual Restaurant Company (IRC), the operator of the Piccolino chain of restaurants, this morning said its preliminary results to 31 December 2009 would be ahead of market expectations – despite trade suffering more recently in the snow.
In a pre-close trading update IRC, which is led by chief executive Stephen Walker, revealed it had surpassed its target of £2m in total savings for the past year, in what was described as a ”sound trading performance” in challenging conditions.
The group has also reduced its debts to £12.4m, down from £15.8m at the same time last year and it expects to pass banking covenants comfortably.
IRC added it eschewed across-the-board discounting and, as a result, had seen no erosion in gross profit margin in the past year.
It also said it expects 2010 to remain challenging due to the continued pressure on consumer spending.
In a statement the group, which also operates the Bar & Grill format, said like other operators it had been impacted by the snow and poor weather at the start of January.
It said: “The impact of these conditions was felt most acutely outside of the South East where a disproportionate number of the group’s restaurants are based. Nevertheless, trading has returned to the levels expected by the board.”
Walker added: “I am pleased to report another sound trading performance in what remains a challenging market. We remain committed to a focus on our core customer values, whilst maintaining tight cost control and improving efficiencies across the group.
“IRC benefits from two strong restaurant brands with demonstrable roll out potential for both Piccolino and Bar & Grill on a national scale. The group is well placed to capitalise on an improvement in the consumer environment as that materialises and the directors remain confident in the future prospects for the group.”
IRC is financed by an £18.5m loan facility, of which £6.1m remain unused at the year end.
