Prezzo, the restaurant group led by Jonathan Kaye, has reported an 11% rise in adjusted EBITDA to £11m for the 26 weeks to 1 July 2012. Revenue for the group, which operates 194 sites, the majority under its eponymous brand, was up 14% to £68.1m, while adjusted pre-tax profit climbed 4% to £7.6m. Gross/restaurant profit increased from £8.3m to £8.8m, while operating profit excluding non-trading items was up 5% to £7.6m. The group opened 11 new restaurants during the period, against seven the previous year, three of which were acquired from Caffe Uno. These openings included high-profile sites in King’s Cross, Cobham, Southport and New Brighton. Since the year end, it has opened three further sites and closed two, including the forced closure of its branch outside Victoria railway station where its lease was terminated ahead of the redevelopment of the area. The group said it had been a “very busy opening programme” for Chimichanga, with new restaurants launched in Bournemouth, Bromley and Crawley and it will open its 21st site under the brand in Amersham shortly. The company said its pipeline for openings over the next 18 months is “well-developed” and will see it open in Bristol, Bath and Manchester during the second half of the year. By the end of 2012 it anticipates opening approximately 25 new restaurants during the year and is fast approaching the 200 mark. Cashflow generated from operations stood at £13.5m against £11.1m the previous year, and there is £11.4m of free cash available for investment. During the period it invested £12.5m on capex compared to £8.3m in 2011. Overall, there was a net cash outflow of £0.8m (2011 - £0.7m inflow) and at the end of the period the group had modest net borrowings of £0.7m (2011 - £6.0m net cash). It said it was comfortable that its “strong cash generation, together with the £5m short-term borrowing facility currently in place and our portfolio of freehold properties will provide us with sufficient flexibility and resources to fund our anticipated expansion plans for the foreseeable future.” As in previous years, no interim dividend will be paid. Michael Carlton, chairman, said: “It would be fair to say that 2012, with its Royal Diamond Jubilee celebrations and an extremely successful Olympic Games In London, has been somewhat atypical and greater peaks and troughs in trading have presented both opportunities and challenges for restaurant operators. “The business has performed well over the summer months and while we have not seen any evidence of a sustained economic recovery, the Board remains confident of delivering further progress over the remainder of the year.”