Prezzo serves up profit rise as expansion continues

Shares of restaurant group Prezzo rallied as investors cheered a robust set of annual results and a confident outlook for the year ahead.

Shares of restaurant group Prezzo rallied as investors cheered a robust set of annual results and a confident outlook for the year ahead.

The group, which operates 211 restaurants offering pizza, pasta, salad and grill, said revenue rose 17% to £144.5m for the 52 weeks ended December 30th 2012 while adjusted EBITDA climbed 16% to £25.5m.

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The group expects to open 25 new restaurants by the end of 2013.

Adjusted pre-tax profit rose 11% to £18.3m while statutory pre-tax profit increased to £17.3m from £16.1m. Adjusted diluted EPS rose 13% to 5.90p.

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"A pick-up in trading following the atypical sporting events of the summer, coupled with the continued momentum of our opening schedule has enabled us to deliver significant growth, with adjusted pre-tax profits," said Chairman Michael Carlton.

The group has recommended a final dividend of 0.275p per share up from 0.250p before.

"With a strong development pipeline in place and the prospect of more settled trading patterns over Summer 2013, the board is confident of further progress in the year ahead," the group said.




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