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.

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.

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.

"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.

CJ