Revenues grow at Carluccio's but profits take a hit from writedowns

Alys Key
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Slim pickings for the restaurant chain (Source: Getty)

Casual Italian restaurant and deli chain Carluccio's reported slower turnover growth and a dip in pre-tax profits for the twelve months to 25 September last year.

Turnover increased 2.7 per cent to just under £141m, growing at a slower rate than 7.4 per cent the year before.

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Pre-tax profits fell to £982,000, down from £5.2m the year before, due to £4m worth of writedowns on impaired assets. Underlying earnings were £13.2m, down from £15m.

The company, which currently operates a total of 120 locations, indicated its intention to expand further in the US market, where it has just two outlets.

In its UK business, which makes up the majority of the company, Carluccio's was confident that its "principally debt free" model would help it navigate any post-Brexit uncertainty, despite importing most products and ingredients from the EU.

Read more: Restaurant and pub groups feel the pinch

Neil Wickers, chief executive of Carluccio’s, said: “Despite the strong headwinds facing the industry, including business rates increases, labour costs and food cost pressures, we are strongly committed to investing in our estate, menu and team."

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