WAYNE BROWN CANACCORD
Prezzo has accelerated its rate of openings over the past two years, expanding 37 per cent since 2009 as it takes advantage of a more benign property market and the distress of other operators. This should deliver increased economies of scale and benefit margins over the medium term.
DOUGLAS JACK NUMIS
Profit before tax is up 14 per cent to £16.4m, which is ahead, driven by expansion and growth in average unit profitability. Prezzo has no debt, but has used most of its spare net cash to buy freeholds. We are holding our forecasts which assume no like-for-like sales or margin growth in 2012.
NICK BATRAM PEEL HUNT
Prezzo is a well-managed, well-financed business that continues to perform well in a difficult market. There is good momentum in the new site pipeline and while 2012 is likely to be challenging, we expect further bottom line progress. Shares have been re-rated but we believe there is further to go.