Prezzo posts profits falls as yield on cash tumbles
PIZZA restaurant chain Prezzo posted a marginal fall in first-half pre-tax profits yesterday, mainly due to a sharply reduced yield on cash assets, but said it was currently trading in line with expectations.
The company said it completed the first restaurant opening of the year and confirmed there were several more in the pipeline.
For the 26 weeks to 28 June, it posted a pre-tax profit, before the impact of non-trading items, of £5.1m, compared with £5.2m a year ago.
This came after finance income fell to £38,000 £93,000 pounds a year ago.
Revenues grew 5.5 per cent to £43.7m with gross or restaurant profit in line with last year at £5.9m.
Prezzo said there were no non-trading items in the first half of this year and, as a result, stated pre-tax profit was also £5.1m, up from the £2.9m profits reported in 2008.
“Providing trading continues at broadly comparable levels, the board expects to deliver a satisfactory outcome for the current year,” said chairman Michael Carlton.
As at 28 June, net cash balances had risen to £13.9m from £5m at the end of the same period last year.
“Prezzo’s growing cash pile leaves it well placed for economic recovery,” said Nigel Parson of Evolution Securities, who has a “buy” rating.