Weather hits Christmas trading at IRC
INDIVIDUAL Restaurant Company said that the bad weather had impacted on sales during the key Christmas trading period, with like-for-like sales dropping by 4% in the first three weeks of pre-Christmas trading.
The firm, which operates 22 Piccolino’s and 11 Bar & Grill restaurants, said that it had entered into the period with “considerable optimism” as forward bookings for tables were considerably ahead of the prior year. However, the drop in sales has led to a slight reduction in ebitda and a larger reduction in pre-tax profits due to the “relatively high levels of fixed depreciation”.
Despite this, the firm said that pre-tax profits had remained positive, and that trading in 2011 has been “buoyant” during the first few weeks of the year, with strong life-for-like growth.
“The Group does, however, remain reliant on underlying consumer spending and it is currently uncertain what degree the uplift in the rate of VAT and Government spending cutbacks will impact the group. As such, the board anticipates trading conditions will remain challenging in 2011,” the company said in a statement.
IRC finished 2010 with net debt of £11.7m – down from £12.4m a year earlier. It has a loan facility of £18.5m.
“I am pleased to report another profitable trading performance in what has been a very testing year,” said chief executive Steven Walker. “I remain confident in the inherent strength of both of our brands.
“Whilst 2011 isn’t going to be without its challenges, it is particularly encouraging that the positive trends experienced at the end of last year have continued into trading in the early weeks of the current year, clearly demonstrating the resilience of our business and the ongoing customer appeal for our restaurants.”
