Piccolino brand set to expand
THE operator of Birmingham’s Piccolino restaurant has raised £4m to expand and revamp its existing sites.
Individual Restaurant Company has 32 restaurants nationwide, including the Brindleyplace eaterie. It was taken private last summer by its founders and Iceland Food chairman Malcolm Walker in a deal with an enterprise value of £24m
Sales in its last financial year to December 31 grew 7.4% to £55.1m.
The new owner of the company, W2D2 Limited – which bought 80% of IRC’s shares in June 2011 – has raised the cash through a four-for-three open offer of new shares in IRC.
The growth programme has already begun with the opening this week of a
new bar and late lounge at IRC’s central London Piccolino
restaurant.
Commenting on recent developments in the business, IRC chief executive
Steven Walker said: “Having grown IRC from four to 33 restaurants in just six years, we had to tear up our expansion plans when Lehman Brothers went bust in 2008, signalling the start of the recession.
“We were quick to react by putting our restaurant openings on hold.”
He said the company has stuck to its core principles of “having a happy, well-looked-after team delivering great food and service in spotless restaurants”, and unlike many competitors, had not discounted to woo trade.
“As a public company we were heavily criticised for not joining in this discounting trend, and saw our shares slide from £1.75 to just 10p, even though profits only fell from £5.3m at their peak in 2008 to £4.3m in 2010,” Walker said.
“Banks did not want to lend and we concluded that the only sensible strategy was to take the business private in order to return it to growth.”
Chairman Malcolm Walker, no relation of Steven, added: “Although my main focus is obviously going to be on Iceland Foods after our recent £1.5bn deal to buy the company, I am very much looking forward to helping Steven and his team drive IRC forward and bring the Piccolino and Restaurant Bar & Grill brands to many more new guests across the UK.”
