Healthy outlook for Individual Restaurant Company

THE OWNER of the Piccolino and The Restaurant Bar and Grill chains, which has a number of eateries in Yorkshire, is in line to top its profits forecasts despite taking a hit during the cold spell.

But Manchester-based Individual Restaurant Company also said today that it expects trading conditions to “remain challenging” this year.

The chain, which consists of 22 Piccolino and 11 Restaurant Bar and Grill sites, successfully implemented a £2m cost saving programme last year.

IRC believes that by avoiding mass discounting – which many other restaurant chains opted for – it has avoided erosion to its gross profit margin.

Over the past year, the company has also seen its net debt decrease from £15.8m to £12.4m.

A statement released by the company said: “In common with most of the industry, trading over the first two weeks of 2010 was affected by the adverse weather conditions which kept many customers at home during that 10 day period. 

“The impact of these conditions was felt most acutely outside of the South East of England where a disproportionate number of the group’s restaurants are based.

“Nevertheless, trading has since returned to the levels expected by the board.”

Stephen Walker, chief executive of IRC, added: “The group is well placed to capitalise on an improvement in the consumer environment as that materialises and the directors remain confident in the future prospects for the group.”

The group’s preliminary results will be announced on April 19.