Companies: PRZ   

Pizza and pasta restaurant operator Prezzo has moved into profits after its first full year as an AIM-listed company. Turnover for 2003 increased 178% to £10.6m and a pre-tax profit of £470,000 was achieved compared to the previous year's loss of £86,000. During the year, the company opened 11 restaurants, including sites in Kensington, Brentwood and Dorking. But it also closed four restaurants, located at leisure parks, for a loss of £740,000. Having opened a further eight branches since December, Prezzo now has a total of 34 restaurants and intends to open further branches during the course of 2004. In order to fund the expansion last year it twice raised cash from share issues to the tune of £8.7m. Further placings are likely for expansion purposes as cash sits at just £205,000 (£1.45m). Jonathan Kaye, whose family launched the successful ASK Central that was recently acquired by Riposte for £212.9m, is heavily invested in this group and is now the chief executive (previously he was managing director). House broker Evolution Beeson Gregory is expecting turnover to leap 50% in 2004 to £15m with pre-tax profits steaming in at £1m. An EPS of 1.6 provides a prospective p/e of 60.6 - a little too rich for our buying blood. Hold.