Companies: CARL   

Carluccio’s, the Italian restaurant chain boasting integrated food shops, is facing up to the challenges of the sector with its typical gusto. A trading update released ahead of half-year results to 23 March 2008 has flagged up 19% turnover growth over the previous year, in line with expectations.

Customer numbers are growing fast at Carluccio’s, with the company's profile rising following three new openings, including in the fashionable – and newsworthy – Terminal 5 at Heathrow, as well as at St Pancras International station and via a first franchise in Dublin. Carluccio's is sticking to its measured opening programme, financed out of internally generated cash flow, centred around five stores per annum – management assures new sites are already being secured for 2009.

Compared with 20% growth in turnover reported this time last year, it would appear Carluccio’s is feeling only slight pangs of the current ‘challenging’ trading conditions. This can in part be attributed to its business model of opening all day and combining a restaurant and retail offering, which makes up for a low average spend per customer.

Investors will be hoping the company can continue to capitalise on growth in 'eating out', which has been forecast at 6% until at least 2011 by market researcher Mintel. Independent broker Numis agrees, maintaining its forecast of pre-tax profits of £6.4m and 7.4p of earnings for the full year.

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