Carluccio's

Italian food chain Carluccio’s, the AIM-listed group founded back in 1991 by Italian chef Antonio Carluccio, reported strong results for the six months to March in spite of recessionary pressures.

Pre-tax profits pushed 8% higher to £2.7m on improved sales of £37.1m (£34.5m) and Carluccio’s, which increased its cash pile 37% year-on-year to £3.8m, also cheered investors by upping the interim dividend 14% to 0.8p. Finance director Frank Bandura told Growth Company Investor the company, now with 45 UK restaurants, delivered these numbers despite ‘having to comply with national minimum wage legislation and a tough economic climate, combined with some freak weather conditions’.

Now with 45 UK restaurants, Carluccio’s is also expanding in the Middle East through its franchisee Landmark, having recently opened two new stores in Dubai, bringing its total number of sites there to 3. Bandura says any forthcoming expansion will be at a steady pace. ‘Our strategy has always been to open new stores at a measured pace and not be seduced by cheap debt’, he assures, adding that Carluccio’s has ‘a strong and flexible business model with potential for growth and a persistent rollout’.

For the year to September, analysts see Carluccio’s cooking up growth in pre-tax profits to £4.9m (2009: £4.5m) on £76.6m sales, despite ongoing pressures on the consumer purse, ahead of a £5.2m profit on £86.8m turnover by 2011. A resilient growth company offering income attractions, we still consider Carluccio’s well worth buying and stashing away.