This fast expanding operator of Spanish-themed restaurants is escalating its roll-out rate and has created a new bar and grill chain to bite into the leisure park market.

Originally vaunting plans for 10-12 openings yearly, the company has turned up the gas to 14 for the current financial year, with a similar expected again in 2007, funded almost entirely from cashflow. The six opened in the half are reportedly trading well and the two US sites are performing strongly.

The La Tasca and La Viña brands operate in a variety of locations, with high street, shopping centre and ‘mixed-use’ sites. But, in order to soak up demand in the ‘highly successful’ leisure park market and introduce a brand with family appeal to the group’s offering, chief executive James Horler has concocted the ‘premium casual dining’ brand of Sam & Maxie’s bar-and-grill houses. This is the man who built up the Frankie & Benny’s chain, and he believes there are good opportunities in this market ‘because it’s been pretty samey for some time’.

Results for the half to 30 October saw pre-tax profits almost double from £1.4m to £2.7m on turnover up 18.5% to £27m. The company is habitually more profitable in the second half and current estimates of £6.1m are likely to be upgraded. House broker Altium has upgraded its forecasts for the following years and has produced revised EPS figures of 9.5 for 2007 and 10.9 for 2008, giving forecast p/e ratios of 14 and 12.1. A maiden interim dividend of 0.37 per share is proposed and this will be just a third of the full year payout.

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