With its year-end acquisition of Henry J Bean’s (HJB) restaurant chain bedded down, Hartford’s astute management team is looking to carefully grow the business. The first 16 weeks of the new financial year has seen revenues already up 36% and like-for-likes ahead 2.9%, hinting at the potential.

‘It’s taken a while but we’re getting there,’ confirms finance director Urvashi Parekh. Results to 24 September showed profits before tax and exceptionals increasing 40% to £401,000 on turnover up 10% at £13.3m. Prakesh believes Hartford has improved where others have not ‘because we micro-manage our estate and control our cost base very tightly.’ Gearing is high at 129%, but given the cash being generated, this is likely to reduce.

The estate of City bars can now be run ‘as cash cows’, with new openings made when appropriate. And sites for the HJB roll-out are being thoroughly examined, but Hartford does not over-pay for sites, insists Parekh. ‘We’re not one of those companies who say they’re going to open five or ten new sites in a year,’ she continues. ‘We will make sure our return on capital employed is adequate and we’re not going to lose the stability we’ve built up over the last few years.’

To add to the 17 international HJB franchisees, a contract has been signed for Mexico City airport and other talks are ongoing. Previously, hotels would occasionally come to HJB to do business but Hartford’s management sees plenty of opportunities by tendering to ‘high-profile’ hotel chains.

From £20m sales in 2006 house broker KBC Peel Hunt forecasts a 143% rise in pre-tax profits to £1m. The shares trade at 6.7 times 2006 earnings, falling to 5.8 for 2007. With ample expansion possible that looks too cheap.

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