Prezzo (LON:PRZ) , which arrived on AIM in March 2002, is a branded restaurant operator positioned in the UK casual dining market. Its principal trading brand is Prezzo, which offers a contemporary menu with a variety of pizza, pasta, salad and grill dishes with the typical Italian emphasis. There are currently 145 Prezzo branches but they are looking to expand out from their heartland in the South of England. Revenue was up 11% to £48.4m for the 6 months, adjusted EBITDA up 17% to £8.3m , adjusted pre-tax profit21% higher at £6.2m and adjusted diluted eps 1.91p (2009 - 1.54 pence). Cash generated from operations was a delicious £8.3m (2009 - £7.1m),The highly encouraging results came amid some aggressive expansion with 7 new restaurants opened during the first half and so far in the second half a further four restaurants were opened with another two closed taking the estate up to 145. After the period end they also announced the acquisition of 11 leasehold sites for cash consideration of £3.1m, together with the Caffe Uno trade mark. Current cash resources are enough to provide the Company with enough to fund the Caffe Uno acquisition, however, no interim dividend is being paid due to the desire to fund growth. Few people doubt that Britons are going the way of Americans when it comes to dining out (hopefully that doesn’t include Americans lovde of eating on the move!), seeing it as a regular fixture in weekly life rather than an occasional luxury. In early-1960s Britain, food consumed outside the home accounted for less than 25% of total food spending. That number has grown steadily, to 35% today; in the US, it stands at 50% . The company is clearly in a good position, being able to fund most of its growth itself and still earning good profits amid increasing acquisition costs. British desire for pizza will not decrease anytime soon, so Prezzo remains hot!
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