Pre Close Trading Update (5063A)

TIDMIRC

RNS Number : 5063A

Individual Restaurant Company PLC

02 February 2011

Individual Restaurant Company plc

("IRC" or "the Group")

Pre Close Trading Update

Individual Restaurant Company plc, a leading operator of 33 premium casual dining restaurants throughout the UK trading under the Piccolino (22) and Bar & Grill (11) formats, today announces its pre close trading update for the year ended 31 December 2010.

Trading Update

The Group entered the key Christmas trading period in December with considerable optimism due to the level of forward bookings which were significantly ahead of the previous year. However the particularly severe weather conditions experienced over the first three weeks of this period impacted trading and like for like sales for the month ended down 4%. This was despite the fact, pleasingly, as soon as the snow cleared the Group experienced significant growth for the last two weeks of the month. Consequently management expects Group EBITDA performance to be marginally below their expectations.

This slight reduction in EBITDA had a disproportionate effect on PBT due to the Group's relatively high levels of fixed depreciation, nevertheless PBT remained positive.

Banking Facilities

Net debt as at 31 December 2010 was GBP11.7m (GBP12.4m 2009) and with an GBP18.5m loan facility in place, the Group had considerable headroom of GBP6.8m remaining.

Future Outlook

Early trading so far in 2011 has been buoyant and the significant like for like growth experienced in the last two weeks of December has continued at very satisfactory levels. The Group does, however, remain reliant on underlying consumer spending and it is currently uncertain what degree the uplift in the rate of VAT and Government spending cutbacks will impact the Group, as such the Board anticipates trading conditions will remain challenging in 2011.

Preliminary Results

The Group's preliminary results will be announced on Monday 4th April 2011.

(*) EBITDA is defined as operating result before non trading costs, interest, depreciation and amortisation.

(**) PBT is defined as EBITDA less depreciation, amortisation and interest. Stephen Walker, Chief Executive of IRC, commented:

"I am pleased to report another profitable trading performance in what has been a very testing year. I remain confident in the inherent strength of both of our brands. Whilst 2011 isn't going to be without its challenges, it is particularly encouraging that the positive trends experienced at the end of last year have continued into trading in the early weeks of the current year, clearly demonstrating the resilience of our business and the ongoing customer appeal for our restaurants."

2 February 2011

 
 Enquiries: 
 Individual Restaurant Company 
  plc                              0161 839 5511 
 Steven Walker, Chief Executive 
 Vernon Lord, Finance Director 
 
 Altium                            0845 505 4343 
 Paul Lines 
  Adam Sivner 
 
 College Hill                      020 7457 2020 
 Justine Warren 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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