Carluccio's still hopeful in 'unpredictable' times

Carluccio's, which said its flexible business model had helped it to negotiate the challenges of the recent VAT rise and new minimum wage legislation, said it expected to outdo last year's interim pre-tax profits of 2.5m for the six months to March 28.

Turnover grew eight per cent in the period compared to 2009, but the chain said the trading environment remained "unpredictable"; the General Election and potential tax increases added to uncertainty.

Carluccio's was founded in 1991 by Antonio and Priscilla Carluccio with the aim of offering quality, authentic Italian food at reasonable prices.

Chef and Italian cookery writer Antonio Carluccio has been a regular face on television cookery programmes, but is no longer involved in the day-to-day running of the restaurant business.

The firm, which now trades from 45 stores, has said it has benefited in the recession because of its all-day trading model and a relatively low average spending of 13 per head in the cafe.

Three stores were added to the portfolio in the half year – Exeter, Wimbledon and Cardiff – and Carluccio's said all were performing ahead of the company's expectations.

The firm said it was on track to meet targets for a minimum of five store openings, with the next launch planned for Milton Keynes in the early summer.

Carluccio's also refurbished its St Albans, Kingston and Ealing outlets in the period with updated decoration and layouts and said these had since showed stronger trading.

Its Middle Eastern franchise Landmark opened its second Carluccio's in Dubai and is due to make further openings in April and late 2010.

In Ireland the company closed its Dublin restaurant amid a row over rents, but said yesterday the negotiations had been successfully concluded and the store was reopened after seven days, returning to turnover levels that would put it in the top ten of its UK estate.

Carluccio's suffered a 16 per cent fall in full-year pre-tax profits 4.7m for the 53 weeks to September 27 as the business weathered weaker trading, higher labour and energy costs and the pound's slide against the euro.

"Uncertainty surrounding the outcome of the election and the potential for future tax rises mean that the near term trading environment remains unpredictable," the firm said yesterday.

"The board, however, continues to draw comfort from the inherent strength and flexibility of the company's business model and positive cash position."