IRC records 'sound' performance

In a trading update, the group said it expected to report preliminary results for 2009 ahead of market consensus at a profit before tax level.

The statement added:"As previously reported, the group recognised that trading conditions would be more challenging in 2009 than 2008 and implemented a cost saving programme to deliver 2m total savings in the year ended December 31 2009. Full year savings have surpassed the 2m level.

"The group has always maintained that long term financial success is delivered by a strong focus on the quality of our people, food, customer service and restaurant cleanliness. It has also long been a part of IRC's core strategy to resist entering the mass discounting market which has been widely practised across the restaurant sector and as a result there has been no erosion in the group's gross profit margin against last year."

The group anticipates that trading conditions will remain challenging in 2010 with continuing pressure on consumer spending.

The statement added: "In common with most of the industry, trading over the first two weeks of 2010 was affected by the adverse weather conditions which kept many customers at home during that 10 day period.

"The impact of these conditions was felt most acutely outside of the South East of England where a disproportionate number of the group's restaurants are based. Nevertheless, trading has since returned to the levels expected by the board."

Stephen Walker, chief executive of IRC, said: "I am pleased to report another sound trading performance in what remains a challenging market. We remain committed to a focus on our core customer values, whilst maintaining tight cost control and improving efficiencies across the group.

"IRC benefits from two strong restaurant brands with demonstrable roll out potential for both Piccolino and Bar & Grill on a national scale. The group is well placed to capitalise on an improvement in the consumer environment as that materialises and the directors remain confident in the future prospects for the group."