Prezzo gains confidence to reactivate expansion

The group, which recently unveiled a 3.1m deal to snap up 11 restaurants and the Caffe Uno trademark, said underlying pre-tax profits rose to 6.2m in the six months to June 27 on sales up 11 per cent.

Prezzo's business has been boosted by the net addition of another seven restaurants so far this year, taking its estate to 145.

It said it will focus immediate efforts on refurbishing and rebranding the 11 outlets being bought from rival Paramount Restaurants, but is also planning three more openings in Aberdeen, Glasgow and Milton Keynes.

Michael Carlton, chairman of Prezzo, said: "We are encouraged by the level of trading that we have seen in recent months and this has given us the confidence to reactivate our wider expansion plans." He added: "As a result, the board is confident of delivering a positive outcome for 2010 as a whole."

Its Caffe Uno acquisition will give the group presence in some "desirable new locations", according to Prezzo. The majority of the restaurants it is buying are based in the South East and Home Counties.

Three currently operate under the Caffe Uno brand, while two are Il Bertorelli outlets and six trade as Brasserie Gerard.

But Prezzo will launch a revamp programme soon after the deal completes and reopen either under the Prezzo format or Caffe Uno brand.