PizzaExpress announces annual results

PizzaExpress announced today that it intends to open more than 50 new restaurants this year.

It plans to open 30 pizza outlets in the UK and Ireland, more Café Pastas, and more overseas restaurants.

The company made the announcement this morning when it announced its annual results to 30 June.

During the 12 months it posted a 12% increase in pre-tax profits to £32.2m on turnover 19% higher at £150.1m.

The company ended the financial year with 243 pizza and 13 pasta restaurants in the UK and Ireland and 24 overseas outlets, nine of them new.

In the UK and Ireland, PizzaExpress said its decision to hold menu prices provided a powerful competitive advantage for its pizza restaurants, which boosted turnover to £142.5m and served nearly 15m customers.

Like-for-like sales climbed 3% over the year and 4.5% during the second half.

The 32 new pizza restaurants achieved sales of £6.5m and profit margins of 10%.

The Café Pasta chain made a loss of £1.3m on turnover of £4.8m, but the company said the division is now profitable.

PizzaExpress spent £600,000 on reorganising the chain, including the sale of two loss-making sites and the refurbishment of 10 restaurants. It spent a further £300,000 on marketing the brand.

Like-for-like cover count was up 18% by the end of June, and the group expects to open more pasta restaurants in London and the south-east.

Overseas restaurants yielded a franchising turnover of £900,000 and profits of £200,000, but these were wiped out by start-up costs in the USA and Japan, which together turned in losses of £1.1m.

The international division increased from 15 to 24 outlets, and openings will accelerate. Areas for expansion include Japan, USA, Poland and Spain.

PizzaExpress also intends to increase the range of foods it sells through supermarkets, which currently includes PizzaExpress extra virgin olive oil and mixed leaf salad and dressing.

By Angela Frewin