Prezzo profits set to be lower as expansion costs hit home
Prezzo has warned its profits will be lower than expected due to weaker consumer spending and the costs of an aggressive openings programme, which saw 22 new sites launched in the second half of the year.
The casual dining group said despite strong trading over the Christmas period, a poor November and the associated costs of the new openings, 14 of which launched in the last two months of the year, would mean profits for 2007 would be lower than forecast.
Although a host of new units were launched in the year, including Cardiff, Harrogate and Barnstaple, the company said that with many sites opening towards the year's end they had not as yet had time to offset their launch costs through trading.
Prezzo said it still had a strong pipeline of sites set to open this year.
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By Jo Chapman
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