Prezzo returns to profitability following strong second half performance ahead of pre-pandemic levels: Prezzo, the Cain International-backed Italian dining group, has returned to profitability following a strong second half performance ahead of pre-pandemic levels. In its first results as Prezzo Trading – which acquired the Prezzo brand out of administration from Prezzo in February 2021 with Cain’s backing – the company reported revenue of £94.9m for the year ending 2 January 2022. Overall adjusted Ebitda for the financial period was £4.2m, and total statutory loss was £22.4m. Although the company said its trading performance was “significantly impacted” by the ongoing covid-19 related closures and restrictions, Prezzo saw a return to profitability following the removal of all restrictions. The second half saw 8% like-for-like sales growth (at 20% VAT equivalent) and £5.6m adjusted Ebitda. New logistics partnerships and supply chain operations helped drive quality and efficiencies and mitigate supply chain challenges, with performance in line with pre-covid norms by the end of 2021. Its “Dine at Home” delivery and collection business increased fivefold compared to pre-pandemic levels and sales continued to grow throughout 2021 and into 2022. The company has awarded two pay rises across its restaurant teams, with a focus on incentivisation and retention at all levels, and continued to develop a strong management team. It said: “The company has made progress revitalising the Prezzo brand and customer proposition. The Dine at Home channel has continued to grow throughout 2022 and remains a significant growth opportunity. The progress made against its strategy has led to a net promoter score in 2022 being significantly ahead of 2019, and Prezzo’s like-for-like performance has been comfortably towards the top of the sector on the CGA Peach Coffer restaurant tracker throughout the year.” During the lockdown periods, Prezzo was able to offer alfresco dining from many of its circa 150 UK restaurants. Chief executive Dean Challenger added: “Our priority is to ensure that hospitality is at the heart of the business by continuing to invest in an appealing, trusted, great value and distinctive customer proposition that keeps our customers coming back. We are focused on ensuring that the business is in the best position possible to withstand these challenges by having the right portfolio of restaurants, in the right locations, managed by our excellent team with the best of Italian food at the heart of our customer offer.” Challenger is also serving as Prezzo’s interim chief financial officer after Matt Prior stepped down last month. Challenger, who was promoted to chief executive last May, was previously chief operating officer of the company, having joined in 2018. In February, Prezzo appointed Andrew Davill, formerly of David Lloyd Leisure, as its new chief operating officer. Cain International bought the then 180-strong Prezzo out of administration for around £5m. Prezzo features in the Propel Turnover & Profits Blue Book. Its turnover of £94.9m is the 72nd highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription.