VALVONA & Crolla, the Italian deli and restaurant group, has returned to profit despite highlighting the impact of tramworks across Edinburgh on already difficult trading conditions.
The business is back under full control of the Contini family after buying back a 50 per cent stake from House of Fraser, though the family is currently in talks to strengthen the firm’s trading relationship with the Jenners’ owner.
The company said it has recently negotiated the opening of a third foodhall within House of Fraser’s West End store in Edinburgh and said a “further substantial project” with the department store chain was under discussion.
Sales in the year to 31 January fell slightly to £4.5 million from £4.6m. Lower costs helped the group, which operates from six locations including its main Elm Row shop and the VinCaffè restaurant in Multrees Walk, swing from a £47,172 loss to a £85,564 pre-tax profit.
In his report to the accounts Philip Contini, grandson of founder Alfonso Crolla, said during the second half of the year “the local tram issue deteriorated once more” as work started on Princes Street and St Andrew Square.
“However, our strategy of identifying key areas of profit potential as well as continued cost-cutting bore fruit during the year,” he said.
Contini said he expected trading in both 2012 and 2013 to “continue to be challenging”.
But he said cost control, prudent buying and an “excellent relationship” with the Clydesdale Bank meant the company was confident that it could continue to grow the brand.
Contini said there were “ongoing discussions” with regard to a link between the Valvona & Crolla’s e-commerce site and that of House of Fraser.
Search for a job
Search for a car
Search for a house
Weather for Edinburgh
Friday 24 May 2013
Temperature: 3 C to 12 C
Wind Speed: 18 mph
Wind direction: North east
Temperature: 7 C to 17 C
Wind Speed: 13 mph
Wind direction: West