Restaurant group, Giardino, has announced results for the 18 months to 31 January showing turnover for the period of £39.2m and gross profit of £29.6m.

The company has changed its financial year-end from 31 July to 31 January but produced data to cover the year to 31 January 2003, with comparative figures for the 12 months prior to that.Turnover for the year to 31 January 2003 was up 13.3 per cent to £26.4m, against £23.3m for 2002. Gross profit rose 14.5 per cent to £20m, compared with £17.4m.

Operating profit - before impairment provision and interest - was £2.4m for the period against £2.9m for 2002, the fall reflecting the low turnover levels seen at a number of Giardino's more recently opened units.During the past 18 months the group has seen a net gain of eight units - 11 new ones were opened but the existing Auberge in Sevenoaks has been closed and two cafés have been absorbed into adjacent restaurants.

The group's café division continues to generate 65 per cent of its profits and opportunities to expand both the Giardino and Pellini brands are being considered. Equally, the closure of a number of Giardino units where trading has not reached expectations is currently being contemplated. The restaurants arm - affected by substantial competition in London and the drop in numbers of tourists visiting the capital - has seen improved profitability at sites in Norwich and Woking, where Auberge outlets have been integrated with adjacent operations by Azzurro and Giardino respectively.

Elsewhere, the three restaurants the company bought from Whitbread in 2001 are trading in line with expectations, the Carpaccio in Highgate is trading satisfactorily but the new Azzurro Restaurant in Glasshouse Street has yet to make an impact.Giardino non-executive chair, John Moxon, said: The group continues to trade profitably and we have ended the year in a cash positive situation. We are well placed to take advantage of opportunities which will arise in the future but in the meantime will focus on improving quality of service and presentation. Details: +44 (0)20 8443 3968