Secondary Recommendation

Carluccio's - Early stage restaurant roll-out enjoying high returns

February 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Fast-growing Italian delicatessen and restaurant chain Carluccio’s has made a big splash since coming to AIM on 14 December, with the shares quickly rising from their 94.5p placing price to a high of 137p, before a slight pull-back, which leaves the current market value at £75m. No new money was raised, while institutional investors quickly gobbled up the 28.1m existing shares (49.5% of the total) including the vast majority of the two principal founders’ stakes, which gave them a near £10m windfall, although they retained a residual 3% interest. In order to achieve this, Carluccio’s clearly needed a fantastic story to sell and that’s exactly what they have. In spite of the cluttered restaurant sector, ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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Carluccio's - Early stage restaurant roll-out enjoying high returns

February 2006

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