Ask answers the sceptics: Pizza sales remain strong

Ask Central, the high street pizza chain, yesterday eased fears that along with its rival PizzaExpress it was feeling the pinch of more competition in the restaurant sector, by reporting strong trading in December.

The company, which has two pizza brands – Ask and Zizzi – said December was "successful". In a Christmas trading update, it added that trading had continued to improve across those restaurants open for the same period last year. Unlike other companies in the sector, Ask does not provide like-for-like sales figures.

"We had a very strong December. We were anticipating December to be down on the previous year because 2001 was particularly strong but in fact we beat it. Why? I don't know," Martin Eckersley, the group's finance director, said. The news buoyed the group's shares, which had halved during last year. They rose 10 per cent to 115.5p.

Analysts estimated that underlying sales in December rose by low single digits. Andrew Saunders, at Numis Securities, said: "It's nice to see some good news for a change. There has been far too much red in this sector in the last couple of months."

Ask's performance, which follows a tough October and November for the industry, will increase pressure on its bigger rival PizzaExpress. The former sector darling had a torrid 2002. Sales at PizzaExpress have been declining since the summer and the group is poised to be delisted from the stock market after a number of takeover approaches.

Mr Eckersley said: "Trading did slow up a bit in October and November but it was more than compensated for in December." Striking a note of caution, he added: "But we can't read that as a trend because it is too short a timespan."

The company, which has 146 outlets, said trading from the 20 new sites it opened last year had been encouraging. "Early indications are that the results [for 2002] will be fully in line with our expectations." Mr Saunders has forecast pre-tax profits of £16.5m for last year and £19.1m for 2003.

Although analysts pointed to the slowdown in Ask's opening programme – it had targeted 25 new units in 2002 – as reflecting a more cautious outlook, the company denied this. Mr Eckersley said it was down to "the nature of planning authorities" and Ask would open 25 to 30 outlets this year to compensate.

Ask Central was spawned from the acquisition of a single restaurant in 1993. Adam Kaye, the chief executive, and his brother Sam raised £200,000 from the family to purchase the lease. A move by the family to sell down nearly £5m of shares in November, had initially sparked concerns about trading.