Pizza Express has reported a 24% surge in profits and sales as the trend towards eating out shows no sign of flagging.

Pre-tax profits were �40m in the financial year to June 30, compared to �32.2m in the previous 12 months.

Sales climbed to �185.6m from �150.1m, while like-for-like sales also rose and the Cafe Pasta chain entered profitability.

At the pizza restaurants in the UK and the republic of Ireland, like for like sales growth stood at 10% while the pasta division had like sales growth of 20%.

Chilled product

"Continued growth in the eating out of home market has been forecast and we are well positioned to capture increased market share", said the firm.

Sales of chilled pizzas and other products in Sainsbury's have got off to a good start since the January launch.

"We have only had half a year and we already have up to 120,000 a week and expect to be selling 200,000 pizzas by Christmas - four times higher than expectations", said chairman David Page.

Expansion plans

The results provide a platform for continued expansion in the UK and abroad, it added.

The chain now has 286 Pizza Express restaurants in Britain and Ireland and 32 outlets in other countries.

It sees scope for least 500 Pizza Express and 100 Cafe Pasta in Britain and Ireland and is also targeting expansion in Spain, France and Japan, with 50 new outlets opening this year.

The results were in line with analyst expectations and did little to boost the share price which closed down 7.5p at 912.5p.