AGM Statement

RNS Number : 4165L

Restaurant Group PLC

06 May 2010

 



 

The Restaurant Group plc

 

AGM Statement

 

At the AGM of The Restaurant Group plc ("TRG" or "the Group"), to be held later today, Alan Jackson, Chairman, will make the following statement, which comprises the Group's Interim Management Statement as required by the FSA's Disclosure and Transparency Rules:

Current trading

The Group has continued its positive start to 2010 with total sales 6% ahead of 2009 and like-for-like sales 0.5% ahead for the 18 weeks to 2 May 2010.  We estimate that Group like-for-like sales would have been approximately 1.5% ahead of the comparable prior year period had it not been for the impact on our Concessions division resulting from the disruption to air travel caused by the volcanic ash from Eyjafjallajokull.  Our Concessions division was in good growth until the ash cloud halted air travel and we saw five days of sales decline in excess of 90% in our airport business. 

Trade in our Concessions business is now returning towards normal (although suspension of some flights due to the new ash clouds over Scotland and Ireland has had a small impact over the past two days) and our Leisure division is also trading well.  We estimate that, to date, the disruption has resulted in a £0.5m impact on our Concessions division's profit and loss account, comprising £0.3m of cash costs and foregone profit opportunities of £0.2m.

Overall, the Group's margins and profits are running at a level in line with management's expectations.  We have opened seven new units to date during 2010; all are trading well and we expect to open a total of 15-25 new units during 2010.

Balance sheet and financial position

The Group's balance sheet remains strong with excellent cash generation from our operations.  Net debt has not changed materially since the year end apart from the payment of a second interim dividend of £12.1m. 

Subject to approval at the AGM, the final dividend in respect of the year ended 27 December 2009 of 0.3p per share (making the full year dividend 8.0p per share) will be paid on 7 July 2010 to shareholders on the Register on 11 June 2010 - this represents a 4% increase on the previous full year's dividend.

Outlook

Despite some difficult external factors adversely impacting on our business during the first four months of the year we are encouraged by the positive start we have made to 2010.  Our unique market positioning, strong brands and motivated teams continue to benefit The Restaurant Group and we are confident of reporting further profitable progress in our upcoming interim results.

6 May 2010

ENQUIRIES:

The Restaurant Group plc	Tel: [phone]
Andrew Page, Chief Executive Officer
Stephen Critoph, Group Finance Director
College Hill	Tel: [phone]
Matthew Smallwood

Notes for Editors:

1.   The Restaurant Group plc operates over 370 restaurants and pub restaurants predominantly in leisure locations and airports. Its principal trading brands are Frankie and Benny's, Chiquito, Garfunkel's, a Pub restaurants business as well as over 50 sites in its Concessions division which trades principally on major UK airports.  

2.   This statement is based on information sourced from management accounts.

3.   Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.

 

END

 

 

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