AGM Statement

RNS Number : 3400G

Restaurant Group PLC

11 May 2011

 



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

Trading for the first 18 weeks has been satisfactory with total sales 5.5% ahead of the previous year and like for like sales 0.5% ahead.  Margins are broadly in line with management's expectations.

Overall, the Leisure division has traded well with a particularly strong performance from our Pub restaurant business over the past eight weeks. Over that same period, our restaurants located at cinema and retail parks have traded satisfactorily although footfall at these locations has been more variable.

During the first 18 weeks we have opened two new Frankie & Benny's restaurants and one new Chiquito. These are trading ahead of our expectations.

Our Concessions division has continued to trade well and the two new openings at Gatwick airport are performing in line with our expectations.

In total we expect to open between 22 and 27 new restaurants this year, including our 200^th Frankie & Benny's restaurant.

Balance sheet and financial position

The Group's balance sheet remains strong with good cash generation from our operations.  Since year end The Restaurant Group plc Employee Benefit Trust has acquired 1,000,000 shares in the Company at an average price of 302.913p per share.  Net debt has not changed materially since the year end. 

Subject to approval at the AGM, the final dividend in respect of the year ended 2 January 2011 of 7.46p per share (making the full year dividend 9.0p per share) will be paid on 17 June 2011 to shareholders on the Register on 20 May 2011 - this represents a 12.5% increase on the previous full year's dividend.

Outlook

Trading conditions during 2011 look set to continue to be similarly challenging to those we experienced during 2010, with consumer sentiment remaining cautious and household inflation and disposable income still under pressure.

Our business continues to cope well with these conditions and is trading in line with management's expectations. We are confident of reporting further profitable progress, on a comparable 26 week basis, at our next interim results.

11 May 2011

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 390 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.   2011 statutory results will be stated on a 52 week basis compared with a 53 week basis for 2010.  For the interim results, 2011 will be stated on a 26 week basis compared with a 27 week basis for 2010.

4.   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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