Restaurant Group PLC
25 June 2007
The Restaurant Group plc ('TRG')
Living Ventures - Disposal of Living Room business and repayment of outstanding
TRG liabilities
The Board of TRG announces that its associate company, Living Ventures Ltd
('Living Ventures'), has sold its interest in the The Living Room business
('Living Room') for a total consideration of £28 million (free of debt) to
Ultimate Leisure Group PLC ('Ultimate'). Living Ventures has used the proceeds
to reduce Bank indebtedness, repay outstanding loan note interest and preference
debt due to TRG, with the remaining proceeds being distributed to the
shareholders of Living Ventures. TRG expect to receive a total of £7.8m in cash
as a result of this transaction including outstanding loan note interest,
repayment of TRG's preference debt and equity distribution.
Immediately prior to the sale to Ultimate, a restructuring of the assets of
Living Ventures Limited took place. TRG, Tim Bacon, Jeremy Roberts and other
shareholders will retain their investments in the residual business (TRG 38%),
which consists of a group of restaurants trading under the Blackhouse Grill and
Est Est Est brands. TRG has terminated its call option granted in March 2005,
to purchase back Est Est Est from Living Ventures in 2008. Tim Bacon and Jeremy
Roberts have an option to purchase TRG's interest in the residual business in
2010. If this option is not exercised TRG have an option to repurchase Tim Bacon
and Jeremy Roberts' shareholding in the residual business. As a result of the
above transactions, the carrying value of the residual business in TRG's
accounts will be reduced to £nil.
The Directors of TRG anticipate that the effects of these transactions will
enhance earnings in the first full year. (see note 1)
Trading Update
The Board is pleased to announce continued strong trading since our last update
at the AGM on 16 May 2007. For the 24 weeks to 17 June 2007, Group like-for-like
sales are 5% ahead of the same period last year. We look forward to reporting
very satisfactory interim results in September.
25 June 2007
Enquiries
The Restaurant Group plc Tel: 0845 612 5001
Andrew Page, Chief Executive
Stephen Critoph, Finance Director
College Hill Tel: 0207 457 2020
Matthew Smallwood
Jamie Ramsay
Notes to editors
1. This statement should not be taken to mean that earnings per share of
TRG will necessarily exceed historic earnings per share of TRG and no
forecast is intended or implied.
2. Certain statements made in this announcement are forward-looking
statements. Such statements are based on current expectations, and by their
nature, are subject to a number of risks and uncertainties that could cause
actual results and performance to differ materially from any expected future
results or performance expressed or implied by the forward-looking
statement. The information does not assume any responsibility or obligation
to update publicly or revise any of the forward-looking statements contained
herein.
This information is provided by RNS
The company news service from the London Stock Exchange
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