Interim Management Statement

RNS Number : 0583I

Restaurant Group PLC

13 November 2008

 



The Restaurant Group plc

Interim Management Statement for the 45 weeks to 9 November 2008

The Restaurant Group ('TRG') provides below an update on current trading for the 45 weeks to 9 November 2008 with a commentary on the outlook for the remainder of the financial year and 2009. 

Current Trading

TRG has traded in line with our expectations during the first 45 weeks of 2008 in spite of more challenging market conditions. Like for like sales are currently running 2.5% ahead of the comparable period for 2007 and overall turnover growth is 16% ahead of 2007. Both of our divisions have performed well. 

New Openings

We have opened 29 new restaurants so far this year. The overall performance of these new openings has been strong and they look set to deliver good returns. Since July we have opened 12 new restaurants and all are performing strongly. We expect to open a total of at least 35 new restaurants in 2008 and, taking into account closures during the year (mainly as a result of airport reconfigurations at Heathrow and Gatwick), we anticipate a net increase of 22-24 new units. 

In the current real estate environment some of the new developments we are targeting for restaurant openings in 2009 and 2010 may be delayed or postponed by the project developers. We would therefore anticipate opening between 18 and 25 new restaurants in 2009. Our approach continues to be based on quality rather than quantity, with projected return on capital being the determining factor in our decision to open any new restaurant.

Balance Sheet

Our Balance Sheet position remains solid and we anticipate a year end net debt position of around £80m. Our banking facilities which total £120m are not due for renewal until December 2012. 

Outlook

Providing trading patterns continue in line with recent months we remain on course to produce full year results in line with our expectations. Looking forward to 2009 and beyond, the conditions for consumer-facing businesses look set to remain challenging, and with pressures on consumer spending continuing, this is likely to make 2009 another tough year. 

Regarding input cost and inflationary pressures, during 2009 we anticipate that we will continue to see some impact from cost pressures, although against a backdrop of a slowing world economy these may start to abate.

As always, our focus will continue to be directed towards delivering good value and hospitality to our customers with the objective of driving consistent returns and cashflows from our existing business. We will augment this with our carefully targeted rollout programme. 

Although TRG is not immune from the impacts of the current economic backdrop, our strong brands and more resilient market positioning will continue to benefit our Company, as they have done to date.

13 November 2008

Enquiries:

The Restaurant Group
Andrew Page, Chief Executive
Stephen Critoph, Group Finance Director		0845 612 5001
College Hill
Matthew Smallwood		020 7457 2020

Notes to editors:

1. The Restaurant Group plc operates around 350 restaurants and pub  restaurants predominantly in leisure locations and airports. Its primary offerings are Frankie and Benny's, Chiquito, Garfunkel's, Blubeckers and Brunning & Price.  

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.

4. The next trading update is expected to be released in January 2009.

 

END

 

 

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