Interim Management Statement

RNS Number : 9940V

Restaurant Group PLC

11 November 2010

 



The Restaurant Group plc

Interim Management Statement for the 45 weeks to 7 November 2010

The Restaurant Group plc ("TRG") provides below an update on current trading for the 45 weeks to 7 November 2010 together with a commentary on the outlook for the remainder of the financial year (53 weeks to 2 January 2011) and for 2011.

Current trading

TRG has demonstrated its resilience and has continued to make further good progress despite a tough economic backdrop and uncertainty over the outlook for employment which has adversely impacted our sector during 2010. The Group has continued to trade in line with management's expectations during the first 45 weeks of 2010. Like-for-like sales are currently 0.25% above the comparable period for 2009 and total turnover is 8% ahead of the prior year.

New openings

We have opened 18 new restaurants so far this year. The overall performance of these new openings has been excellent and they are set to deliver strong returns. We expect to open between 23 and 25 new restaurants in 2010.  We continue to focus our attention on securing sites which will deliver strong returns and next year we expect to open between 22 and 27 new restaurants.

Balance sheet

The Group's balance sheet position remains solid with excellent cash generation from our operations. As indicated at our interim results announcement we anticipate a meaningful reduction in our year end net debt position when compared to December 2009 and the 2010 half year.

Outlook

The Group has continued to trade resiliently, with like-for-like sales growth, since we provided our last update at the beginning of September and we remain confident of meeting our expectations for the full year.

Looking forward to 2011, we expect a continuation of current trading conditions with ongoing pressures on consumer spending from tax rises and potentially higher unemployment. Our distinct market positioning with strong brands, experienced and motivated teams, our focus on delivering consistently excellent levels of service and hospitality with great value-for-money offerings will, in the absence of a significant downturn in the economy, enable the Group to continue its profitable development.

                                                                                                11 November 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 380 restaurants and pub restaurants predominantly in leisure locations and airports. Its principal trading brands are Frankie & Benny's, Chiquito and Garfunkel's, and the Group operates 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.   2010 is a 53 week accounting period ending on 2 January 2011.  The total revenue information provided in the statement reflects the additional week.  On a comparable 45 week basis, the total revenues of the Group increased by 5.5%.  Like-for-like information is provided for a comparable number of weeks to 7 November 2010.  2011 will be a 52 week accounting period.

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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