Interim Management Statement

RNS Number : 8238R

Restaurant Group PLC

10 November 2011

 



The Restaurant Group plc

Interim Management Statement for the 44 weeks to 6 November 2011

The Restaurant Group plc ("TRG" or "the Group") provides below an update on current trading for the 44 weeks to 6 November 2011 together with a commentary on the outlook for the remainder of the financial year (52 weeks to 1 January 2012) and for 2012.

Current trading

TRG has continued to make further good progress despite a tough economic backdrop, including uncertainty over the outlook for employment and inflationary cost pressures, which has continued to adversely impact consumer facing businesses during 2011. After 44 weeks trade in 2011, total sales are 6.5% ahead of the comparable period in 2010 and like-for-like sales are 2.75% ahead.

New openings

We have opened 16 new restaurants so far this year. The performance of these new openings has been excellent and they are set to deliver strong returns. We expect to open a total of between 24 and 26 new restaurants in 2011 and we continue to focus our attention on securing sites which will deliver strong returns.  We currently expect to open between 25 and 30 new restaurants in 2012.

Balance sheet & financing

The Group's balance sheet position remains solid with continuing strong cash generation. We anticipate a meaningful reduction in our year end net debt position compared to December 2010 and the 2011 half year after taking into account the increased level of interim dividend payment made in October 2011. We have recently concluded a refinancing exercise with a new, five year, £140 million facility secured on the same covenant terms as the previous facility.

Outlook

Since our interim announcement at the end of August, the Group has continued to trade well, with consistent like-for-like sales growth in both September and October. November has also started well and we remain on track to meet our expectations for the full year.

TRG has a distinct market positioning with strong brands and great value-for-money offerings, a superb pipeline of new sites, an experienced and highly motivated team, and a clear focus on delivering consistently excellent levels of service and hospitality.  Looking forward to 2012, although we expect a continuation of current trading conditions, our team will be working to ensure that the Group continues its good progress.

10 November 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.

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.

 

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