Post-close update

RNS Number : 2535V

Restaurant Group PLC

10 January 2012

 



The Restaurant Group plc ("the Group")

Post-close update

The Group's full year results will be announced by early March 2012 and profits for the 52 weeks to 1 January 2012 are expected to be in line with the consensus of market forecasts.

Turnover for the 52 weeks to 1 January 2012 was 7.25% ahead of the comparable (52 week) period in 2010 and like-for-like sales were 3.25% ahead. The Group recorded strong levels of like-for-like sales growth during both November and December 2011.

New openings were ahead of the previous year with 25 new restaurants opened in 2011. Trading at these sites has been above our expectations and they are set to deliver strong returns. The Group is targeting 25-30 new openings in 2012.

The Group continues to be highly cash generative and net debt at the end of 2011 was well below the level at the end of 2010. During October 2011, the Group concluded a refinancing exercise and now has in place a five year, £140m revolving credit facility. This provides the Group with enhanced flexibility to accelerate the rollout of new restaurants once economic conditions improve and new property development activity restarts, and to ensure that the capital structure is sensibly and prudently positioned to enable the Group to continue to grow earnings, dividends and shareholder value.

Looking forward, whilst we anticipate a continuation of challenging economic conditions, our efforts will be focused on delivering further profitable progress in 2012.

Andrew Page, CEO of The Restaurant Group plc, said:

"We faced challenging trading conditions in 2011 but, despite this, revenues were up by 7.25% and like-for-like sales were 3.25% higher.  Our profits for 2011 were well ahead of those for the previous year and cash flow was also very strong.  Last year we opened 25 new restaurants, creating more than 500 new jobs. These new openings are trading ahead of our expectations and this year we expect to open 25 to 30 new restaurants throughout the UK which should create around 600 new jobs. Whilst we expect trading conditions to remain tough in 2012, the TRG team will be working to deliver another year of profitable progress."

10 January 2012

ENQUIRIES:

The Restaurant Group plc                               Tel:  [phone]

Andrew Page, Chief Executive Officer

Stephen Critoph, Group Finance Director

College Hill                                                       Tel: [phone]

Matthew Smallwood

Notes:

1.   2011 was a 52 week accounting period, ending on 1 January 2012.  2010 was a 53 week accounting period, ending on 2 January 2011.  Like-for-like information is provided for a comparable number of weeks to 1 January 2012.

2.   The Board considers market expectations for 2011 are best defined by taking the range of forecasts of profit before tax and amortisation for the full year published by analysts who consistently follow the Group.  The current range of forecasts of which the Board is aware is £59 million to £62 million.  Nothing in this announcement should be construed as a profit forecast.

 

END

 

 

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