Post Close Update

RNS Number : 8102L

Restaurant Group PLC

14 January 2016

 

The Restaurant Group Plc

Post Close Update  

The Group today provides an update on the 2015 full year trading outturn.

For the 52 weeks ended 27 December 2015, total turnover was up 7.9% on the prior year, and like-for-like sales increased by 1.5%. The Group's full year results will be announced on 9^th March. These are expected to show material growth in both earnings and cash flow versus the prior year, with profits for the full year towards the middle of the current range of market expectations.

During 2015 we opened a total of 44 new restaurants. We are very pleased with how these are trading and they are set to deliver strong returns. We have good visibility on the composition of the opening programme and we anticipate opening a broadly similar number of new restaurants during 2016.

It has become apparent from much of the recent data from the retail sector and the wider economy that the trading environment for many consumer facing businesses has been tougher in recent months than it was earlier in 2015. This has caused like-for-like sales growth to trend lower and accordingly we are more cautious than previously on the outlook for 2016. A possible referendum on the UK's continued membership of the European Union, National Living Wage implementation and global uncertainty are all additional issues that we are conscious of going into the new year.

That said TRG has an excellent portfolio of businesses with strong market positions. The Company's move towards a more balanced portfolio is paying dividends and we have a proven track record established over many years of delivering strong financial returns and excellent cash flows, even through more difficult trading periods. Therefore, notwithstanding some of the uncertainties described above, we are confident that TRG is well positioned to deliver further profitable progress in 2016 and subsequent years.

14 January 2016

Enquiries:

The Restaurant Group
Danny Breithaupt, Chief Executive Officer	020 3117 5001
Stephen Critoph, Chief Financial Officer
Instinctif Partners
Matthew Smallwood	020 7457 2020

Notes:

1.   The Restaurant Group plc operates over 500 restaurants and pub restaurants throughout the UK. Its principal trading brands are Frankie & Benny's, Chiquito, Coast to Coast, a Pub restaurant business and a Concessions business which trades principally in major UK airports.

2.   The Group is aware of a range of external profit forecasts for the financial year ended 27 December 2015, showing profit before tax ranging from £85M to £89M.

3.   This statement is based on information sourced from management accounts.

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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