Oriental Restaurant Group PLC
21 January 2000
ORIENTAL RESTAURANT GROUP PLC
Christmas Trading Statement
Oriental Restaurant Group plc, the London-based Oriental
cuisine restaurant operator, reports on Christmas trading
for the period to 31 December 1999, the opening of the
Yellow River Cafe in Twickenham and two further sites for
its new brand.
Oriental Restaurant Group PLC ('the Group') today announces
that trading over the Christmas period was satisfactory.
Like for like restaurant sales excluding Pacific Oriental
were down 0.5% for the nine month period to 31st December
1999 which represents a small improvement over that reported
within the interim results. Like for like restaurant
operating profits, excluding Pacific Oriental, were 7.5% up.
Pacific Oriental continues to incur losses but remedial
action taken will have a positive impact in 2000 and is
already proving beneficial.
The Central Production Kitchen facility which commenced
operation in July remains fundamental to the roll out of the
Yellow River Cafe. The impact on profits will be adverse
until the benefits of scale are realised following the
opening of additional Yellow River Cafes.
Mainly as a result of these factors the Group will not meet
market expectations for the current year. However the Board
expects profits growth to resume in the next financial year.
Canary Wharf opened in December too late to benefit fully
from the seasonal trade. It is still too early to determine
the long term trend in this location.
The target opening programme for Yellow River is well
underway. The first Yellow River Cafe opened in Chiswick in
November and is trading well above expectations. A second
Yellow River Cafe will open in Twickenham in February and
the third will open in Islington by early summer. Terms
have already been agreed on two further sites and the
expectation is that these will become operational in the
first half of the next financial year. As indicated at the
interim stage, the Group expects to have a total of eight
Yellow River Cafes operational by the end of the next
financial year.
The Board is delighted to announce that Alan Jackson has
increased his time commitment to the Group and this will
involve him assuming certain executive responsibilities.
This will strengthen the management team at this crucial
point in the Company's development.
21 January 2000
Enquiries:
Oriental Restaurant Group PLC Tel: 0171 929 6868
Hock Ann Chua, Managing Director
Michael Paterson, Finance Director
College Hill Tel: 0171 457 2020
Matthew Smallwood
Justine Warren
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