Interim Management Statement

RNS Number : 6670C

Restaurant Group PLC

18 November 2009

 



The Restaurant Group plc

18 November 2009

Interim Management Statement for the 46 weeks to 15 November 2009

The Restaurant Group ("TRG") provides below an update on current trading for the 46 weeks to 15 November 2009 with a commentary on the outlook for the remainder of the financial year and 2010. 

Current trading

TRG has continued to trade in line with our expectations during the first 46 weeks of 2009, with like-for-like sales currently 3% below the comparable period for 2008.  Total turnover is 4% ahead of the comparable period. The continued difficult economic background, which has resulted in increasing levels of unemployment and tight credit markets combined with high levels of household debt has made 2009 a very challenging year for consumer-facing businesses. Against this challenging background, we are pleased that our value-for-money offerings and high standards of hospitality and service have enabled TRG to trade well.  As previously reported, the Group has eschewed the deep discounting that has been prevalent in our sector and this has enabled TRG to continue to secure good margin and profit performance.

New openings

We have opened 17 new restaurants so far this year. The overall performance of these new openings has been excellent and they are set to deliver good returns. We expect to open between 18 and 20 new restaurants in 2009. 

Whilst we have not, as yet, seen a significant level of planned new development activity in the property market for 2010 and 2011, we continue to focus our attention on securing sites which will make significant returns. Next year we expect to open between 15 and 20 restaurants.

Balance sheet

Our balance sheet position remains solid and we anticipate a meaningful reduction in our year end net debt position in comparison to December 2008. Our banking facilities which total £120m are not due for renewal until December 2012 and we are operating well within our two banking covenants.

Other events

Since 28 June 2009 The Restaurant Group plc Employee Benefit Trust has acquired 1,268,000 shares in the Company at an average price of 190.53p per share.

Outlook

The Group has continued to trade resiliently and we are confident of meeting our expectations for the full year.  

Looking forward to 2010, we expect conditions to remain tough for our sector with pressures on consumer spending, including tax rises, fuel price increases and the threat of higher unemployment levels. However, we believe 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 enable the Group to continue its profitable development. 

Enquiries:

The Restaurant Group
Andrew Page, Chief Executive
Stephen Critoph, Group Finance Director	0845 612 5001
College Hill
Matthew Smallwood	020 7457 2020

Notes to editors:

1.	The Restaurant Group plc operates around 365 restaurants and pub restaurants predominantly in leisure locations and airports. Its primary offerings are Frankie and Benny's, Chiquito, Garfunkel's, Blubeckers and Brunning & Price.
2.	This statement is based on information sourced from management accounts.
3.	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.
4.	The next trading update is expected to be released in January 2010.

 

END

 

 

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