Pre-Close Update etc.

Restaurant Group PLC 12 January 2006 The Restaurant Group plc ('the Group' or 'TRG') Pre-Close Update and Deep Pan Pizza Trading Update The Restaurant Group is pleased to report that it has experienced good second half trading for the 52 weeks to 1 January 2006 with Leisure and Concessions enjoying strong trading in line with established trends. Christmas trading over the 5 weeks to 1 January 2006 was strong across the estate. Full year like for like sales for the Group were +3% and the Group expects to report results in line with management's expectations. The Company opened 32 new restaurants in the year, of which 24 were Leisure brands and 8 were Concessions. Trading from the newly opened restaurants is encouraging. 52 Week Accounting Period The Group's results will cover the 52 weeks to 1 January 2006 and the preliminary announcement of results is expected to be made in mid - March. Deep Pan Pizza In November 2004 TRG was granted a warrant that gave the Group an option to take full control of DPP Restaurants Limited ('DPP'). TRG (through a subsidiary) has now acquired full control of DPP for a nominal sum. Originally, when sold by TRG in 2001, DPP had 52 units. Since then, DPP has disposed of 19 units, eight of which have been to TRG. These have subsequently been rebranded into TRG's brands and have demonstrated exceptional performance with turnover increases that have averaged over 100% since conversion. TRG will now assume control over the remaining 33 units. Of these, it is estimated that 15-20 units will be converted into TRG's brands the majority of which are expected to be completed during the current year. Six units are currently closed awaiting disposal and the remainder will be reviewed over the next few months to determine their potential for conversion. Those deemed unsuitable for conversion will be slated for disposal. Overall, the acquisition of these sites is anticipated to be earnings neutral in the current year and the conversions will be additional to our existing opening programme of 20 to 30 new units in 2006. Andrew Page, Chief Executive of TRG said: 'The Group has traded well during the second half year with a strong performance during December. Like for like sales increased by 3% during 2005, a very encouraging performance against a subdued economic backdrop. Over the past fifteen months we have taken over eight of the poorer performing DPP sites and, following conversion into our brands, the results have been superb. Taking full control of DPP gives us access to the better DPP sites, many of which have excellent potential as TRG branded restaurants.' 12 January 2006 Enquiries: The Restaurant Group 020 7747 7750 Andrew Page, Chief Executive Stephen Critoph, Finance Director College Hill 020 7457 2020 Matthew Smallwood This information is provided by RNS The company news service from the London Stock Exchange
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