AGM Statement/IMS
The Restaurant Group plc
('the Group' or 'TRG')
AGM Statement
At the AGM of The Restaurant Group plc ('TRG' or 'the Group'), to be held later today, Alan Jackson, Chairman, will make the following statement, which comprises the Group's Interim Management Statement as required by the FSA's Disclosure and Transparency Rules:
Current trading
Against continuing difficult market conditions the Group has traded reasonably well for the first 18 weeks of 2009. We provided an update on 4 March 2009, after nine weeks trading, at which point Group like-for-like sales were 2.5% below the previous year and after 18 weeks like-for-like sales are 3% below last year.
The pattern of trade in our Leisure division has been reasonably stable for the first four months of the year. However, as anticipated our Concessions division has been impacted by the significant decline in passenger numbers at many of our airport locations and this has affected revenues in that division.
Overall, the Group's margins and profits are running at a level in line with management's expectations. We have opened six new units to date during 2009 and these are all trading well. We expect to open 15-20 new units during 2009.
Balance sheet and financial position
The Group's balance sheet remains strong with no significant changes in the net debt position since the year-end. Subject to approval at the AGM, the final dividend in respect of the year ended 28 December 2008 of 6.3p per share (making the full year dividend 7.70p per share) will be paid on 8 July 2009 to shareholders on the Register on 12 June 2009 - this represents a 6% increase on the previous full year's dividend.
Outlook
The UK economic backdrop remains difficult and consumer confidence is not being helped by rising unemployment levels. However, for the vast majority of people who remain in work, lower interest rates and lower fuel and other costs are a positive. Overall we believe that conditions for consumer-facing businesses will continue to be challenging for some time.
The Group's focus is directed towards delivering good value and hospitality to our customers with the objective of driving consistent returns and cashflows from our existing business. We are seeing strong performances from recently opened restaurants and will continue with our strategy of rolling-out the Group's brands on a carefully targeted basis. TRG's resilient market positioning, strong brands and professional and motivated teams will continue to benefit the Company during these demanding economic times.
6 May 2009
ENQUIRIES:
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The Restaurant Group plc |
Tel: 0845 612 5001 |
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Andrew Page, Chief Executive Officer |
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Stephen Critoph, Group Finance Director |
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College Hill |
Tel: 020 7457 2020 |
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Matthew Smallwood |
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Notes for Editors:
1. The Restaurant Group plc operates approximately 350 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.
This information is provided by RNS
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