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
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