Report and Accounts 2010
The Restaurant Group plc
Report and Accounts for 2010, Circular to Shareholders dated 29 March 2011, Form of Proxy for use at the AGM in May 2011.
A copy of the above documents has been submitted to the National Storage Mechanism and will shortly be available for inspection at: www.Hemscott.com/nsm.do. A copy of the above documents has also been posted to shareholders today.
The Annual General Meeting of The Restaurant Group plc will take place on 11 May 2011. The Interim Management Statement will also be made on 11 May 2011.
In accordance with the requirements of Rule 4.1 of the Disclosure and Transparency Rules the appendix to this announcement contains a description of principal risk factors and the Directors' responsibility statement which are extracted from the Annual Report and Accounts which have been distributed to shareholders today.
5 April 2011
Enquiries:
Robert Morgan 020 3117 5001
Company Secretary
College Hill:
Matthew Smallwood 0207 457 2020
Appendix:
The Restaurant Group plc - risk factors
Pages 21 and 22 of the Annual Report and Accounts include the following disclosures:
The Board of Directors regularly identify, monitor and manage potential risks and uncertainties to the Group. The list on the following page sets out what the Directors consider to be the current principal risks and uncertainties, with an overview of the mitigation process for these. This list is not presumed to be exhaustive and is, by its very nature, subject to change.
|
Nature of risk |
Mitigation plans |
|
Strategic / external risks |
|
|
Adverse economic conditions and a decline in consumer confidence and spend in the UK |
Regular monitoring of performance and appropriate action plans |
|
Increased supply of new restaurant concepts into the market |
Concentration on segments offering higher barriers to entry and good growth prospects; regular monitoring of performance and appropriate action plans |
|
Impact of terrorism in key locations (including airports) |
Contingency planning and training; liaison with authorities and landlords in key locations |
|
Possible health pandemic that may cause customers to stay away or prevent restaurants being adequately staffed |
Contingency planning and communication with employees |
|
Lack of new site opportunities, and risks to existing Concession agreements |
Dedicated property department focusing on new site development, strong relationships with Concessions partners |
|
|
|
|
Operational risks |
|
|
Failure to provide customers with brand-standard value for money offerings and service levels |
Training, mystery diner visits, monitoring of customer feedback, internal quality control testing |
|
Major failure of key suppliers to deliver products into restaurants |
Contingency planning for supply chain and suppliers |
|
Damage to our brands' images due to failures in environmental health compliance in the restaurants or from contamination of products |
Training of restaurant and pub teams; detailed health and safety manual; regular internal and external auditing of all sites; auditing of supply chain and suppliers; health and safety incentives and awards |
|
The loss of key personnel or failure to manage succession planning |
Benchmarking of remuneration packages; analysis of staff turnover; performance appraisal and review system to retain existing talent; Long-Term Incentive Plan |
|
|
|
|
Financial risks |
|
|
Increase in prices of key raw materials (including foreign currency fluctuations), wages and overheads and utilities |
Rolling programme of securing longer-term contracts to mitigate short-term pricing fluctuations; energy efficiency programme |
|
Reversion of formerly sold or disposed leases following business failure of new occupiers |
Monitoring of sub-let companies; ongoing relationships with property agents |
|
Failure to meet banking covenants |
Signed facility agreement, monthly monitoring of financial performance against covenant levels; banking relationships; significant levels of headroom against covenants |
|
|
|
|
Compliance risks |
|
|
Increased regulation of the food and beverage industry leading to higher costs |
Monitoring of developments and liaison with external authorities such as the Food Standards Agency and Department of Health |
|
Breakdown in internal controls through fraud or error, major failure of IT systems |
Experienced staff in key roles; segregation of duties; internal and external audit processes; Audit Committee role |
|
Changes to tax regime, including VAT, corporation tax and income tax |
Ongoing monitoring in conjunction with external advisers |
Page 25 of the Annual Report and Accounts includes the following disclosure:
Directors' responsibilities statement
The Directors confirm that to the best of their knowledge:
1) the financial statements, prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the Company and Group; and
2) the Chairman's statement, Chief Executive Officer's review of operations, Group Finance Director's report and report of the Directors include a fair review of the development and performance of the business and the position of the Company and Group, together with a description of the principal risks and uncertainties faced.
The Directors of The Restaurant Group plc at the time of signing the Annual Report and Account on 9 March 2011 were:
Alan Jackson
Andrew Page
Stephen Critoph
Trish Corzine
Tony Hughes
Simon Cloke
-END-
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