Tragus Group, one of the UK’s largest restaurant chain operators, announced its year end results for the twelve months to 27 May 2012 and commented that the outlook for consumer spending remains challenging in the medium term. Whilst customers continue to face pressures on their discretionary spending, their research indicates that eating out is, and will continue, to be a lifestyle choice, and Tragus continues to see considerable potential in its brands.
Financial & Operational Highlights
- Turnover up £8.8m to £286.3m (£277.4m in 2011)
- EBITDA of £40.2m (£41.2m in 2011)
- Overall like for like sales declined 0.9% due to a challenging consumer environment
- Highly cash generative with net cash flow from operations of £36.8m and available liquidity
of £50.4m
- Capital investment of £18.4m during the year for new openings and refurbishments
- Cash at bank and in hand at year end of £35.4m
- Appropriate banking facilities in place until at least 2015
Strategic Highlights and current activity
- Opened 15 new sites across the three key brands (five Café Rouge, four Bella Italia, five Strada and one Oriel) and plans for around 10 new sites in the current financial year
- This included the first airport sites for Strada and Oriel, in the recently refurbished Heathrow Terminal 3
- Significant investment planned in the development and refresh of the Café Rouge brand
- Continued investment in people, sites, digital offer and great customer service
John Derkach, Tragus Chief Executive Officer, commented:
“Despite the difficult economic environment, customers continue to want to dine out both as a lifestyle decision and attracted by the value for money offerings in the casual dining sector.
“We are on track to open 10 new restaurants during the current year and see considerable potential in the UK of our much loved brands: Café Rouge, Strada and Bella Italia. The casual dining sector continues to have excellent medium to long term growth potential and Tragus is well placed to take advantage of the opportunities.”
About Tragus Group
Tragus Group is one of the largest casual dining restaurant chain operators in the UK, with 299 sites across the country serving over 21 million meals every year. Tragus operates primarily under the Café Rouge, Bella Italia and Strada formats in the UK.
For more information click here
Café Rouge (126 sites), www.caferouge.co.uk
Café Rouge is the UK’s only established national French restaurant brand, with sites designed to provide the look and feel of a classic Parisian bistro and a menu that includes steak frites, moules and tarte tatin. Café Rouge is predominantly a high street brand but it also operates successfully within a retail and concessionary environment.
Strada (72 sites), www.strada.co.uk,
Strada is a group of contemporary Italian restaurants located on the high street serving good quality, simple, freshly prepared dishes using the finest seasonal produce. The menu offers hand stretched pizzas, pastas, risotto and grilled meat and fish dishes.
Bella Italia (88 sites), www.bellaitalia.co.uk
Bella Italia is an all-day Italian trattoria with a rustic ambience. Its restaurants are in prime locations predominantly on the high street but it also operates from leisure park sites. In addition to classic pizzas and pasta its broad menu also includes a range of grill main courses, sandwiches and salads.
Brasseries (13 sites)
Tragus also operates 13 Brasseries under the brands Huxleys, Belgo, Amalfi, Oriel, Potters and Ortega. Tragus operates in 16 concession locations under the Café Rouge, Strada, Bella Italia, Huxleys, Oriel and Ortega brands including at Heathrow and Gatwick airports, Center Parcs and Euston train station.