Interim Management Statement for the 43 weeks to 28 October 2012
The Restaurant Group (TRG) has updated on trading for the 43 weeks to 28 October 2012 together with a commentary on the outlook for the remainder of the financial year (52 weeks to 30 December 2012):
Current trading
TRG has continued to make good progress and, after 43 weeks trade in 2012, total sales are 8.25% ahead of the comparable period in 2011 and like-for-like sales are 3.5% ahead.
16 new sites have been opened in 2012 to date. These openings are performing well and are set to deliver strong returns. A second Coast to Coast restaurant at The Gate in Newcastle opened in August and two weeks ago a third Coast to Coast in Stevenage. All three Coast to Coast restaurants are trading strongly and five Coast to Coast restaurants in total are expected by the end of this year.
Across the Group a total of between 26 and 29 new restaurants are expected to be opened in 2012, with a good pipeline developing for 2013 and beyond.
Balance sheet & financing
The Group’s balance sheet position remains very solid with continuing strong cash generation, which allows the Group to continue to invest in the existing portfolio and top open new restaurants whilst continuing to reduce its net debt.
Outlook
Since the interim announcement at the end of August, the Group has continued to trade strongly, with consistent like-for-like sales growth in both September and October. It remains on track to meet expectations for the full year.
TRG has a distinct market positioning with strong brands and great value-for-money offerings and a superb pipeline of new sites. There is an experienced and highly motivated team and a clear focus on delivering consistently excellent levels of service and hospitality. The team is working to ensure that the Group continues its profitable progress.
TRG operates over 410 restaurants and pub restaurants predominantly in leisure locations and airports. Its principal trading brands are Frankie and Benny’s, Chiquito, Garfunkel’s, a Pub restaurants business as well as over 60 sites in its Concessions division which trades principally on major UK airports.