The Restaurant Group 2017 Interim Results

31/08/2017 - 11:06
According to latest figures from The Restaurant Group, it is currently trading in line with expectations – with year like-for-like sales down 2.5% for the 34 weeks to 27 August, and a free cash flow of £35.1 million compared to £35.8 million in 2016.

The interim results - reflecting the statutory 26-week period in 2017 versus the statutory 27-week period in 2016 – also show that the company is making “good” progress on its strategic initiatives set out in March, including re-establishing the competitiveness of its leisure brands; 
serving customers better and more efficiently; 
growing its pubs and concessions businesses; and building a “leaner, faster and more focused” organisation. 

Andy McCue, chief executive officer, said: 
"We have made good progress against our strategic initiatives outlined in March. Our Leisure customers are enjoying a better value, higher quality product; our growth plans for our Pubs and Concessions businesses are advancing well and we have made good progress in delivering cost efficiencies.

“I’ve been impressed with our colleagues’ receptiveness to change and thank them for their contribution to stabilising the business." 

Brands affected by the group’s changes include its 258 Frankie and Benny restaurants, whose value credentials and food offering underwent significant change; 83 Chiquito venues also saw big menu changes and its struggling Coast to Coast American eatery brand is currently being considered for redevelopment as new proposition, Firejacks – specialising in flame-grill steaks and burgers.

Other financial highlights for The Restaurant Group are:

  • Like-for-like sales down 2.2% 

  • Total sales down 1.9% on a 26 week comparable basis; down 7.1% on a statutory basis 

  • Adjusted profit before tax of £25.5m (2016: £36.6m). Statutory profit before tax of £2.8m 
(2016: loss of £22.5m) 

  • Exceptional charge of £22.7m (2016: £59.1m) 

  • Adjusted EBITDA of £44.3m (2016: £59.6m) 

  • Adjusted EPS of 10.0p (2016: 14.3p). Statutory EPS of 0.6p (2016: loss per share 11.2p) 

  • Continued strong free cash flow of £35.1m (2016: £35.8m) 

  • Net bank debt of £19.3m (2016: £35.6m) 

  • Interim dividend maintained at 6.8p per share, reflecting the board’s confidence in the plan 

  • Trading in line with expectations; we continue to expect to deliver an adjusted PBT 
outcome for the full-year in line with current market expectations 

To view the full report online, visit:

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