Restaurant Group PLC AGM Statement (6590Z)
May 25 2021 - 1:00AM
UK Regulatory
TIDMRTN
RNS Number : 6590Z
Restaurant Group PLC
25 May 2021
The Restaurant Group plc
The Restaurant Group plc ("Group") - AGM statement
Current trading
In the financial year to date (20 weeks to 16 May 2021), there
has been significant disruption affecting the Group's ability to
trade as a result of the various government restrictions imposed on
the hospitality sector. Given the unusual trading environment,
there are no meaningful "like-for-like sales" comparisons for the
financial year to date. The Group therefore provides the following
update to show how current trading has evolved as restrictions have
been lifted to date:
Delivery and takeaway performance (six weeks to 11 April
2021)
The Group had approximately 200 sites trading for delivery and
takeaway only across its Wagamama and Leisure businesses prior to
the resumption of "outdoor dining" on April 12(th) . The trading
performance of those sites was very encouraging with average
standalone delivery and takeaway sales in Wagamama and Leisure
tracking at approximately 3.0x and 5.5x pre-Covid-19 levels,
respectively.
Performance since resumption of "outdoor dining" (five weeks to
16 May 2021)
In the five weeks to 16 May, following the easing of
restrictions across the UK we have seen a very encouraging recovery
in sales :
-- Wagamama (for the c.130 sites open in this period) : Sites
traded at c.85% of comparable 2019 sales levels, representing a
c.15% outperformance of the market [1] , reflecting ongoing strong
delivery volumes and good trading from outdoor space in many
locations
-- Pubs (for the c.75 sites open in this period): Sites traded
at c.85% of comparable 2019 sales levels, representing a c.15%
outperformance of the market [2] , benefitting from significant
outdoor space and investments in stretch tents and marquees
-- Leisure (for the c.110 sites open in this period): Sites
traded at c.60% of comparable 2019 sales levels, in line with our
expectations, reflecting a continuation of strong delivery volumes
and limited number of outdoor covers
Performance of sites in Scotland since resumption of "indoor
dining" (3 weeks to 16 May 2021) has been strong:
-- Wagamama (for the 7 sites open) : Sites traded at 22% ahead of comparable 2019 sales levels
-- Leisure (for the 16 sites open) : Sites traded at 21% ahead of comparable 2019 sales levels
Resumption of "indoor dining" in the UK (17 May 2021)
The Group currently has approximately 350 sites open across its
Wagamama, Pubs and Leisure businesses, representing 95% of their
respective combined estates. The Concessions business currently
only has four sites trading, given restrictions regarding
international travel.
The Board has been very encouraged by the trading performance
seen so far in 2021. While the environment for the remainder of the
year continues to remain uncertain, the Group is well positioned
across its diversified brand portfolio to benefit from the
sustained removal of government restrictions.
Completion of long-term debt refinancing
The Group completed its previously announced refinancing and has
GBP450 million of new debt facilities having drawn down GBP330
million of the Term Loan Facility on 17 May 2021 and access to a
GBP120 million Super Senior Revolving Credit Facility. The P&L
interest cost for FY2021 is expected to be c.GBP25m, including
c.GBP3m of non-cash fee amortisation. The Term Loan provides
flexibility allowing the Group to prepay a significant proportion
of the loan without penalty in the 18 months following initial
drawdown.
The Group currently has in excess of GBP200m of cash headroom[3]
on its debt facilities, providing significant liquidity headroom to
protect against a resurgence / new variant of Covid-19 as well as
strengthened flexibility to capitalise on selective site expansion
in its Wagamama and Pubs businesses.
Enquiries:
The Restaurant Group plc Tel: +44(0) 203 117
Andy Hornby, Chief Executive Officer 5001
Kirk Davis, Chief Financial Officer
Umer Usman, Investor Relations
Tel: +44(0) 203 128
MHP Communications (Financial PR 8742
adviser)
Oliver Hughes / Simon Hockridge
Notes:
1. As at 17 May 2021, The Restaurant Group plc operated
approximately 400 restaurants and pub restaurants throughout the
UK. Its principal trading brands are Wagamama, Frankie &
Benny's and Brunning & Price. It also operates a multi-brand
Concessions business which trades principally in UK airports. In
addition the Wagamama business has a 20% stake in a JV operating
six Wagamama restaurants in the US and over 50 franchise
restaurants operating across a number of territories.
2. Statements made in this announcement that look forward in
time or that express management's beliefs, expectations or
estimates regarding future occurrences are "forward-looking
statements" within the meaning of the United States federal
securities laws. These forward-looking statements reflect the
Group's current expectations concerning future events and actual
results may differ materially from current expectations or
historical results.
3. The Group's next trading update is expected to be the interim
results announcement in mid-September 2021.
[1] Coffer peach restaurant tracker
[2] Coffer peach pub restaurant tracker
[3] Subject to minimum liquidity covenant of GBP40m
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END
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