The Restaurant Group posts £5.4m earnings drop after summer hits business
The RestaurantGroup has posted losses across the board in its H1 results to 1 July, including a £5.4m drop in EBITDA.
The Restaurant Group (TRG) reported its like-for-like sales had fallen by 3.7% in the 26 week period, while total sales dropped by 2.1% to £326.1m. The group's EBITDA fell from £25.5m last year to £20.1m.
The losses include exceptional costs of £7.6m which were attributed to property write-downs and problematic leases.
However, due to the momentum of trade in the last six weeks of the period following the World Cup, which saw many in the restaurant sector struggle to compete with pubs and bars, the company believes it will end the year with an adjusted result "broadly in line with market expectations".
However in a bid to diversify their offering, TRG is set to announce the purchase of the Food and Fuel chain in a £15m in what one source told Sky News reflected the company's "cautious optimism" regarding the future. The brand operates from 60 sites.
The TRG portfolio includes Garfunkel's, Frankie & Benny's, Chiquito and Brunning & Price.
Like-for-like sales in the six weeks up to 26 August grew by 2.4% despite the hot weather continuing.
CEO Andy McCue said: "Over the past six months we have delivered against our strategy, creating a more competitive and balanced business, more closely aligned to the growth segments of our market."
He added: "The turnaround of our Leisure division continues to plan and shows further progress."
