3rd Jun 2024 13:17
Hostmore PLC - West Sussex, England-based owner of casual dining brand TGI Fridays - Says that in the 20 weeks to May 19, like for like sales were 10% lower compared with the same period last year. Earnings before interest, tax, depreciation and amortisation however "continues to perform ahead of 2023", rising year-on-year by GBP3.3 million. Expects the final two locations of its 63rd+1st cocktail bar and restaurant chain to close by June 30, "improving future Ebitda performance". Also expects net debt to peak this year at the end of the third quarter, "later than typically experienced", based on lower revenue and the timing of around GBP3 million in transaction fee payments related to the proposed takeover of franchisor TGI Fridays Inc, from TriArtisan Capital Advisors LLC and MFP Partners LP, announced in mid-April. Deal has an enterprise value of GBP177 million and will give Hostmore shareholders a 36% stake in the combined unit, with current shareholders in TGI Fridays holding the remainder. Company notes that its existing net debt is expected to be repaid upon or shortly after completion. Also says the combined group's refinancing process "has received interest from numerous lenders and is currently under exclusivity with one party to agree a package", and the deal remains on schedule to reach binding terms and close before the end of the third quarter. Read More
