9th Jan 2015 07:16
LONDON (Alliance News) - The Restaurant Group PLC on Friday said it full-year results will show "material growth" in both earnings and cash flow, boosted by revenue growth and new restaurant openings.
The owner of the chains Frankie & Benny's, Chiquito, Coast to Coast and Garfunkel's also gave a confident outlook for the current financial year.
Restaurant Group said revenue grew by 9.6% in the financial year ended December 28, 2014. Like-for-like sales rose 2.8% over the year, while the restaurant group ended the year strong, with like-for-like sales growth of 5% over the two-week Christmas trading period to January 4.
"The group's full year results...are expected to be within the range of market forecasts. The results will show material growth in both earnings and cash flow versus the prior year, notwithstanding the cost issues," the company said in a statement.
Analysts are expecting the group to report a pretax profit of between GBP77.5 million and GBP80.9 million for the 2014 financial year.
Restaurant Group said growth was supported by 50 new restaurant openings during 2014, higher than the 35 sites it opened the year before. It said those new site openings are trading well and set to deliver strong returns. The group said it pans to open even more restaurant this year.
"We have excellent visibility on the composition of this opening programme and anticipate opening between 42 and 50 new restaurants during 2015," it said.
The group gave a confident outlook for 2015, stating that it was confident in delivering further profitable growth.
"The outlook for 2015 and beyond is very positive with growth in disposable consumer incomes, an increasing number of new site openings, and a considerably improved outlook for UK Cinema performance," it said.
The group said it will announce its full-year results at the end of February.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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