15th May 2014 09:47
LONDON (Alliance News) - The Restaurant Group PLC Thursday said trading in the first 19 weeks of its new financial year has been strong, with total sales up 11%, boosted by new restaurant openings.
During the period, the company which operates under brands including Frankie & Benny's, Chiquito, Coast to Coast and Garfunkel's, said it opened 15 new restaurants, which are trading well and are set to deliver good returns, it said.
Restaurant Group said it plans to open between 36 and 43 new restaurants in the current financial year, of which it said half would be Frankie & Benny's.
"The group is trading in line with expectations, and we are on track to report a very satisfactory first-half performance, the company said in a statement ahead of its annual general meeting Thursday.
Last month, the group announced that it is selling part of its interest in the Living Ventures Group, following the sale of the Italian restaurant and bar business Gusto, to a new company backed by Palatine Private Equity LLP and the LVG management.
It said it will receive cash proceeds of GBP7 million from the disposal, and the net proceeds will be distributed through a special dividend of 3.45 pence per share.
Living Ventures operates UK restaurants and bars, including brands Blackhouse, Artisan and Manchester House.
The Restaurant Group said its only remaining interest in Living Ventures Group will be a GBP4 million loan note in the Blackhouse Grill Group.
Restaurant Group shares were trading down 0.7% at 619.00 pence per share early Thursday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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