9th Apr 2020 10:47
(Alliance News) - Wagamama owner Restaurant Group PLC on Thursday said it raised GBP57 million through a share placing.
The pub and restaurant chain operator on Wednesday said it was launching a fundraise to ensure "sufficient liquidity" as trading comes under pressure by the Covid-19 outbreak.
The company said 98.2 million shares were placed at 58.00 pence each.
The stock was trading 0.2%% higher at 60.00p each in London on Thursday morning.
Venues like restaurants and pubs have been forced to close in the UK, due to lockdown measures made to halt the spread of the deadly virus.
Restuarant Group said on Wednesday that it believes footfall in its venues will recover slowly throughout the rest of 2020 following the lifting of lockdown restrictions. It predicts that group sales will decline by around 50%, with like-for-like sales expected to fall by about 45%.
It added that it has implemented cash saving measures like reducing capital expenditure to no more than GBP30 million for the year, taking advantage of the government furlough scheme and placing Food & Fuel and Chiquito into administration.
By Eric Cunha; [email protected]
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