18th Dec 2020 09:18
(Alliance News) - Restaurant Group PLC on Friday said the UK's tiering restrictions makes the outlook for the first quarter of 2021 "extremely challenging", though it is encouraged by progress in a rolling out a Covid-19 vaccine.
The casual dining chain owner of Frankie & Benny's and Wagamama said cashburn during the November lockdown in England was minimised to GBP5.5 million for the month. This was GBP2.0 million higher per month than during the first UK lockdown due to rents payable under the terms of the leisure credit value adjustment, as well as employer contributions towards UK government furlough payments.
"As per the latest tiering restrictions announced by the UK government, the group will have approximately 145 sites which will trade for dine-in across the UK, 142 sites which will provide delivery and takeaway services only, with the remaining 103 sites closed," said Restaurant Group.
Additionally, its working capital outflow and increased cash exceptional costs totalled GBP15 million as a result of the November lockdown.
Looking ahead, Restaurant Group said the tiering restrictions make the outlook for the first quarter of 2021 seem "extremely challenging", and will have a "significant adverse impact" on the group and the wider hospitality sector if they remain in place throughout the period. Despite this, it is encouraged by progress made in terms of the Covid-19 vaccine.
"The board believes the group is well positioned to benefit from a sustained removal of restrictions given its previous strong trading performance following the first lockdown. We therefore expect a strong recovery when there is a return to more normal levels of customer activity," Restaurant Group said.
Shares in Restaurant Group were down 4.6% at 64.23 pence in London on Friday.
By Zoe Wickens; [email protected]
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