16th Nov 2021 09:21
(Alliance News) - Restaurant Group PLC on Tuesday raised its earnings guidance for 2021 due to improved airport passenger volumes and a "robust" trading performance.
Shares were up 16% at 92.20 pence on Tuesday morning in London.
The London-based owner of casual dining chains Frankie & Benny's and Wagamama said there has been a "minor improvement" in UK airport passenger volumes, which led to a partial recovery in sales run rates for its Concession business.
Restaurant Group stated that it now expects earnings before interest, tax, depreciation and amortization to be between GBP73 million and GBP79 million.
This would be multiplied from adjusted Ebitda of GBP8.7 million reported for 2020 but still at least 70% less than the GBP136.7 million booked in 2019. Adjusted Ebitda in the half year that ended July 4 was GBP11.2 million, swung from an adjust Ebitda loss of GBP18.3 million a year before.
The company noted that its guidance is subject to no unexpected Covid-related interruptions.
Year-end net debt for 2021 is now expected to be less than GBP190 million on an international accounting standards 17 basis. Restaurant Group attributed this to an "improved position" due to its "robust" trading performance. It was GBP200.3 million at the half-year stage.
The company said its expectations for 2022 remain unchanged. Its next trading update will be full-year results in March.
By Abby Amoakuh; [email protected]
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