9th Jan 2015 07:00
9 January 2015
The Restaurant Group Plc
Post Close Update and Christmas trading
The Group is pleased to provide an update on the 2014 full year trading outturn. For the 52 weeks ending 28 December, total turnover was up 9.6% on the prior year, and like-for-like sales increased by 2.8%. Christmas trading was strong with like-for-like sales growth of 5% over the 2 week holiday period to 4th January.
During 2014 we opened a total of 40 new restaurants, compared to 35 in the previous year. We are very pleased with how these are trading and they are set to deliver strong returns. Since 2009 we have increased the number of openings each year and we expect to do so again in 2015. We have excellent visibility on the composition of this opening programme and anticipate opening between 42 and 50 new restaurants during 2015.
The Group's full year results will be announced at the end of February, and 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 noted at the time of the November IMS.
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. Following 2014, which has been the weakest year for cinema admissions for many years, 2015 and 2016 are expected to show significant growth as a result of much stronger film release schedules. After 5 years of decline, we are now starting to see increasing real incomes, a trend which is expected to become more strongly established during the course of 2015.
These factors are all clearly positive for the future prospects of the Group and underpin our confidence in delivering further profitable progress in 2015 and subsequent years.
Enquiries:
| The Restaurant Group | |
Danny Breithaupt, Chief Executive Officer | 020 3117 5001 |
Stephen Critoph, Chief Financial Officer
| |
| Instinctif Partners | |
Matthew Smallwood | 020 7457 2020 |
Notes:
1. Based on latest Bloomberg data, the range of external forecasts for profit before tax for 2014 is from £77.5m to £80.9m.
2. Nothing in this announcement should be construed as a profit forecast.
End
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