12th Jan 2006 07:01
Restaurant Group PLC12 January 2006 The Restaurant Group plc("the Group" or "TRG") Pre-Close Update and Deep Pan Pizza Trading Update The Restaurant Group is pleased to report that it has experienced good secondhalf trading for the 52 weeks to 1 January 2006 with Leisure and Concessionsenjoying strong trading in line with established trends. Christmas trading overthe 5 weeks to 1 January 2006 was strong across the estate. Full year like forlike sales for the Group were +3% and the Group expects to report results inline with management's expectations. The Company opened 32 new restaurants in the year, of which 24 were Leisurebrands and 8 were Concessions. Trading from the newly opened restaurants isencouraging. 52 Week Accounting Period The Group's results will cover the 52 weeks to 1 January 2006 and thepreliminary announcement of results is expected to be made in mid - March. Deep Pan Pizza In November 2004 TRG was granted a warrant that gave the Group an option to takefull control of DPP Restaurants Limited ('DPP'). TRG (through a subsidiary) hasnow acquired full control of DPP for a nominal sum. Originally, when sold by TRGin 2001, DPP had 52 units. Since then, DPP has disposed of 19 units, eight ofwhich have been to TRG. These have subsequently been rebranded into TRG's brandsand have demonstrated exceptional performance with turnover increases that haveaveraged over 100% since conversion. TRG will now assume control over theremaining 33 units. Of these, it is estimated that 15-20 units will be convertedinto TRG's brands the majority of which are expected to be completed during thecurrent year. Six units are currently closed awaiting disposal and theremainder will be reviewed over the next few months to determine their potentialfor conversion. Those deemed unsuitable for conversion will be slated fordisposal. Overall, the acquisition of these sites is anticipated to be earnings neutral inthe current year and the conversions will be additional to our existing openingprogramme of 20 to 30 new units in 2006. Andrew Page, Chief Executive of TRG said: "The Group has traded well during the second half year with a strong performanceduring December. Like for like sales increased by 3% during 2005, a veryencouraging performance against a subdued economic backdrop. Over the past fifteen months we have taken over eight of the poorer performingDPP sites and, following conversion into our brands, the results have beensuperb. Taking full control of DPP gives us access to the better DPP sites, manyof which have excellent potential as TRG branded restaurants." 12 January 2006 Enquiries:The Restaurant Group 020 7747 7750Andrew Page, Chief ExecutiveStephen Critoph, Finance Director College Hill 020 7457 2020Matthew Smallwood This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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