The Restaurant Group has revealed it has burned through £5.5m in cash per month during the ongoing national lockdown, adding that the cash burn rate is expected to stay at this level until the end of the current restrictions for hospitality businesses.
Nonetheless, it has since secured £500m in new long-term debt facilities to navigate its recovery through the crisis.
The new funding comprises a £380m Term Loan Facility, as well as a £120m Super Senior Revolving Credit Facility.
According to the group, the financing will provide it with enhanced liquidity and long-term financing, with the maturities of the Term Loan and the RCF being in 2026 and 2025, respectively.
Following the utilisation of the funding and repayment of existing facilities, the group’s financing arrangements are set to be simplified, as the group will be consolidated into one finance group at the TRG level, to provide a “more efficient” funding structure to support its strategic initiatives.
In its latest trading update, the group added that net debt as at the year-end is expected to be approximately £340m, in line with its expectations.
Additionally, it noted that the working capital outflow post year-end as a consequence of the January national lockdown totalled £40m due to the unwind of supplier creditor positions.
Nonetheless, the group currently has around 200 sites trading for delivery and takeaway across its Wagamama and leisure businesses, and notes that the trading performance of those sites has been “very encouraging”.
It added that the average standalone delivery and takeaway sales in Wagamama and Leisure are at approximately 2.5x and 5.0x pre-Covid-19 levels respectively during the current national lockdown.
The Restaurant Group said: “With this strong operating platform in place, the group has good capability to deliver an accelerated reopening plan for dine-in trading, once the current restrictions for hospitality businesses end, with all viable sites being reopened within two weeks.”