Restaurants

The Restaurant Group hit with £115.7m ‘exceptional’ pre-tax charge

The Restaurant Group (TRG) has been hit with a £115.7m ‘exceptional’ pre-tax charge in its interim results for the 26 weeks ended 30 June 2019.

The pre-tax charge predominantly relates to a £100.2m impairment charge and a £10.7m onerous lease provision in its Leisure business, and as a result statutory loss before tax increased to £87.7m during the period.

However, the group reported adjusted EBITDA of £61.4m, compared with £38.4m in 2018, and like-for-like sales were up 4%, with total sales up 58.2% to £515.9m.

Debbie Hewitt, non-executive chairman, said: “We have traded well throughout the first half of the year, delivering 4% like-for-like sales growth, driven by the market outperformance of Wagamama and our Concessions and Pubs businesses.

“Our Leisure business delivered a marginal decline in like-for-like sales despite benefitting from the weaker comparatives following last year’s extreme weather and football World Cup.”

She added: “We continue to focus on improving our brand offerings and delivering the best possible experience to our customers whilst optimising our Leisure business to enhance the overall Group performance.”

CEO Andy Hornby said: “I am delighted to have joined The Restaurant Group in August.  Our three growth businesses of Wagamama, Concessions and Pubs are all out-performing the market and have potential for further growth.

“At the same time, we have an acute focus on optimising our Leisure business, through targeted operational initiatives and disciplined estate management.”

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