The Restaurant Group H1 losses narrow to £58.8m

The Restaurant Group has narrowed its statutory pre-tax profit losses for the six-month period ending 4 July 2021 to £58.8m from £234.7m the previous year.

The group, which owns Wagamama, saw revenues dip to £216.8m from £227.2m in 2020 as a result of the trading restrictions imposed at the beginning of the year.

Since reopening Wagamama’s for dine-in, the group saw “consistently strong trading”, with like-for-like sales growth of 21%, representing a 13% outperformance versus the market.

However, having fully reopened its estate in July, the group said it has been “operationally challenging” given the impact of self-isolations caused by the “pingdemic” coupled with the food and drink supply chain issues.

Meanwhile, during the period, the group completed a £500m refinancing in March 2021 consisting of a £380m term loan expiring in May 2026, and a £120m super senior revolving credit facility expiring in March 2025.

Following the refinancing, the group drew down £330m of the term loan and used the proceeds to repay the Wagamama bond, CLBILS, and RCF debts under the previous facilities.

Andy Hornby, CEO, said: “We have made good progress in the past six months, securing the refinancing and recapitalisation of the Group in the first quarter before focusing our attention on the re-opening of the business and welcoming back dine-in customers as government restrictions eased.

“Whilst there are some well documented sector challenges to navigate in the short-term, particularly around labour availability and supply chain, we believe the Group is well positioned for the long- term.”