(Alliance News) - Restaurant Group PLC on Friday said full-year profit will be in the top end of its previous guidance range, but the dining chain operator remains cautious over Covid restrictions.
Restaurant Group had originally expected adjusted earnings before interest, tax, depreciation and amortisation in a range of GBP73 to GBP79 million for 2021 and a net debt of less than GBP190 million.
The London-based pub and restaurant owner, which owns brands such as Wagamama and Frankie & Benny's, now expects that its 2021 adjusted Ebitda will be at the top end of the range and year-end net debt will be less than GBP180 million.
The company cited good cost control and continued strong trading relative to the market for the improved expectations.
Restaurant Group explained that like-for-like sales in its leisure, pubs, and concessions sectors had taken a hit in December. These were all down in comparison to the same period in 2019, though its leisure and pub sectors were up in October and November.
The company continued that though it is encouraged with the recent UK government announcement that all 'plan B' restrictions will be lifted next week, it expects consumer confidence may take longer to recover.
It added that it was also mindful that the recovery in air passenger volumes remains dependant on the timing of changes to both UK and international restrictions.
Shares in Restaurant Group were up 1.1% at 101.06 pence on Friday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
