(Alliance News) - Restaurant Group PLC on Wednesday reported that it swung to an interim profit, as it increased its outlook for adjusted earnings before interest, tax, depreciation and amortisation.
The operator of around 400 restaurants and pub restaurants across the UK, including Wagamama, said in the half-year to July 2, it swung to a pretax profit of GBP2.3 million from a loss of GBP28.5 million a year prior. Revenue rose 10% to GBP467.4 million from GBP423.4 million.
Looking ahead, the company for the current financial year expects costs to be in line with previous expectations, and medium-term costs to improve. Further, "The trading performance supports a moderate increase in management's FY23 adjusted Ebitda expectations," it said.
It added: "We now expect that passenger volumes will recover to 2019 levels in 2024, which is a year earlier than originally expected. This is a significant milestone for the industry and TRG. It is reassuring that the recovery in passenger volumes has been consistent across the country, with London, regional and Scottish airports all performing well versus 2019 sales levels."
The firm's last financial year ended on January 1, 2023.
Chief Executive Officer Andy Hornby said: "We are making excellent progress on our medium-term plan and the board continues to actively explore strategic options to further accelerate margin accretion and deleveraging."
Restaurant Group shares fell 4.8% to 41.60 pence each on Wednesday afternoon in London.
By Tom Budszus, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
