LONDON (Alliance News) - Restaurant operator Richoux Group PLC said Wednesday it expects interim revenue to be in line with the year prior but for losses to be reduced amid tough markets.
Richoux - which owns 18 restaurants under the Richoux, Villagio, Friendly Phil's, Zintino and Broadwick brands - explained that in line with its previous guidance and a "number of other companies in the sector" it was continuing to see pressure on its business.
This tough market has been compounded by temporary restaurant closures due to conversion and refurbishment.
Despite this, revenue for the six months ended July 1 is expected to be flat on that of the year prior. Losses, however, are expected to reduce.
For the first six months of financial 2017, Richoux reported a pretax loss of GBP1.1 million on revenue of GBP5.6 million.
"In view of these continued headwinds, the group has remained focused on cost reduction and, where necessary, refinement of both its brand and property portfolio," the firm explained in a statement.
As part of this, Richoux is is negotiations to enter into a sale-and-leaseback of one of its restaurant properties in central London. Such a sale is expected to generated net proceeds of around GBP1.4 million should it close.
Richoux added it was looking to raise GBP1.1 million through a share subscription. The subscription will be priced at 6.0 pence per share with further details to be provided later on Wednesday. The firm is making the subscription in light of its "current cash position" which currently stands at just GBP900,000.
Shares in Richoux were untraded at 7.00 pence on Wednesday.
