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Restaurant Group reports big reduction in half year loss as businesses outperform

By Alexander Bueso

Date: Wednesday 15 Sep 2021

Restaurant Group reports big reduction in half year loss as businesses outperform

(Sharecast News) - The Restaurant Group reported that all its businesses outperformed the market as the economy reopened.
"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," chief executive officer, Andy Hornby, said.

Indeed, the group saw fit to raise its full-year guidance for earnings before interest, taxes, depreciation and amortisation.

Helped by the reduction in value added tax, over the 15 weeks ending on 29 August, like-for-like sales at Wagamama were ahead by 21% versus the comparable period of 2019.

That was better than the 8% rise seen by peers.

LFL's at its pubs meanwhile grew by 12% against a 2% drop at rivals, LFL's in Leisure were 18% higher versus an 8% rise for the wider market segment.

Comparable sales at its concessions on the other hand were down by 53%, although that too was better than the 74% drop endured by competitors.

Total sales slipped 4.6% from their 2020 level to reach £216.8m.

Nevertheless, the statutory loss before tax reduced from £234.7m one year before to £58.3.

The company also cut its net debt position significantly, from £308.3m to £200.3m, while retaining "substantial" liquidity of £235m at period end.

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