New openings boost sales at Restaurant Group

Frankie & Benny's restaurant chain operator, The Restaurant Group said full year profits are expected to be in line with market forecasts of between £59m and £62m.

Turnover for the 52 weeks to 1 January 2012 was up 7.25% from the same period last and like-for-like sales increased 3.25% after the group recorded robust sales growth in November and December 2011.

CEO Andrew Page commented, "We faced challenging trading conditions in 2011 but, despite this, revenues were up by 7.25% and like-for-like sales were 3.25% higher. Our profits for 2011 were well ahead of those for the previous year and cash flow was also very strong."

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Restaurant Group opened 25 new restaurants in 2011. Trading at these sites have been above company expectations and are set to deliver strong returns, the group said. It is targeting 25-30 new openings in 2012 throughout the UK, which should create around 600 new jobs.

The company said it continues to be highly cash generative and net debt at the end of 2011 was well below the level at the end of 2010.

Restaurant, which concluded a refinancing exercise in October, now has a five-year, £140m revolving credit facility in place.

"This provides the group with enhanced flexibility to accelerate the rollout of new restaurants once economic conditions improve and new property development activity restarts, and to ensure that the capital structure is sensibly and prudently positioned to enable the group to continue to grow earnings, dividends and shareholder value," it said.

Looking ahead Restaurant said while its expects challenging economic conditions to continue, it will remain focused on delivering further profitable progress in 2012.

cj