Restaurant Group PLC Further Covid-19 update (0908J)
December 18 2020 - 2:00AM
UK Regulatory
TIDMRTN
RNS Number : 0908J
Restaurant Group PLC
18 December 2020
The Restaurant Group plc
Further Covid-19 update
The Restaurant Group plc ("Group" or "TRG") today provides a
further update on the evolving impact of Covid-19 and the
associated government restrictions on the Group.
Impact of November national lockdown
Through a range of decisive management actions, cash-burn during
the November national lockdown was minimised to c. GBP5.5m for the
month. This is GBP2.0m higher than during the first lockdown due to
rents payable under the terms of the Leisure CVA[1] as well as
employer contributions towards furlough payments. Additionally the
working capital outflow and increased cash exceptional costs as a
consequence of the November lockdown totalled GBP15m.
Number of sites classified under current tier restrictions
The Group notes the recent announcement by the UK government on
the latest tiering restrictions, which come into effect on 19
December 2020. Following on from earlier announcements by the
English, Scottish and Welsh governments over recent months, the
Group anticipates further significant disruption on trading whilst
these restrictions remain in place.
As per the latest tiering restrictions announced by the UK
government, The Group will have approximately 145 sites which will
trade for dine-in across the UK , 142 sites which will provide
delivery and takeaway services only, with the remaining 103 sites
closed. This is significantly worse than when the initial tiering
restrictions came into effect, as illustrated in the table
below:
Region Tiering as at Tiering as at Tiering as at
14(th) October 2(nd) December 19(th) December
2020 2020 2020
England Tier 1 228 0 1
---------------------- ---------------------- -----------------------
England Tier 2 73 202 100
---------------------- ---------------------- -----------------------
England Tier 3 8 80 142
---------------------- ---------------------- -----------------------
Scotland 27 27 27
---------------------- ---------------------- -----------------------
Wales 17 17 17
---------------------- ---------------------- -----------------------
Northern Ireland 2 2 2
---------------------- ---------------------- -----------------------
Currently closed* 37 64 103
---------------------- ---------------------- -----------------------
*Relates to sites where due to restrictions trading would be
uneconomical
Clearly the mix of locations impacted across the tiers will
continue to evolve, but if UK tiering allocations were to remain
the same as currently in place throughout the first quarter of
2021, this will have a significant adverse impact on the Group, and
indeed the wider hospitality sector.
Whilst the tiering restrictions make the outlook for the first
quarter of 2021 extremely challenging, the Board is encouraged by
the welcome news of the Covid-19 vaccine being rolled out in the
first half of next year. The Board believes the Group is well
positioned to benefit from a sustained removal of restrictions
given its previous strong trading performance following the first
lockdown. We therefore expect a strong recovery when there is a
return to more normal levels of customer activity. The timing of
that will depend primarily on government restrictions being
eased.
[1] Relating primarily to the Frankie and Benny's brand
Enquiries:
The Restaurant Group plc
Andy Hornby, Chief Executive
Officer
Kirk Davis, Chief Financial
Officer
Umer Usman, Investor Relations 0203 117 5001
MHP Communications (Financial
PR adviser)
Oliver Hughes / Simon Hockridge 0203 128 8742
Notes
1. The 2020 Financial Year will be a 52 week period ending 27 December 2020
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDFFIEEWESSESE
(END) Dow Jones Newswires
December 18, 2020 02:00 ET (07:00 GMT)
Restaurant (LSE:RTN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Restaurant (LSE:RTN)
Historical Stock Chart
From Apr 2023 to Apr 2024