Restaurant Group refinances on sales uplift

The news of the refinancing came as the group, which said that the new facility was secured on the same covenant terms as its previous agreement, reported a 2.75% rise in like-for-like sales for the 44 weeks to 6 November.

The group, which operates over 390 restaurants and pub restaurants, including the Brunning & Price business, said it remained on track to meet its full-year expectations.

The company, which is led by Andrew Page, said that it had continued to make “further good progress despite a tough economic backdrop”, with total sales ahead by 6.5% compared to the same period in 2010.

It said that since its interim announcement at the end of August, it had continued to trade well, “with consistent like-for-like sales growth in both September and October”. It added that November had also started well.

The group has opened 16 new restaurants so far in 2011, and said the performance of these sites had been “excellent” and that they were set to deliver strong returns.

It expects to open a total of between 24 and 26 new restaurants this year and said it continues to focus on securing sites, which will deliver strong returns. It also currently expects to open between 25 and 30 new restaurants in 2012.

The group said its balance sheet position remained solid with continuing strong cash generation and that it anticipated a “meaningful reduction” in its year end net debt position compared to December 2010 and the 2011 half year, after taking into account the increased level of interim dividend payment it made this October.

The company concluded: “Looking forward to 2012, although we expect a continuation of current trading conditions, our team will be working to ensure that the group continues its good progress.