Columbia Threadneedle Investments, which owns about 19% of TRG, issued the vote of confidence ahead of the upcoming AGM for TRG on 23 May.
It said: “As a long-term shareholder in The Restaurant Group, we remain supportive of TRG’s board and management team, who have successfully navigated the exceptionally tough industry backdrop.
“The board continues to receive our support as they assess the best options to deliver long-term shareholder value.”
Numbers do the talking
TRG’s Pubs division includes Brunning & Price, which is one of its most successful brands, operating about 80 pubs across England and Wales, alongside its other chains of restaurants that include Wagamama and Frankie & Benny’s.
A spokesperson for TRG said: “As you will have seen from last week’s trading update, the market’s reaction and upgrades from the analysts, we will continue to let our numbers do the talking.”
TRG chief executive Andy Hornby added: “We’ve enjoyed a really positive first four months of the year. Wagamama and our Brunning & Price Pubs continue to trade very strongly and it is especially pleasing to see the consistent growth in “dine in” sales with customers clearly enjoying eating out despite the economic backdrop. Our Concessions business is also performing particularly strongly as air travel continues to recover.”
Last month, Irenic, which claims to be a “substantial shareholder” of TRG announced it intended to vote against TRG’s “renumeration policy”.
‘Buy’ shares status
Meanwhile, another shareholder, Oasis Management Company said March there had been “strategic stagnation” by TRG’s board adding it had presided over “one of the worst-performing share prices of any UK leisure company”.
Stockbroker Shore Capital has issued a ‘buy’ status for TRG shares on Wednesday (10 May) after the group’s unscheduled trading update highlighted “continued robust trading, with group like-for-like sales (excluding VAT and Concessions) up approaching 7% in the year to date, comfortably ahead of our full-year estimates (4-5%)”.
It added with incremental cost savings and accelerated exits of underperforming sites, the group is tracking ahead of its three-year margin improvement plans, which it estimates could increase EBITDA (earnings before interest , taxation, depreciation and amortisation) towards £130m.
