Wagamama proprietor The Restaurant Group reviews mediocre interim outcomes
The Restaurant Group has reported lacklustre outcomes for the primary half of the yr with a statutory loss earlier than tax of £58.8m.
Complete gross sales stood at £216.8m, a 4.5 per cent drop in comparison with the identical interval in 2020. The corporate made a modest restoration when it got here to EBITDA which jumped from a lack of £18.2 to a revenue of 11.2m yr on yr, serving to to ease investor woes as earnings climbed from a lack of 11.2p per share to a lack of 4.7p.
Andy Hornby, Chief Government Officer, mentioned the corporate had made “good progress” over the primary half of the yr after securing refinancing and recapitalisation with the group elevating £500m from loans and a senior credit score facility.
He mentioned, “while there are some nicely documented sector challenges to navigate within the short-term, significantly round labour availability and provide chain, we imagine the Group is nicely positioned for the long- time period.”
The primary half of the monetary yr was severely disrupted by restrictions imposed on the hospitality sector, which included solely with the ability to commerce for supply and takeaway in the course of the first 15 weeks.
Since re-opening for dine-in, Wagamama has seen persistently robust buying and selling, with like for like gross sales development of 21% in comparison with 2019, representing a 13% outperformance versus the market.
Journey restrictions in airports proceed to hit the outlet exhausting, nonetheless, with concessions down 53 per cent evaluate to pre-pandemic ranges.
Labour and provide shortages, that are including inflationary value pressures, are presenting an ongoing problem to the sector as an entire and are anticipated to proceed into FY22.
Nonetheless, The Restaurant Group mentioned that its buying and selling efficiency since re-opening helps a rise to its FY21 EBITDA expectations.
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