LFL growth returns at Restaurant Group

3rd Mar 2010 08:21

Frankie & Benny’s eateries owner The Restaurant Group said like for like (LFL) sales returned to growth in the latter stages of 2009.‘The current year has started well - after nine weeks, revenues are 6% ahead of last year and like-for-like sales are up 1%,’ said chief executive Andrew Page, in a statement accompanying 2009 results.Total sales in 2009 rose 4.6% to £435.7m from £416.5m in 2008, with the company serving 35m meals. Like for like sales were down 2% on 2008.Profit before tax improved to £48.33m from £47.13m the year before. The Frankie & Benny’s and Garfunkels chains had good years, particularly the latter, but profits from Chiquito were down a little from 2008 levels. The pub restaurant division had a good year, with a strong performance from pubs in the north west of England compensating for a more variable performance from pubs in the south east of the country. Net debt was reduced by £12.2m to £66.7m during the course of the year even as the group continued with its roll-out programme. Nineteen new sites opened in 2009 and the group expects to open between 15 and 25 new restaurants in 2010.In order to allow higher rate tax payers avoid paying extra tax on their dividend income the company is rushing through a second interim dividend in lieu of a final dividend before the new tax rules come into effect.The second interim dividend of 6.3p will be paid on 30 March and is at the same level as 2008’s final dividend. The interim dividend takes the full year dividend to 8p, up from 7.7p in 2008.