Restaurant Group - which operates eateries Frankie & Benny's, Chiquito and Garfunkel's - continues to struggle amidst recessionary conditions. "During the first six months of 2009 we have experienced the toughest trading conditions for several decades," remarked chairman Alan Jackson with the group's half-year figures.
The company reported that like-for-like sales slipped 3.5 per cent in the 34 weeks to 23 August, with the group's pre-tax profit down 9 per cent year-on-year to £20.1m. With double-digit declines in airport passenger numbers at most airports, the group's airport concession business continues to be especially hard-hit. Still, it's not all bad news. The company has repaid £9.9m of its hefty debt pile since the year-end, to give a net debt position of £69m - gearing now stands at 69 per cent. And the half-year dividend was at least maintained at 1.4p - based on Numis' full-year pay-out estimate, the shares yield 4 per cent.
WHEN: 4 June 2009
PRICE: 155p
