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Final results for the 52 weeks ended 31 December 2017


Strategic highlights


· Proposition enhancements in Frankie & Benny's are driving improving volume momentum

· Good progress across other Leisure brands

· Pubs business continues to outperform the market and pipeline of new opportunities further strengthened

· Concessions business expanding into new infrastructure hubs, and with relevant new brands

· Cost reduction programme of £10m delivered ahead of plan, enabling reinvestment in Leisure business

· Enhanced senior leadership team in place

Financial highlights


· Like-for-like sales down 3.0%

· Total sales down 1.8% on a 52 week comparable basis; down 4.4% on a statutory basis

· Adjusted1 profit before tax of £56.7m (2016: £77.1m). Statutory profit before tax of £43.6m (20162: loss of £49.3m)

· Exceptional pre-tax charge of £13.2m (20162: £126.5m)

· Adjusted1 EBITDA of £95.1m (2016: £121.0m)

· Adjusted1 EPS of 22.3p (2016: 30.0p). Statutory EPS of 16.4p (20162: 24.0p loss per share)

· Continued strong free cash flow of £84.9m (2016: £78.9m)

· Operating cash flow of £107.6m (2016: £122.1m)

· Net bank debt of £21.6m at year-end (2016: £28.3m)

· Total full year dividend maintained at 17.4p per share, reflecting the Board's confidence in delivery of the plan

The highlights reflect the statutory 52 week year in 2017 versus the statutory 53 week year in 2016 unless stated otherwise

1 Adjusted reflects pre-exceptional costs and is further defined in the glossary at the end of this report

2 As restated, refer to note 1 for details

Andy McCue, Chief Executive Officer, commented:

"As expected, 2017 was a transitional year for the Group, with significant investments made in price and proposition within our Leisure business, which is driving improving volume momentum. We start 2018 with a significantly more competitive offering in our Leisure business, a strengthened pipeline of growth opportunities in both our Pubs and Concessions businesses, and a leaner, faster and more focused organisation. I'd like to thank our colleagues for embracing the change agenda and for their contribution to stabilising the business."

Trading Update

The Restaurant Group plc (the "Group") today provides an update on trading for the 52 weeks ended 30 December 2018 ("the period").

Like-for-like sales for the period were down 2.0%, with total sales increasing by 1.0%*. The Group has delivered like-for-like sales growth since the World Cup, with our Pubs business continuing to consistently trade ahead of the pub restaurant sector and our Concessions business trading strongly. Our Leisure business exhibited improved like-for-like sales momentum through 2018, but was impacted by weaker cinema admissions in December.

We opened a record 21 new pubs (inclusive of acquisitions) and a record 21 new concessions units during the year.

We expect to deliver an adjusted PBT outcome for the 2018 full year in line with current market expectations.

As previously announced, the acquisition of Wagamama formally completed on 24 December 2018. Wagamama has continued to trade well over the festive period and we look forward to delivering the benefits of the acquisition as outlined in the "2018 Prospectus" and creating significant long-term value for our shareholders.

Andy McCue, Chief Executive Officer, commented:

"2018 has been a pivotal year for the Group in which we have opened a record number of new sites in both our Pubs and Concessions businesses as well as acquiring an extremely high quality business in Wagamama.

The enlarged business is now orientated strongly towards growth with a number of exciting opportunities ahead. We are focused on executing on our multi-pronged growth strategy and plans for the site conversions and cost synergies are progressing well."

* The total sales figure includes one week of trade from Wagamama. The like-for-like sales figure does not include Wagamama.