TRG boosts FY21 expectations

The Restaurant Group (TRG) has increased its financial forecast for the year after outperforming the market last quarter. 

Then group's last market update (16 November) noted that management expected FY21 adjusted EBITDA to be a range of £73m–£79m, and year-end net debt was forecasted at less than £190m. In an update released today (21 January), however, the group announced that expectations have shifted to the top end of the range, with FY21 year-end net debt now predicted to be less than £180m. 

Plan B

TRG revealed that sales were 10–12% lower in December than October and November across both pubs and bars, with the drop in trade predominantly driven by the government's introduction of Plan B Omicron restrictions in early December. Despite this, the group contonued to trade ahead of the market, with management remaining confident in the company's ability to "outperform in all market conditions". 

"Whilst we are encouraged with the recent government announcement that all Plan B restrictions will be lifted next week, we expect consumer confidence may take longer to recover," the group states in its trading update. 

"Despite the near-term uncertainties, the Board remains confident in the group's prospects given the strength of our brands, substantially reduced debt and outperformance versus the market."


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