Restaurant Group reports revenue and profit growth in 2009

In its preliminary results report for the year ended 27 December 2009, the Restaurant Group (LSE: RTN) increased revenue by 5% to £435m, while adjusted earnings increased 3% to £80m and adjusted pre-tax profit was £50m, up 2% from £48.9m in 2008.

At 17.5p, adjusted earnings per share (EPS) improved 5%. The company said its operations were strongly cash generative in 2009 and consequently it reduced net debt by £12.2m to £66.7m. The board proposed a second interim dividend of 6.3p per share and a final dividend of 0.3p per share, taking the full-year dividend to 8p, up 4% from 2008.

"This is another good set of results from The Restaurant Group. TRG has demonstrated its resilience, delivering growth in earnings, cashflow and dividends. We have further re-enforced our strong market positions and added 19 new restaurants to our portfolio”, chief executive Andrew Page said.

The Restaurant Group said that trading since year-end has remained resilient, given the current economic climate. In the nine weeks to the 28 February, like-for-like sales grew 1%. Looking ahead, the company plans to open another 15-25 new sites during 2010.

“The current year has started well - after nine weeks, revenues are 6% ahead of last year and like-for-like sales are up 1%”, Page added. “Our attention is now firmly focused on the period ahead and the team is determined to ensure that 2010 is another successful year".

The Restaurant Group operates 367 restaurants and pub restaurants, with its principal trading brands including ‘Frankie & Benny's’, ‘Chiquito’ and ‘Garfunkel's’.