The Restaurant Group PLC (LON:RTN) said it saw a working capital outflow and increased cash exceptional costs as a consequence of the November coronavirus (COVID-19) lockdown totalling £15mln.
The month’s cash burn was £5.5mln, which was £2mln higher than during the first lockdown due to rents relating to Frankie and Benny's closures as well as employer contributions towards furlough payments.
READ: The Restaurant Group says Wagamama revenue drops 21% in summer quarter
The Wagamama owner said it expects further disruption following the recent announcements that more areas in England will enter the highest tier of restrictions on Saturday.
Once they come into force, the group will have 145 sites which will trade for dine-in, another 142 providing delivery and takeaway services only, while the remaining 103 venues will be closed because trading under the current restrictions wouldn’t be profitable.
The firm said that if the current tiering allocations were to remain the same as currently in place throughout the first quarter of 2021, both the group and the wider hospitality sector would be hit significantly.
The Restaurant Group said it is encouraged by the welcome news of the COVID-19 vaccine being rolled out in the first half of next year and added that it is well-positioned to benefit from the easing of restrictions, given its previous strong trading performance following the first lockdown.