Frankie & Benny's, Chiquito and Garfunkel's operator Restaurant Group Plc (LON:RTN) has reported a 13% rise in adjusted pre-tax profits to £24.6m for the first half of the year, sending shares in the company up 2.5% to 249p during the morning. The group's results were stated on a 27-week basis to July 4, compared with a 26-week basis for 2009. During the period, revenue increased 9% to £229m up 5% on a 26-week comparable basis. Adjusted EBITDA rose 10% (6%) to £39.8m and the group raised its interim dividend by 10% to 1.54p per share.
TRG said its operations were strongly cash generative, with operating cash flow increasing to £38.7m from £31.9m. Eight new sites were opened in the first half, with a further four opened so far in the second half and 20-25 new sites targeted for 2010. Frankie & Benny's traded well, growing revenues, profits and margins despite trade being adversely affected during the World Cup. Chiquito's H1 performance was solid but despite slightly higher revenues its profits were a little below the prior year. The Pub Restaurant business traded well, delivering increases in revenues, profits and margins.
CEO Andrew Page, said: "These are good results, with double digit growth in earnings, dividends and free cashflow. They reflect TRG's strong market positions, focusing on our customers and standards, and providing a consistent quality of product and service. They also reflect the outstanding commitment of our people. We continue to open new restaurants, which are performing superbly, and this year we will open between 20 and 25. The second half has started well and we are determined to build further on this."
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