REG - Restaurant Group PLC - Interim Results <Origin Href="QuoteRef">RTN.L</Origin> - Part 2

RestaurantAnnouncement

31/08/2017 07:06

- Part 2: For the preceding part double click  ID:nRSe3591Pa 

26 May 2017, the final
dividend in respect of 2016 of 10.60p per share, totalling £21.2m, was paid to
shareholders on 5 July 2017. 
 
The Directors have declared an interim dividend of 6.8p per share which will
be paid on 12 October 2017 to shareholders on the register on 15 September
2017 and shares will be marked ex-dividend on 14 September 2017.  In
accordance with IAS 10, this will be recognised in the reserves of the Group
in the second half of the year. 
 
7 Reconciliation of profit before tax to cash generated from operations 
 
                                                             27 weeks ended 3 July 2016  27 weeks ended 3 July 2016  53 weeks ended 1 January 2017  
                                                             (unaudited)                 (unaudited)                 (audited)                      
                                                             £'000                       £'000                       £'000                          
                                                                                                                                                    
 Profit/(loss) before tax                                    2,823                       (22,499)                    (39,527)                       
 Net finance charges                                         967                         883                         2,007                          
 Impairment of property, plant and equipment                 4,279                       40,280                      68,050                         
 Increase in provision for onerous leases and other costs    18,397                      18,860                      46,860                         
 Share-based payments                                        980                         (265)                       1,323                          
 Depreciation                                                17,790                      22,071                      41,809                         
 (Increase) / decrease  in stocks                            (118)                       1,060                       757                            
 Decrease / (increase) in debtors                            4,824                       4,705                       (5,973)                        
 (Decrease) / increase in creditors                          (4,099)                     (4,205)                     6,842                          
                                                                                                                                                    
 Cash generated from operations                              45,843                      60,890                      122,148                        
                                                                                                                                                    
                                                                                                                                                    
 
 
8 Bank loans 
 
The Group has a committed bank facility of £140m in place until June 2020. 
During the 26 weeks ended 2 July 2017, the Group reduced the amount drawn down
under this facility by £10.0m to £29.0m (27 weeks ended 3 July 2016: increase
of £11.0m, 53 weeks ended 1 January 2017: increase of £7.0m). 
 
9 Share capital 
 
Share capital at 2 July 2017 amounted to £56.5m.  The number of shares
authorised, issued and fully paid increased from 201,063,045 to 201,063,167 in
the period following the exercise of share options by employees, amounting to
122 shares. 
 
10 Related party transactions 
 
There were no related party transactions in the 26 weeks ended 2 July 2017. 
 
11 Contingent liabilities 
 
There were no significant changes in the nature and size of contingent
liabilities at 2 July 2017 to those reported in the Annual Report and Accounts
for the 53 weeks ended 1 January 2017. 
 
12 Events occurring after the reporting date 
 
No material events have arisen since the end of the period which have
significantly affected or may significantly affect the operations of the
Group, the results of those operations, or the state of affairs of the Group
in future financial periods. 
 
INDEPENDENT REVIEW REPORT TO THE RESTAURANT GROUP PLC 
 
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the 26 weeks ended 2 July
2017 which comprises the consolidated income statement, the consolidated
balance sheet, the consolidated statement of changes in equity, the
consolidated cash flow statement and related notes 1 to 12. We have read the
other information contained in the half-yearly financial report and considered
whether it contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial statements. 
 
This report is made solely to the company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity"
issued by the Auditing Practices Board.  Our work has been undertaken so that
we might state to the company those matters we are required to state to it in
an independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our review work, for this report, or for the conclusions
we have formed. 
 
Directors' responsibilities 
 
The half-yearly financial report is the responsibility of, and has been
approved by, the directors.  The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority. 
 
As disclosed in the accounting policies, the annual financial statements of
the group are prepared in accordance with IFRSs as adopted by the European
Union.  The condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with International Accounting
Standard 34 "Interim Financial Reporting" as adopted by the European Union. 
 
Our responsibility 
 
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. 
 
Scope of review 
 
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and consequently does
not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion. 
 
Conclusion 
 
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the 26 weeks ended 2 July 2017 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority. 
 
Deloitte LLP 
 
Statutory Auditor 
 
London, UK 
 
31 August 2017 
 
Glossary 
 
The directors believe the alternative performance metrics used within this
report, and defined below, provide additional useful information for
shareholders to evaluate and compare the performance of the business from
period to period.  The adjusted metrics are reconciled to the statutory
results for the period within the income statement and the supporting notes. 
 
 Trading business             Represents the performance of the business before exceptional costs and is considered as the key metrics for shareholders to evaluate and compare the performance of the business from period to period.                                                                                                                                                           
 Like-for-like ("LFL") sales  This measure provides an indicator of the underlying performance of our existing restaurants. There is no accounting standard or consistent definition of 'like-for-like sales' across the industry. Group like-for-like sales are calculated by comparing the performance of all mature sites in the current period vs. the comparable period in the prior year.  
 Adjusted EBITDA              Earnings before interest, tax, depreciation, amortisation and exceptional items.  Calculated by taking the Trading business operating profit and adding back depreciation.                                                                                                                                                                                         
 Net bank debt                Net bank debt is calculated as the net of the long-term borrowings less cash and cash equivalents.                                                                                                                                                                                                                                                                 
 Free cash flow               EBITDA less working capital and non-cash movements (excluding exceptional items), tax payments, interest payments and maintenance capital expenditure.                                                                                                                                                                                                             
 Adjusted operating profit    Profit before interest, tax and exceptional items.                                                                                                                                                                                                                                                                                                                 
 Adjusted EPS                 Calculated by taking the earnings per share of the business pre-exceptional items.                                                                                                                                                                                                                                                                                 
 Adjusted profit before tax   Calculated by taking the profit before tax of the business pre-exceptional items.                                                                                                                                                                                                                                                                                  
 
 
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