Alan Jackson

Volcanic ash costs The Restaurant Group half a million

6th May 2010, 2:05pm

The Restaurant Group continued its positive start to the year with total sales 6% ahead of 2009 and like-for-like sales 0.5% ahead for the 18 weeks to May 2nd.

Chairman Alan Jackson said that the figures would have been even better but its airport sites which had been enjoying "good growth", were hit by the five days of closures in April due to the Icelandic volcanic ash cloud leading to a sales decline in excess of 90%.

"The airport disruption resulted in a £0.5m impact on our concessions division¹s profit and loss account, comprising £0.3m of cash costs and foregone profit opportunities of £0.2m.

"Our concessions trade has been returning towards normal, although this week¹s flight suspensions due to the new ash clouds over Scotland and Ireland had a small impact over two days and our leisure division is also trading well.

"Overall, the group¹s margins and profits were running at a level in line with management¹s expectations. We opened seven new units during early 2010; all are trading well and we expect to open a total of 15-25 new units through the year.

"The Group¹s balance sheet remains strong with excellent cash generation from our operations. Net debt has not changed materially since the year end apart from the payment of a second interim dividend of £12.1m."

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