The Restaurant Group hedges all utility bills until end of 2024

The Restaurant Group, owner of brands including Wagamama and Chiquito, has reported good progress in the first half of the financial year, despite the challenges the hospitality sector is facing.

For the 26 weeks to 3 July 2022, the group reported total sales of £423.4m, an increase on £216.8m in 2021, as well as adjusted earnings before tax, depreciation and amortisation (EBITDA) of £41.7m (2021: £11.2m).

The business also filed a statutory loss before tax of £28.5m, narrowed from a £57.6m loss the prior year.

Although the group said significant cost pressures were ongoing, it had hedged all utilities until 2024.

The company confirmed it had a strong pipeline of new UK Wagamama restaurants with improved commercial lease terms.

Andy Hornby, chief executive, said: "We have made good progress in the past six months, delivering a robust financial performance in a challenging market, with continued like-for-like sales outperformance. I'd like to thank each and every member of our teams for their phenomenal efforts in delivering these results.

"We have taken decisive management actions to reduce the impact of the industry cost pressures including fully hedging our utilities until December 2024 and reducing our interest rate exposure through interest rate caps.

"Whilst the uncertain consumer environment presents challenges for the hospitality sector, the group is well positioned to further develop our brands to deliver long-term growth for all stakeholders underpinned by our strong balance sheet."

The Restaurant Group has 423 restaurants and pub restaurants throughout the UK under seven brands including Frankie & Benny's and Coast to Coast.

It also operates a multi-brand concessions business which trades principally in UK airports. In addition, the Wagamama business has a 20% stake in a joint venture operating five Wagamama restaurants in the US and 60 franchise restaurants operating across a number of territories.

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