Shares of Restaurant Group Plc (RTN.L) were gaining around 3 percent in the early morning trading in London after the company reported Wednesday a pre-tax profit in its first half, compared to last year’s loss, with strong revenue growth. Looking ahead, the company said it now sees a moderate increase in expectations for fiscal 2023 adjusted EBITDA citing the strong trading.
The British chain of restaurants and pubs reported that its first-half profit before tax was 2.3 million pounds, on an IFRS 16 basis, compared to lat year’s loss of 28.5 million pounds.
On an after tax basis, loss of 1.5 million pounds narrowed from last year’s loss of 26.1 million pounds. Loss per share was 0.2 pence, compared to loss of 3.4 pence a year ago.
The latest results included exceptional charges of 15.2 million pounds predominately relating to non-cash impairment charges.
Adjusted profit before tax was 7.2 million pounds on a pre-IFRS 16 basis, compared to last year’s adjusted profit before tax of 10.2 million pounds.
Adjusted EBITDA grew 15 percent from last year to 36.3 million pounds on a pre-IFRS 16 basis.
Revenue for the period was 467.4 million pounds, an increase of 10 percent from 423.4 million pounds a year ago, with strong growth across Wagamama, Pubs and Concessions businesses.
Andy Hornby, Chief Executive Officer, said, “We are encouraged by the significant progress made in the first eight months of the year, delivering strong LFL sales growth despite the consumer backdrop. In light of the strong trading we are increasing our expectations for FY23 Adjusted EBITDA.”
Further, the company said it sees excellent early progress in executing medium-term plan and is well on track to deliver 250 basis points to 350 basis points of adjusted EBITDA margin accretion over the next three years.
In London, Restaurant Group shares were trading at 44.87 pence, up 2.7 percent.
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