Restaurant Group Expects Drop In Annual Sales
Frankie and Benny's chain owner Restaurant Group has said that it expects a 50% slide in total sales for the full year 2020, assuming that all its restaurants and pubs remain closed until the end of June due to the coronavirus crisis.
The company, which operates over 650 restaurants and pub restaurants throughout the UK, said in a separate statement that it is proposing to carry out a share placement of up to 19.9% of the capital to buffer the hit from ongoing challenges raised by the spread of the virus.
"With the government indicating that social distancing measures will remain in force post lockdown, we believe that there will be a slow recovery in footfall during the rest of this financial year," Restaurant Group said.
The company said that it has modelled a "pessimistic scenario" for the current financial year and expects the year-end net debt to stand in the region of £310 million to £320 million, up from £286.6 million at the end of 2019.
It also reduced its capital expenditure to no more than £30 million and said that the group has accessed the government furlough scheme to ensure the ongoing employment of its over 20,000 employees.
The company, which has been struggling with falling sales in its leisure business, temporarily suspended its dividend in February, hurt by the store closures.