The Restaurant Group’s loss in the first half of the year increases to £234.7 million.
The British chain was faced with an extraordinary pre-tax charge of £132.4 million.
The Restaurant Group’s revenue for the first six months of the year falls to £227.2 million.
Restaurant Group plc (LON: RTN) said on Tuesday that its pre-tax loss for the first half of the year had increased due to the coronavirus pandemic which has so far infected over 500,000 people in the UK and caused over 42,000 deaths.
The company’s shares opened Tuesday with a price increase of around 8%. Including the price action, Restaurant Group plc is now exchanging 58 pence per share, an increase of almost 150% since March when the shares fell to 23.50 pence per share due to COVID 19 restrictions.
This compares with the Restaurant Group trading at a much higher price of 166 pence per share in early 2020. Confused about choosing a reliable stockbroker for online trading? Here is a list of the few providers to help you choose.
Restaurant Group faced an extraordinary charge of 132.4 million pounds sterling
The restaurant group said that the COVID 19 crisis had also impacted their first-half revenues. However, it was confident that there were signs of recovery in recent months as the British government eased restrictions. In early June this year, in June, the FTSE SmallCap Index member said it would close 125 of its stores.
The owner of prominent brands such as Frankie & Benny’s and Wagamama said his pre-tax loss for the first six months of the current financial year was £234.7 million. In the same period last year it had reported a much smaller loss of £87.7 million.
The London-based company also pointed out on Tuesday that it was facing an extraordinary pre-tax charge of £132.4 million due to additional costs, including those incurred in restructuring the company. In comparison, the extraordinary charges were limited to £115.7 million over the previous year.
Restaurant Group revenues fall to £227.2 million in H1
In terms of revenue, the UK restaurant and bar chain recorded £227.2 million compared to £515.9 million in the previous year.
As of September 20, almost 90% of its assets were back in operation, according to the Restaurant Group. Consequently, trade remained robust during the 11 weeks that ended on September 20. In a separate news release from the UK, luxury fashion retailer Mulberry this week suspended its dividend as its annual loss widened due to the ongoing health crisis.
The restaurant group performed quite well on the stock market last year with an annual profit of more than 15%. At the time of writing, it has a market capitalisation of £340 million sterling.