Shares in the Restaurant Group (LON:RTN) have tumbled 15 percent after a trading update insinuated that the year ahead may be tough for the company.
Financial results up until the 27th December were solid, with total turnover up 7.9 percent on the prior year, and like-for-like sales increasing by 1.5 percent. However, the company stated that the next 12 months may be tough, citing the implementation of the National Living Wage and the uncertainty of the UK’s future within the EU as causes for volatility:
“It has become apparent from much of the recent data from the retail sector and the wider economy that the trading environment for many consumer facing businesses has been tougher in recent months than it was earlier in 2015. This has caused like-for-like sales growth to trend lower and accordingly we are more cautious than previously on the outlook for 2016.”
The company, who own chains such as Chiquitos, Frankie & Benny’s and Garfunkels opened 44 new restaurants in 2015, and expect to do the same in 2016. However investors were not calmed by the company’s upbeat message, and the Group are currently trading down 15.05 percent at 542 pence per share. (1105GMT)
14/01/2016
