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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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The Restaurant Group

April 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RTN
  • Price:
  • 230p
Finals were well ahead of expectations and led to brokers upgrading their forecasts. For the year to 27 December, revenues rose 5% to £436m, while pretax profit increased 2% to £50m. Eps rose 5% to 17.5p. Like-for-like sales grew 1% in the first nine weeks to February 28 and would have been better but for the heavy snow. Meanwhile, strong cash generation reduced net debt by £12.2m to £66.7m, leaving net debt / EBITDA at a very conservative 0.8 times. The largest division, Leisure, which includes Frankie & Benny's (188 units), Chiquito (63 units), Pub restaurants (42 units) and Garfunkel's (22 units), saw operating profit virtually unchanged at £69.1m, on turnover which rose from £329m to £353.6m. In the context of the s ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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