Volcano cost £0.5m says Restaurant Group
The Restaurant Group reports margins and profits running in line with management expectations despite the impact of the Icelandic volcano on its Concessions business.
The group said total sales were 6% ahead of 2009 and like-for-like sales 0.5% ahead for the 18 weeks to May 2.
It estimated like-for-like sales would have been 1.5% ahead of the previous year had it not been for the impact on Concessions from air travel disruption.
The Group said in an AGM statement: 'Our Concessions division was in good growth until the ash cloud halted air travel and we saw five days of sales decline in excess of 90% in our airport business.
'Trade in our Concessions business is now returning towards normal (although suspension of some flights due to the new ash clouds over Scotland and Ireland has had a small impact over the past two days) and our Leisure division is also trading well.
'We estimate that, to date, the disruption has resulted in a £0.5m impact on our Concessions division's profit and loss account, comprising £0.3m of cash costs and foregone profit opportunities of £0.2m.' .
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