Will Restaurant Group be ‘last man standing’ in sector?

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Tuesday will provide an insight into how the hospitality sector has been coping in the UK, as Wagamama owner Restaurant Group PLC (LON:RTN) serves up interim results.

The group should now have reopened almost 90% of its estate, according to broker Peel Hunt, which should have benefited significantly from the 15% VAT cut and the Eat Out To Help Out scheme.

The new trading restrictions should not impact the group materially, as less than 2% of sales are after 10pm and all sales are based on table service, while analysts estimate the VAT cut extension until the end of March to be worth an extra GBP15mln of profit.

Peel Hunt’s analysts even wondered if the group will be ‘last man standing’ in the sector.

Investors will be keen to hear how like-for-like sales performed in September, and how management’s debt reduction has been going since the estate reopened, as well as prospects for profit margins in the year ahead.

There would have been more news on the embattled hospitality sector on Tuesday but pub chain JD Wetherspoon PLC (LON:JDW) has pushed back its planned update.

Major announcements on Tuesday 6 October:

Trading announcements: Ferrexpo PLC (LON:FXPO), Gooch & Housego PLC (LON:GHH), Impax Asset Management PLC (LON:IMPX)

Finals: YouGov PLC (LON:YOU), Smartspace Software PLC (LON:SMRT)

Interims: Harworth Group PLC (LON:HWG), Inspiration Healthcare Group PLC (LON:IHC), Restaurant Group PLC (LON:RTN)

Economic data: UK construction PMI, US balance of trade

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