Restaurant Group PLC Update (8188I)
06 April 2020 - 4:00PM
UK Regulatory
TIDMRTN
RNS Number : 8188I
Restaurant Group PLC
06 April 2020
The Restaurant Group plc
Increased flexibility in our Banking facilities, Executive pay
cuts and changes to our Board composition
The Restaurant Group plc ("Group" or "TRG") today announces
increased flexibility in our Banking facilities, Executive pay cuts
and changes to our Board composition.
Extra Flexibility in our Banking Facilities
TRG is pleased to confirm that the TRG Lending Group have agreed
that there will be no covenant test at the half year. In addition,
Santander have increased their super senior revolving credit
facility to Wagamama from GBP20m to GBP35m, thereby adding an extra
GBP15m to the Group's overall debt facilities.
Executive Pay Cuts and Bonus Waivers
The Executive Directors have decided to reduce their base
salaries for a period of three months from April 1(st) . Andy
Hornby, Chief Executive, has volunteered to take a 40% pay cut,
which reflects the core policy for senior members of the TRG team
who are not being furloughed. Kirk Davis, CFO, volunteered a pay
cut and will see a 20% reduction for the same period. The smaller
pay reduction for the CFO reflects the exceptional
workload for the Finance function. These arrangements will be reviewed again on July 1(st) 2020.
Both Executive Directors have also volunteered to forego their
bonuses for the 2019 financial year, which were due to be paid on
March 31(st) 2020. The CEO was due to receive 37.5% of his salary
(prorated to reflect his joining date of August 1(st) 2019) and the
CFO was due to receive 30% of salary, which equates to GBP98,000
for the CEO and GBP109,000 for the CFO.
In light of the very significant number of colleagues in TRG
sites that have been furloughed and the significant pay cuts taken
by the Executive Directors, the Non-Executive Directors have also
proposed to reduce their fees with effect from April 1(st) 2020 by
40%. This arrangement will also be reviewed again on July 1(st)
2020.
Board Changes
The Board is mindful of the rightsizing of the business that is
currently taking place and has therefore also considered the size
and composition of the Board, as well as the tenure of its members,
concluding that it is timely to reduce the overall number of
Non-executives from six to five.
As a result, Mike Tye has offered to step down as a
Non-Executive Director and Chairman of the Remuneration Committee
with effect from today. This will also allow him to concentrate on
his other business and charity interests. The Board would like to
thank Mike for the strong input he has provided since he joined the
Board in April 2016 and wish him well.
Zoe Morgan, who is an experienced Chair of plc Remuneration
Committees, will take over the Chair of this Committee with
immediate effect.
Commenting on the announcement, Andy Hornby, Chief Executive
said:
"These are unprecedented times for our business and our sector.
Against this backdrop we have taken decisive action to improve our
liquidity, reduce our cost base and downsize our operations. I
would like to wholeheartedly thank all of my TRG colleagues for
their extraordinary understanding and commitment during this
period."
Enquiries:
The Restaurant Group plc
Andy Hornby, Chief Executive
Officer
Kirk Davis, Chief Financial
Officer 0203 117 5001
MHP Communications (Financial
PR adviser)
Oliver Hughes / Simon Hockridge 07885 224 532 / 07709 496 125
Other Disclosures
In accordance with s.430 (2B) of the Companies Act 2006, it is
confirmed no payments will be made to Mike Tye in connection with
his stepping down from the Board, other than his usual
Non-executive fees paid pro-rata.
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END
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