Restaurant Group posted a drop in full-year profit on Friday as it took a hit from writedowns and expenses related in part to its acquisition of Wagamama.
In the year 30 December 2018, statutory pre-tax profit fell to Â£13.9m from Â£28.2m the year before, while total sales edged up 1% to Â£686m and like-for-like sales declined 2%.
Adjusted earnings before interest, tax, depreciation and amortisation fell to Â£87.9m from Â£95.8m and adjusted pre-tax profit declined to Â£53.2m from Â£57.8m.
Restaurant Group, which owns Garfunkel's and Frankie & Benny's, booked an exceptional pre-tax charge of Â£39.2m which includes, among other things, an exceptional charge of Â£14.8m in relation to the acquisitions of Wagamama, Food and Fuel and Ribble Valley Inns, and an exceptional charge of Â£0.5m recognised as a result of the refinancing to fund the Wagamama deal.
The group said current trading is in line with its expectations, with LFL sales up 2.8% in the 10 weeks to 10 March.
Chief executive officer Andy McCue said: “We have made significant progress in 2018, acquiring a differentiated, high growth business in Wagamama, opening a record number of new sites in both our pubs and concessions businesses, and driving improved like-for-like sales momentum in the Leisure business throughout 2018.
“We now have a business that is orientated strongly towards growth and we continue to focus on delivering shareholder value.”