close

TGI Fridays owner says IPO timing is just right for “rejuvenated” business

TGI Fridays Lincoln

TGI Fridays is set to be floated on the London stock market later this year as part of a move that will see it demerge from private equity group Electra.

Plans are afoot for the chain, which runs 85 restaurants in the UK, to begin trading on the FTSE Main Market towards the end of the third quarter.

It is thought that the timing of the listing could coincide with a post-Covid increase in consumer spending if plans for the UK to completely unlock on 21 June go ahead.

Story continues below
Advertisement

The owners currently value the business at around £150m.

Electra described Fridays as a “rejuvenated business with a strategy for sustainable growth and the opportunity for acceleration in the opportunity-rich casual dining market”.

It stated: “Fridays is emerging from lockdown a much stronger and more rounded business. Its market has been equally transformed as a result of the reduction in competitor supply – through the closure of an estimated 21% of direct competitor restaurants. These factors combined give us confidence in Fridays’ ability to demonstrate further material value creation.”

Early indications of post reopening trading are “very positive”, according to Fridays.

It said Scottish stores recorded like-for-like sales growth of 14% versus 2019 levels in the three weeks following reopening on 26 April 2021, despite being unable to serve alcohol and closing at 8pm.

The first three days of business following reopening across England and Wales on 17 May has shown like-for-like growth of 76% versus 2019, reflecting release of pent-up demand following the national lockdown, as well as highlighting the opportunity from spreading demand throughout the week.

TGI Fridays reveals where its newest UK restaurant will open

Tags : IPOTGI Fridays
Andrew Seymour

The author Andrew Seymour

Leave a Response