WAGAMAMA's owner upgraded its estimates for the financial year, forecasting adjusted EBITDA of up to £79m.

In a trading update published yesterday morning, The Restaurant Group said its venues had traded well with like-for-like sales outperforming the market.

There had been strong sales across the Wagamama brand, as well as its pubs and leisure arms.

A "minor improvement" in UK airport passenger volumes had led to a "partial recovery" in the sale run rates in the group's concessions business.

The group has increased its adjusted EBITDA for the 2021 financial year to a range of £73m-£79m - providing hospitality continues to operate free of coronavirus restrictions for the rest of the period.

Net debt for the financial year-end was estimated to be less than £190m, mostly thanks to a "robust trading performance."

Shares soared almost 19 per cent yesterday morning, following the update.

Following an update in May, the group said: "The board has been very encouraged by the trading performance seen so far in 2021.

"While the environment for the remainder of the year continues to remain uncertain, the group is well positioned across its diversified brand portfolio to benefit from the sustained removal of government restrictions." Liberum analyst, Anna Barnfather, said the group "remains better placed than others to recover strongly and take market given its strong top-line performance, upside from delivery, restructuring of operations and reduced lease liabilities."

Liberum anticipated raising current year forecasts by around 40-50 per cent but would leave 2022 and others unchanged.

Last month, the group announced the appointment of former Cadbury CFO, Ken Hanna as its new chairman.

Hanna will replace Debbie Hewitt MBE at the end of the year, as Hewitt goes on to a new role as chairman at the English Football Association.

Hanna's CV also includes posts as non-executive director of Tesco and CFO at Avis Europe.

Shares closed yesterday still buoyant at 16.77 per cent up.

(c) 2021 City A.M., source Newspaper