Restamax Plc: RESTAMAX PLC INTERIM REPORT BETWEEN 1 JANUARY AND 31 MARCH 2014

Restamax Plc

INTERIM REPORT 9 MAY 2014 10 AM

RESTAMAX PLC INTERIM REPORT BETWEEN 1 JANUARY AND 31 MARCH 2014

Turnover grew by 4.8 per cent and profitability improved in January-March 2014

Turnover and income

The income of the group's first quarter of 2014

Restamax's turnover for the first quarter was MEUR 15.9 (MEUR 15.2), a growth of 4.8% over last year. EBITDA was MEUR 1.4 (MEUR 1.3). The Group's operating profit was TEUR 87 (TEUR -23).

Prospects for 2014

Profit guidance (unchanged since 5 March 2014):
Restamax estimates that the 2014 turnover will increase to MEUR 86-97. The company estimates that the 2014 EBITDA will increase to MEUR 14.5-16.3 and the operating profit to MEUR 8.7-10.4.

The company's goal is to reach a turnover of MEUR 100 by the end of 2015. With the purchase of the Rengasravintolat Group during the first quarter of 2014, the company estimates it will come close to meeting this goal already in 2014.

Due the seasonal nature of the restaurant business, most of the profits are made at the end of the year.

CEO Markku Virtanen:

In November 2013, Restamax became the first Finnish listed restaurant company. Our growth speed in 2013 was slightly calmer than in the previous years, as the company concentrated on the listing project. The first quarter of 2014 has shown that the year will once again be one of growth for Restamax.

The stock exchange listing yielded capital of MEUR 15.5 for growth. Investments were started immediately, and 2014 also began under strong conditions of growth. In January 2014, together with Hans Välimäki Restamax established Gastromax Oy, which includes the Midhill restaurants located in Helsinki and Tampere. In March, the company opened the Masu Asian Bistro in Tampere and, in Helsinki, new launches are being carried out in the second quarter of 2014.

In March, Restamax also made the largest business transaction in its history by acquiring the Rengasravintolat Group. As a result of the acquisition, 16 new restaurants were transferred to our portfolio. The transaction also helped us strengthen our position in the Helsinki region and we expanded our operations to the new market area of Pori.

Ever since the company's inception, our objective has been to grow the business rapidly and boldly. We have aimed to offer individual restaurant services to different customers. We are on the right track. Now, at the beginning of 2014, our group comprises more than 80 restaurants all over Finland: nightclubs, restaurants, pubs and cafés.

Restamax's approach aims to develop a range of restaurant concepts to meet local demand. Our extensive restaurant portfolio based on almost 40 different concepts, enables increasingly large market shares in different locations. We are, however, aiming to avoid establishing chains, as the American-style world of chains does not suit us. In Finland, the market for this is too small. Expansion requires many new individual concepts, which are tailored to suit the needs of each locality. By means of our operating model, we can not only boost our operations locally, but also offer a comprehensive range of restaurants for our customers. Our diverse portfolio comprises a chain of experiences, including café, restaurant and entertainment services from early morning till late night.

In recent years, the overall market in the restaurant field in Finland has grown by approximately 3-4%, or somewhat stronger than the gross national product. In 2013, increase in turnover in the sector was 1.4%. Although the general economic situation in Finland has continued to be unstable and costs have continued to climb, their effects on the company's products and their demand have been relatively small. Despite the general economic situation, Restamax has been able to maintain excellent profitability, clearly above the average profitability of the field.

Our operating environment is also strongly affected by the ongoing debate in Parliament on alcohol legislation. The restaurant sector is a significant employer in Finland. The decision made by the government not to raise value added tax is a sign of recognition of the significance of the sector, and gives new hope for the recovery of the restaurant business.

Markku Virtanen
CEO

The full Restamax interim report for January-March 2014 is appended to this release in PDF format. The interim report is also available on the company's website at www.restamax.fi.

RESTAMAX PLC
Board of Directors
Markku Virtanen, CEO

Appendix: Restamax's interim report January-March 2014-05-09

Additional information:

CEO Markku Virtanen, tel: +358 400 836 477
CFO Jarno Suominen, tel: +358 40 721 5655

Distribution:

NASDAQ OMX Helsinki
Key media
www.restamax.fi

Restamax Plc is a Finnish restaurant business group established in 1996. The company has continued to grow steadily throughout its history. The group companies include approximately 80 restaurants, cafés, pubs and nightclubs all over Finland. Well-known restaurant concepts of the Group include Ristorante Bella Roma, Gringos Locos, Viihdemaailma Ilona, Daddy's Diner and Stefan's Steakhouse. Wayne's Coffee is also a part of the company's portfolio. Restamax Plc employs approximately 900 people, the Group's pro forma turnover in 2013 was MEUR 87.0 and EBITDA MEUR 13.3. 

Restamax company website: www.restamax.fi, Restamax consumer website: www.ravintola.fi