The Restaurant Group has received the backing from its largest shareholder ahead of the company’s AGM in two weeks’ time.
The public statement of support from Columbia Threadneedle Investments, which holds around 16.7% of TRG’s shares, follows criticism from two other significant shareholders.
Oasis Management Company and Irenic Capital Management have both released public statements criticising the company’s executive remuneration policies, which they say does not incentivise business performance or shareholder value.
Columbia, an asset management firm headquartered in Boston, said: “As a long-term shareholder in The Restaurant Group (TRG), we remain supportive of TRG’s board and management team, who have successfully navigated the exceptionally tough industry backdrop.
“The board continues to receive our support as they assess the best options to deliver long-term shareholder value.”
The statement follows a positive trading update from the company last week and Shore Capital’s positive note which saw the shares increase 7%.
Shore Capital said TRG was “making progress”, with continued robust trading, comfortably ahead of full year estimates.
The analyst said cost savings and accelerated exits meant it was tracking ahead of its margin improvement plan, meaning it can achieve EBITDA of up to £130m.
TRG said with its trading update, and positive reaction from analysts, it would “continue to let our numbers do the talking.”
Andy Hornby, CEO of TRG, commenting on last week’s trading update, said: “We’ve enjoyed a really positive first four months of the year. Wagamama and our Brunning & Price Pubs continue to trade very strongly and it is especially pleasing to see the consistent growth in dine in sales with customers clearly enjoying eating out despite the economic backdrop. Our Concessions business is also performing particularly strongly as air travel continues to recover.”
