TRG receives welcome boost from largest shareholder ahead of AGM

The support from Columbia Threadneedle Investments, a US-based asset management firm that holds around 19% of TRG’s shares, will provide a welcome boost for the Wagamama and Frankie & Benny's owner after a tough couple of weeks that has seen it face criticism from two other significant investors.

Both Oasis Management Company and Irenic Capital Management have released public statements pledging to vote against TRG’s executive remuneration policies at the group’s AGM on 23 May.

They have each called for TRG to overhaul its current pay scheme​​, particularly with regard to CEO Andy Hornby’s salary, saying it does not incentivise business performance or shareholder value.

Hornby’s salary increased to £674,450 for 2023, up from £658,000 in 2022. He also receives an additional bonus of up to £1m based on performance.

In contrast to Oasis and Irenic, Columbia Threadneedle Investments has said the board at TRG continues to receive its support as it ‘assesses the best options to deliver long-term shareholder value’.

“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 firm said in a statement.

Columbia’s comments follow a positive trading update from TRG last week​​ and a positive note from Shore Capital yesterday (10 May), which saw the group’s shares increase 7%.

Shore Capital said TRG was ‘making progress’ with continued robust trading comfortably ahead of full year estimates.

It continued that cost savings and accelerated exits​​ meant the group was tracking ahead of its margin improvement plan, meaning it can achieve EBITDA of up to £130m.

In a statement, a spokesperson for TRG said: “As you will have seen from last week’s trading update, the market’s reaction and upgrades from the analysts, we will continue to let our numbers do the talking.”