City Pub Group PLC (The) AGM Trading Update (2210D)

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RNS Number : 2210D

City Pub Group PLC (The)

28 June 2021

City Pub Group PLC

("City Pub Group" or "the Group")

AGM Trading Update

The City Pub Group, the owner and operator of 48 premium pubs across Southern England and Wales and a further 4 development sites are pleased to announce that trading since the reopening of pubs on 12 April has been encouraging at 90% of 2019 levels for the 42 pubs that have reopened to date.

We are already benefitting from the hard work carried out over the past year with our cost base significantly reduced and consequently the Group is trading profitably at today's volumes. While our performance has been very pleasing, the continuing social distancing rules and absence of large bookings have limited trade. This became apparent at the start of the European Football Championships where many customers did not want to watch live sport at pubs because of the social distancing restrictions. We look forward to all restrictions being lifted on 19 July and we believe that once restrictions are lifted, trade will build over the remainder of the year to above 2019 levels, although it is difficult to predict at this stage exactly when this might happen.

Whilst uncertainty remains, progress will be made on a step-by-step basis. The Group has a very strong balance sheet, with over GBP16m of unutilised banking facilities, is cash generative, and is starting to - on a selective basis - identify new acquisitions. Our priority is to get the existing estate firing on all cylinders, have all four development sites open by spring 2022 and to deliver the identified cost reductions.

The Group is also pleased to announce that is has purchased the freehold of the Roundhouse in Wandsworth Common, where we only had 4 years left on the lease, for a total consideration of GBP1.1m.

Clive Watson, Executive Chairman of City Pub Group said:

"We have been very encouraged by how we have traded since reopening despite the continuing restrictions. We are cash generative and trading profitably demonstrating the strength of our business model.

I would like to thank personally all our staff and suppliers for their ongoing commitment. We have put in place a strong platform for growth, and we believe that when we are allowed to trade restriction free we will build to levels higher than 2019."

28 June 2021

 
 Enquiries: 
 City Pub Group 
  Clive Watson, Chairman 
  Tarquin Williams, CFO 
 
 Instinctif Partners 
  Matthew Smallwood 
  Jack Devoy                 [phone] 
 
 Liberum (Nomad & Broker) 
  Chris Clarke 
  Edward Thomas 
  Clayton Bush               [phone] 
 

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June 28, 2021 02:00 ET (06:00 GMT)