Thirsty Brits at Xmas provide cheer for EI Group

Thirsty Britons celebrating Christmas helped boost income at Britain's largest pub operator EI Group as the company said it was on track to deliver plans for the full year.

Like-for-like net income growth in the leased and tenanted business was 2% in the 18 weeks to February 2 on the back of a “particularly strong” festive period. Trading in January remained in line with expectations.

“While cost pressures are evident across the broader market, our continued investment in our leased and tenanted business combined with our proactive publican support has ensured that income growth momentum has been maintained,” the company said.

Pubs trading as managed operations throughout both the 18 weeks and prior year comparative period delivered like-for-like sales growth of 5.7%.

“We have continued to convert selected pubs from our leased and tenanted business to our managed estate, which now comprises 398 pubs (355 at 30 September 2018). We expect to continue pub conversions, anticipating approximately 460 managed pubs will be trading in our estate by 30 September 2019,” EI said.

Chief executive Simon Townsend said despite ongoing consumer uncertainty EI was on track “to deliver our plans for the year”.

“The proposed disposal of a substantial proportion of our commercial property portfolio is in line with our strategy of unlocking the embedded value from every asset within our business and monetising that value creation for the benefit of all stakeholders."