City Pub Group LFL sales strengthen faster than predicted
The City Pub Group
Pub owner and operator The City Pub Group said on Wednesday that like-for-like sales had continued to strengthen faster than predicted, with revenues up 5% in May when compared to the same month three years earlier.
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City Pub said trading during the Jubilee Bank Holiday week was "particularly strong", with like-for-like sales up in excess of 20% versus 2019.
The AIM-listed group also noted that following delays caused by the Covid-19 pandemic, it has recently opened The Oyster House in Mumbles and The Tivoli in Cambridge, with initial trading "encouraging" at both sites. In addition, City Pub said its new all-day trading concept in Bury St Edmunds, Damson and Wilde, was expected to open next week.
City Pub added that it was continuing to seek ways of mitigating increased cost inflation facing the wider sector and has reviewed its cost base "with renewed vigour", with a particular focus on labour scheduling to maximise sales and efficiency.
"Whilst we are mindful of the many economic challenges and cost pressures which currently persist, we now have strong sales momentum across the group following three months of restriction-free trading and we are keenly focused on ways to increase sales further. An example of this is our focus on promotion of national and local events which are translating into strong forward bookings, underpinning our confidence in a good second-half performance," said City Pub.
"We will also benefit from the flexibility which our low net debt position affords - both in our customer proposition (making the right decisions on price) - and our ability to act decisively and quickly on acquisitions to create value. We remain on track to meet our expectations for the year."
As of 1040 BST, City Pub shares were up 1.98% at 95.35p.
Reporting by Iain Gilbert at Sharecast.com