City Pub centralises functions for reopening after shutdown
The City Pub Group
139.00p
16:55 01/03/24
City Pub Group said it would centralised operations to put it in better shape when its pubs are allowed to reopen after three months of enforced closure.
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The pub operator said it had used the Covid-19 crisis to make overdue changes to its business, including centralising sales and marketing to give managers more time to run their pubs. Marketing of occasions such as Valentine's Day, Easter and sporting events will be carried out at group level, it said.
Reporting results for 2019 the company, which has 48 pubs, said 2020 began well but that the coronavirus emergency forced it to put growth plans on hold. City Pub acted early in the crisis to raise £22m from equity investors and reduce its debt. It has also furloughed employees, cut jobs and pay and renegotiated rents to reduce costs.
Pubs were shut by the government in late March to limit the spread of Covid-19. The government is planning to allow pubs to reopen on 4 July subject to social distancing requirements.
Adjusted pretax profit for the year to the end of December rose 4% to £5.3m as revenue rose 31% to £60m reflecting pub acquisitions. Like for like sales rose 1.7% and statutory pretax profit fell to £2.2m from £2.6m.
Chairman Clive Watson said: "We will reopen with a reset, more efficient, streamlined business, reduced capital expenditure and our focus on the existing estate. We have a strong balance sheet not only to endure and prosper again, but also to take advantage of opportunities that arise."
City Pub shares rose 5.8% to 97.30p at 12:24 BST. The shares have more than halved from 211p since the start of 2020.