City Pub Group reports 2019 revenue of £60m but growth plans ‘curtailed' by Covid-19
The City Pub Group has reported revenues of £60m for 2019, up 31%, however its growth plans have been "immediately curtailed" by the Covid-19 outbreak and subsequent closure of its estate.
In its audited results for the 52 weeks ended 29 December 2019, the group reported a 1.7% year-on-year increase in like-for-like sales and a 15.4% increase to £9.1m in its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).
Across its owned and operated, predominantly freehold, estate of 48 wet-led pubs in London, Southern England and Wales, the company saw adjusted pre-tax profit up 4% to £5.3m.
The group said "decisive action" around the Covid-19 outbreak in the UK had secured appropriate liquidity well into 2021 and the long-term future of the company, which it said is in "excellent shape" to reopen. £15m of new shares were placed with institutional shareholders and approximately a further £7m was raised from existing shareholders in an open offer.
Clive Watson (pictured), executive chairman of the City Pub Group, said: "We are excited about the prospect of reopening, not least because we have an excellent team who are keen to get back to work and show hospitality to customers again. However, we will do it cautiously and, above all, safely.
"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."
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