London Town sees pre-tax loss widen

London Town, the Aim-listed property developer and pub operator, has reported a widening of its pre-tax loss from £46,000 in 2006 to £1.695m for the six months to 30 June 2007.

Operating profit for the period was £1.942m, against a loss of £14,000 the previous year.

Ebitda for the six months was £1.945m, against a loss of £12,000 in 2006.

The company, which currently operates 222 pubs, said that gross property income was £5.621m, which comprised of rents, sales of beer and other drinks and income from leisure machines.

Bank debt at 30 June 2007 was £88.4m, compared to £3.8m in 2006, and represented 88% of the company's pub assets.

The group's estate of pubs at 30 June 2007 was valued at £121m, comprising investment properties of £113.6m and development properties of £7.4m.

The average book value per pub was £545,000, against £380,000 in 2006.

London Town said that since 30 June it has traded in line with expectations and that it remains committed to its objectives of adding to its estate through acquisitions and the improvement of revenues and margins across its portfolio.

During the period it acquired five freehold pubs from Mentor Inns for £3m. It also acquired 36 freehold and long leasehold pubs for £15m.

The group said it also was committed to the acquisition of a further three long leasehold sites for £1.2m.

The purchases were funded by bank debt of £12.5m.

It said it was working with its lessees and tenants to ensure that they are able both to minimise any adverse trading impact resulting from the smoking ban in England, as well as take advantage of any new trading opportunities, such as increases in food sales.