Convivial reports 200% operating profit boost
Convivial London Pubs, the operator of eight freehold pubs previously run within Capital Pub Company 2, has reported "outstanding" figures for the year to September 2009.
Total turnover increased 6.8% from £5.01m to £5.35m with like-for-like turnover increased by 5.4% - the company leased the Stag in Ascot on a short-term contract from April until September.
Operating profit increased by 209% from £255,000 to £788,000 and pre-tax profit for the year was £435,000 — in the prior year the company made a pre-tax loss of £1.49m after an impairment charge of £1.2m.
The new financial year has started well — like-for-like sales for the 13 weeks to 26 December are up marginally.
During the first two months of the year (October and November) pub EBITDA grew by 3%.
In the same period, and driven by lower interest charges and reduced head office costs, profit before tax was ahead by 34%.
These results are in line with board expectations. Convivial has made significant improvements in its cash position and continues to trade well within its bank facilities and covenants.
Chief executive Kris Gumbrell said: "We are delighted with our first year of trading under the new management team. Convivial has gone from strength to strength this year. The team has worked hard; we have conserved cash, focussing on developing people and motivation within the business.
"The drive has been to innovate and encourage our managers to be more proactive. Despite the uncertain trading outlook, we still see opportunity in our core business and we remain focussed on delivering quality and value for money.
"In the last quarter we have seen a deceleration of growth and we do not believe that London is immune to the national economic picture. However our controls and lower financing costs have resulted in EBITDA and PBT growth in the first eight weeks of the new financial year.
"We shall continue to seek opportunities that can fit and add value to our core business. We see the current climate as very challenging but not without opportunities to grow our business."
