Financial results reveal ‘pivotal year’ for City Pub Group

By Stuart Stone contact

- Last updated on GMT

'Continued strong progress': City Pub Group's has revealed its latest financial results
'Continued strong progress': City Pub Group's has revealed its latest financial results
The City Pub Group’s financial results for the 53 weeks ending 31 December 2017 highlight a vital period in the evolution of the business.

Highlights

  • Revenue up 35% to £37.4m (2016: £27.8m)
  • Strong performance with like-for-like sales growth of 3.8%
  • Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) up 51% to £6.1m (2016: £4.1m)
  • Adjusted profit before tax up 102% to £3.2m (2016: £1.6m)
  • Total annual dividend up 50% to 2.25p (2016: 1.50p)
  • Net debt to EBITDA of nil (2016: 3.3 times)
  • Reported (loss)/profit after tax including IPO and other exceptional items of (£0.7)m (2016: £0.4m)

The group, which operates an estate of 34 wet-led pubs in southern England and Wales saw revenue increase by 35% to £37.4m, with like-for-like sales growing by 3.8%.

At the end of October City Pub Company (East) Plc combined with City Pub Company Ltd to form the City Pub Group plc.

The group was subsequently listed on the AIM on 23 November 2017 raising £35m at 170p per share.

With five completed acquisitions to open on top of its current portfolio, seven openings earmarked for 2018, and a strengthened financial position revealed by the latest results, it is hoped the platform for the group to acquire further pubs and double the size of its estate to around 65 pubs by mid-2021 is now in place.

Continued expansion

City Pub Group executive chairman Clive Watson said that 2017 was "a pivotal year in the evolution of the business".

He added: “Not only did we combine the two divisions under one roof, but we made the important step of listing on AIM. We have also continued to expand our high-quality, drink-led estate that has significantly increased revenue and group EBITDA (earnings before interest, tax, depreciation and amortisation). Our increased dividend signals the progress made, our strong financial performance and our confidence for the future.

"The momentum from 2017 has continued into the current financial year and we have already earmarked seven new pub openings for this year. We are on course to meet our target of doubling the size of the estate to around 65 pubs by mid-2021. We have a great head office team in place to deliver on this goal.

"The sector continues to experience a number of well-trailed headwinds but we are positioned to meet these challenges and – with our robust balance sheet, well-invested estate and strong cash generation – we are confident of delivering continued strong progress and meeting our expectations for the year as a whole.”

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