Stonegate plans more ‘targeted’ acquisitions
The group snapped up 88 sites through various acquisitions in the past six months, including those from Novus Leisure and through the buyout of cocktail chain Be At One.
During the past nine years, the company has spent millions of pounds to bolster its estate, which currently boasts a portfolio of 772 sites across the UK.
Sales up
In its financial statement for the 53 weeks ending 30 September 2018, like-for-like sales were up 4.7% and revenue up 11% to £774.4m.
According to the report, its strategy and business model for the next 12 months will include, among other goals:
- To intelligently invest in its pub estate to maximise site profitability
- Pursue targeted acquisitions of attractive and complementary pub portfolios with upside potential
- Aligning its formats to benefit from emerging consumer trends.
Stonegate’s positive results are a result of the company using its “resources”, as well as its strong “capabilities” and “leveraging” its stakeholder relationships.
Other contributions to its financial success include the acquisition of Be At One, which the company described as a “great fit with Stonegate’s drink-led strategy”.
Around the same time, Stonegate bought the cocktail chain, it exchanged on 15 Novus sites, with plans under way to convert some into Be At One brands.
Existing Stonegate brands
It continued: “These premium sites will, in time, fit within existing Stonegate brands and formats, including the Be At One brand.”
However, Stonegate understands it faces the same risks to its success as others in the hospitality trade, including the impacts of the UK leaving the EU, credit and liquidity.
“The group’s principal financial instruments comprise cash sterling balances and bank deposits, loan notes, and other obligations that arise under leases together with trade receivables and trade payables that arise directly out of its operations,” it said.
