City Pub Group toasts swing to profit
The City Pub Group
139.00p
16:55 01/03/24
Boosted by the long hot UK summer, City Pub Group swung to a profit during the first half of its trading year.
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City Pub's adjusted pre-tax profits skyrocket 73% to £1.6m as sales increased 24% to £20m from its 42 wet-led pubs in Southern England and Wales, including Roundhouse in Wandsworth, the Walrus in Brighton and St Aldate's Tavern in Oxford.
Statutory results for the six months ended 1 July saw the AIM-listed outfit swing from the loss of £50,000 a year earlier to a profit of £760,000 as earnings before interest, tax, depreciation and amortisation increased 25% to £3m. Earnings per share came in at 1.33p for the half, a marked improvement from the 0.18p loss turned in a year earlier.
In the 11 weeks of trading since 1 July, City Pub revealed that sales were up roughly 24% year-on-year, primarily driven by an increase in the number of trading pubs and the continued warm weather across the UK.
Executive chairman Clive Watson said: "The momentum from the first half has continued into the second half and in the eleven weeks since July 1 we have seen sales increase by 24%."
"We are ahead of our original target to double the number of pubs operated by 2021 and expect to have 50 by mid-2019. This will be assisted by softening conditions in the acquisitions market and limited competition for sites."
As of 0920 BST, City Pub shares had slipped 2.50% to 237.90p.