City Pub Group’s sales are up 24% to £16.1m for the 26 weeks to 1 July 2018, as the group focused on wet-led sales and increased its portfolio.
The pub company has saw its adjusted EBITDA increase by 25% increase to £3m compared with £2.4m in 2017. Its adjusted profit before was up 73% to £1.6m while profit after tax was £760,000.
City Pub Group “strategically” opened nine new pubs so far in 2018 and a further four are currently in development. This is part of the company’s plan double in size to 65-70 sites by 2021 and its anticipation to operate more than 50 pubs by mid-2019.
Clive Watson, executive chairman of The City Pub Group, said: “The strategic expansion of our high-quality drink-led estate has been key to the strong progress we have made in the first half. We were well positioned to capitalise on the excellent weather and our sports orientated pubs have benefited significantly from the World Cup.
“The nine new sites that we have brought on stream over the course of 2018 have contributed to the increase in sales and group EBITDA which is reflected in today’s results. 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%.”
He added: “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. We are confident of meeting market expectations for 2018 and believe we have the right team and strategy to continue making progress.”