The City Pub Group has revealed it experienced a 31% increase in revenues for the year ended 29 December 2019, and revealed it is set to reopen as a more “efficient” and “streamlined” business post Covid-19.
The group said it saw revenues reach £60m up from £45.7m the previous year. Its adjusted profit before tax also grew 4% from £5.1m to £5.3m.
The group added that it saw further “significant growth” in trading activity in 2019 with focus on acquiring higher turnover pubs and accommodation capability rising from 54 rooms at the end of 2018 to 172 at year end.
The company also said that 2020 had “began well”, but growth plans were “immediately curtailed” by Covid-19 and closure of its estate in March.
As such the group said it secured appropriate liquidity well into 2021 and the long-term future of the company through a £35m RCF and a £15m accordion option agreed.
It also raised £22m of equity from existing and new shareholders by way of a placing and open offer which it said has reduced bank borrowing by two thirds
The group added that it was in “excellent shape” to re-open its estate and “take advantage” of growth opportunities that present themselves in a post Covid-19 era.
Clive Watson, executive chairman of The City Pub Group, said: “We are excited about the prospect of reopening, not least because we have an excellent team who are keen to get back to work and keen to show hospitality to customers again. However, we will do it cautiously and above all safely.
“We will reopen with a reset, more efficient, streamlined business, reduced capital expenditure and our focus on the existing estate. We have a strong balance sheet not only to endure and prosper again, but also to take advantage of opportunities that arise.”