City Pub Group revenue down by 57% as company posts results
The City Pub Group (LON:CPC), owner of nearly 50 pubs across the UK, confirmed on Tuesday that its revenues plummeted by more than 50% during 2019 as lockdowns battered the industry.
For the financial year gone, the City Pub Group brought in £25.8m, down from £60m in 2019.
City Pub took measures during the pandemic to offset its impact such as maximising outdoor seating for when the option presented itself. Across its locations, the City Pub Group has added more than 600 outside covers to allow them to open under the current government-imposed restrictions.
In addition, it acquired a 49% stake in the Kensington Park Hotel and increased its shareholding in Mosaic Pub and Dining group to 24%.
The AIM-listed company reported “encouraging trading” since outdoor reopening, with its 24 pubs currently open trading at 77% of 2019 levels, outlining the extent of the pent-up demand.
The group is expecting to benefit from an increase in domestic holidays as a number of international holiday destinations remain off-limits to Brits.
Clive Watson, Executive Chairman of The City Pub Group, added:
“The business has been significantly improved over the past year placing us in an excellent position to take advantage of the pent-up demand as the country reopens.”
“The early signs since we have been allowed to trade outdoors have been very heartening and it has been great to bring back our immensely talented staff and to see our customers enjoying our pubs once again.”
“We are a streamlined, well-invested business with a first-rate customer offer. Our pub estate is unique in terms of quality and, with the step change in the business, we have an ideal platform to grow successfully in the future.”
As its sites were quiet during lockdowns, the company made improvements to its City Club app which now has over 100,000 active members.
