City Pub Group trading improves, adds Norfolk location to estate

Pub operator the City Pub Group said on Thursday that trading in city centres had been given a boost by Summer's "staycation" boom and Brits' return to work and study in September.

City Pub said since May, sales were above 90% of 2019 levels, with revenues of £8.9m.

The AIM-listed group also put on a breakeven adjusted underlying earnings performance, a marked improvement from 2020's first-half underlying loss of £1.2m, while adjusted pre-tax losses were narrowed from £3.5m to £2.0m.

City Pub also highlighted that it had a "strong balance sheet", with "ample" liquidity of £18.0m.

Chairman Clive Watson said: "We have traded well since May and are emerging strongly with a streamlined and more profitable business. We have continued to implement a relentless focus on cost control and we are capturing cost savings identified and negotiated over the last year.

"We are emerging from the pandemic in a good shape, well prepared for the challenges facing our industry. We have maintained and enhanced a number of our pubs and benefitted during staycation summer from our estate of more than 200 letting rooms. With our good trading and strong balance sheet we have begun to look to expand again recently making two significant acquisitions."

Separately, City Pub revealed it had acquired the Cliftonville Hotel in Cromer, Norfolk for £1.7m, with £1.6m to be paid in cash and a further £100,000 to be covered via the issue of 86,505 new shares in the group.

As of 0845 BST, City Pub shares were down 0.67% at 119.20p.