Revenue halves at City Pub Group but chain eyes long-term expansion
City Pub Group this morning announced revenue more than halved last year due to the impact of coronavirus restrictions, but said it is still eyeing long-term expansion plans.
The pub chain, which owns 48 venues and four development sites, said sales in the year ended 27 December fell 57 per cent from £60m to £25.7m due to closures and restrictions.
The company said its long-term ambition remained expanding the estate.
“Actions to enhance and improve the business during the pandemic will enable [it] to rapidly take advantage of pent-up consumer demand and opportunities that will undoubtedly emerge,” it said.
City Pub Group forecast a “rapid return” to cash generation and profitability after reopening later this year.
Monthly cash burn has been reduced to around £300,000 and it has secured a £5m government-backed loan.
City Pub Group chairman Clive Watson said: “2020 has been a very challenging year, but decisions made since March 2020 with regards to the fundraising, cost control, streamlining of the business, and strengthening of the board has resulted in a very strong balance sheet, good levels of liquidity, a strengthening of our business model, a more focussed proposition and most importantly, pure determination to go out there and do the business once the pubs reopen.
“We have the right people in the key roles, whether in the pubs or head office and a fantastic estate to trade from.
“I look forward to a time when I can announce to shareholders that we are on the acquisition trail again, but this will only be considered once we are hitting high levels of optimisation from our existing capacity.”