City Pub Group sales up 14% in H1

The City Pub Group has revealed that like-for-like sales increased 14% to £31.7m in H1, up from £26.1m in H1 2022, the half-year ended 25 June 2023. 

Despite inflationary pressures, the pub operator’s adjusted EBITDA level was maintained at £3.3m, slightly lower than H1 2022’s total of £3.4m, while adjusted profit before tax reached £0.8m compared with £1.3m in 2022. 

According to the company, it benefited from roughly £800k of state aid principally relating to lower VAT and business rates. 

Since June, the business maintains that it has continued to strengthen its financial position, as trading remained strong despite the poor weather in July and early August, and the train strikes.

The group’s energy costs will also be “considerably” lower than last year, with 60% of its energy now hedged to year end. 

The group also acknowledged that H2 is “traditionally the stronger trading period”, which benefits from more sporting activity including the Rugby World Cup, returning students from the end of September, and the Christmas trading period. 

Clive Watson, chairman of City Pub Group, said: “The Company is in a strong position with very low net debt and what we believe is amongst the lowest gearing in the sector. We look forward to a strong second half – Christmas bookings are significantly up and the company is well placed to take advantage of new acquisition opportunities. 

“The Mosaic estate has been integrated and is showing significant increases in LFL sales. The economy remains challenging but we are well placed to take advantage of any future upturn.”

The City Pub Group operates a predominately freehold estate of 42 trading pubs and has recently acquired a majority shareholding in Mosaic Pubs, which has nine freehold pubs located in London and Birmingham.