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City Pub Company reports revenue growth and portfolio expansion

By James Russell: City Pub Company reports revenue growth and portfolio expansion

September 10, 2015

City Pub Company has reported its interim results for the six months ended 30 June 2015. The Company has achieved significant revenue growth, strengthened its balance sheet and expanded its high quality estate to 22 pubs following four recent acquisitions.

Clive Watson, Chairman commented: “These are exciting times. We have achieved significant progress in the first six months of the year and anticipate further development. I am confident that our new acquisitions will deliver excellent returns to our shareholders.

“With £3.5million raised and £700,000 pledged from existing shareholders our convertible bond has good momentum. We remain on track to build a portfolio of around 30 pubs by the end of 2017.”

Highlights

  • Turnover increased significantly by 42% to £9.0 million (2014: £6.35 million)
  • EBITDA grew 75% to £1.25 million (2014: £0.7 million)
  • Pub portfolio expanded to 22 sites:
    • Opened two pubs in the period:
      • Dalys, The Strand (WC2)
      • The Cock & Bottle, Notting Hill (W8)
    • Acquired a further four pubs post year-end:
      • Java, George Street, Oxford
      • Smugglers on The Lanes, Brighton
      • The Bicycle Shop, Regents Street, Cambridge
      • The Prince Street Social, Queen Square, Bristol
  • An additional £3.5 million raised through Convertible Preference Share issue (“CPS”)  to strengthen balance sheet, reduce debt and create headroom for further expansion

City Pub Company has enjoyed a highly active six months and moves into the second half of the year in a strong financial position with headroom to expand with a number of new openings expected in early 2016. The Board is confident that the Company’s positive momentum and encouraging results will continue into the second half of the year. The target is to grow to around 30 pubs within the next two years.

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