City Pub Group (The) - Trading Statement
City Pub Group PLC
( "City Pub group" or "the Group")
Positioned to emerge strongly
The City Pub Group, the owner and operator of 48 premium pubs across
· Actions to enhance and improve the business during the pandemic will enable the Group to rapidly take advantage of pent-up consumer demand and opportunities that will undoubtedly emerge
· Management team enhanced with the appointment of
· Cash burn reduced to c.
· Reorganisation of supplier base and streamlined retail offer completed and ready for reopening
· Ample liquidity into 2022 with
· Rapid return to cash generation and profitability expected upon reopening, driven by enhanced operational model
· Establishment of new ESG committee and commitment to strengthen independence and diversity of the board
The Group generated revenue of
Following the most recent lockdown, the primary priorities have been to ensure that cash burn was reduced to the minimum and that the Group is well positioned to emerge strongly once restrictions are lifted. The Board has been focused on the following key areas:
· Staff costs - With the exception of 8 employees, all staff are furloughed.
· Directors - Having sacrificed 50% of their salary between March and June, and 25% between July and October, the directors are deferring 25% of their salary from
· Other costs - Whether in head office or at our venues, virtually all costs have now been reduced and many contracts, including lockdown clauses, have been renegotiated for the long-term. This exercise will significantly lower the Group's cost base when the pubs finally reopen.
· Capex - Capex has been effectively suspended, except for minor essential remedial works and a
· Landlords - Considerable progress has been made with our landlords and, on the whole, they have been willing to reach sensible compromises. In a number of cases we now have minimal rents in the event of a continued lockdown and have negotiated rent concessions across a large number of our leasehold properties. The Group will continue to consider whether it should permanently surrender its liabilities on certain leases.
· Insurance - The ruling by the Supreme Court regarding Covid-19 insurance claims for those in the hospitality sector is welcomed by the Board. The process for pursuing claims under our policy has been initiated and the Board will update shareholders with progress once settlement has been reached.
The Board would like to record how encouraging it has been that the Group has had the support of key stakeholders such as suppliers and landlords in order to reach sensible compromises. The above measures have significantly reduced the Group's cash burn which is currently running at c.
The Group strengthened its management team towards the end of 2020 with the appointment of
Throughout last year, the supply chain and retail offer were streamlined and the future focus is to optimise the capacity of the existing pub estate. The Board is confident that this will be achieved quickly when pubs reopen. Beyond this, it remains the Group's long-term commitment to expand the estate and further enhance its premium position. The Executive team have vast industry experience, are committed to the long-term ambitions of the Group and determined to return to generating increasing levels of Group EBITDA.
The Board is also pleased to announce that it has established a new committee, which will oversee the Group's ESG policy.
The Group is also actively looking to strengthen the independence and diversity of its Board. An announcement in this regard is expected to be made no later than the publication of the Group's annual results.
"2020 has been a very challenging year, but decisions made since
The information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No.596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.
City Pub Group
+44 (0) 20 7457 2020
Liberum (Nomad & Broker)
+44 (0) 20 3100 2000
Quick facts: City Pub Group PLC
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