Last year, City Pub Group (CPC) revised the high octane growth strategy it had laid out at its 2017 listing. Out went the plan to double its 33-strong estate at IPO by mid-2021, with the group instead now focusing on premium sites in a bid to drive up profitability. It now has 48 pubs with a further four under development. City Pub Group’s accommodation numbers meanwhile rocketed during the period, from 54 rooms to 172.
City Pub Group’s adjusted cash profits rose 15 per cent to £9.1m over 2019, although the introduction of a new regional-based management structure and the unwinding of its profit share scheme pushed operating margins down to 15.1 per cent, from 17.2 per cent. The group is preparing to throw open its doors with the government’s permitted 4 July reopening date fast approaching. It raised £22m via a share placing and open offer in April, which has reduced its bank borrowing by two-thirds.
Liberum forecasts full year 2020 pre-tax losses and losses per share of £6.5m and 7.1p, respectively, before profits and earnings per share of £5.3m and 4.3p in 2021.
| CITY PUB GROUP (CPC) | ||||
| ORD PRICE: | 89p | MARKET VALUE: | £ 92m | |
| TOUCH: | 85-90p | 12-MONTH HIGH: | 216p | LOW: 36p |
| DIVIDEND YIELD: | Nil | PE RATIO: | 40 | |
| NET ASSET VALUE: | 76p | NET DEBT: | 40%** | |
| Year to 29 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015* | 20.2 | 0.86 | na | na |
| 2016 | 27.8 | 0.58 | 1.50 | 1.50 |
| 2017 | 37.4 | -0.26 | -2.45 | 2.25 |
| 2018 | 45.7 | 2.62 | 3.44 | 2.75 |
| 2019 | 60.0 | 2.20 | 2.20 | Nil |
| % change | +31 | -16 | -36 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Pre IPO figures **Includes lease liabilities of £2m | ||||
