City Pub Group PLC applauds profitable business as pubs reopen

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The publican has reopened 32 of its 48 outlets since July 4, with the remaining branches scheduled to open in the next two months.

() said it has been trading profitably since early July, as pubs began to reopen after lockdown restrictions in the UK were eased.

In a business update for the three weeks since July 4, 2020, the company said it reopened 24 of its 48 ads that day, with eight more reopens in the past two weeks, bringing the total to 32.

READ: City Pub Group on ‘strong trajectory’, has the firepower to target new opportunities in post-pandemic world, real estate broker says

The company said its pubs had delivered “an encouraging performance to date” since reopening, with its remaining branches expected to reopen in the next two months or sooner if social distancing measures are relaxed further.

Total sales for the three-week period amounted to £ 1.8million, around 63% of previous levels on a comparable basis, while City Pub said “significant reductions” in costs and l operational efficiency had enabled it to trade profitably and generate cash.

Looking ahead, the company said it continues to inspect its costs and plans to complete its review by the end of September, after identifying “new savings” in its pubs and head office.

Meanwhile, he said he was “confident” in rebuilding sales to previous levels at a “much lower cost base.”

In a note released on Monday, analysts at real estate broker Liberum reiterated their buying note and their 135p price target on the group, saying its well-invested “large” local “pubs, the majority with significant outdoor space , should help him to recover quickly and take part ”.

The broker added that the “solid” balance sheet of the company should “allow it to return to investments and acquisitions soon.”

City Pub shares rose 3.6% to 72p early in trading.

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