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City Pub Group shares swell as firm ready to ‘take advantage of opportunities’ from economic turmoil

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The 220-strong pub chain said it was boosted by a string of acquisitions it made last year in London and the wider UK, including the Marquess of Anglesey in Covent Garden and the Clapham North in south-west London. 
Young's, the 220-strong pub chain said it was boosted by a string of acquisitions it made last year in London and the wider UK, including the Marquess of Anglesey in Covent Garden and the Clapham North in south-west London. 

City Pub Group shares bounced up more than 10 per cent on Wednesday morning, after the pub company posted elevated sales.

In interim results, the company said sales soared to £26.1m, after pubgoers returned after the easing of Covid lockdown rules. For the first half of 2021, the company had cashed in revenue of £8.9m, due to pandemic restrictions on venues.

The business has “strengthened its financial position,” since the summer, with trading returning to pre-Covid levels, even though costs have risen.

With “very low” net debt, the group is well placed to “take advantage of the opportunities that will arise from these most challenging times, when appropriate.”

CityA.M. understands the pub group is planning to snap up new sites, predominantly freehold pubs, at the right price.

The pub group has fixed energy prices until March 2023 while peers in the sector are struggling to negotiate affordable new contracts this autumn.

Details of a six-month business support scheme on energy bills were welcomed by the CEO of City Pub Group, with Clive Watson praising the government for issuing support “in reasonable speed.” 

However, Watson also called for a VAT cut to five per cent for six months, to help operators who have been struggling with labour, food and construction costs, as well as high energy bills.