City Pub Group reports 22% rise in turnover

The City Pub Group has reported a 22% rise in turnover to £45.6m with like-for-like sales up 1.6%.

In a trading update for the 52 weeks to 30 December 2018, the group, which operates 44 pubs across England and Wales, said that the rise in like-for-like sales was down to volume, rather than price increases.

Trading over the festive period was up 7% over the six week period to 6 January 2019.

City Pub Group added that trading would be further boosted in 2019 by price rises.

In December the group completed the £2.2m acquisition of Chapel 1877, a freehold site in Cardiff. It has also exchanged on freehold sites since in Norwich and Exeter for £3m and said that it continued to explore further opportunities while it refurbishes three of its larger sites, including Aragon House in Parsons Green, London.

City Pub Group exeutive chairman Clive Watson said: "Trading was very encouraging over the festive period and throughout 2018, particularly post-Easter.

"We have grown very rapidly over the past two years, performed well and our new sites are showing their potential.

"Our low gearing puts us in an enviable position to take advantage of attractive acquisition opportunities that present themselves. If we enter a period of uncertainty caused by Brexit, there is much we can continue to achieve organically.

"Our estate is in great shape; well invested and trading well with considerable upside potential, including the additional benefit of the quality of our earnings increasing as we invest and grow our accommodation business which delivers an incremental income stream."