Stonegate reports £746m loss as pandemic hits pubs

18 March 2021 by
Stonegate reports £746m loss as pandemic hits pubs

Stonegate Pub Company has reported a pre-tax loss of £746m in its latest financial results, compared to a £26m loss the prior year.

During the 52 weeks ended 27 September 2020, the UK's largest pub-owning company, which has a portfolio including the Be At One and Slug & Lettuce brands, said Covid restrictions on pubs had a "significant impact" on the group's liquidity. Shortly following Stonegate's £3b acquisition of Ei Group in March 2020, all its pubs were closed during the national lockdown and saw limited trading for the remaining months of the financial year and revenues fell to £707m.

Despite receiving a £50m cash injection from owner TDR Capital, it said legislation, utility costs, business rates and leasehold rents presented an ongoing risk to the business and "the events and future uncertain effect on trading arising as a result of the Covid-19 outbreak indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern."

In the case of a further two-month lockdown this winter, the group said it would have insufficient liquidity in January 2022 and may have to resort to selling assets or raising new debt or equity.

Stonegate has 4,708 pubs across the UK and 15,900 employees.

Photo: Shutterstock

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking