13th Jan 2020 09:06
(Alliance News) - City Pub Group PLC warned on Monday profit will miss market expectations due to "subdued" trading over the key Christmas period.
Shares were 8.1% lower on Monday at a price of 200.00 pence each, meaning they are flat over the past 12 months, though they have bounced up and down throughout.
In its financial year ended December 29, the southern England and Wales-focused pub owner said it performed well, with revenue rising 31% to GBP59.8 million. Like-for-like sales were up 1.7%, and City Pub Group said it is pleased with this performance.
However, a number of one-off factors in the last quarter of its year held back fourth-quarter performance.
"The Rugby World Cup did not have the impact that we expected. Political uncertainty culminating in the December election held back sales until the result was known and unhelpful weather during November and December dampened trading further," said the company.
"There were also disruptions on South West trains throughout December due to industrial action, which had an impact on our London estate."
As a result, adjusted earnings before interest, tax, depreciation, and amortisation for the year is now expected to be slightly below market expectations, between GBP9.1 million and GBP9.2 million. This would still be an approximate 15% rise year-on-year.
City Pub Group also said the 2018 festive season was a very strong one, providing a tough comparable for the recently ended season.
"The group has a strong business model that is quick to respond to the more normal trading conditions now prevailing," it continued.
"Efforts to refocus on operating margins are already underway and this year's performance should see the benefits of this. In addition, there are two underperforming sites that have been earmarked and actively marketed for disposal."
Looking to its new financial year, City Pub Group noted it will benefit from full years from some recently opened pubs. It also has three large developments which will open later in the year.
By George Collard; [email protected]
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