19th Nov 2019 10:08
(Alliance News) - Pub operator Ei Group PLC on Tuesday said it swung to an annual loss, as it awaits the outcome from a regulator probe over its potential takeover by the owners of the Slug & Lettuce bar chain.
In the financial year ended September 30, revenue climbed 4.2% to GBP724 million from GBP695 million last year.
Ei reported a pretax loss of GBP199 million, swinging from last year's profit of GBP87 million, driven by GBP232 million in impairment costs from property disposals. No such costs were registered last year.
Ei's disposed of 354 assets during the period, chopping its portfolio to 125 properties from 412.
Across its managed pubs business, like-for-like sales grew 5.0%, slightly below last year's growth of 7.1%.
In July, Ei accepted a GBP1.3 billion offer from Stonegate Pub Co Ltd. Including debt, the deal values Ei at GBP2.97 billion. The UK Competition & Markets Authority is considering whether the deal could lead to reduced competition.
Ei said on Tuesday that it expects the deal close in the first quarter of 2020, subject to the conclusion by the monopoly regulator's probe.
Looking ahead, Ei added: "The new financial year has started well, and the trading performance of our portfolio of businesses, together with the transfer of assets into alternative operating models, is progressing in line with our expectations."
Investment bank Morgan Stanley trimmed its stake in the company in a transaction on Thursday, Ei said. The New York-listed financial services giant's holding in Ei now stands below 3%, having previously been at 5.3%.
Ei shares were trading flat at 282.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
EI Group