The City Pub Group PLC (AIM:CPC, FRA:6QH) said sales since May are above 90% of 2019 levels as it continues with its expansion plans with the acquisition of a hotel in Norfolk.
Trading in city centre sites has benefited from the return to work and to university during September, the group added.
READ: City Pub Group has financial strength to bounce back strongly argues Peel Hunt
The AIM-listed publican has been offering accommodation as well as food and drinks, banking on the ‘staycation’ trend during the summer.
In fact, it bought The Cliftonville Hotel in Cromer, Norfolk, for £1.7mln with £100,000 to be paid in shares and the rest in cash.
It has also completed two of the planned lease disposals and negotiations continue on two others. It has also sold off a freehold investment releasing an initial £2.2mln to recycle into the business.
In the 26 weeks ended 27 June, revenue was down to £8.9mln from £12mln in 2020, with adjusted loss before tax shrinking to £2mln from £3.5mln.
“City Pubs interim results provide further comfort that its streamlined operations and centralise functions are driving improved profitability across its well-maintained high-quality estate. It now has the management and infrastructure in place to scale to 100+ pubs (from 46 currently),” analysts at house broker Liberum said.