The City Pub Group has announced that trading since the reopening of pubs on 12 April has been encouraging at 90% of 2019 levels for the 42 pubs that have reopened to date.
The company, which owns and operates 48 premium pubs across Southern England and Wales, and a further 4 development sites, stated, 'We are already benefitting from the hard work carried out over the past year with our cost base significantly reduced and consequently the group is trading profitably at today's volumes.
'While our performance has been very pleasing, the continuing social distancing rules and absence of large bookings have limited trade. This became apparent at the start of the European Football Championships where many customers did not want to watch live sport at pubs because of the social distancing restrictions.
'We look forward to all restrictions being lifted on 19 July and we believe that once restrictions are lifted, trade will build over the remainder of the year to above 2019 levels, although it is difficult to predict at this stage exactly when this might happen.'
Whilst uncertainty remains, progress will be made on a step-by-step basis. The group has a very strong balance sheet, with over £16m of unutilised banking facilities, is cash generative, and is starting to - on a selective basis - identify new acquisitions.
The company's priority is to get the existing estate firing on all cylinders, have all four development sites open by spring 2022 and to deliver the identified cost reductions.
The group also revealed that it has purchased the freehold of the Roundhouse in Wandsworth Common, where it only had 4 years left on the lease, for a total consideration of £1.1m.
Clive Watson, Executive Chairman of City Pub Group, (pictured), said, ''We have been very encouraged by how we have traded since reopening despite the continuing restrictions. We are cash generative and trading profitably demonstrating the strength of our business model.
'I would like to thank personally all our staff and suppliers for their ongoing commitment. We have put in place a strong platform for growth, and we believe that when we are allowed to trade restriction free we will build to levels higher than 2019.''