City Pub Group (The) - Interim Results
21/09/2023 07:00
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RNS Number : 1338N City Pub Group PLC (The) 21 September 2023
The City Pub Group PLC
(the "City Pub Group", the "Company" or the "Group")
INTERIM RESULTS FOR THE 26 WEEK PERIOD ENDED 25 June 2023
The City Pub Group is pleased to announce its unaudited results for the 26
week period to 25 June 2023. The Group operates a predominately freehold
estate of 42 trading pubs and in addition has recently acquired a majority
shareholding in Mosaic Pubs which have 9 pubs located in London and Birmingham
and are predominantly freehold.
Since the last statement at the AGM in June, the business has continued to
strengthen its financial position and trading has remained strong. This is
despite the poor weather in July and early August and the continuation of
train strikes. The Group enjoys one of the lowest levels of gearing in the
whole hospitality sector with net debt of only c.£8.0m putting the Group in a
very strong position to take advantage of appropriately priced opportunities
in the market. Whilst our continued focus remains on delivering organic
growth, we are currently engaged in negotiations on a number of acquisitions.
Our strategy to premiumise our offer is delivering increased sales and across
our existing estate we have successfully sought further labour and purchasing
costs efficiencies which have helped mitigate some, but not all, inflationary
pressures. Looking forward, energy costs, pleasingly, will be considerably
lower than last year with 60% of our energy now hedged to year end.
The second half of the year is traditionally the stronger trading period which
benefits from more sporting activity including the Rugby World Cup, return of
students from the end of September and the lucrative Christmas trading period.
We will benefit from a 53(rd) week in this financial year.
H1 update
· Positive trading momentum: revenue of £31.7 million (H1 2022: £26.1
million) and LFL sales up 14%
· Despite inflationary pressures, pre-IFRS16 adjusted EBITDA* level
maintained at £3.3 million (H1 2022: £3.4 million). The comparatives
benefited from c.£800k of state aid principally relating to lower VAT rates
and business rates
· Adjusted profit before tax** of £0.8 million (H1 2022: £1.3
million)
* Pre-IFRS16 Adjusted earnings before exceptional items, share option charge,
interest, taxation, depreciation and amortisation.
** Pre-IFRS16 Adjusted profit / (loss) before tax is the profit / (loss)
before tax, share option charge and exceptional items.
Current trading and Outlook
· Trading across the summer since the half year end has remained
positive and the Group continues to trade in line with full year expectations.
· Anticipate continued trading momentum in H2 FY23 which benefits from
a very active sporting calendar. Christmas bookings are ahead of where they
were this time last year.
Clive Watson, Chairman of City Pub Group said:
"The Company is in a strong position with very low net debt and what we
believe is amongst the lowest gearing in the sector. We look forward to a
strong second half - Christmas bookings are significantly up and the company
is well placed to take advantage of new acquisition opportunities. The Mosaic
estate has been integrated and is showing significant increases in LFL sales.
The economy remains challenging but we are well placed to take advantage of
any future upturn.
21 September 2023
Enquiries:
City Pub Group Today: via Instinctif
Clive Watson, Executive Chairman
Holly Elliott, CFO
Instinctif Partners +44 (0) 20 7457 2020
Matthew Smallwood
Liberum (Nomad & Joint Broker) +44 (0) 20 3100 2000
Chris Clarke
Edward Thomas
Panmure Gordon (UK) Limited (Joint broker) Simon French +44 (0) 20 7886 2500
Ailsa Macmaster
Rupert Dearden
For further information on City Pub Group pubs visit www.citypubcompany.com
(http://www.citypubcompany.com)
CHAIRMAN'S STATEMENT
Since my last update at the AGM in June, the Group continues to strengthen its
financial position. Sales volumes are continuing to improve; debt remains at
historically very low levels and operational efficiencies continue to be
delivered. I am pleased to announce that trading continues to be strong and
for the first 6 months of 2023 LFL sales were up by 14% on 2022. The strong
LFL performance is being driven by our strategy to further premiumise the
estate and a continuous, relentless focus on customer service.
For the first 38 weeks of the year LFL sales are up 12.4% - this is very
encouraging given the wet summer we have recently experienced and the recent
ongoing train strikes. The Group continues to focus on organic sales growth
and believes its strengthened marketing and sales teams will continue to drive
further optimisation of existing retail space.
Due to the large number of freeholds in the estate, the Group has strong asset
backing and good operating margins. The Company's debt level is at a
historically low level, and its balance sheet is one of the lowest geared in
the hospitality sector. The pub estate is very well invested requiring limited
capital expenditure over the next 2 years. This will allow the Group to use
its free cashflow to fund further acquisitions and share buybacks.
As the UK economy continues to adjust to higher interest rates, the Group
continues to adopt a measured approach to its expansion programme. It believes
its focus on organic growth and acquiring c.5 new pubs per annum will stand
the business in good stead for when the economy starts to improve. The Board
believes this is the right approach for a well-financed trading estate of
premium pubs which can deliver sustained growth for shareholders.
Trading Estate
The Group currently operates 42 trading sites (excluding Mosaic).
Since my last statement in June, we have continued to premiumise and enhance
our existing estate, and we have upgraded the following pubs at a cost of
£2m:
- Cliftonville, Cromer - all the bedrooms are now refurbished to high
standard and a new ballroom/function room
- Georgian Townhouse, Norwich - significant improvement to garden and
play area
- Bow St Tavern - 4 trading levels have all been refurbished to
increase capacity for group bookings
- Market House, Reading - trading areas refurbished to more group
bookings
- Three Crowns, Old Street, Shoreditch - small refurbishment to
premiumise the offer
- The Cork, Bath - significant upgrade to the outside trading area,
including more covered areas
Future refurbishments:
- Pontcanna Inn - we now have planning permission for a covered
seating area for over 150 people.
Acquisitions/disposals
The Group acquired a new pub, The Bridge located in Barnes for £0.5m. The
purchase completed on 9 January 2023.
The Group disposed of The Yard surrendering the lease with the sale completing
on 24 March 2023.
Mosaic Investments
In June, we succeeded in securing control of Mosaic Pub and Dining Group
Tranche 1 through owning 53% of the equity. City Pub Group will make a further
offer to the remaining shareholders before the end of the tax year, i.e. April
5(th) 2024. Mosaic operates 9 high quality pubs of which 6 are in London
and 3 in Birmingham. 7 are freehold and 2 are leasehold. These are being
integrated into the City Pub trading estate. We anticipate future sales growth
from these pubs and cost savings. Whilst the Mosaic Group is well invested, we
anticipate some investment in refurbishment to enhance trading performance.
Financial Highlights
Summary for the 26 weeks ended 25 June 2023:
• Revenue up 21% to £31.7 million (H1 2022: £26.1 million)
• Pre-IFRS 16 adjusted EBITDA* of £3.3 million (H1 2022: £3.4 million)
• Adjusted profit before tax** of £0.8 million (H1 2022: £1.3 million)
• Reported loss of £0.8 million (H1 2022: profit £0.1 million)
Key Metrics
Post IFRS 16 Pre IFRS 16 Post IFRS 16 Pre IFRS 16
26 weeks to 26 weeks to 26 weeks to 26 weeks to Change
25.06.23 25.06.23 26.06.22 26.06.22 Pre IFRS 16
£m £m £m £m %
Revenue 31.7 31.7 26.1 26.1 21%
Adjusted EBITDA 4.4 *3.3 4.4 *3.4 -3%
Adjusted Profit before tax 0.8 **0.8 1.2 **1.3 -34%
*Pre-IFRS16 Adjusted earnings before exceptional items, share option charge,
interest, taxation, depreciation and amortisation.
**Pre-IFRS16 Adjusted profit / (loss) before tax is the profit / (loss)
before tax, share option charge and exceptional items.
Our strong trading figures are the result of having a premium well invested
pub estate, however it should be noted that the Group benefited from c.£800k
of state aid in the form of lower VAT and lower business rates. The second
half of the year is traditionally the stronger trading period which benefits
from more sporting activity including the Rugby World cup, return of students
from mid-September and the lucrative Christmas trading period. We benefit from
a 53(rd) week in this financial year.
Bank Facilities/NAV
Current net debt is c. £.8.0 million and the Director's valuation of the pub
estate, now including the Mosaic Pubs is c.£171 million. Using that valuation
as a benchmark, Net Asset Value is c.155p per share.
We have undrawn credit facilities of £26 million, and the Group operating
comfortably within its banking covenants.
ESG
The ESG Committee, established in 2021, chaired by Emma Fox, continues its
work realising the Group's ESG Strategy to operate as a responsible and
transparent business. The Company continues to engage with ESG consultancy,
Inspired, to produce ESG reporting for the third year, including an annual ESG
Report, reporting against the recommendations of the Task Force on
Climate-Related Financial Disclosures (TCFD) and a standalone TCFD Report.
Both the ESG Report and TCFD Report are available on the Company's website. As
a PLC, the Company also complies with Energy Saving Opportunity Scheme (ESOS)
and reports annually under Streamlined Energy and Carbon Reporting (SECR),
which enables the Group to assess and report on energy usage, associated
emissions, energy efficiency action and energy performance. City Pub Group
voluntarily participates in Carbon Disclosure Project (CDP), which helps us
measure and manage our environmental impacts. This year's disclosure will be
available in early 2024.
The ESG Committee meets at least bi-annually to monitor and evaluate various
ongoing projects under the ESG strategy, including:
- CAPEX and behavioural change energy efficiency project
- Community engagement initiatives
- Charitable work
- Mandatory and voluntary ESG reporting
- Development of ESG policies
- Stakeholder engagement with the Company's ESG journey
Net Zero
The Board agreed to set an ambitious target of being Net Zero by 2040, ahead
of Government's commitment of 2050. We further plan to achieve Net Zero for
operational emissions (Scope 1&2) by 2035, with great progress being made
thanks to the commitment to procuring 100% renewable electricity. We are
continuously investing in energy saving solutions to further cut energy use
and phase out natural gas from our pubs. Ongoing projects include, smart
metering, cellar and refrigeration sensors, secondary glazing and engagement
workshops with pub managers.
Share Buybacks/Dividends
Since starting the Share Buyback Programme the Group has purchased c.1.6m
shares (c.1.5% of the issued share capital) at a cost of c.£1.3m. The Group
will continue the Share Buyback Programme whilst the value of the shares
continue to trade at large discounts to NAV.
Industry Issues
Energy prices have continued to fall, resulting in our energy bill for
this financial year reducing by £1m from £3m in 2022 to £2m. The Group
has hedged 60% of its energy cost until year end, minimising any future risks.
High food inflation has impacted margins. We also anticipate that labour costs
will continue to rise in line with general inflation, meaning that the Group
continually has to look at labour saving measures across its operations and
head office to mitigate rising employee costs. The government continues to tax
our industry particularly harshly with its recent duty increases on wine,
spirits and bottled beer. Business rates continue to discriminate against
businesses that operate from premises in city centres and other urban areas.
We continue to call on the Government to address the unfairness in the
business rates system where pubs pay considerably more as % of sales than
big online retailers.
Outlook
The Group remains in a very strong financial position with low levels of bank
debt and operational gearing, as well as owning a predominantly freehold pub
estate (63%). From a retail perspective, we continue to premiumise our offer
and aim to achieve further organic growth from the existing estate. We seek
to become as efficient as possible without compromising our levels of
hospitality through further savings across the estate, whether it be better
use of energy as a result of our ESG approach, better labour scheduling or
improved development of our food menus.
The market for pubs has now become more realistic and whilst our continued
focus remains on delivering organic growth, we are currently engaged in
negotiations on a small number of appropriately priced acquisitions.
The ambition within City Pub Group remains strong. We have an experienced
and committed head office team whose focus is to make City Pub Group one of
the best independent pub retailers on the market. All our retail staff are
incentivised with a weekly bonus which not only helps improve their
renumeration but encourages them to engage in an entrepreneurial way.
The pub sector, despite all challenges it has faced in the last 3-4 years,
remains resilient. Undoubtedly, there will be winners and losers going
forward. Those pub groups that embrace technological change will be able to
further increase their market share and increase returns for their
shareholders. As a Group we are focused on being innovative, improving sales
per square foot, generating a high level of operating margins and retaining
a strong freehold backed balance sheet with low levels of bank debt.
The Group continues to improve its financial strength - it has a clear vision
of where it wants to be over the medium term. We are targeting an estate of
c.60 quality pubs located in some of the greatest cities across England and
South Wales.
City Pub group has become very adept at reacting quickly where we need to, to
minimise risk and take advantage of opportunities.
Bookings for H2 FY23 are looking strong, particularly around the Rugby World
Cup and the important Christmas trading period and I look forward to updating
shareholders with our trading statement in January 2024.
Clive Watson
Executive Chairman
21 September 2023
Consolidated Statement of Profit or Loss
For the 26 weeks ended 25 June 2023
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
25 June 2023 26 June 2022 25 December 2022
Notes £'000 £'000 £'000
Revenue 31,650 26,127 57,793
Costs of sales (7,755) (6,285) (14,063)
Gross profit 23,895 19,842 43,730
Other operating income 2 70 184 239
Administrative expenses (23,957) (19,350) (42,542)
Operating profit 8 676 1,427
Reconciliation to adjusted EBITDA*
Operating profit 8 676 1,427
Depreciation 7 & 8 2,713 2,571 5,174
Share option charge 971 419 1,042
Exceptional items 3 664 714 2,439
*Adjusted earnings before exceptional items, share option charge, interest, 4,356 4,380 10,082
taxation and depreciation
Share of losses of associates and joint ventures (225) (76) (157)
Finance costs (598) (523) (1,054)
(Loss)/profit before tax (815) 77 216
Tax credit 4 - - 735
(Loss)/profit for the period and total comprehensive income (815) 77 951
(Loss)/earnings per share
Basic (loss)/earnings per share (p) 5 (0.79) 0.07 0.92
Diluted earnings per share (p) 5 n/a 0.07 0.89
All activities comprise continuing operations.
The accompanying notes are an integral part of these interim financial
statements.
Consolidated Statement of Comprehensive Income
For the 26 weeks ended 25 June 2023
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
25 June 2023 26 June 2022 25 December 2022
£'000 £'000 £'000
(Loss)/profit for the period (815) 77 951
Other comprehensive income
Items that will not be reclassified to profit or loss
Changes in the fair value of equity investments at fair value through other (105) (225) (494)
comprehensive income
Income tax relating to these items 26 56 123
Other comprehensive income for the period, net of tax (79) (169) (371)
Total comprehensive income for the period (894) (92) 580
All of the total comprehensive income for the period is attributable to the
owners of The City Pub Group plc and all arise from continuing operations.
The accompanying notes are an integral part of these interim financial
statements.
Consolidated Statement of Financial Position
As at 25 June 2023
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
25 June 2023 26 June 2022 25 December 2022
Assets Notes £'000 £'000 £'000
Non-current
Intangible assets 2,880 2,250 2,450
Property, plant and equipment 7 99,576 93,641 99,065
Right-of-use assets 8 17,228 16,354 17,565
Deferred tax assets 1,869 1,071 1,843
Financial assets at fair value through OCI 281 655 386
Investments in associates & joint ventures 7,413 6,068 6,004
Total non-current assets 129,247 120,039 127,313
Current
Inventories 1,101 921 1,152
Trade and other receivables 4,080 4,439 3,659
Cash and cash equivalents 5,813 3,805 4,121
Total current assets 10,994 9,165 8,932
Total assets 140,241 129,204 136,245
Liabilities
Current liabilities
Trade and other payables (16,850) (11,758) (13,931)
Financial liabilities - lease liabilities (2,040) (1,863) (1,915)
Total current liabilities (18,890) (13,621) (15,846)
Non-current
Borrowings (9,744) (5,630) (7,657)
Financial liabilities - lease liabilities (16,238) (15,078) (16,674)
Deferred tax liabilities (2,445) (2,460) (2,445)
Total non-current liabilities (28,427) (23,168) (26,776)
Total liabilities (47,317) (36,789) (42,622)
Net assets 92,924 92,415 93,623
Equity
Share capital 9 31,281 31,276 31,276
Share premium 9 59,475 59,475 59,475
Own shares (2,015) (3,272) (3,359)
Other reserve 1,231 2,434 2,855
Retained earnings 2,952 2,502 3,376
Total equity 92,924 92,415 93,623
The accompanying notes are an integral part of these interim financial
statements.
Consolidated Statement of Changes in Equity
For the 26 weeks ended 25 June 2023
Share capital Share premium Own shares Other reserve Retained earnings Total
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 26 December 2021 (Audited) 31,276 59,475 (3,272) 2,184 2,425 92,088
Employee share-based compensation - - - 419 - 419
Transactions with owners - - - 419 - 419
Profit for the period - - - - 77 77
Other comprehensive income (169) - (169)
Total comprehensive income for the period - - - (169) 77 (92)
Balance at 26 June 2022 (Unaudited) 31,276 59,475 (3,272) 2,434 2,502 92,415
Employee share-based compensation - - - 623 - 623
Purchase of own shares - - (87) - - (87)
Transactions with owners - - (87) 623 - 536
Profit for the period - - - - 874 874
Other comprehensive income - - - (202) - (202)
Total comprehensive income for the period - - - (202) 874 672
Balance at 25 December 2022 (Audited) 31,276 59,475 (3,359) 2,855 3,376 93,623
Employee share-based compensation - - - 971 - 971
Share options exercised or expired - - 2,125 (2,516) 391 -
Purchase of own shares - - (781) - - (781)
Issue of new shares 5 - - - - 5
Transactions with owners 5 - 1,344 (1,545) 391 195
Loss for the period - - - - (815) (815)
Other comprehensive income - - - (79) - (79)
Total comprehensive income for the period - - - (79) (815) (894)
Balance at 25 June 2023 (Unaudited) 31,281 59,475 (2,015) 1,231 2,952 92,924
The accompanying notes are an integral part of these interim financial
statements.
Consolidated Statement of Cashflows
For the 26 weeks ended 25 June 2023
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
25 June 2023 26 June 2022 25 December 2022
£'000 £'000 £'000
Cash flows from operating activities
(Loss)/profit for the period (815) 77 951
Taxation - - (735)
Finance costs 598 523 1,054
Results from equity accounted investment 225 76 157
Operating profit 8 676 1,427
Adjustments for:
Depreciation 2,713 2,571 5,174
Gain on disposal of property, plant and equipment (123) - (58)
Share-based payment charge 971 419 1,042
Negative goodwill amortisation (257) - -
Impairment 413 - 627
Change in inventories 51 127 (104)
Change in trade and other receivables (537) (1,108) (668)
Change in trade and other payables 2,978 (454) 1,723
Cash generated from operations 6,217 2,231 9,163
Tax received 130 - 53
Net cash generated from operating activities 6,347 2,231 9,216
Cash flows from investing activities
Purchase of property, plant and equipment (2,709) (4,715) (10,262)
Acquisition of new property sites (550) - (2,045)
Purchase of investments & associates (net of cash acquired) (1,359) (2,522) (2,539)
Proceeds from disposal of property, plant and equipment - 16,687 16,977
Net cash (used in)/generated from investing activities (4,618) 9,450 2,131
Cash flows from financing activities
Purchase of own shares (781) - (87)
Proceeds/(repayment) of borrowings 2,000 (19,151) (17,169)
Principal elements of lease payments (658) (648) (1,362)
Interest paid (includes implied interest under IFRS 16) (598) (587) (1,118)
Net cash used in financing activities (37) (20,386) (19,736)
Net change in cash and cash equivalents 1,692 (8,705) (8,389)
Cash and cash equivalents at the start of the period 4,121 12,510 12,510
Cash and cash equivalents at the end of the period 5,813 3,805 4,121
The accompanying notes are an integral part of these interim financial
statements.
Notes to the Financial Statements
For the 26 weeks ended 25 June 2023
1 Basis of preparation
This interim report was approved by the board on 21 September 2023. The
interim financial statements are unaudited and are not the Group's statutory
accounts as defined in section 434 of the Companies Act 2006.
The consolidated interim financial statements have been prepared under IFRS as
adopted by the United Kingdom and on the basis of the accounting policies set
out in the statutory accounts of The City Pub Group plc, for the period ended
25 June 2023. The financial statements have not been prepared (and are not
required to be prepared) in accordance with IAS 34: 'Interim Financial
Reporting'. They do not include any of the information required for full
annual financial statements and should be read in conjunction with the
consolidated financial statements of the Group for the period ended 25
December 2022.
Statutory accounts for the period ended 25 December 2022 have been delivered
to the Registrar of Companies. These accounts contain an unqualified audit
report under Section 495 of the Companies Act 2006, which did not make any
statements under Section 498 of the Companies Act 2006.
The interim report is presented in Great British Pounds and all values are
rounded to the nearest thousand pounds, except where otherwise indicated.
This interim report has been prepared in accordance with the AIM Rules issued
by the London Stock Exchange.
2 Other operating income
During the interim period the Group has continued to receive Government grants
in relation to grants received from Councils. Further analysis of other
operating income is set out below.
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
25 June 2023 26 June 2022 25 December 2022
£'000 £'000 £'000
Other government grants 70 184 239
70 184 239
3 Exceptional items
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
25 June 2023 26 June 2022 25 December 2022
£'000 £'000 £'000
Pre opening costs - 295 575
Impairment of a pub site 413 - 627
Receivables impairments - 89 -
Release of negative goodwill (257) - -
Site disposals 147 - 962
Other non recurring items 361 330 275
664 714 2,439
For the purposes of this interim announcement and annual report and accounts,
Exceptional items are highlighted as part of the use of alternative
non-Generally Accepted Accounting Practice ('non-GAAP') financial measures
which are not defined within IFRS. The Directors use these measures in order
to assess the underlying operational performance of the Group and as such,
these measures are important and should be considered alongside the IFRS
measures.
All the exceptional items are recorded within administrative expenses line in
the statement of profit or loss.
4 Tax charge on (loss)/profit on ordinary activities
During the period ended 25 June 2023, deferred tax arising on accelerated
capital allowances is considered to be offset by increases in available tax
losses and therefore no tax charge or credit has been recognised in the
consolidated profit and loss (26 June 2022: £nil).
5 (Loss)/earnings per share
Unaudited Unaudited Audited
26 weeks ended 26 weeks ended 52 weeks ended
25 June 2023 26 June 2022 25 December 2022
£'000 £'000 £'000
(Loss)/earnings for the period attributable to Shareholders
(815) 77 951
(Loss)/earnings per share:
Basic (loss)/earnings per share (p) (0.79) 0.07 0.92
Diluted earnings per share (p) n/a 0.07 0.89
Weighted average number of shares: Number of shares Number of shares Number of shares
Weighted average shares for basic EPS 103,246,583 103,868,430 103,845,560
Effect of share options in issue n/a 5,054,524 3,524,886
Weighted average shares for diluted earnings per share n/a 108,922,954 107,370,446
6 Dividends
The Directors did not propose a dividend in relation to the year ended 25
December 2022 as the Directors believe share buybacks are an efficient way of
creating shareholder value (2021: Nil).
7 Property, plant and equipment
Freehold & leasehold property Fixtures, fittings and computers
Group
Total
Cost £'000 £'000 £'000
At 26 December 2021 (Audited) 96,612 34,947 131,559
Additions 1,169 3,610 4,779
Disposals (17,121) (2,982) (20,103)
At 26 June 2022 (Unaudited) 80,660 35,575 116,235
Additions 358 5,189 5,547
Acquisitions 1,395 450 1,845
Disposals (584) (803) (1,387)
At 25 December 2022 (Audited) 81,829 40,411 122,240
Additions 37 2,672 2,709
Reclassifications 6,254 (6,254) -
Acquisitions 40 80 120
Disposals (555) (1,191) (1,746)
At 25 June 2023 (Unaudited) 87,605 35,718 123,323
Depreciation
At 26 December 2021 (Audited) 6,007 18,185 24,192
Provided during the period 423 1,397 1,820
Disposals (1,294) (2,124) (3,418)
At 26 June 2022 (Unaudited) 5,136 17,458 22,594
Provided during the period 312 1,499 1,811
Impairment 189 47 236
Disposals (813) (653) (1,466)
At 25 December 2022 (Audited) 4,824 18,351 23,175
Provided during the period 407 1,556 1,963
Impairment 413 - 413
Disposals (582) (1,222) (1,804)
At 25 June 2023 (Unaudited) 5,062 18,685 23,747
Net book value
At 25 June 2023 (Unaudited) 82,543 17,033 99,576
At 25 December 2022 (Audited) 77,005 22,060 99,065
At 26 June 2022 (Unaudited) 75,524 18,117 93,641
At 26 December 2021 (Audited) 90,605 16,762 107,367
17 freeholds were independently valued in March 2022. These properties were
valued at c.£98m and are valued at historic cost per the financial
statements. The uplift per the independent valuation is not reflected.
8 Right-of-use assets
Right-of-use assets
Net book value £'000
At 26 December 2021 (Audited) 17,875
Additions -
Disposals (770)
Depreciation (751)
At 26 June 2022 (Unaudited) 16,354
Additions 3,568
Disposals (1,174)
Impairment (391)
Depreciation (792)
At 25 December 2022 (Audited) 17,565
Additions 997
Disposals (584)
Depreciation (750)
At 25 June 2023 (Unaudited) 17,228
The addition during the current period relates to the purchase of The Bridge,
Barnes. The disposal during the current period relates to The Yard, Chelsea,
and therefore no ongoing ROU asset required.
9 Share capital
During the period the Group issued 500,000 ordinary shares with a nominal
value of £0.01, which were unpaid at the period end (2022: £nil).
10 Share buyback
As at 25 June 2023, the Group has purchased 1.064m shares at a cost of
c.£863k. The Group will continue the Share Buyback programme if the level of
shares continues to trade at large discounts to NAV.
11 Grant of options
On 21 June 2023, the Group granted awards in the form of nil cost options over
1,585,000 ordinary shares of 1p each to certain Directors and employees. The
Options have been granted under the Company's Long Term Incentive Plan (LTIP),
are exercisable in 2026 following release of the Company's audited accounts
for the year ended 31 December 2025, are subject to performance conditions
relating to the Company's EBITDA profitability (pre-IFRS 16) and have a
10-year term.
12 Events after the reporting period
During April 2023, the Group increased its' shareholding in Mosaic Pub and
Dining (Tranche one of companies - The Sovereign (City) Pub Company Limited,
The Galaxy (City) Pub Company Limited and The Pioneer (City) Pub Company
Limited) from 36% to 44% for a consideration of c£1.6m. Further shares were
purchased in May 2023 for a consideration of c£400k, bringing the total
shareholding up to 46%.
Following the period ended 25 June 2023, the Group acquired further shares and
now own a 53% shareholding in Mosaic Tranche 1. The Group gained operational
control of Mosaic Tranche 1 from 26 June 2023, due to the appointment of
Rupert Clark and Holly Elliott as directors of the companies.
The Group continued the share buyback programme following the period ended 25
June 2023 and purchased a further 547,299 shares at a cost of £479,703.
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