REG - City Pub Group (The) - Interim Results

City PubAnnouncement

19/09/2019 07:05

RNS Number : 8669M
City Pub Group PLC (The)
19 September 2019
 


The City Pub Group PLC
(the "City Pub Group", the "Company" or the "Group")
 
INTERIM RESULTS FOR THE 26 WEEK PERIOD ENDING 30 JUNE 2019
 
Strategic expansion drives sales and EBITDA growth
 
The City Pub Group is pleased to announce its unaudited results for the 26 weeks ended 30 June 2019. The Group operates a predominately freehold estate of 47 wet-led pubs in London, Southern England and Wales.
 
Highlights:
·    Revenue up 36% to £27.1 million (2018: £20.0 million)
·    Like for like sales increased by 2.6% year on year
·    Adjusted EBITDA* up 20% to £3.6 million (2018: £3.0 million)
·    Adjusted profit before tax** up 19% to £1.9 million (2018: £1.6 million)
 
* Adjusted earnings before exceptional items, share option charge, interest, taxation, depreciation and amortisation.
** Adjusted profit before tax is the profit before tax, share option charge and exceptional items.
 
·    Strategic expansion continued with four pubs opened in 2019. The expanded estate and our wet-led focus resulted in substantial EBITDA and sales growth. Progress has continued into the second half with sales up by 35% over the last eleven weeks.
 
·    With a further four projects in development and a continued focus on the existing estate, the Board expects the Group to continue to deliver significant growth for the foreseeable future.
 
·    The Group is beginning to see the benefits of the new regional management structure and the new Weekly Employee Bonus Scheme, both of which will drive growth and further incentivise the Group's employees.
 
·    Due to political and economic uncertainty the Group will take a much more prudent and even more selective approach to acquisitions and focus instead on completing the development sites for trading, reducing debt and improving the dividend for shareholders as cash generated increases, until a time where there is more certainty.
 
 
Clive Watson, Executive Chairman of The City Pub Group, said:
 
"Our targeted expansion of high-quality larger pubs with letting rooms has delivered strong progress for the Group in the first half. In the face of robust comparatives, we have delivered good like for like growth too. As our development sites begin trading during 2020, they will drive our performance onward. Our momentum has continued into the second half with strong sales growth.
 
"We cannot ignore the uncertainty in the market due primarily to Brexit and the potential impact of a No Deal. We are a management team that is focused on the long-term and as such we believe it is prudent for us to rein in our expansion programme until there is more certainty. Instead we will focus on getting our development sites trading, developing our existing estate, reducing our debt and improving our dividends for shareholders. This will further strengthen our position and minimise the impact of any headwinds whilst continuing to deliver significant growth into the future."
 
19 September 2019
 
This announcement contains inside information for the purposes of EU Regulation 596/2014.
 
 




 
Enquiries:


 




City Pub Group
Clive Watson, Chairman
Tarquin Williams, CFO


 




 


 




Instinctif Partners
Matthew Smallwood
Andy Low


+44 (0) 20 7457 2020




 


 




Liberum (Nomad & Joint Broker)
Chris Clarke
Edward Thomas
Clayton Bush


+44 (0) 20 3100 2000




 


 




Berenberg (Joint Broker)
Chris Bowman
Toby Flaux
Marie Stolberg


+44 (0) 20 3207 7800




 
For further information on City Pub Group pubs visit www.citypubcompany.com 
 
CHAIRMAN'S STATEMENT
 
The Group has continued its expansion in the first half of the 2019. We now have 47 pubs trading, a further 3 sites in the development stage and a project to add additional bedrooms to an existing site. The Board's ambition of having an estate of around 65 pubs is well within our reach. As the Group expands, we are continuing to build our expertise and local knowledge in the areas we already trade in, thereby driving further growth and improving our overall performance.
 
Financial Highlights
 
The Board is pleased with the financial performance of the Group over the period. Highlights include:
 
-       Revenue growth of 36% to £27.1 million (2018: £20.0 million)
 
-       Adjusted EBITDA* increased by 20% to £3.6 million (2018: £3.0 million)
 
-       Adjusted Profit before tax** up 19% to £1.9 million (2018: £1.6 million)
 
These results have been achieved through our strategy of increasing the number of pubs we operate as well as delivering organic growth from the existing estate.
 
Like-for-like sales increased by 2.6% in the first six months. We are pleased with this result as it is against strong comparatives and a period which benefitted from the FIFA World Cup and hot weather. 
 
Operating margins were lower in the period primarily due to one-off investments to build infrastructure for future growth, including establishing a new regional management structure and the overlapping of the new Weekly Employee Bonus Scheme which replaced the Annual Employee Profit share. These projects will ensure that we have an optimal structure and rewards programme in place to provide a platform for us to grow. The Board is confident that operating margin will return to its growth trajectory. A target of 20% has been set by the end of 2021.
 
Trading Estate
 
The Group operates 47 high-quality predominantly drink-led pubs. It also acquired a freehold pub in London in July 2019, which is leased to another operator.
 
Since the start of the year the Group has opened the following pubs:
 
February: Pride of Paddington, a landmark pub opposite Paddington Station which benefits from letting accommodation.
 
April: The Hoste, an iconic site located in Burnham Market, North Norfolk, benefitting from 53 bedrooms as well as a lovely pub and dining area.
 
June: Aragon House, a landmark site located in London's Parsons Green with three trading floors, a large garden and 15 bedrooms.
 
July: Market House, a former Lloyd's Bank building located in Market Square, Reading, now operating as a large pub with 24 letting rooms and a rooftop garden.
 
The Board is satisfied with the performance of these new openings.  
 
In addition, there are 4 projects in the development pipeline:
 
Norwich - Land and building adjacent to our city centre site, the Georgian Town House. Works are ongoing and should be completed by end of the year, delivering a further 12 letting rooms, which will enhance the existing operation.
 
Exeter - Former Turks Head Pub. As part of our refurbishment programme we will be adding 6 letting rooms and a roof garden. It is expected to open in the second quarter of 2020.
 
Cambridge - Former Tivoli Pub. Planning permission has been received to redevelop the site with a roof garden. It is expected to open in the third quarter of 2020 and adds to our growing presence in Cambridge.
 
Bath - Former Nest Pub. This site is currently going through the planning process. We are targeting an opening date in the third quarter of 2020.
 
In addition to the sites acquired, we have a further site which we are in the process of completing the legal documentation for and we continue to appraise other opportunities. 
 
During the period we sold The Grapes in Oxford for £120,000.
 
The Group's acquisition strategy is focused on developing large, prominent sites in our target cities which ideally have existing letting rooms or at least space for us to develop some.  These types of pubs are attractive to us as, whilst obtaining the necessary consents can take time, they perform well and deliver strong returns.
 
Market / Brexit
 
We have been pleased with our trading performance to date. We operate in a market that is benefitting from full employment and low interest rates. Our focus continues to be building local custom in our pubs to ensure a sustainable pattern of trade. To assist this, we continue to evolve our retailing offer through innovation, better customer service and driving trade through the City Club App.
 
For us it is important to take into account both the long-term view of the future of the business and short term macro-economic factors. The uncertainty caused by Brexit hangs over the pub industry and the UK economy as a whole. The Board believes that given this, it is prudent at this time to be more discerning on our acquisition strategy. The reason behind our decision is primarily opportunism - prices of pubs should fall in a No Deal Brexit scenario.
 
The Group has grown rapidly in recent years and we have a number of development sites with significant potential to concentrate on in the short term, which together with additional management attention on the entire existing and development estate, there are considerable gains to be made providing substantial growth for some time to come.
 
The Group will continue to look at acquisitions of sites on a selective basis and take advantage of our ability to move quickly and decisively.
 
Regional Structure / Weekly Employee Bonus Scheme
 
The introduction of the Regional structure and the Weekly Employment Bonus Scheme have had an upfront cost, but have created a structure for further growth and provided additional motivation for our employees. The Board believes decentralisation of our head office functions will maintain our cutting edge as we go forward by empowering our management team further and enabling them to focus on the opportunity in their local markets. As part of this activity, we have appointed our first Regional Director, Jim Charlton, in our Western region and will make more appointments in our other divisions later this year.
 
The Weekly Employee Bonus Scheme has encouraged the overall entrepreneurial culture of the business with very tangible benefits of staff retention and improved productivity now coming through.
 
Banking Facilities / Borrowings
 
The Group entered into a new 5 year, £50 million banking facility (£35m facility with £15m accordion option) with Barclays Bank plc in July on more favourable terms than our previous facility. This renewed facility ensures that we are fully funded to make acquisitions at the appropriate time.
 
Current net debt is c. £30 million and it is the Board's intention to maintain this level, or even reduce it, until there is more clarity.
 
Dividend
 
It is currently Group policy not to declare interim dividends. The Board is committed to increasing dividends in line with earnings and will finalise the intended dividend payment when we announce our full year results in April 2020.
 
Current Trading
 
Sales in the 11 weeks since the period end have increased 35% driven by our strategy of opening larger sites and capitalising on local trading opportunities. The quality of our trading estate is continually improving and has been enhanced by the recent openings. The increased number of letting bedrooms across the estate will drive future operational efficiencies.
 
The Group's focus is now on raising the quality of the estate, completing our development programme, acquiring new sites on an opportunistic basis, reducing our debt and growing dividend payments for shareholders as cash generation increases.
 
Clive Watson
Chairman
19 September 2019
 
* Adjusted Earnings before exceptional items, share option charge, interest, taxation, depreciation and amortisation.
** Adjusted profit before tax is the profit before tax, share option charge and exceptional items
 
 
Consolidated Statement of Comprehensive Income
For the 26 weeks ended 30 June 2019
 




 


 


 


 


 


 


 


 


 


 




 


 


 


Unaudited


 


Unaudited


 


Audited


 


 




 


 


 


26 weeks ended


 


26 weeks ended


 


52 weeks ended


 


 




 


 


 


30 June 2019


 


1 July 2018


 


30 December 2018


 


 




 


Notes


 


£'000


 


£'000


 


£'000


 


 




 


 


 


 


 


 


 


 


 


 




Revenue


 


 


27,107


 


19,965


 


45,674


 


 




Costs of sales


 


 


 (6,824)


 


 (5,017)


 


 (11,621)


 


 




Gross profit


 


 


20,283


 


14,948


 


34,053


 


 




Administrative expenses


 


 


 (19,251)


 


 (13,842)


 


 (31,244)


 


 




Operating profit


 


 


1,032


 


1,106


 


2,809


 


 




 


 


 


 


 


 


 


 


 


 




Reconciliation to adjusted EBITDA*


 


 


 


 


 


 


 


 


 




Operating profit


 


 


1,032


 


1,106


 


2,809


 


 




 


 


 


 


 


 


 


 


 


 




Depreciation


6


 


1,594


 


1,207


 


2,552


 


 




Share option charge


 


 


180


 


181


 


377


 


 




Exceptional items


2


 


803


 


514


 


2,121


 


 




 


 


 


 


 


 


 


 


 


 




*Adjusted earnings before exceptional items, share option charge, interest, taxation and depreciation


 


 


3,609


 


3,008


 


7,859


 


 




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




Finance costs


 


 


 (86)


 


 (174)


 


 (189)


 


 




Profit before tax


 


 


946


 


932


 


2,620


 


 




Tax expense


3


 


 (436)


 


 (176)


 


 (654)


 


 




Profit for the period and total comprehensive income


 


 


510


 


756


 


1,966


 


 




 


 


 


 


 


 


 


 


 


 




Earnings per share


 


 


 


 


 


 


 


 


 




Basic earnings per share (p)


4


 


0.86


 


1.34


 


3.44


 


 




Diluted earnings per share (p)


4


 


0.85


 


1.33


 


3.41


 


 




 


 


 


 


 


 


 


 


 


 



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
All activities comprise continuing operations. There are no recognised gains or losses other than those passing through the statement of comprehensive income.
 
The accompanying notes are an integral part of these interim financial statements.
 
Consolidated Statement of Financial Position
As at 30 June 2019
 




 


 


 


Unaudited


 


Unaudited


 


Audited


 




 


 


 


26 weeks ended


 


26 weeks ended


 


52 weeks ended


 




 


 


 


30 June 2019


 


1 July 2018


 


30 December 2018


 




Assets


Notes


 


£'000


 


£'000


 


£'000


 




Non-current


 


 


 


 


 


 


 


 




Intangible assets


 


 


4,136


 


3,090


 


3,794


 




Property, plant and equipment


6


 


107,770


 


78,590


 


90,020


 




Total non-current assets


 


 


111,906


 


81,680


 


93,814


 




Current


 


 


 


 


 


 


 


 




Inventories


 


 


880


 


580


 


960


 




Trade and other receivables


 


 


2,885


 


1,995


 


2,542


 




Cash and cash equivalents


 


 


3,114


 


2,842


 


2,853


 




Total current assets


 


 


6,879


 


5,417


 


6,355


 




Total assets


 


 


118,785


 


87,097


 


100,169


 




Liabilities


 


 


 


 


 


 


 


 




Current liabilities


 


 


 


 


 


 


 


 




Trade and other payables


 


 


 (9,178)


 


 (7,715)


 


 (8,494)


 




Total current liabilities


 


 


 (9,178)


 


 (7,715)


 


 (8,494)


 




Non-current


 


 


 


 


 


 


 


 




Borrowings


 


 


 (30,000)


 


 (7,000)


 


 (11,600)


 




Other payables


 


 


 (50)


 


 (310)


 


-


 




Deferred tax liabilities


 


 


 (1,879)


 


 (1,096)


 


 (1,537)


 




Total non-current liabilities


 


 


 (31,929)


 


 (8,406)


 


 (13,137)


 




Total liabilities


 


 


 (41,107)


 


 (16,121)


 


 (21,631)


 




Net assets


 


 


77,678


 


70,976


 


78,538


 




Equity


 


 


 


 


 


 


 


 




Share capital


 


 


30,692


 


29,196


 


30,651


 




Share premium


 


 


38,328


 


33,586


 


38,287


 




Own shares (JSOP)


 


 


 (3,272)


 


 (3,272)


 


 (3,272)


 




Other reserve


 


 


92


 


92


 


92


 




Share-based payment reserve


 


 


883


 


507


 


703


 




Retained earnings


 


 


10,955


 


10,867


 


12,077


 




Total equity


 


 


77,678


 


70,976


 


78,538


 




 


 


 


 


 


 


 


 


 



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
The accompanying notes are an integral part of these interim financial statements.
 
Consolidated Statement of Changes in Equity
For the 26 weeks ended 30 June 2019




 


 


Share capital

£'000


 


Share premium

£'000


 


Own shares (JSOP)
£'000


 


Other reserve

£'000


 


Share-based payment reserve

£'000


 


Retained earnings

£'000


 


Total

£'000




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Balance at 31 December 2017 (Audited)


 


 28,234


 


 31,276


 


-


 


   92


 


326


 


11,382


 


71,310




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Employee share-based compensation


 


-


 


-


 


-


 


-


 


181


 


-


 


181




Dividends


 


-


 


-


 


-


 


-


 


-


 


(1,271)


 


(1,271)




Purchase of JSOP shares


 


962


 


2,310


 


(3,272)


 


-


 


-


 


-


 


-




Transactions with owners


 


962


 


2,310


 


(3,272)


 


-


 


181


 


(1,271)


 


(1,089)




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Profit for the period


 


-


 


-


 


-


 


-


 


-


 


756


 


756




Total comprehensive income for the period


 


-


 


-


 


-


 


-


 


-


 


756


 


756




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Balance at 1 July 2018 (Unaudited)


 


 29,196


 


 33,586


 


(3,272)


 


  92


 


   507


 


10,867


 


70,976




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Employee share-based compensation


 


-


 


-


 


-


 


-


 


196


 


-


 


196




Issue of new shares


 


1,455


 


4,701


 


-


 


-


 


-


 


-


 


6,156




Transactions with owners


 


1,455


 


4,701


 


-


 


-


 


196


 


-


 


6,352




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Profit for the period


 


-


 


-


 


-


 


-


 


-


 


1,210


 


1,210




Total comprehensive income for the period


 


-


 


-


 


-


 


-


 


-


 


1,210


 


1,210




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Balance at 30 December 2018 (Audited)


 


30,651


 


38,287


 


(3,272)


 


92


 


703


 


12,077


 


78,538




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Employee share-based compensation


 


-


 


-


 


-


 


-


 


180


 


-


 


180




Dividends


 


-


 


-


 


-


 


-


 


-


 


(1,632)


 


(1,632)




Issue of new shares


 


41


 


41


 


-


 


-


 


-


 


-


 


82




Transactions with owners


 


41


 


41


 


-


 


-


 


180


 


(1,632)


 


(1,370)




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Profit for the period


 


-


 


-


 


-


 


-


 


-


 


510


 


510




Total comprehensive income for the period


 


-


 


-


 


-


 


-


 


-


 


510


 


510




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




Balance at 30 June 2019 (Unaudited)


 


30,692


 


38,328


 


(3,272)


 


92


 


883


 


10,955


 


77,678




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 
The accompanying notes are an integral part of these interim financial statements.
 
Consolidated Statement of Cashflows
For the 26 weeks ended 30 June 2019




 


 


Unaudited


 


Unaudited


 


Audited




 


 


26 weeks ended


 


26 weeks ended


 


52 weeks ended




 


 


30 June 2019


 


1 July 2018


 


30 December 2018




 


 


£'000


 


£'000


 


£'000




Cash flows from operating activities


 


 


 


 


 


 




Profit for the period


 


510


 


756


 


1,966




Taxation


 


436


 


176


 


654




Finance costs


 


86


 


174


 


189




Operating profit


 


1,032


 


1,106


 


2,809




Adjustments for:


 


 


 


 


 


 




Depreciation


 


1,594


 


1,207


 


2,552




Gain on disposal of property, plant and equipment


 


 (1)


 


-


 


-




Share-based payment charge


 


180


 


181


 


377




Impairment


 


160


 


-


 


480




Change in inventories


 


80


 


 (26)


 


 (406)




Change in trade and other receivables


 


 (273)


 


 (343)


 


 (992)




Change in trade and other payables


 


 (2,112)


 


239


 


2,152




Cash generated from operations


 


660


 


2,364


 


6,972




Tax paid


 


 (15)


 


 (104)


 


 (535)




Net cash from operating activities


 


645


 


2,260


 


6,437




 


 


 


 


 


 


 




Cash flows from investing activities


 


 


 


 


 


 




Purchase of property, plant and equipment


 


 (8,787)


 


 (7,083)


 


 (11,430)




Proceeds from disposal of property, plant and equipment


 


50


 


-


 


-




Acquisition of new property sites


 


 (9,840)


 


 (5,332)


 


 (14,361)




Net cash used in investing activities


 


 (18,577)


 


 (12,415)


 


 (25,791)




 


 


 


 


 


 


 




Cash flows from financing activities


 


 


 


 


 


 




Proceeds from issue of share capital


 


82


 


-


 


5,973




Repayment of borrowings


 


-


 


-


 


 (245)




Dividends paid


 


-


 


-


 


 (1,087)




Proceeds from new borrowings


 


18,400


 


7,000


 


11,600




Interest paid


 


 (289)


 


 (418)


 


 (449)




Net cash from financing activities


 


18,193


 


6,582


 


15,792




 


 


 


 


 


 


 




Net change in cash and cash equivalents


 


261


 


 (3,573)


 


 (3,562)




Cash and cash equivalents at the start of the period


 


2,853


 


6,415


 


6,415




Cash and cash equivalents at the end of the period


 


3,114


 


2,842


 


2,853




 


 


 


 


 


 


 




 
The accompanying notes are an integral part of these interim financial statements.
 
 
Notes to the Financial Statements
For the 26 weeks ended 30 June 2019
 
1       Basis of preparation
This interim report was approved by the board on 19 September 2019. 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 European Union and on the basis of the accounting policies set out in the statutory accounts of The City Pub Group plc, for the period ended 30 December 2018. 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 30 December 2018.
 
Statutory accounts for the period ended 30 December 2018 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        Exceptional items




 


 


 


Unaudited


 


Unaudited


 


Audited


 




 


 


 


26 weeks ended


 


26 weeks ended


 


52 weeks ended


 




 


 


 


30 June 2019


 


1 July 2018


 


30 December 2018


 




 


 


 


£'000


 


£'000


 


£'000


 




 


Pre opening costs


 


506


 


450


 


1,455


 




 


Impairment of a pub site (note 6)


 


160


 


-


 


480


 




 


Other non recurring items


 


137


 


64


 


186


 




 


 


 


803


 


514


 


2,121


 




 


 


 


 


 


 


 



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
3        Tax charge on profit on ordinary activities
The taxation charge is calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period. All items of taxation are reflected through the Statement of Comprehensive Income.




 


 


 


Unaudited


 


Unaudited


 


Audited


 




 


 


 


26 weeks ended


 


26 weeks ended


 


52 weeks ended


 




 


 


 


30 June 2019


 


1 July 2018


 


30 December 2018


 




 


 


 


£'000


 


£'000


 


£'000


 




 


Current income tax:


 


 


 


 


 


 


 




 


Current income tax charge


 


436


 


162


 


604


 




 


Adjustments in respect of previous period


 


-


 


-


 


 (81)


 




 


Total current income tax


 


436


 


162


 


523


 




 


Deferred tax:


 


 


 


 


 


 


 




 


Origination and reversal of temporary differences


 


-


 


14


 


131


 




 


Adjustments in respect of previous period


 


-


 


-


 


-


 




 


Total deferred tax


 


-


 


14


 


131


 




 


Total tax


 


436


 


176


 


654


 




 


 


 


 


 


 


 



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
4        Earnings per share
 




 


 


 


Unaudited


 


Unaudited


 


Audited




 


 


 


26 weeks ended


 


26 weeks ended


 


52 weeks ended




 


 


 


30 June 2019


 


1 July 2018


 


30 December 2018




 


 


 


£'000


 


£'000


 


£'000




 


Earnings for the period attributable to Shareholders


 


 


 


 


 


 




 


 


510


 


756


 


1,966




 


 


 


 


 


 


 


 




 


Earnings per share:


 


 


 


 


 


 




 


Basic earnings per share (p)


 


0.86


 


1.34


 


3.44




 


Diluted earnings per share (p)


 


0.85


 


1.33


 


3.41




 


 


 


 


 


 


 


 




 


Weighted average number of shares:


 


Number of shares


 


Number of shares


 


Number of shares




 


 


 


 


 




 


Weighted average shares for basic EPS


 


59,378,421


 


56,467,333


 


57,216,344




 


Effect of share options in issue


 


644,168


 


374,862


 


476,688




 


Weighted average shares for diluted earnings per share


 


60,022,589


 


56,842,195


 


57,693,032




 


 


 
 


 


 


 


 



 
 
 
 
 
 
 
 



5        Dividends
 
The Company declared a dividend of 2.75p per ordinary share during the year ended 30 December 2018, which was approved at the Annual General Meeting on 20th May 2019. The dividend payable of £1,632,820 has been accrued as at 30 June 2019 and deducted from retained earnings.
 
After the period end £1,405,798 of the dividend was paid in cash and £227,022 was distributed as a scrip dividend.
 
6        Property, plant and equipment
 




 


 


Freehold & leasehold property


 


Fixtures, fittings and computers


 


 




Group


 


 


 


 




 


 


 


 


Total




Cost


 


£'000


 


£'000


 


£'000




At 31 December 2017 (Audited)


 


59,588


 


15,839


 


75,427




Additions


 


5,794


 


1,289


 


7,083




Acquisitions


 


4,473


 


294


 


4,767




At 1 July 2018 (Unaudited)


 


69,855


 


17,422


 


87,277




Additions


 


1,587


 


3,019


 


4,606




Acquisitions


 


7,245


 


1,344


 


4,469




At 30 December 2018 (Audited)


 


78,687


 


21,785


 


 100,472




Additions


 


5,988


 


3,001


 


8,989




Acquisitions (Note 8)


 


10,344


 


288


 


10,632




Disposals


 


 (91)


 


 (64)


 


 (155)




At 30 June 2019 (Unaudited)


 


94,928


 


25,010


 


119,938




 


 


 


 


 


 


 




Depreciation


 


 


 


 


 


 




At 31 December 2017 (Audited)


 


1,432


 


6,048


 


7,480




Provided during the period


 


149


 


1,058


 


1,207




At 1 July 2018 (Unaudited)


 


1,581


 


7,106


 


8,687




Provided during the period


 


200


 


1,145


 


1,345




Impairment


 


420


 


-


 


420




At 30 December 2018 (Audited)


 


2,201


 


8,251


 


10,452




Provided during the period


 


330


 


1,264


 


1,594




Impairment


 


48


 


112


 


160




Disposals


 


 (19)


 


 (19)


 


 (38)




At 30 June 2019 (Unaudited)


 


2,560


 


9,608


 


12,168




 


 


 


 


 


 


 




Net book value


 


 


 


 


 


 




At 30 June 2019 (Unaudited)


 


92,368


 


15,402


 


107,770




At 30 December 2018 (Audited)


 


76,486


 


13,534


 


90,020




At 1 July 2018 (Unaudited)


 


68,274


 


10,316


 


78,590




At 31 December 2017 (Audited)


 


58,156


 


9,791


 


67,947




 


 


 


 


 


 


 




 
 
During the period ended 30 December 2018 the group made a provision for impairment against a Pub Site in Cambridge, due to poor performance and it has been reduced to its value in use, with the asset being held at its recoverable amount of £340,000. In addition, the group made a provision for impairment against the Grapes in Oxford, which was written down to its recoverable amount, with its disposal completed on 25th February 2019.
 
During the period ended 30 June 2019 the group made an additional provision for impairment against the Pub site in Cambridge, due to poor performance and it has been reduced to its value in use, with the asset being held at its recoverable amount of £150,000.
 
7        Business combinations
 
During the period ended 30 June 2019 the Group has acquired 2 new sites through business combinations, the fair values of the assets and liabilities acquired, and the nature of the consideration, are outlined within the table below.
 
All of the above acquisitions were part of the Group's continuing strategy to expand its pub portfolio via selective quality acquisitions. All other pub acquisitions have been accounted for as property acquisitions.
 




 


 


Unaudited




 


 


26 weeks ended




 


 


30 June 2019




Fair value:


 


£'000




Property, plant and equipment acquired


 


10,632




Deferred tax liability


 


(343)




Goodwill


 


343




Total


 


10,632




 


 


 




Satisfied by:


 


 




Cash


 


9,840




Deferred consideration


 


792




Total


 


10,632




 


 


 




 
 
8        Events after the reporting period
 
The Group settled the final dividend, which was approved at the AGM in May 2019, on 1 July 2019.
 
In July 2019 the Company agreed a new £35 million revolving credit facility, with a £15 million accordion option, with Barclays Bank PLC.
 
On 12 July 2019, the Company purchased The Island, a freehold site in Kensal Green.
 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR BLGDCLGBBGCI