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City Pub Group expects 'material reduction' to FY guidance
17th Mar 2020 10:15
(Sharecast News) - Landlord City Pub Group said on Tuesday that it was difficult to accurately assess the extent to which COVID-19 would impact its trading and financial performance but highlighted that it does expect "a material reduction" to its 2020 guidance.
City Pub said recent trading had been impacted by COVID-19 and its wider effects, particularly on sport, with certain sites witnessing "noticeable reductions" in trade. However, the group noted that some of its "more prominent" local community pubs had been "resilient".
The AIM-listed group stated that in order to ensure it emerges out of the "COVID-19 crisis" in a stronger yet leaner shape, it was now taking a highly prudent approach with a number of proactive measures to reduce costs and preserve cash - including a reduction in employees, directors' salaries and a review of trading hours aimed at cutting "non-productive" opening times.
City Pub said its board was confident the group had "sufficient working capital" to maintain operations for another six months, even in the event that Downing Street extends its current guidance and mandates a temporary closure of all pubs and bars.
But despite its confidence, the firm said it was entering into negotiations with its landlords to seek rent holidays for the next three to six months.
On the other hand, City Pub said for the first 11 weeks to 15 March, total turnover was up 11% year-on-year. However, like-for-like sales for the same period were down by 4.5%.
As of 1015 GMT, City Pub shares had sunk 25.61% to 61p.
City Pub said recent trading had been impacted by COVID-19 and its wider effects, particularly on sport, with certain sites witnessing "noticeable reductions" in trade. However, the group noted that some of its "more prominent" local community pubs had been "resilient".
The AIM-listed group stated that in order to ensure it emerges out of the "COVID-19 crisis" in a stronger yet leaner shape, it was now taking a highly prudent approach with a number of proactive measures to reduce costs and preserve cash - including a reduction in employees, directors' salaries and a review of trading hours aimed at cutting "non-productive" opening times.
City Pub said its board was confident the group had "sufficient working capital" to maintain operations for another six months, even in the event that Downing Street extends its current guidance and mandates a temporary closure of all pubs and bars.
But despite its confidence, the firm said it was entering into negotiations with its landlords to seek rent holidays for the next three to six months.
On the other hand, City Pub said for the first 11 weeks to 15 March, total turnover was up 11% year-on-year. However, like-for-like sales for the same period were down by 4.5%.
As of 1015 GMT, City Pub shares had sunk 25.61% to 61p.