City Pub Group shares take off after pub chain’s Mosaic acquisition plans
City Pub Group’s shares have climbed after the pub group said it was eyeing up to 70 sites by the end of next year.
The premium pub operator saw shares lift 12 per cent on Wednesday afternoon after its preliminary results revealed trade had all but recovered to pre-pandemic levels.
Trading for the last nine weeks was now 98 per cent of 2019 levels, the pub chain said, as well as offering results for the 52 weeks to 26 December.
Adjusted profit before tax (post IFRS) for the year was £0.9m, compared to a £5.4m loss for the year to December 2020.
City Pub Group hopes to build on its existing 40-site portfolio by expanding to an estate of between 65 and 70 pubs by the end of 2023.
The pub group is also planning to snap up the remaining shares it does not own in Mosaic Pub & Dining next year. This would add 10 sites to the firm’s portfolio.
“Following the reversal over the festive season, trading is now beginning to build in momentum and we look forward to an uninterrupted summers’ trading,” chairman Clive Watson, said.
He added: “We are emerging from the pandemic in the strongest financial position that we have ever been in and therefore have signalled our intention to recommence dividends in the autumn.
“We have a very strong platform from which to grow and much to look forward to despite the inflationary headwinds our development sites are coming on stream, Mosaic will be fully acquired next year adding ten high quality pubs, our new concept will begin trading and we can take full advantage of, adhering to our strict criteria, freehold acquisition opportunities that arise.”