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Topped up again today. Selling the 6 pubs made them debt free and pubs, in London at least, are busier than ever. I can easily foresee a jump of 20-25% on the next set of results.
84p to sell now. Reckon the assets are worth more so likely to be a bid target now.
I suppose its a reaction to the pandemic and better early than later on but smells of shoring up the liquidity. Not going to cash the chips yet but finger over the button for now!
Clive Watson, Chairman, said:
"We have achieved a good price for these assets. The capital realised makes us debt free and in an excellent position to take advantage of the current market dislocation to further premiumise our estate and deliver long term growth through selected acquisition."
...now Covid worries are in background and Spring is round the corner.
Good trading statement. Management seem to have good control over the business and future ambitions
38% increase ! Wow this should move today
If it sticks to last year'stimetable,there should be a Trading Update soon. Last year it was on 21st Jan.
Nice one. It's definitely been recovering in recent days, apparently in reaction to Omicron not being as serious as feared.
...to London Road Brewhouse Southampton Sunday early evening. Was pretty busy with a good number watching the big footy match. Still hold here and whilstnot expecting great profits,am pretty sure this willat least come out the other side of the pandemic and survive.
England's gentle approach to hospitality restrictions, plus financial support, might have something to do with it....
Anyone know why shares are moving today.
Downward share price drift makes this seem attractive. I intend to make another top up again if it goes below 90p. It's being caught up in the general negative sentiment around hospitality and fears over the new virus strain. There are certainly headwinds, but City Pub Group has an asset-backed freehold estate (unlike many of its larger competitors) in prosperous locations that benefit from a good customer mix (locals, office workers, students and tourists). They've also got a growing accommodation offering (as demonstrated by the recent purchase of the Cliftonville Hotel in Cromer). The quality of the estate, diversity of revenue sources and focused management, in my view, make the upside on CPC greater than other operators. It's also an attractive take-over target whenever Clive Watson decides it's time to exit.
City Pub is a well run business but is not immune, to the issues facing the hospitality industry currently. Also a covid support measures will be withdrawn next April in addition to the minimum wage going up. We mustn't forget the increase to the employer's National Insurance contribution starting in April either.
Extract from ES article below, would suggest that Clive Watson is not happy with the prospect. Why should institutional investors put new money in now?
https://www.standard.co.uk/business/hospitality-wagamama-youngs-higher-wages-vat-rents-b967564.html
'The City Pub Group’s Clive Watson said: “The hospitality sector is still healing and April next year is too soon to withdraw certain government support.” '
Am confident that CPC will pull through all of this, the sp will be attractive to those with a forward outlook if falling any further, the 100p level being significant. With regard to taking advantage of conditions to acquire businesses cheaply. They are likely to be much cheaper next Autumn, when finally succumbing. Also struggling businesses capable of holding on til then, are likely to be more attractive propositions for future income.
I have made modest investments here in the expectation that CPC’s target market- the young affluent- have rushed back to socialize in pubs and also that there will be a significant income bonus from the staycation brigade. One disappointing aspect however is their app which I tried out yesterday. Rather clunky, can’t see any menus, pictures of burgers draped in fatty bacon. All rather unappealing (to me at least!). Could do better I think.
Either way, hopefully this downward drift in the SP will be arrested when we get the next trading update
"Invest while it is cheap because it wouldn't stay at this level for long IMHO"
I have to agree. Those who are partient and bide their time will be rewarded.
Oldbut
You are spot on
Not sure why people comparing weatherpoon business mode to the one of CPC
Totally different beast all together sadly shows people don't understand their investment very well
CPC is set to make loads and loads and loads of profits on coming months to year
The improvements they made and excellent management and good balance sheet and predicted profits and specially for Christmas they will be the talk of the town
Invest while it is cheap because it wouldn't stay at this level for long IMHO
DYOR
IMHO
GLA
but CPC is primarily for students, not us oldies!
Wetherspoons reported this week that older people are not visiting pubs as pre-covid. Sales of draught ale and beers down 30%. That is why they are selling a real ale pint for 99p this month. The promotion started around the same time Clive Watson was saying, that the price of a pint will have to go up by 30p. Obliged me to sell. The sp went up a few pence, after a temporary cut in duty of 3p or so on draught beer. The Wetherspoons' news means, that reality bites.
https://news.sky.com/story/bitter-taste-for-wetherspoons-as-cautious-older-customers-stay-away-12465092
https://www.ft.com/content/61b7cb66-cec8-4338-b683-1332696a519f (subscription required)
No idea why. The pubs are doing fine. Any ideas?
Of course ! I just meant the SP should gain some momentum from the news yesterday. I expect by April we will be in the 140p range.
Give yourself a longer timescale than a week!
City Pub Group have been on my watch since I sold them at 122p at the beginning of the year, after watching the budget this afternoon I had to get stuck in , managed to buy at 123p and hope to see a nice rise before the end of the week !
Or a takeover bid before then....
Will see gradual uplift here and can see double present SP by this time in 2022.