(Alliance News) - City Pub Group PLC's shares surged 12% on Wednesday as it announced it will reinstate dividends in September.
Shares in the London-based pub operator were 12% higher at 84.00 pence each in London on Wednesday afternoon.
For its financial year ended December 26, the firm reported a narrowed pretax loss of GBP3.1 million versus GBP7.6 million in 2020. Revenue rose 37% to GBP35.4 million from GBP25.8 million.
The company sees itself in the "strongest financial position that we have ever been in," prompting it to reinstate dividends with the release of interim results in September.
"Encouragingly, trading for the last nine weeks of 2022 is at around 98% of 2019. We are now confident that 2022 trading across the portfolio will exceed 2019 by the end of the second quarter," the London-based pub operator explained.
The firm said it is also benefiting from a three-year supply agreement with major beer suppliers agreed in December 2021. "This agreement helps mitigate some of the inflationary pressures that our industry faces and means that we will in real terms be paying less for larger parts of our liquor supplies," City Pub said.
"The group is in a very strong financial position, and it continues to review and seek acquisition opportunities to create value," commented executive chair and co-founder Clive Watson in a press release. "Our ambition is to have 65 to 70 quality pubs open by the end of next year," he added.
Inflation, in particular food and energy costs, Brexit, and the impact from the war in Ukraine pose macro-economic challenges, the pub operator said.
By Tom Budszus; tombudszus@alliancenews.com
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