The City Pub Group - AGM Statement
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City Pub Group Plc
(the "City Pub Group" or the "Group")
Ahead of the Annual General Meeting to be held later today, the City Pub Group updates on trading for the three weeks since 4 July, when pubs were permitted to reopen in England following the easing of social distancing restrictions.
On 4 July, the Group reopened 24 of its 48 pubs, with a further 8 pubs reopening over the last two weeks, taking the total number of pubs open and trading to 32. It is our intention to open the remaining pubs over the course of the next two months, or earlier if social distancing measures are relaxed further.
We are pleased with our encouraging performance to date since reopening, with our staff working under new rules and adapting to the new socially distanced trading environment with pubs operating at reduced capacities. Stand out performances have been delivered by a number of our pubs, such as the Hoste, North Norfolk, which is benefitting from a significant increase in domestic tourism.
Total sales for the three week period since 4 July were £1.8m. On a like-for-like basis, sales were at 63% of previous levels.
Following thorough work during lockdown, significant reductions have been made across our cost base, including payroll costs, consumables, satellite TV, entertainment, recruitment, and these together with operational efficiencies from our streamlined offering, have allowed the Company to trade profitably and generate cash during the 3 week period.
Furthermore, the Board is continuing to review of the Group's head office and pub costs. Savings have already been made at these levels and further savings have been identified, with the review expected to be completed by the end of September. The Group has also implemented a centralised sales and marketing department, which has replaced many functions that were previously managed at site and regional level.
The profitable performance since reopening is a reflection of the quality of our asset base and the professionalism demonstrated by all of our staff, a large number of whom have been with the Group for a number of years. Again, the Board wishes to put on record its gratitude to all its stakeholders. The Board remains confident it will be able to rebuild its sales to previous levels on a much lower cost base.