AUS
NZ
UK
CA
USA
IND
Summary
- CPC had acquired a 49% stake in Barts Pub Ltd for the total consideration of £0.75 million.
- The total investment in Mosaic companies stood at around £2.42 million.
- Emma Fox has been appointed as a Non-Executive Director on 11 March 2021.
City Pub Group PLC (LON:CPC) is the LSE listed travel & leisure stock. CPC’s shares have generated a return of around 56.25% in the last 12 months. The Company is listed on the FTSE AIM All-Share index.
Company Overview
City Pub Group PLC (LON:CPC) is a UK based company that owns and operates premium pubs across southern England. Moreover, CPC’s pub estate comprised of 48 free houses located across London, Cathedral cities and market towns.
A brief about UK Pub Industry
A pub is a bar or tavern that serves food & drinks and act as a community gathering place. The pubs have been started reopening in the UK with the relaxation in Covid-19 related restrictions from 12 April 2021. However, pubs in England cannot completely reopen until 21 June 2021 as only 40% of pubs started reoperating on 12 April 2021. According to Emma McClarkin, chief executive of the British Beer & Pub Association, the pubs will not be able to make profits from reopening outdoors, and many pubs will result in a loss.
Acquisition Update (as of 29 April 2021)
The Company had acquired a 49% stake in Barts Pub Ltd for total consideration of £0.75 million. Moreover, Barts Pub Ltd is the owner of the popular Kensington Park Hotel ("KPH") in Ladbroke Grove. CPC will operate the pub under the management contract with an option to purchase for £5.5 million until March 2024.
Furthermore, CPC had increased its stake in certain companies of Mosaic Pub and Dining Group. The Company had acquired existing shares in The Galaxy Pub Company Limited, The Pioneer Pub Company Limited and The Sovereign Pub Company Limited (the "Mosaic Companies") for a total cash consideration of approximately £1.18 million. Earlier, the Company had acquired a 14% stake in Mosaic companies during September 2020. Now, the total investment in Mosaic companies stood at around £2.42 million.
Recent Developments
On 11 March 2021, CPC announced that Emma Fox has been appointed as a Non-Executive Director with immediate effect.
Share Price Performance Analysis of City Pub Group PLC
(Source: EODHD/Others, Thomson Reuters)
CPC shares were trading at GBX 126.90 and were up by close to 1.93% as of 29 April 2021 at 02:18 PM GMT. CPC’s 52-week Low and High were GBX 51.00 and GBX 147.00, respectively. City Pub Group PLC had a market capitalization of around £129.18 million.
Business Outlook
The Company has not released full-year FY20 results yet. CPC has completed two corporate transactions ensuring that the Company can provide adequate liquidity to shareholders on a staged basis. Moreover, it would aim to significantly expand the size of the portfolio over the next two to three years. The Company would seize market opportunities by acquiring large estates as well as high-quality single pubs.
