Craft Union, Stonegate’s operator-led pub business, delivered a “standout” performance with like for like sales growth of 14.7%, during the 28 weeks to 9 April 2023
Stonegate’s managed like for like sales were up 6.1% year on year.
The group’s leased & tenanted division also traded well, with consistent like for likes sales growth of 5.3%.
Total revenue for the period was £904m, compared to £827m in the prior year, and £1.61bn in the 52 weeks ended 25 September 2022.
Of the £904m, the managed segment contributed £545m (2022: £504m); the leased and tenanted pubs, including the Pub Partners and Commercial Property divisions, contributed £215m (2022: £214m); and the operator-led segment, contributed £144m (2022: £109m).
“Whilst the macroeconomic environment continues to have an impact on the group and the cost of living crisis has led to lower profit and operating cashflows than would otherwise have resulted had these conditions not existed, overall the group has delivered a highly respectable performance, further demonstrating the resilience of its high quality pub portfolio,” the company said in the interim trading statement.
During the 28-week period, the group achieved adjusted EBITDA of £182m (2022: £195m) and operating profit of £139m (2022: £152m).
The loss before taxation for the 28 week period is £30m (2022: loss of £1m)
The group spent £86m (2022: £49m) on expansionary, conversion and maintenance capital.
It disposed of 29 trading sites, six non-trading sites and two non-licensed properties for net proceeds of £18m.
Included in the number of disposals were six lease hand backs for no proceeds.
Stonegate has net assets of £89m at 9 April 2023.
Group cash at the quarter end is £83m, of which £23m is held within the Unique securitisation, with a further £67m available from a revolving credit facility, plus a £25m overdraft facility.
In March 2023, the group agreed an additional £50m RCF A facility, the terms being consistent with the existing facility expiring in September 2024.
An extension of the £23m RCF B facility to September 2024 in line with the A facility.
David McDowall, chief executive of Stonegate Group, commented: “Our pubs continue to demonstrate their resilience in the current economic environment, achieving good levels of like for like revenue growth across all of our trading formats. We continue to see attractive returns from our capital investment programme within our organic estate and the pub disposals we have undertaken have achieved strong multiples ahead of expectation.
“The cost inflation experienced over the last 12 months is beginning to abate, particularly energy, and we are seeing improving momentum in group profit performance. In addition, we have identified opportunities to deliver further EBITDA growth and have a number of initiatives underway to deliver this over the coming months. Overall, the group is trading well and continues to grow market share. We have a great business with the scale and operational excellence to succeed, sufficient liquidity and one of the most capable teams of talented, driven and passionate people in the sector to deliver on our objectives. We have made good progress in H1 and remain confident of delivering future growth and excited about the opportunities ahead for Stonegate Group.”
