Stonegate has reported a “highly respectable performance”, with positive like-for-like growth, most notably in Craft Union, its fast-growing operator managed business.
Total LFL turnover growth was up 5.5%, while managed LFL turnover growth was up 3%.
Operator-led LFL turnover growth, which includes Craft Union, was up 10.3%, during the 52 weeks to 24 September 2023.
Total revenues grew by 6.7% to £1.719bn (2022: £1.611bn).
Adjusted EBITDA was down 6.25% to £375m (2022: £400m).
The group posted a loss before tax of £257m (2022: loss of 130m).
In a business review, a spokesperson wrote: “Sales for the period were favourable compared to the prior year… 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, overall the group has delivered a highly respectable performance further demonstrating the resilience of our high quality pub portfolio.”
Stonegate had 4,432 sites at year end.
The managed division grow sales by 3.5% to £1.011bn (2022: 976m).
Leased & Tenanted pubs grew by 2.8% to £427m (2022: £415m).
Operator-led sales grew by 28% to £281m (2022: £219m).
The group has net assets of £601m.
During the period, £144m was spent on expansion, conversion and maintenance (2022: £140m).
A total of 68 trading sites were disposed of, plus 10 non-licensed, and eight non trading properties, for proceeds of £49m.
Sixteen sites moved from trading to non-trading.
In terms of future outlook, chief financial officer David Ross said the Great British Pub “continues to survive and thrive”, due to the public’s need for social interactions.
In line with this trend, Stonegate’s pub business “remains resilient, with good like for like growth, most notably in Craft Union”.
Ross hailed “excellent profit growth” in the L&T business, and “good progress” in the overall run rate EBITDA.
Overall, Stonegate is in a “strong position to deliver on our plan to create strong profit growth across the group”, with its strategy “now seeing material improvements in profitability”.
