Stonegate chef executive Simon Longbottom has told M&C the company’s focus for 2016 is on the integration of the TCG estate while ensuring its existing brands remain relevant to customers.
For the 52 weeks to 27 September 2015, the company saw like-for-like sales increase by 1.2%, with like-for-like gross margin up by 3% and like-for-like profit up 10.8%. Adjusted EBITDA increased 16.6% in the year.
Longbottom told M&C that trade had continued to be in line with expectations in the current year and that Christmas had traded well after a slow start.
He said: “The way that Christmas fell this year was not ideal bit once people got into the festive spirit the key dates and key events were successful.”
The company completed 103 investments in the financial year with all formats being invested in but continued focus on the ex-Bramwell, Common Room and Classic Inns formats .
It disposed of or closed 18 sites and since the year end has added 53 sites with the TCG acquisition, bringing the trading estate to 664.
On TCG, Longbottom said: “We bought a very well-run business. With great acquisitions you learn a lot from each other and this is a case in point. We have kept some of the key components of that team, including Nigel (Wright) and Ben (Levick) who were running that business and the last three months have been about making sure we fully understand that business.”
On the outlook for 2016, he said: “We have got some strong formats that we need to keep relevant to customers. We want to ensure that we take market share when those big events come around, and the Euros will be a key one this year. We’re are always looking at attracting and retaining great people, because they are what keeps our business alive. “
He said the Living Wage would be a key challenge for the year ahead but there was also an upside: He added: “All retailers have got to digest this. We have some plans to mitigate this but also benefit from what I think will be an improvement to wages of pub-goers.”
