Stonegate Pub Company, the managed operator led by Ian Payne, has reported turnover of £264.6m for the 58 weeks since its incorporation to 25 September 2011. The group, which started trading on 14 November when it acquired 333 wet-led sites from Mitchells & Butlers (M&B) for £372.6m, said that the first year of trading was “very strong with both like-for-like sales and profit growth achieved, well ahead of market performance”. EBITDA before exceptional items for the period stood at £20.4m, while it said that returns from investment in sites during the period were considered by directors as “industry leading at over 35%”. The company acquired the 226-strong Town & City Pub Company in June 2011 for a total consideration of £100.5m, which was satisfied by a cash consideration of £80.5m and the issue of 10.5 million shares. At the same time, it restructured its shareholder loan and secured a loan facility of £285m with repayment in full due next June, although this can be extended to June 2015. On 12 August 2011, the company entered into an interest rate swap linked to its external shareholder loan fixing the interest rate at 3% for the loan amount of £290m. On 17 October, the company obtained an overdraft facility of £15m, after repaying its original £13m shareholder loan. The group reported a net operating loss after taxation of £24.5m, principally due an interest payment of £23.4m charged on the original loans used to set up the company, plus additionally acquisition costs, start up, restructuring and integration costs. It said that the loss was in line with management’s expectations for the first year of trading and expects interest payments on the £285m loan to be significantly lower in future years due to the restructuring of the debt in June 2011. Net assets at the year end stood at £170.7m, while net book value was £396.4m. During the year, the company disposed of three sites for £3.45m, incurring a loss on disposal of £65k. Turnover at Town & City (Plato 3 Group) for the 16 weeks to date of acquisition (21 June 2011) stood at £75.6m, with operating profit of £733k and a pre-tax loss of £630k. Profit for after tax at Town & City for the year to 27 February stood at £39.8m.