“The current package of support simply does not go far enough stave off immediate and permanent damage to an industry that pays significant tax and employs 10% of the UK’s workforce,” Clive Watson said in a statement with the group’s interim results.
City Pub, which at one time had 98% on staff on furlough, said it has now reopened 37 of its 48 pubs with revenues running at around 80% of previous, which is sufficient to generate positive cashflow.
City added it is also appraising its estate for alternative uses such as residential development.
“Trading since reopening, given that there have been no sporting events or large bookings and given reduced opening hours, has been encouraging,” said Watson.
The group has improved gross profit margins by having less suppliers and improved operating margins due to having less labour and overhead costs, as well as reductions in head office costs, he added.
Even so, results in the half-year to June 28 reflected the impact of lockdown restrictions with revenues 55% lower at £12.1mln and an adjusted loss before tax of £3.6mln.
City Group added it has recently acquired a 14% stake in certain companies within the Mosaic Pub and Dining Group.
Shares rose 4% to 60p.
Published at Wed, 30 Sep 2020 08:43:00 +0000-City Pub chairman says chancellor’s new winter plan will result in job losses