City Pub (CPC)

City Pub CPC Logo

The owner and operator of premium pubs across Southern England.

17-Jan-2018 – 167.5p – £94.6m – PER 94.1

Trading Update For The 12 Months To End December 2017 – LFL sales were up by 3.8%. Turnover was £37.4m (up 34% on the prior year). Christmas trading was strong with many of the recent openings trading ahead of management’s expectations and a number of pubs achieving a record result. Trading is in-line with market expectations for 2017 and (the Board) remains optimistic about its prospects for 2018 – “Group now has the funding available to execute the strategy of doubling the size of its estate over the next 3 to 4 years”.

New one for me this, looks like it came to the market at 180p in November 2017. Although the Revenue increase here is impressive, with no mention of Profit or EPS at all, there’s little choice other than to remain Neutral for now.

12-Apr-2018 – 159.5p – £90.1m – PER 22.2

Results For The 12 Months To End December 2017 – Revenue up 35% to £37.4m (2016: £27.8m), LFL sales growth of 3.8%, driven by good growth in drink and accommodation, FY Dividend up 50% to 2.25p (2016: 1.50p). Reported (loss)/Profit After Tax including IPO and other exceptional items of -£0.7m (2016: £0.4m). Confident of meeting expectations for the year ahead with the first 14 weeks sales up 22%.

Will remain Neutral here for now and keep an eye out for updates on profitability.

14-May-2018 – 204.5p – £115.5m – PER 25.4

AGM Statement – Sales up 23% (1st 18 weeks) with more pubs in the pipeline.

Will continue to remain Neutral until seeing how the increase in sales translates into profit.

30-Jul-2018 – 231p – £135.1m – PER 25.9

Acquisitions Update – Bought 3 new pubs from existing resources, pipeline of potential deals remains strong – Confident of 50 pubs (at buyers prices) by the year end, ahead of the plan set out in the IPO.

I remain Neutral here but will add it to my Watchlist to do more research – Looks quite interesting.

20-Sep-2018 – 244p – £142.7m – PER 26.6

Interim Results For The 26 Weeks To 1st July 2018 – Revenue up 24% to £20.0m (2017: £16.1m), Adjusted PBT up 73% to £1.6m (2017: £0.9m) with a Reported PAT of £0.76m (2017: -£0.05m). 11 weeks trading since July 1 has seen sales up 24%. Confident of meeting 2018 FY market expectations.

This is on my Watchlist as a pub company that seems to be doing very well, just wondering if it’s fairly priced here now.

Subsequent note: Further research indicated this was priced about right on a 2 year view, Neutral for now.

16-Jan-2019 – 197p – £120m – PER 20.9

Trading Update For The 12 Months To End December 2018 – LFL up 1.6%, Revenue of £45.6m, in-line with market expectations. Opmitistic for 2019.

Still looks priced about right here.

9-Apr-2019 – 222p – £136m – PER 24.3

Results For The 12 Months To End December 2018 – Revenue up 22% (LFL 1.6%), Adjusted PBT up 60% from £3.2m to £5.1m (Reported of £2m after a -£0.7m Loss last time) and the Dividend is up 22%.

I still reckon this looks priced about right around the 200p level.

19-Sep-2019 – 218p – £130m – PER 23

Interim Results For The 6 Months To End June 2019 – Revenue up 36% (LFL 2.6%), Adjusted PBT up 19%.  Seems cautious about further expansion at present, concentrating on existing estate.

Still reckon about 200p is a fair price here especially considering this downbeat update.

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