City Pub Group Forecasts Annual Earnings Below Market View
City Pub Group Plc has forecast full-year adjusted core earnings slightly below market view as its holiday period sales were hit by political uncertainty in Britain prior to the December elections and a lacklustre Rugby World Cup.
The City Pub Group, which owns and operates 47 pubs across southern England and Wales, said that it expects 2019 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) before exceptional items to be between £9.1 million and £9.2 million.
Analysts expected EBITDA of 9.6 million pounds, according to Eikon data from Refinitiv.
"Political uncertainty culminating in the December election held back sales until the result was known, and unhelpful weather during November and December dampened trading further," the company said in a statement.
The pub owner and operator said that total turnover for the year was £59.8 million, in line with estimates, according to Eikon data.
City Pub said that it revamped two former Jam Tree sites in the final quarter of the year, but their reopening in November was too late to benefit from Christmas booking.
In contrast, pub and restaurant operator Mitchells & Butlers saw strong festive season sales as more diners opted for its pricier healthy menu options.