GB : City Pub Company - c£17m of disposals to recycle

City Pubs has today announced the disposal of six pubs for a total consideration of £17.1m, releasing capital to recycle into new opportunities. This refocuses the portfolio towards the larger, more versatile properties with ancillary revenues including accommodation and strengthens the balance sheet in readiness for new opportunities. It will take time to reinvest so for now we cut IAS 17 FY22E EBITDA by 11.8% to £11.2m and FY23E by 9.6% to £14.3m and lower our target price to 155p (from 160p)