Equity Analysis /
United Kingdom

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

    Anna Barnfather
    Anna Barnfather

    Analyst - Leisure

    Andrew Wilkinson
    Andrew Wilkinson

    Analyst - Leisure

    CGS-CIMB
    25 March 2022
    Published by

    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)