StockMarketWire.com - The City Pub Group served up a frothy dividend as profit soared after the company bolstered the size of its pub estate.

For the 52 weeks ended 30 December 2018, adjusted profit before tax was up 60% to £5.1m and revenue increased 22% to £45.7m with like for like sales up 1.6%.

'Our performance has been driven by both organic growth and the new pubs coming on stream,' the company said.

The group in 2018 expanded to 44 pubs with eight sites in development from 33 pubs and four development sites at the start of the year.

In light of the 'strong' performance, the company proposed a final dividend of 2.75p per share, representing a 22% increase on the prior year.

'We continue to seek new sites to add to our portfolio and we have already earmarked six new pub openings for this year and are on course to meet our target of doubling the size of the estate to around 65-70 pubs by mid-2021,' said Clive Watson, Executive Chairman of The City Pub Group.

'We believe the combination of further acquisitions, fine tuning the management of our existing estate and the benefits of our new divisional structure will enhance our performance further. '

'We are positioned to meet the number of well-trailed headwinds, not least the challenges brought through Brexit, and to take advantage of the softening market for acquisitions with our robust balance sheet and strong cash generation.'


At 8:15am: [LON:CPC] City Pub Group Plc share price was +12.5p at 235p



Story provided by StockMarketWire.com