‘Very strong’ first half of year for Stonegate

21-Jun-2024 - Last updated on 21-Jun-2024 at 15:29 GMT

Stonegate boosted: its Craft Union and L&T divisions have been cited as key to increases

Stonegate Group, Britain’s largest pubco, has reported a “very strong” first half of its financial year that has given the business “real confidence” for the future.

Stonegate has seen its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rise by 7.7% to £196m (28 weeks ended 7 April 2024) from £182m during the same period in 2023 and revenue rose from £904m to £916m.

Meanwhile, operating profit went up from £102m in 2023 to £117m.

Stonegate also claimed it is “Euros-ready” after investing £2.5m across its estate into new screens, AV equipment, floor set-ups and staff.

For the 28 weeks to 7 April 2024 the leased and tenanted estate demonstrated consistent growth with like-for-like (lfl) sales 6.2% up on the equivalent period in the prior year.

Significant increase in profitability

Craft Union, the group’s operator-led business, delivered lfl sales of 3.1% and the managed estate delivered flat lfl sales across the period.

In the 28-week period, Stonegate has spent £74m (H1 FY23: £86m) on expansionary, conversion and maintenance capital.

Stonegate CEO David McDowall Group said: “I am pleased to report a very strong first half. We have delivered a rise in revenue and a significant increase in profitability.

Our all-round performance exemplifies the strength and depth of the Stonegate estate, with our outstanding Craft Union and L&T divisions continuing to lead the way.

Ongoing initiatives

“This is testament to the hard work of our people and partners but also to the success of our ongoing initiatives to increase profitability across our portfolio of brands and venue formats. This, in turn, has driven a strong improvement in our overall EBITDA margin.

“Our performance gives me real confidence in the future and excitement in seeing our strategy come to fruition.

“Notably our asset optimisation plan that makes sure we have the right pub in the right location, further profit improvement initiatives and, above all, our efforts to continue to support the great British pub.

“With the Euros on now and a summer of sport on the horizon, we are looking forward to building on this momentum in the months ahead.”

Stonegate was formed in 2010 with 333 pubs but after 12 major acquisitions it now operates 4,500 sites which range from leased & tenanted to managed and branded venues.