Newswire - 20 October

20 October 2020Newswire Topics: Hotels & Guest Houses, Leisure & Nightclubs, Pubs & Bars, Rental, Restaurants
Newswire - 20 October

JD Wetherspoon has reported full year numbers to 26 July 2020

LfL revenues on its 872 pubs was down 29.5% for the period, having increased by 5.9% in the first half. In the first 11 weeks of the new financial year LFL sales are -15% with a "marked slow-down" since the introduction of the 10pm curfew and other regulations. Chairman Tim Martin warned lock-down is "only deferring and not solving the problem" and is "threatening the entire economy". There was a £3.5m loss on disposal and impairment charge of £44.0m.

Marston's Group sales for the year were £821 million, 30% below last year

Pub revenue was -34% reflecting the closure period and the impact of the disposal of 168 pubs for proceeds of £61 million in the first half-year. The Beer Company -22% below last year with off trade volumes up 23%.

Deltic Group appoints advisers

The nightclub operator with 52 sites has asked the accountancy firm BDO to identify new investors following the unprecedented impact of the covid-19 pandemic on the UK's late-night sector. Peter Marks said, no nightclub business will survive unless outside financial support is received from somewhere. The industry is at a critical point and the next month would be crucial. Deltic was going through all options in case government support wasn't forthcoming. By doing nothing, the business was unlikely to see beyond the end of 2020.

Boparan Restaurant Group acquires 35 GBK sites

Having earlier this year acquired Carluccio's out of administration Boparen has added 35 GBK sites to take the estate to 99 including; Cinnamon Collection, Fishworks, Carluccio's, Slim Chickens, Giraffe and Ed's Easy Diner. The deal will mean 26 GBK sites will close.

Legendary Bredbury Hall for sale after administration

The 148-room, 3 star North West based Hotel & Country Club has been put on the market via FRP. The Hotel includes dining facilities, a fitness centre and a 16th century barn that has been converted into a nightclub.

Premier Inns to develop 3 sites in National Parks

The £20m investment is for sites in; Keswick in the Lake District, St David's in Pembrokeshire and Porthmadog in Snowdonia. They will add 214 rooms in areas where the company does not yet have a presence.

Whiting & Hammond placed into administration

The Gastro pub operator has acquired three of the seven sites back under the new name WH Pubs. (The Little Brown Jug, near Penshurst; The Cricketers Inn, Meopham; and The Rose & Crown, Green Street). Turpin Baker Armstrong are exploring whether there can be any rescue of other sites.

Côte acquired in pre-pack for £55m

A statement from FTI Consulting, said: "The group operated 98 restaurants under the Côte Brasseries brand and a further three under the Jackson & Rye and Limeyard brands.

Marston & Carlsberg deal receives CMA approval

Analyst Douglas Jack said: "The brewery transaction - resulting in Marston's owning 40% of the joint venture - is taking place at a multiple of 13 times EV/Ebitda, and at circa £380m above book value. The estate is well balanced with 89% freehold, a high orientation to community locations and only a little exposure to central London. circa 65% of managed sites are food-led.

Star Pubs & Bars fines £2m by PCA

The fine is for "seriously and repeatedly breaching the Pubs Code over almost three years". The PCA, Fiona Dickie said Star Pubs & Bars had persisted in forcing its tenants to sell "unreasonable levels" of Heineken beers and ciders when they requested to go free of tie. The PCA found the company had committed a total of 12 breaches involving offering stocking terms that had acted as a deterrent to tenants pursuing a free-of-tie tenancy. Dickie's investigation covered the period from 21 July 2016 until 10 July 2019. Star Pubs & Bars are considering an appeal.

Greene King extend support to tied Tenats

GK will give its tied pub tenants at least a 40% rent reduction up until Christmas with pubs closed under government measures receiving a 90% discount. It brings its estimated financial support for its 975 tied tenants to more than £25m.

Star Pubs & Bars increase rent concessions

A new structure of discounts for tenanted and leased pubs in England will be aligned to the government's tier system. Tier 3 -100% rent reduction, tier 2 90% and tier 1 will continue to receive a rent reduction of 30% to 50% in November. Total funding commitment is now £27.8m.

And Finally...

The PCA has published 2 facts sheets for tied Tenants. The factsheets concern trigger events and business development managers (BDMs) / code compliance officers (CCOs). The new factsheets set out the conditions that must be satisfied to be a "trigger event" and the roles and responsibilities of BDMs to act fairly and lawfully in their dealings with tenants.

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Graeme Bunn

Graeme Bunn

Managing Director

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