Tuesday 26 September 2017

UK pub deal can help C&C get back on track

Stock photo: Reuters
Stock photo: Reuters
John Mulligan

John Mulligan

Analysts have reacted positively to C&C's move into the pub business. The deal could finally see the low-tide stain that was C&C's foray into the US recede from investors' memories. C&C slashed the value of its North America assets by €129m last year to €45m.

But it's the Admiral Taverns deal that C&C hopes will now play a key part in a growth story. "For C&C, this is an attractive opportunity to create a new long term investment in the important on-trade channel, without taking significant financial and operational risk," said chief executive Stephen Glancey.

There are a number of pub portfolios in Britain for sale, and it will be interesting to see if Admiral makes moves on them to expand its footprint.

Admiral Taverns generated revenue of £69.5m (€75.6m) in the financial year to May 28, 2016 - the last year for which audited accounts are available. It made an operating profit, excluding exceptionals, of £21.9m (€23.8m) that year.

Admiral directors noted that the group business model "balances risk and reward" and gives licensees "the freedom to respond to the challenges and opportunities within their local market".

Irish Independent

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