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


Stock photo: Reuters

Stock photo: Reuters

Stock photo: Reuters

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".

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