Stonegate reports loss of £746m as a result of the pandemic

The pub company expanded its estate to 4,708 venues following the acquisition and had 3,235 leased and tenanted pubs at the year end. Managed turnover growth was down 38.8% as a result of lockdowns and social distancing.

Stonegate is the largest pub company in the UK following the acquisition of Ei Group in March 2020 for £1.27bn. As a result of the Ei purchase, Stonegate says it “now has access to a wider portfolio of properties and broader template of operating models such that it can realise the greatest value from each site by applying the most suitable retail format and most appropriate operating model”.

The group has net assets of £437m, with a net increase in cash £285m, according to accounts filed at Companies House.

It says its structure has “changed dramatically, with both a significant increase in size of debt but also in complexity” as a result of the Coronavirus pandemic, and is financed by external debt totalling £2.97bn.

The company claimed £62m as part of the job retention scheme, £4m in Eat Out to Help Out and £3m in government grants. It spent £1m on safety measures such as screens to make its venues Covid-secure.

During the reporting period the group received a cash injection from owner TDR Capital of £50m and raised a further £120m in debt markets.