Stonegate - comment

Revenue was in line with our model, and EBITDA margins were slightly ahead (23% vs. model at 21%). Stonegate attributed the better margins to lower energy costs.  We had expected this to be a poor quarter, so this is a good performance. Operationally, the (urban-focused) branded bar business continues to struggle, impacted by poor weather and rail strikes. The potential £1bn pub sale was not mentioned in the presentation or the release, a surprise given it was initially slated for 2023. Stonegate secured an extension of £50m of its RCF until 9/2024, so at the quarter end, it had £170m in available RCF and cash on hand. There is an investor call today (Registration required) at 1500 BST. We will update you further afterwards. 

https://brunswickgroup.zoom.us/webinar/register/WN_4X72cqqmTpKw5Az5kuT8zA#/registration