EI GROUP, the pub operator being bought by Slug and Lettuce owner Stonegate, yesterday reported that earnings dropped this year after the disposal of 354 venues.

Earnings before interest, tax, depreciation and amortisation slumped from £282m to £268m.

The company reported a loss after tax of £209m from a profit of £72m last year, and a basic loss per share of 46.2p, from earnings per share of 15.2p.

Revenue was up 4.17 per cent from £695m to £724m, in the 12 months to 30 September.

In January Ei Group announced the sale of a large chunk of its 412-strong commercial pub portfolio to Tavern Propco, a newly-incorporated private fund owned by Davidson Kempner Capital Management in a deal worth £348m.

The pub operator, which was formerly known as Enterprise Inns, said the money would reduce its debt pile and provide shareholder returns. The sale came ahead of an offer by Stonegate Pubs, which also owns Walkabout and Yates, to buy Ei Group for £1.3bn.

The deal is expected to complete in the first quarter of next year.

(c) 2019 City A.M., source Newspaper