Stonegate reduced its losses by £40m in 2025 but turnover fell by £128m: Stonegate, the UK's largest pub company, reduced its losses by £40m in 2025 but saw its turnover fall by £128m. The company’s accounts for the year to 28 September 2025 showed total revenue for the period was £1,619,000,000 compared to £1,747,000,000 in the 53 weeks ended 29 September 2024. Of the 2025 turnover, the managed segment contributed £828m (53 weeks 2024: £974m), while the leased and tenanted pubs, being pub partners and commercial property, together contributed £437m (2024: £440m) and the operator-led segment contributed £354m (2024: £333m). Loss before tax was £174m (2024: loss of £214m). The company had net assets of £773m (2024: £791m) while net decrease in cash and cash equivalents in the period was £11million (2024: £79m). In the period, the group spent £135m on expansionary, conversion and maintenance capital (2024: £148m). It disposed of 109 trading sites, 13 pieces of land and completed ten trading site sale and leasebacks for net proceeds of £74m. These figures also include 23 head lease surrenders or expiries, for which the group paid £6m, and the sale of fixtures and fittings to publicans. The ten sale and leaseback completions generated proceeds of £12m (2024: 70 trading sites; two non-trading sites; five non-licensed properties; 15 lease hand backs and the completion of ten sale and leaseback agreements for net proceeds of £68m). Group cash at the period end was £160m (2024: £171m), and it has access to a further £90m (2024: £150m) from its revolving credit facility, and a further £25m (2024: £25m) overdraft facility. Non-current borrowings were £3,810,000,000 (2024: £3,760,000,000). Following the refinancing event in the prior year, the group’s borrowings largely mature in 2029. None of these borrowings are subject to scheduled amortisation until September 2027, although a total of £17m of debt has been repaid in the year using proceeds from disposals and the portfolio loan group. Net debt at the year-end was £3,685,000,000 (2024: £3,755,000,000). The group recognised a £154m upwards movement in the valuation of the estate and related assets and a net £96m downwards movement. In 2024, the group recognised a £126m upwards movement ni the valuation of the estate and related assets and a net £111m downwards movement. Propel revealed last month that Stonegate saw its group profit grow 7.5% in the 16 weeks to 18 January 2026, with margin expansion up 3%, driven by the increasing contribution from its leased and tenanted estate and Craft Union business. The company also said its transformation strategy was delivering results, and that it was on track for material profit growth in in 2026 financial year.

 

Lunar Pub Company sold to new entity led by former director for £200,000, withdrawal of buyer during sales process added to mounting cost pressures: Lunar, the London pub company from Hubert Beatson-Hird and Oliver Marlowe, has been sold to new entity led by a former director for £200,000, and said the withdrawal of a buyer during its sales process added to mounting cost pressures. Propel revealed last month that the then three-strong Lunar was working with FRP Advisory on its funding options and then went into administration three weeks later. A report from administrators Ian Corfield and David Acland shows that a £200,000 offer for the company was received from Auroragate, which completed at the end of March, with all staff at The Elizabeth and The Hunters Moon transferring to the new company. One of the directors of Auroragate is former Lunar director John Clarke, who stepped down in December. It was one of three offers FRP received for the business. The others were £200,000 for for the Hunters Moon only, including the the lease, fixtures and furnishings, and £150,000 for the Hunters Moon and Elizabeth, including the intellectual property fixed assets, stock and leases. The report said: “The business has been severely impacted by well documented events affecting the hospitality industry, which have had a material effect on trading performance. Moreover, the recent government policies relating to pay and tax increases have materially increased the company’s costs base, which has negatively impacted cashflow. To expand the business, the directors sought investment by way of equity which raised approx. £350,000, which was utilised to open The Elizabeth pub. The directors considered that operating a multi-site model, would generate greater revenues, which would be required to mitigate the debt position resulting from covid. Although performance initially improved and some covid debt was repaid, ongoing liabilities became increasingly difficult to manage. In 2023, the company raised a further £600,000 to acquire The Apollo, which was considered a commercially sensible acquisition in light of its outdoor space offering, therefore providing increased footfall during summer months. Despite the directors’ strategy to improve the financial position of the business, the directors were unable to achieve the revenue streams required to mitigate historic accrued debts. The directors therefore took the decision to undertake a sales process of all three sites. A nine-month sale process followed, reaching the final stages, but the buyer withdrew their offer prior to completion. This collapse severely impacted operations, due to the costs incurred to complete the transaction. The company, as a result of the above had also accumulated liabilities due to HMRC (understood to be owed approximately £1,1m). Whilst a TTP was agreed, this was subsequently breached given the aforementioned factors negatively affecting the available cashflow. The directors sought to raise additional cash investment to manage cashflow pressures, however this was not achievable. HMRC continued to exert pressure on the company due to the arrears and also issued correspondence to the company in March, advising that a winding up petition was to be issued in short order.” It is currently estimated that preferential creditor claims will total £22,525, and is anticipated that there will be a distribution made. It is currently estimated that the secondary preferential creditors will total £1,051,284, being amounts owed to HMRC in respect of VAT (£598,048) and PAYE (£536,111). Based on current information, it is anticipated that there will be a distribution to HMRC, but the timing is not yet known. The unsecured creditor claims of the company are estimated to total £505,393 and it is currently estimated that there will not be sufficient funds available to make a distribution. In the portion of the company’s financial year from 1 April 2025 to 31 January 2026, it reported turnover of £3.32m, a gross profit of £2.32m and a loss of £692,000.