Investment case

Why invest in us

In May 2015, ei group announced a new long-term strategy that embraces different operating models for our pubs to allow the Group to respond to changing markets, consumer needs and regulation and to best serve our publicans, employees and the communities in which they are based. Our strategy is designed to deliver significant value to shareholders by optimising the returns from each asset within our property portfolio.

The key components of our investment case are:

  • Leading operator of leased and tenants pubs in the UK with growing managed pubs and commercial property division
  • Highly cash generative, largely freehold asset-backed business
  • Clear strategy to deliver value for shareholders by optimising the value of assets in our portfolio
  • Secure capital structure comprising shares and primarily fixed rate debt
  • Experienced leadership team with a track record of delivering like-for-like income growth

See ‘Our strategy’ - click here

The Group’s four Business Units are as follows:

Ei Publican Partnerships

We continue to believe that the best and more profitable future for a significant proportion of our pubs is as tied tenancies, where we work alongside and invest in great publicans and their businesses. We expect over half of our pubs to remain in the leased and tenanted estate when our strategy is fully implemented in 2020. Our leased and tenanted business, Ei Publican Partnerships, focuses on achieving like-for-like income growth, and is launching new innovations, including new tenancy agreements, to help attract the best publicans for each of our pubs.
 

Ei Commercial Properties

Our commercial property team manages a growing portfolio of free-of-tie pubs and retail units on an arms-length basis. Operationally, our commercial property function incurs minimal overhead cost and requires only a small amount of capital expenditure. 

Our commercial property business also seeks out property development opportunities from our estate, in particular taking advantage of under-utilised land, outbuildings and upper floors. Whilst we do not envisage establishing our own property development business we do see value in partnership arrangements with skilled experts in this market.


Ei Managed Operations

We have developed an innovative and flexible approach to run our managed business through three managed house Business Units, each of which addresses different segments of the market.  We are taking a disciplined approach to the development of the businesses and to applying learnings across the business units to improve returns.  Over time, we will also be able to share our experiences in managed pub retailing with our lessees and tenants, leveraging our scale and resources in order to provide additional goods, services and insights to support them.


Craft Union Pub Company

The Craft Union Pub Company has developed a community pub offer which it operates predominantly in urban and neighbourhood locations. This value orientated offer delivers a local experience, in a well-invested environment designed to meet the needs of the local community.


Bermondsey Pub Company

Bermondsey Pub Company targets food-led drink sales.  Its foundation is the “Meeting House” concept, generally in urban locations, which attract a passing trade as well as being an excellent place for locals to catch up.


Ei Managed Investments

We have a partnership model whereby we can work with expert managed house operators in order to utilise their retailing flair and capability in pubs with exceptional profit potential, thereby optimising the value of such sites. In this model, the operational resource and expertise is provided by our retail partners.