Our strategy

Our overall strategic objective is to optimise value creation for every asset in our portfolio to drive returns to shareholders.

Assets and capital structure ​

We have a high quality and well invested asset portfolio with a total property asset value of £3.6 billion and an efficient and improving loan to value (LTV) of 56%. ​

We have strong free cash flows driven by the momentum of like-for-like sales and income growth, combined with disposal proceeds as we continue to dispose of underperforming, overlapping and ready to sell assets, delivering excess cash flow for us to utilise to enable investment, reduce debt and return value to shareholders. ​

Underpinning our strategic evolution, our capital strategy aims to utilise excess cash to optimise returns.

Our capital allocation framework uses a returns-based approach to evaluate the best use of cash to create a sustainable capital structure and regular returns to shareholders, balancing the following strategic objectives: ​

Strategic Objectives


People ​

People are at the heart of our business and pivotal to our success. Our people strategy sets out our ambition and aspirations for our teams and how we aim to support and develop our workforce to deliver the very best service possible for our publicans and customers.

Our key people priorities are:

Key People Priorities

Further we appreciate that publicans and operators are a critical element of our strategy and directly influence the success of each of our assets. We offer investment and support to enable our publicans to grow their businesses and continually reassess our offer to ensure that both the nature of our contractual agreements and the range of support we provide is competitive and impactful.

Our traditional leased and tenanted pub business model has successfully transformed into a multi-model operation providing a dynamic response to market and regulatory developments. The transition of assets between operating models is now normal operational execution. 

Operating Model

Strategy in action ​

As our transformational strategy to develop optionality across the estate becomes embedded into business as usual we have continued to review how we can ensure optimum value from our assets. ​

For our Publican Partnerships and Managed Operations estates we believe that by operating the pub businesses, either directly or through our publicans, and continually evolving our retail offer in line with market developments and consumer demand, we will deliver the greatest value to our stakeholders. ​

In our Commercial Properties and Managed Investments estates the route to optimum value creation is most likely through monetisation. In Commercial Properties, we endeavour to attract a strong covenant for each of our properties such that the portfolio is desirable and could be monetised at the appropriate time. In our Managed Investments business we look to partner with specialist retailers who can help us access greater retail value through the operation of the pub, which we are then well-placed to monetise whilst retaining the freehold property.

The diagrams below show the profile of the estate at 31 March 2019 together with our expectation for September 2020: ​

Profile of Estate 2018
Profile of Estate 2020