Britain's largest pub operator offloaded more than 100 venues during the past year as it grappled with declining takings and mounting borrowing costs.
Stonegate, the company behind the Slug and Lettuce chain, operates upwards of 4,000 drinking establishments across the country.
The group's annual figures revealed that income fell by £128million to reach £1.62billion in the year ending September 2025.
The business carries a substantial debt load that climbed from £3.76billion to £3.81billion over the period. This borrowing burden has placed considerable strain on the private equity-backed firm.
During the same timeframe, Stonegate's estate shrank from 4,370 operating pubs to 4,259, representing a loss of 111 sites. A further 23 venues have since been listed for sale.
The cost-cutting efforts failed to return the company to profitability, with pre-tax losses reaching £174million for the financial year. This figure did mark an improvement from the £214million loss recorded in the previous twelve months.
Stonegate's hefty debt pile generated finance costs totalling £441million, a slight reduction from the £455million paid out in 2024.
The company confirmed that disposing of 109 pubs along with 13 parcels of land generated £74million in proceeds.
Stonegate's hefty debt pile generated finance costs totalling £441million
| GETTYA portion of this money went towards reducing the group's outstanding borrowings. The latest accounts, lodged with Companies House, underscore the ongoing financial pressures facing the chain as it attempts to stabilise its position amid challenging trading conditions.
The pub giant pointed to Labour's tax policies as a contributing factor to its difficulties, specifically highlighting the National Insurance increases introduced by Rachel Reeves alongside rises in the minimum wage.
Despite these complaints, the company's own figures show that salary expenditure actually decreased from £314million to £295million year-on-year, while its tax bill dropped from £54million to £35million.
The board cautioned about a "severe but plausible scenario" where the uncertain economic climate could further damage consumer confidence and hit sales.
The pub giant pointed to Labour's tax policies as a contributing factor to its difficulties
| PAAs part of its restructuring efforts, Stonegate has entered negotiations with property owners over lease terms. Industry publication Propel reported this week that the chain is pushing landlords to accept rent reductions of up to 50 per cent.
David McDowall, the company's chief executive, described 2025 as "a pivotal year for Stonegate, laying the foundations of our transformation strategy".
He added: "A core pillar of this strategy is reshaping our estate to ensure every pub is positioned for long-term success."
Mr McDowall stated that "a lot of work has been done by our brilliant team at Stonegate" but acknowledged "there is more to do" as the group pursues its turnaround plan.
Stonegate had previously attempted to sell around 1,000 pubs in 2023 but failed to complete the deal
| PAThe chain is owned by TDR Capital, the private equity firm that also controls Asda. Stonegate had previously attempted to sell around 1,000 pubs in 2023 but failed to complete the deal.
More recent quarterly figures paint a similarly challenging picture.
Revenue for the three months to January came in at £476million, down from £505million in the same period last year.