The pub lease has a couple of years left to run before it's next renewal, but Tom has just asked that he be released from this as soon as possible. This is because of changes in his personal and family circumstances. So, the Management Committee have agreed to this and will be managing the transition with Tom to ensure continuity and the best interests of the pub, shareholders and customers.
We have come a long way since taking ownership of the pub in 2018. Tom has developed the pub over the last six and a half years, and the popularity of the pub has much to do with his running it as a friendly, welcoming venue with good food and drinks. Tom and the Management Committee are committed to that continuing whilst the pub is going through this change. We all wish Tom and his family well for the future and thank him for his time and friendship with us.
This is unexpected but we will cope as we did during Covid, with some of the surprises that the renovations threw up and more recently restructuring our medium-term finances to deal with share buyback requests.
As mentioned, Tom and the Management Committee are working together to manage the transition to a new tenancy. Some of you will know Ali Bearpark and Ryan Stones who moved into the village in 2019 and Ali has done a spell as a Director on the Committee. They both have experience in the licenced trade having previously owned their own freehold pub in Barnard Castle and ultimately sold this as a viable business. They have agreed to take on the tenancy for a term in principle and we are in active discussions on how to make this happen for a quick changeover that will reduce any uncertainty about the pub. More details on that will become available shortly and I will keep you posted.
So, a lot to take in, but we have a plan in hand to manage the situation.
Share buybacks
I have mentioned in the last few newsletters and the Annual Meetings that recent share buyback requests have been an issue for us in how to manage them. We have had to deal with some significant requests over the past couple of years and have been able to deal with them all successfully with a planned approach and a recast medium term financial plan.
However, to help with the tenancy transition, we need to manage our cash flow as there will be unforeseen expenses to meet etc. To help with this it is necessary to place a moratorium on dealing with buy back requests. This will be for a period of up to three years but as before we will lift this as soon as possible once the full implications of the changeover are known and built into our financial planning. I hope you understand the rationale behind this which is all about our cash flow during the changeover period.
As ever if there are any questions etc please let me know and thank you for your continued support.
Further updates will be issued as we go forward.