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Successful first year for the new Spirit business

By James Russell: Successful first year for the new Spirit business

October 16, 2012

Spirit Pub Company plc has announced its Annual Results for the 52 weeks to 18 August 2012, with Mike Tye, Chief Executive Officer, commenting:

“I am delighted with the progress we have made during our first year as an independent business. Profit before tax is up 16%, earnings per share are up 21% and we have commenced the payment of dividends.

“We have delivered further strong growth in Managed sales through continued investment in our brands, estate, infrastructure and people, while cost control has been robust in the face of inflationary pressures, enabling continued expansion of Managed margin.

“Our Leased pubs have performed in line with our expectations this year and we have now laid the foundations from which to drive performance improvement. The consumer environment remains tough but our ongoing focus on delivering retail excellence sees us well placed to make further progress in the year ahead.”

Highlights

  • Strong earnings growth
  • Continued market outperformance and margin expansion in Managed
  • Foundations in place to drive performance improvement in Leased
  • Proposed final dividend of 1.30p per share

Group Financial Performance

  • EBITDA up 5% to £146m (2011: £140m)
  • Profit before tax up 16% to £51m (2011: £44m)
  • Earnings per share up 21% at 5.8p (2011: 4.8p)
  • Dividend per share of 1.95p (2011: nil)
  • Net cash outflow of £42m, used to repurchase £28m of bonds and extend the capital expenditure programme due to continued strong returns
  • Nominal value of net debt at £710m (2011: £704m): net debt to EBITDA ratio of 4.9 times (2011: 5.0 times)
  • Significant headroom on DSCR covenant

Statutory Results (including exceptional items)

  • EBITDA of £151m (2011: £118m)
  • Loss before tax of £589m (2011: loss of £207m) including £595m non cash charge (2011: £nil) relating to the revaluation of the property portfolio
  • Net exceptional pre-tax costs of £640m (2011: £251m)
  • Basic loss per share of 85.4p (2011: loss of 22.7p)

Managed

  • Like for like sales up 4.8%, continuing to outperform the market
  • EBITDAR margin up 120 basis points
  • EBITDA up 11% at £109m
  • Operating profit up 13% at £73m

Leased

  • Like for like net income down 4.9%
  • EBITDA of £38m (2011: £42m)

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