Unsurprisingly, Spirit’s trading has been impacted by the adverse weather this January and February – as reported by its peers. However, it is pressing ahead with the formation of its Local Pubs division within its Managed estate, continuing to invest in its Leased estate and to dispose of the pubs that it perceives have limited potential and, overall, remains ‘confident of delivering full year expectations’.
Managed
| 8 weeks to 2nd March 2013 | 28 weeks to 2nd March 2013 | |
| Like-for-like Net Sales | -1.1% | +1.4% |
| Like-for-like Food Sales | -0.3% | +2.3% |
| Like-for-like Drink Sales | -3.4% | -0.8% |
Trading conditions were very challenging during the period as a result of the snowfall in January and prolonged cold weather in the second half of February which compared to an unusually dry and mild winter in the prior year.
Despite the recent sales decline Spirit continues to outperform the market, and has now invested in 50 pubs in the year to date, mainly with John Barras and Fayre & Square brands. Following a review of the brand portfolio, the community and high street pubs have been combined in a new Local Pubs division. These pubs share a similar guest base and will be predominantly branded as John Barras, with the Original Pub company brand no longer used.
Leased
| 8 weeks to 2nd March 2013 | 28 weeks to 2nd March 2013 | |
| Like-for-like Net Turnover | -2.7% | -1.9% |
| Like-for-like Net Income | -4.2% | -2.9% |
The Leased estate was similarly impacted by the challenging weather comparatives but continues to focus on innovation trials and enabling licensees to improve performance through sharing Spirit’s retail expertise and investing in the estate with 38 investments completed in the year to date.
Good progress is being made disposing of pubs that have limited future potential with a further 12 pubs sold in the period taking the number sold to 20 in the year to date and to 72 in the last twelve months. Proceeds remain in line with book value.
Mike Tye, Chief Executive, commented:
“Recent trading has been impacted by adverse weather conditions and, with the consumer environment remaining challenging, we are redoubling our efforts to improve the retail offer in all areas of our business to give our guests more compelling reasons to visit our pubs. We remain confident of delivering full year expectations.”