Spirit Pub Company has released its Interim Management Statement for the 12 weeks to 25 May 2013, indicating resilient performance despite the cold start to the year.
Mike Tye, Chief Executive, commented:
“We are encouraged by this resilient performance despite extremely volatile trading conditions and uncertain consumer confidence. Both Managed and Leased pubs have delivered good growth in turnover after an exceptionally cold start to spring.
“We have the right balance of ingredients for success in the long-term, including our continued focus on delivering a great guest experience, building compelling Managed brands, and an ongoing emphasis on investment and innovation in the Leased estate.
“We maintain guidance for the full year, but are mindful of the remaining uncertainty around trading in the short-term, which has characterised recent quarters.”
Highlights
- Managed sales resilient after exceptionally cold start to spring; continuing to outperform the market
- Leased estate on track for year-end stability; turnover now back in growth
- No change to full year guidance
Managed
| 6 weeks to
13th April 2013 |
6 weeks to
25th May 2013 |
40 weeks to
25th May 2013 |
|
| Like-for-like Net Sales | -3.8% | +2.6% | +0.7% |
| Like-for-like Food Sales | -0.3% | +4.4% | +2.1% |
| Like-for-like Drink Sales | -7.6% | +0.2% | -1.7% |
Trading remained volatile throughout the period with challenging conditions towards the beginning of the quarter offset by more encouraging performance in the latter half, following the return of more seasonal weather.
The focus remains on developing compelling brands and pubs whilst nurturing talent and galvanizing the leadership skills of teams to deliver a consistently great guest experience and drive footfall.
These goals continue to be supported by Spirit’s disciplined approach to capital investment, with 64 pubs now invested in this financial year and return on investment remaining strong. Three new Wacky Warehouses have been built and two pubs extended in the search to capture opportunities to maximise income and enhance value within the existing estate.
Leased
| 8 weeks to
27th April 2013 |
4 weeks to
25th May 2013 |
40 weeks to
25th May 2013 |
|
| Like-for-like Net Turnover | -4.0% | +1.2% | -1.8% |
| Like-for-like Net Income | -5.6% | -2.0% | -3.1% |
Although reported over a slightly different time period, the Leased estate was similarly impacted by the exceptionally cold weather but has recovered since with net turnover up by 1.2% in the last four weeks. Net income was down by 2.0% in this period, reflecting the last phase of the rent rebasing process. Spirit remains confident of returning the Leased estate to stable like-for-like net income in the fourth quarter.
To support future growth, Spirit has now invested in 60 pubs in the year to date. With performance remaining encouraging, further pubs have been identified for conversion to the new operating models, which are expected to complete in the final quarter. This will take the trial group to sixteen, eleven of which will be franchise with the remaining five being agreements with premium operators.
A further four pubs have been sold in the period, taking the total year to date to 24. Proceeds remain in line with book value.