Spirit Pub Company has issued its Interim Management Statement covering the first 20 weeks of the current financial year with Mike Tye, Chief Executive, commenting:
“We are pleased to report strong trading across the business for the first 20 weeks of our financial year with trading particularly buoyant over the Christmas period. Our focus remains on the execution of our well defined strategy which has seen our Managed pubs consistently perform ahead of the market and enabled our Leased estate to return to like-for-like growth during the period. We intend to build on this encouraging start by continuing to enhance the experience for all our guests, further strengthening the appeal of our brands and pubs and beginning to expand our estate.”
Managed
| 20 weeks to 4th January 2014 | |
| Like-for-like Net Sales | +4.3% |
| Like-for-like Food Sales | +4.2% |
| Like-for-like Drink Sales | +3.9% |
Managed pubs have continued their strong start to the year with robust growth in both drink and food sales as guests continue to respond positively to the brands and experience delivered. Continues to perform ahead of the market.1
Christmas trading, aided by the timing of the holidays, was very encouraging with like-for-like net sales up 7.0%2.
Work continues to identify potential pubs to add to the estate and Spirit expects to begin acquiring pubs in the second half of the current financial year.
1 Source: Coffer Peach Business Tracker
2 Three weeks to 4th January 2014
Leased
| 20 weeks to 4th January 2014 | |
| Like-for-like Net Turnover | +2.2% |
| Like-for-like Net Income | +1.2% |
Pleased with the progress in Leased estate where like-for-like net income has stabilised, returning to growth in recent trading. Focus remains on further improving the quality of the estate through investment in properties and licensees, innovation and selective disposals.
Financial Position
On 4th November 2013 Spirit successfully completed a debt re-profiling exercise which, via a smoother amortisation profile, provides the business with the financial flexibility to continue to invest and grow.
Noted that on 30th October 2013 the Court of Appeal issued its judgement in The Rank Group plc case, regarding the VAT treatment of the income from certain slot machines, in favour of HMRC although Rank have sought leave from the Supreme Court to appeal the decision. As at 17th August 2013, Spirit disclosed a net contingent liability of £18.9m in respect of this claim.