Spirit has reported its unaudited preliminary Results for the 53 weeks to 23 August 2014, with EBITDA up 4%, Profit before tax up 8%, and net debt down 9%. The results further clarify Greene King’s current strong interest in acquiring Spirit, with Mike Tye, CEO commenting below on Spirit’s strong portfolio of brands and being positioned for growth:
“It’s been a strong year for Spirit, driven by effective execution of our clear and consistent strategy. Our Managed division continues to outperform the market with its strong portfolio of brands, while our Leased division is delivering market-leading performance and is in growth. We ended the year with a healthy balance sheet and strong earnings and dividend growth, underpinned by good cash generation.
“Looking to the future, the business is well positioned for further progressive growth, both organically from our existing portfolio and through acquisitions. We see significant opportunity to roll out our successful brands and currently have £75m to fund expansion.
“While the consumer environment remains volatile, we are confident that our customer proposition and sustained focus on delivering hospitality excellence for our guests will provide the necessary firepower to grow market share and continue to deliver value for all our stakeholders.”
Group Financial Performance
| 2014 (53 weeks) |
2013 (52 weeks) |
Change | Change (52w basis) |
|
| EBITDA | £159m | £150m | +7% | +4% |
| Profit before tax | £60m | £54m | +11% | +8% |
| Earnings per share | 7.1p | 6.3p | +13% | |
| Dividend per share | 2.22p | 2.05p | +8% | |
| Nominal value of net debt | £641m | £706m | -9% | |
| Net debt to EBITDA | 4.0 times | 4.7 times | 0.7 times |
Statutory Results (including exceptional items)
- EBITDA of £142m (2013: £144m)
- Profit before tax of £110m (2013: £69m)
- Net pre-tax profit impact from exceptional items of £50m (2013: £14m)
- Basic earnings per share of 15.1p (2013: 5.2p)
Strategic Highlights
- Managed division continuing to perform strongly
- Like for like sales up 4.4%; continuing to outperform the market
- EBITDAR margin up 30 basis points
- Leased division stabilised and in growth
- Like for like net income up 4.2%; average EBITDA per pub up 10.0%
- Four consecutive quarters of like for like net income growth
- Record levels of cash, strong cash flow, lower leverage, and earnings and dividend growth
- Strong and improving returns on investment
- Acquired 22 pubs into the Managed division which is well positioned for further growth
£75m cash available to fund estate expansion