Profits up at pubco Spirit as Greene King continues to circle

SPIRIT Pub Company has seen its profit increase by 11% in the year to August 23.

The Burton-on-Trent firm, which is currently the subject of a £723m takeover bid by rival pubco Greene King – saw profit before tax increase from £54m in 2013 to £60m.

Spirit said its managed division is continuing to perform strongly – having acquired 22 pubs during the period – while its leased division has stabilised and is in growth.

The firm said like for like sales are up 4.4% and continue to outperform the market.

Spirit, formed in August 2011 following a demerger from Punch Taverns, says it has £75m cash available to fund estate expansion.
 
Mike Tye, chief executive officer, said:  “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.”
 
Spirit Pub Company has 1,227 managed and leased pubs nationwide.

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