Leased estate performance holding Spirit Group back

BURTON-based Spirit Pub Company has reported strong trading in its managed estate in the 12 weeks to August 18 but its leased estate has faced another challenging quarter.

The company, created following its demerger with Punch Taverns, saw like for like sales increase in its managed estate by 4.1% with food sales up 4.5% and drink sales up 3.3%.

In a trading statement the firm said: “Our managed pubs division delivered another quarter of solid growth, notwithstanding volatile trading conditions and the adverse impact of both the wet summer and the Olympics.

“With further improvements in our people, brands, properties and infrastructure we continue to significantly outperform the market and to deliver good growth in both drink and food sales reflecting our broad portfolio of high-quality managed brands.”

But like for like income in its leased estate was down 5.4% as performance continued to be impacted by current year rent rebasing.

“Our prime focus remains on improving performance in the division and creating shareholder value. As part of delivering these objectives, we continue to develop the framework for our alternative operating models and will update the market on our progress at our preliminary results presentation,” it said.

Chief executive Mike Tye said: “We have finished the year strongly despite challenging trading conditions created by the poor summer weather and the disruption caused by the Olympic Games.

“Whilst the consumer environment remains tough, we continue to perform in line with expectations and are making good progress towards realising the full potential of our business.”