Pubco Spirit cheered by improved performance

STAFFORDSHIRE pubco Spirit has said it remains on course to meet full year expectations after a solid first half performance.

The Burton upon Trent-based business said in an interim management statement covering the first 20 weeks of the current financial year that its managed estate continued to outperform the market, while a roll-out of its managed infrastructure was completed on schedule.

The leased estate performed in line with expectations and trials of a leased franchise scheme are now under way.

Over the period, like-for-like sales I its managed estate grew 2.3%, with food sales up 3.3% and drink sales rising by a more modest 0.2%.

Trading conditions from October through to mid December were said to be very challenging due to the ongoing wet weather but Christmas trading was strong with like-for-like sales up 5%.

The group said it continued to outperform the market and had invested in staff, brands, properties and infrastructure. Further productivity benefits are expected now that the full estate is on the new platform.

Like-for-like net turnover in the leased estate fell 2.1% during the 20 weeks, with like-for-like net income down 2.9%.

It said the leased estate continued to be impacted by prior year rent rebasing but the situation was showing signs of improving.

It has also invested in eight franchise pubs, five of which carry the John Barras branding and it said while it was still early days, initial results were encouraging.
The disposal of underperforming pubs from the leased estate continues and a further eight have been sold during the period with disposal proceeds in line with book value.

Mike Tye, Spirit chief executive, said: “We have made a solid start to the year in what remain challenging trading conditions as our guests remain under considerable financial pressure.

“Our Managed estate performance remains ahead of the market and we continue to focus on evolving our brands, offers and infrastructure to bring great value and choice to our guests. Our plans for our Leased estate remain on track as we look to help our licensees to develop their retail offers which we will support with continued innovation such as our franchise trials which are now under way.

“We continue to perform in line with expectations and we are confident that we have the right foundations in place to realise the full potential of our business.”