Pubco Spirit blames snow for dip in sales

MIDLAND pubco Spirit has blamed bad weather during the January and February for a dip in food and drink sales.

For the eight weeks to March 2, 2013, like for like net sales across its portfolio dropped 1.1%, with like for like food sales down 0.3% and drinks falling 3.4%.

Nevertheless, the Burton-upon-Trent-based business said that in the 28 weeks to March 2, the overall performance had been more encouraging and it remained on track to meet full year expectations.

The longer period saw net sales rise 1.4% with food sales up 2.3% and drink sales 0.8%.
“Trading conditions were very challenging during the period as a result of the snowfall in January and prolonged cold weather in the second half of February which compared to an unusually dry and mild winter in the prior year,” it said.

Despite the recent sales decline it said it continued to outperform the market.

The group has invested in 50 pubs in the year to date, mainly in the John Barras and Fayre & Square brands. Following a review of brand portfolio, its community and high street pubs have been combined in a new Local Pubs division. These pubs share a similar guest base and will be predominantly branded as John Barras, with the Original Pub company brand no longer used.

In the eight weeks to March 2, like for like net turnover declined 2.7% with net income down 4.2%. The decline was less marked over the 28-week period with net turnover down 1.9% and net income falling 2.9%.

It said the leased estate had also been impacted by the challenging weather comparatives.

“We continue to focus on our innovation trials and enabling our licensees to improve performance through sharing our retail expertise and investing in our estate with 38 investments completed in the year to date. We are also making good progress disposing of pubs that have limited future potential with a further 12 pubs sold in the period taking the number sold to 20 in the year to date and to 72 in the last 12 months. Proceeds remain in line with book value,” it added.

Mike Tye, Spirit chief executive, said: “Recent trading has been impacted by adverse weather conditions and, with the consumer environment remaining challenging, we are redoubling our efforts to improve the retail offer in all areas of our business to give our guests more compelling reasons to visit our pubs. We remain confident of delivering full year expectations.”

Spirit will announce its interim results for the 28 weeks to March 2 on April 25, 2013.

Social housing group Mears sees record results

SOCIAL housing and care provider Mears Group, which has several operations across the West Midlands, has announced record full year results.

Revenue rose 15% to £679.5m (2011: £589m), a performance boosted by the acquisition of Morrison, one of its major social housing competitors.

David Miles, Mears chief executive, said: “2012 has been the most successful in the group’s 17 year history. We delivered record revenue and achieved significant growth. The first half year saw an intense period of new contract mobilisations.  In the second half, we reinforced our market leading position in Social Housing with the transformational acquisition of our most significant competitor, Morrison.

“Since the acquisition, we have received positive feedback across Morrison’s customer base and we are at an advanced stage in restructuring the acquired business.  As anticipated, integrating Morrison is realising valuable synergies, as the best practices from both businesses are combined to benefit customers and tenants alike.”

He said opportunities in the social housing were strong and the firm remained confident for the year ahead.

Change of adviser for Secure Trust Bank

SOLIHULL-based Secure Trust Bank has appointed Canaccord Genuity as its nominated adviser with immediate effect.

The appointment follows the transfer of the business of Canaccord Genuity Hawkpoint Ltd to Canaccord Genuity Ltd.