Pubco Spirit still confident despite tough first quarter
MIDLAND pubco Spirit has warned the remainder of the trading year is likely to be tough after a challenging first quarter put the business on the back foot.
Announcing its interim results, the Burton-based business said: “The exceptionally cold weather in March has continued to make trading conditions very challenging. In our Managed pubs like for like net sales were down 4.1% in the four weeks to March 30, 2013, taking the year to date like for like net sales growth to 0.6%.
“Our Leased pubs beer volumes were similarly impacted leading to like for like net turnover decline of 3.6% and like for like net income decline of 4.8% in the four weeks to March 30. The year to date position now stands at a like for like net turnover decline of 2.0% and a like for like net income decline of 3.1%.”
Looking ahead it said it expected the consumer environment to remain tough but it was nevertheless confident of delivering full year expectations.
Despite tough short-term trading conditions, it said it had continued to make progress and its strategy remains unchanged.
The six month results show pre-tax profit increased by 3% to £20m, while EBITDA was up marginally at £70.1m (2012 – £69.8m). Earnings per share rose 5% to 2.3p (2012: 2.2p) and it confirmed it would be raising its interim dividend by 5% to 0.68p per share.
Mike Tye, Chief Executive Officer, said: “It has been a challenging first half of the year as we have traded into the dual headwinds of a tough consumer environment and the worst of the British weather. Despite these pressures, we continue to improve the business and strengthen the foundations for long term sustainable growth.
“We are well placed to perform strongly during our key summer trading period and we remain confident of delivering our full year expectations.”
He said that in the Managed pubs division, the business continued to invest in people, brands, estate and infrastructure.
“The Leased estate is stabilising and the focus will remain on improving the quality and innovation of the business,” he added.
