Spirit cheers investors predicting ahead-of-expectation FY results

STAFFORDSHIRE pubco Spirit Pub Company has cheered investors by announcing its full year results are likely to be ahead of expectations.

In a fourth quarter trading update for the 12 weeks and 52 weeks to August 16, 2014, the Burton-upon-Trent company said sales were up across its Managed and Leased portfolios, with both out-performing the market.

For the 12 weeks to August 16, like-for-like net sales across its Managed estate were up 2.1% (4.4% for the 52 weeks), with food up 2% (4.1% for the year) and drink up 2.3% (4.5% for the year).

“The robust performance of our Managed pubs has continued in the quarter with like-for-like performance remaining ahead of the market.  These results are encouraging as they come on top of strong comparatives from last year,” it said.

During Q4, the company acquired 11 pubs into its Managed division and these are being converted into our Spirit outlets. Spirit said it expected the pubs would generate returns materially ahead of capital cost.

The performance was much the same across the Leased division, where like-for-like net turnover for Q4 was up 1.1% (2.8% for the year), with net income rising 4.8% (4.2% for the year).

The Leased division has now seen four consecutive quarters of like-for-like net income growth.
 
Mike Tye, Spirit chief executive, said: “We are pleased with our strong performance in the quarter, particularly when compared to the good summer weather last year.  Both the Managed estate and the Leased estate have outperformed their respective markets.  
 
“While the market still remains challenging, the strategy we have put in place continues to deliver consistently solid results through investment in our brands, estate, infrastructure and people.  We remain confident in the long-term outlook for the business and expect full year results to be ahead of market expectations.”  

The company will release its annual results for the 53 weeks to August 23, 2014 on October 22.