High flying Spirit Pub Company says it will meet full year expectations after taking full control of its leased estate and identifying under-performing pubs for the chop.
The company, which was demerged from Punch Taverns in the Spring of last year, has 800 managed and around 550 leased pubs. It is known for its Chef & Brewer and Flaming Grill brands.
The managed division saw like-for-like (LFL) sales up 4.6% in the 12 weeks to March 3, ahead of forecasts by analysts at Peel Hunt, who had predicted a 3% rise.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The group has also managed to refurbish 156 of its outlets, ahead of the 130 figure in Peel Hunt's latest note. Spirit says it is seeing particularly good results when it introduces food into drinks-led pubs.
The leased division saw LFL income down 6.4% as the company takes full control of the network, having ended a management agreement with Punch. The focus is now on getting rid of 80 pubs that are seen to be under-performing.
The group's Chief Executive Mike Tye said the focus now was on the Flaming Grill, John Barras and Original Pub Company brands.
Shares in Spirit had risen 1.66% by 10:24. Since the de-merger from Punch,Spirit has gained 17% in value.
BS
-
Average earners now face £200,000 inheritance tax bill - how much will your estate owe?‘Double whammy’ of inheritance tax changes means even the estates of those earning the average UK wage could face bills, not just the very wealthy
-
Are the wealthy dodging more tax than previously thought?A new report suggests tax non-compliance among the wealthy could be worse than previously imagined. Is an overly complex system partly to blame?
