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.
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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.
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