Spirit Pub on track

Shares in Spirit Pub Company rose after the firm announced that it is on track to meet full year expectations.

During the sixteen weeks to 10 December, the company's leased estate division saw a like-for-like sales (LFL) fall in net income, in line with expectations, while the managed estate division saw continued strong sales growth.

Managed estates saw LFL rise 6.2%, food sales up 7.9% and drink sales up 6.1%, in its sixth consecutive quarter of strong sales growth.

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Leased LFL net income dropped 3.3%, but the firm assured that this division is a "potential source of growth" as well as a strong source of cash generation.

During the period the firm repurchased £25m of its bonds at a cash cost of £20m.

Mike Tye, who is about to succeed Ian Dyson as Chief Executive Officer said: "We are pleased with the continued progress we have made in the business, as we strive to become the best pub company in the UK.

"We have delivered another quarter of strong growth and have again outperformed the market. While we expect the economic and consumer outlook to be more challenging, we are on track to deliver our full year expectations."

The share price rose 2.47% to 41.50p by 13:30.

NR