Partly Cloudy

Partly Cloudy

max temp: 12°C

min temp: 11°C

ESTD 1874 Search

Leisure: Spirit Pub Company beats profit forecasts following strong summer sales

10:27 03 September 2014

The Red Lion at Martlesham.

The Red Lion at Martlesham.

One of the UK’s biggest pub chains has topped up the City’s profit forecasts after a better-than-expected summer for food and drink sales.


Spirit Pub Company, whose brands include Chef & Brewer, Fayre & Square and Flaming Grill, said revenues were 2.1% higher on a like-for-like basis in the 12 weeks to August 16, leading to growth of 4.4% across its financial year.

Chief executive Mike Tye said the performance in the quarter was strong, particularly as market conditions remained challenging and the company faced testing comparatives following good summer weather last year.

He added: “We remain confident in the long-term outlook for the business and expect full year results to be ahead of market expectations.”

The guidance prompted analysts at Shore Capital Stockbrokers to raise their forecasts for profits to around £60million in the year to August 16, from £56.8m previously.

Spirit has has more than 1,200 pubs across the country following its demerger from Punch Taverns in 2011. The managed estate comprises more than 750 sites and continues to benefit from a market-beating performance.

Food sales were 2% higher on an underlying basis in the most recent quarter, while drink sales gained 2.3% on a year earlier.

Spirit’s leased pub estate, which is made up of around 450 outlets, grew net income by 4.8% in the 12 week period.

Besides the Chef & Brewer, Fayre & Square and Flaming Grill pub restaurant brands, Spirit also owns the drink-led John Barras and Taylor Walker chains.

Its properties in East Anglia include the Royal George in Ipswich, the Red Lion at Martlesham, the Grosvenor in Felixstowe, the Rovers Tye in Colchester and the Rose & Crown in Wivenhoe.

Leisure industry analyst Mark Brumby, of Langton Capital, said: “The numbers are good and, even with comparatives toughening, the group has managed to convey the feeling that momentum is building.

“The pub sector has arguably suffered more than most in the messy aftermath of the financial crash and, with UK consumer spending becoming healthier, Spirit may be positioning itself to benefit from a more positive trading environment.”



Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Alistair Ponder, Leanne Castle and Alex Till of Menta receive their trophy from Declan Curry at the National Enterprise Network annual awards.

Bury St Edmunds-based enterprise agency Menta has won an Enterprise Support Organisation of the Year accolade at the National Enterprise Network’s annual awards.

An artist's impression of the new Hampton by Hilton hotel to be built and Stansted Airport,alongside the existing Enterprise House office complex, right.

A new £45million hotel is to be built close to the main terminal at Stansted Airport, bringing the number of hotels on the airport site to five and creating around 60 new jobs.

Frank Brumby, eastern region chairman of R3.

“Zombie” businesses are on the march in the East of England, according to a survey by insolvency trade body R3.

Royal Bank of Scotland has passed the latest Bank of England stress test, but missed fulfilling one of the capital guidance criteria.
Photo: David Cheskin/PA Wire

All seven of the UK’s largest lenders have passed the Bank of England’s latest “stress test”.

Max Chmyshuk, founder and managing partner at Fleximize.

More than £25million-worth of credit applications by small and medium-sized enterprises (SMEs) in eastern England are being rejected by banks every month, according to alternative lender Fleximize, which is based Ipswich.

Most read

Most commented

Topic pages

Local business directory

Our trusted business finder

Property search

e.g. Oxford or NW3
Powered by Zoopla

Digital Edition

Read the East Anglian Daily Times e-edition today E-edition

Great British Life

Great British Life
MyDate24 MyPhotos24