Capital Pub Company, the London-based manage pub chain, has reported adjusted pre-tax profits up 48% to £6.8m for the 52 weeks until 26 March.
The company, which has 34 unbranded predominantly freehouses, revealed revenue increased by 24% to £27.2 (2010:£22m) with like-for-like sales up 7%. The company claimed this is due to the "high quality" of estate which has been a major factor in driving increased performance. The group is to continue with its strategy of focusing predominantly on wet-led pubs and intends to expand to between 45-50 pubs over the next two years.
Adjusted EBITDA increased 18% to £6.8m (2010:£5.8m). Net debt reduced by £7.1m and gearing has dropped to 50%.
Clive Watson, chief executive of Capital Pub Company, said: "This is another exceptional performance resulting from a focussed and successful strategy. Capital is a high quality business and is the only freehold backed very well invested pub company trading soley in the London area. The UK has a two speed economy with London a very buoyant market from which Capital, with its larger estate, will benefit further in the future particularly coming into an Olympic year.
"We have a strong pipeline of acquisitions and with our new banking facilities are well positioned to execute our strategy to continue to generate excellent value for shareholders." The group also revealed strong sales growth for the first 10 weeks of this year with sales up 20%.
London brewer and pub operator Fuller's bid £53.9m bid for the 34-strong group, which as rejected. Fuller's wrote to the Capital board on 22 March offering a cash offer of 175p per share, which was turned down. It then returned with an increased offer of 200p per share, including the potential dividend of at least 2.1p per Capital share referred to in Capital's announcement of 18 April 2011. That bid was also rejected.
Capital claims it believes the offer "substantially undervalues" the business and its future prospects.