Spirit reports 2.3% rise in like-for-like sales

The firm also reported a 2.1% decline in like-for-like net turnover and 2.9% fall in like-for-like net income in its leased arm in the period but said it was seeing improving trends in the division.

Food led the growth in the managed estate, with food like-for-likes up 3.3% against drinks at +0.2%.

Spirit said: "Our managed pubs have delivered another period of solid growth in a challenging consumer environment and against tough comparatives of +7.1% like-for-like sales growth in the corresponding period last year.

"Trading conditions from October through to mid December were very challenging due to the ongoing wet weather but Christmas trading was strong with like-for-like sales up +5% [three weeks to 5 January].

"We continue to outperform the market and to invest in our people, brands, properties and infrastructure with the rollout of our new managed EPOS and back office systems completed on schedule in December 2012. Further productivity benefits are expected now that we have the full estate on the new platform."

Spirit said its leased estate "continues to be impacted by prior year rent rebasing" but the company said it is "seeing improving trends which we expect to continue throughout the year as we pass the anniversary of the rent reviews, the vast majority of which were in the first half of last year".

"Our focus continues to be on encouraging wider adoption of retail disciplines in our leased pubs alongside innovation in our operating agreements.

"We have invested in eight franchise pubs, five of which carry the John Barras branding and, whilst it is still early days, initial results are encouraging. We have also completed the rollout of the iDraught dispense system across our Leased pubs which should help to drive sales and deliver product quality improvement for our licensees.

"We continue to dispose of the underperforming pubs from our Leased estate and a further eight have been sold during the period with disposal proceeds in line with book value."

Mike Tye, chief executive, said: "We have made a solid start to the year in what remain challenging trading conditions as our guests remain under considerable financial pressure. Our managed estate performance remains ahead of the market and we continue to focus on evolving our brands, offers and infrastructure to bring great value and choice to our guests.

"Our plans for our leased estate remain on track as we look to help our licensees to develop their retail offers which we will support with continued innovation such as our franchise trials which are now underway. We continue to perform in line with expectations and we are confident that we have the right foundations in place to realise the full potential of our business."