Spirit managed like-for-likes grow and tenanted estate returns to growth

Its managed pubs saw like-for-like sales growth of 4.2% in food and 3.9% in drink.

Spirit said: “Our Managed pubs have continued their strong start to the year with robust growth in both drink and food sales as our guests continue to respond positively to our brands and the experience we deliver. We continue to perform ahead of the market.

“Christmas trading, aided by the timing of the holidays, was very encouraging with like-for-like net sales up 7%.”

Acquiring pubs​

Spirit said work continues to identify potential pubs to add to its estate. “We expect to begin acquiring pubs in the second half of the current financial year.”

In the Leased arm, like-for-like net turnover grew 2.2% with like-for-like net income up 1.2%.

Progress in leased​

Spirit said: “We remain pleased with the progress in our leased estate where like-for-like net income has stabilised, returning to growth in recent trading. Our focus remains on further improving the quality of our estate through investment in our properties and licensees, innovation and selective disposals.”

Regarding its financial position, the company said: “On 4 November 2013 Spirit successfully completed a debt re-profiling exercise which, via a smoother amortisation profile, provides the business with the financial flexibility to continue to invest and grow.

VAT​

“We note that on 30 October 2013 the Court of Appeal issued its judgement in The Rank Group plc case, regarding the VAT treatment of the income from certain slot machines, in favour of HMRC although Rank have sought leave from the Supreme Court to appeal the decision. As at 17th August 2013, Spirit disclosed a net contingent liability of £18.9m in respect of this claim.”

Mike Tye, chief executive, said: “We are pleased to report strong trading across the business for the first 20 weeks of our financial year with trading particularly buoyant over the Christmas period.

“Our focus remains on the execution of our well defined strategy which has seen our Managed pubs consistently perform ahead of the market and enabled our Leased estate to return to like-for-like growth during the period. We intend to build on this encouraging start by continuing to enhance the experience for all our guests, further strengthening the appeal of our brands and pubs and beginning to expand our estate.”