Spirit hails refurbishment success

THE owner of Chef & Brewer and Fayre & Square said investment in its pubs was paying off after it reported a 7 per cent rise in half-year profits.

Spirit Pub Company, which has about 1,300 bars following its demerger from Punch Taverns last summer, said its managed estate continued to outperform the market after like-for-like sales improved 5.6 per cent in the six months to 3 March.

It has completed three-quarters of its investment programme, with brands such as Chef & Brewer and Taylor Walker now refurbished and attention turning to Flaming Grill, John Barras and Original Pub Company sites.

Despite the investment and “substantial” cost pressures, Spirit yesterday announced pre-tax profits of £20 million, up from £18m a year earlier and ahead of analysts’ expectations. The company also said it would pay its first dividend as a separately listed company, with an interim payout of 0.65p.

Chief executive Mike Tye said: “While we are mindful of the ongoing economic uncertainty and consumer pressures, we remain on track to deliver our full-year expectations.”

As well as 800 managed outlets, Spirit has a leased estate of 530 pubs boasting an average net income of £91,000.

Around a quarter of this estate will undergo a rent review in the financial year and Spirit said there was scope for significant downward revision.