Spirit lifted despite slower growth

Spirit Pub Company – which has around 1,350 pubs, including Milnes Bar in Edinburgh and The Central in St Andrews – saw like-for-like sales increase 4.6 per cent in the 12 weeks to 3 March, compared with 6.2 per cent in the previous quarter, but said it was still on track to meet profit expectations for the year to August.

Food sales have not softened as much as drink, with food growing 6.2 per cent and drink rising 3.9 per cent, in a sign that consumers are increasingly turning to pubs for dining.

The softer sales reflect the experience of competitors, including JD Wetherspoon and Punch Taverns, from which Spirit de-merged last summer. Both rivals reported a decline in like-for-like sales in the months after Christmas.

Spirit has been boosted by the roll out of food in its traditionally drink-led pubs, such as the Flaming Grill concept, which is now in 81 pubs across the country.

Food has become increasingly important for pubs in the wake of the smoking ban and the trend towards buying cheaper alcohol from supermarkets.

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

Spirit refurbished 156 pubs in the first half of the year, meaning 76 per cent of its estate has now been invested in.

It has overhauled its Chef & Brewer brand and is close to completing investment in its Taylor Walker and Fayre & Square chains.

The group said it will focus its investment on the Flaming Grill, John Barras and Original Pub Company.

Shares in the group rose by nearly 1 per cent after today’s update.

James Dawson, analyst at brokerage Charles Stanley, said the results were strong against “a sector where some have struggled to make any progress”.

Dawson added: “The mix of sites now offering food has already been moved higher as a result of this investment and thereby helping to drive sales.”