SFI: Merry Christmas but forecasts remain unchanged

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Shares in SFI, the pub and bar operator that owns Slug & Lettuce, and the Litten Tree brands, jumped yesterday on the back of a bullish Christmas...

Shares in SFI, the pub and bar operator that owns Slug & Lettuce, and the Litten Tree brands, jumped yesterday on the back of a bullish Christmas trading statement.

The group said it had enjoyed a bumper festive period with sales rising 30 per cent for the three weeks to the end of December, to £12.7m. Like-for-like seasonal sales were up 5.3 per cent.

Total sales on New Year's Eve alone had topped £1.1m.

Shares in the group, which also owns the Bar Med chain, leapt 17.5p to 236.5p.

However, the shares have come back since - not everyone in the City was as bullish as the SFI management team. One analyst pointed out that only 37 per cent of the estate (66 outlets) had been included in the like-for-like comparisons, and that the period of comparison had changed from its normal 35 days to three weeks.

Many underperforming outlets had been omitted from the comparison.

"It is safe to assume these shifts in comparisons did not adversely effect the figures," he said. "Despite this statement, have forecasts changed? Of course they haven't."

He also noted that whilst like-for-like sales at Slug were up around eight per cent, the average rise for the other SFI brands was nearer three per cent.

Chairman Tony Hill (pictured left with finance director James Kowszun)​ said the strong Christmas trading reflected the group's increasingly balanced portfolio.

He admitted that in an effort to break into the FTSE 250 index he would continue to look at more deals. He did not rule out a fresh look at Pitcher & Piano, if "the price was right".

The conversions of 22 Parisa outlets to the Slug concept will start next week. Mr Hill said the acquisitions would add the scale necessary to make Slug & Lettuce a leading national brand.

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