Barracuda hooks a 17 per cent rise in profits

City backers of Barracuda Group, which operates 216 managed pubs including Smith & Jones and Varsity outlets, are unlikely to sell up this year as uncertainty continues to dog the credit and debt markets.

Mark McQuater, Barracuda's chief executive, said that Charterhouse Capital Partners had no current plans to dispose of the business.

"Our backers are two and a half years into a five year plan and the company is growing nicely with 25 new openings planned for the 2008 financial year," he said.

Given the health of the group Charterhouse was "not likely to sell," he added, although he acknowledged that the current financial environment was not especially 'deal friendly'.

Charterhouse funded a £262m secondary management buyout in June 2005.

Barracuda saw turnover up 17 per cent to £148.7m in the year to the end of September 2007, boosted by 24 pub openings during the financial year.

Gross profits rose by the same percentage figure to £107.3m, while branch EBITDA before smoking closures and pre-opening costs grew 11.8 per cent to £37m.

Branch costs rose by a fifth to £70.3m.

McQuater said the business's like-for-like turnover improvement of two per cent was driven partly by food sales and "some genuine wet growth".

Wine sales rose 17 per cent, although beer sales were "less strong".

"We're seeing a change in the sales mix, with food and coffee on the up and fewer session drinkers coming in, mainly because of the smoking ban," added McQuater.

Barracuda undertook an ambitious opening programme during the last 12 months, unveiling a new pub almost every fortnight.