Capital Pub Co looking to nearly double in size by 2013

Capital Pub Company (CPC), the London pub operator, said today it hoped to almost double the size of its existing pub estate to 50 sites within three years.

Announcing its annual results today CPC said it was "well positioned to take advantage of a London pub market which continues to be a healthy trading environment".

The group, which recently announced plans for a share placing to raise around £5m to help fund its drive to grow its estate, said it believed there was "further scope to expand its operations", thanks also in part to a lower net debt figure of £24m.

"The management remains focused and ambitious to build on its recent successes and the aim over the next three years is to increase the size of the estate to 45 - 50 outlets," it added. CPC currently owns and operates 28 pubs in London.

During the year, CPC acquired three pubs and said a series of refurbishments in the group's estate had boosted its appeal and subsequent performance, while the World Cup had boosted sales over the past fortnight. It did not outline in detail its current trading.

Turnover for the year to March 27, 2010, rose 11 per cent to £22m, with adjusted earnings before interest, tax and depreciation up 19 per cent to £5.8m.

Adjusted pre-tax profits were up nearly a third at £2.7m, while adjusted earnings per share rose 32 per cent to 10.1p.

As with the previous financial year, CPC said it would not pay a dividend to shareholders, preferring to use to the available cash to reduce debt and fund acquisitions.