Capital reports profits up 19%

Capital Pub Company, the London-based managed pub retailer, said this morning that it was well on the way to owning an estate of 45-50 pubs - after it revealed adjusted ebitda had increased by 19% to £5.8m.

The company, which is led by Clive Watson, said it was "poised to take the next step" in its development, after it unveiled an 11% growth in revenue, up from £19.8m to £22m.

Revealing its preliminary results for the year to 27 March, it said adjusted pre-tax profits at the group, which runs 28 largely freehold pubs in London, had improved by 32% to £2.7m, up from £2.1m in 2009.

It reported that trading since the start of its new financial year had been "very strong" - with the World Cup providing a further boost to sales.

It said: "The board believes the group is well positioned to take advantage of a London pub market which continues to be a healthy trading environment. The group continues to outperform its competitors and believes there is further scope to expand its operations. "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."

As recently revealed the company plans on seeking shareholder permission raise up to around £5.5m should "earnings-enhancing acquisition opportunities" become available.

This exercise follows a placing earlier this year where Moorfield Capital, the property investor, raised its holding in the company to over 8%.

Net debt at the group was reduced £24m following the disposal of the Marquis of Granby and Capital said that its gearing was now at 70%.

The company said that cash generated from operating activities had more than doubled, increasing by 113% to £3.7m, up from £1.7m. Capital's estate was also revalued at £66.6m, down from £69.7m, which reduced net assets by £1.8m.

It said it would not be paying a dividend and added: "After due consideration, the board is recommending that it is in the best interests of shareholders for the group to continue to preserve internally generated cash for debt reduction and for financing future acquisitions."