Capital gears up for expansion

By Mark Wingett, M&C Report

- Last updated on GMT

Related tags Capital pub company Corporation

Capital Pub Company as announced a restructuring of its management team as it gears itself up for further expansion.

Capital Pub Company, the London-based pub group, has announced a restructuring of its management team and an internal corporate reorganisation as it gears itself up for further expansion.

The company currently operates 32 pubs in the capital but has stated its aim to increase its estate to between 45 and 50 pubs over the next two to three years.

The group said that to facilitate this growth it was adopting a number of measures to further strengthen its management structure, including the appointment of Alex Derrick as its new operations director with immediate effect.

Capital said that Derrick, who joined the company from Jacomb Guinness in November 2005, will assume some of the day to day responsibilities undertaken by chief executive Clive Watson.

It said: "Alex's appointment will enable Clive to focus more on acquisitions and on driving the future expansion of the business."

Additionally, the company is to ramp up its food offer by extending its association with Drexl & Floyd, the food & drink consultant, who will assist in developing new sites and improving Capital's food offer in pubs "where that opportunity exists".

Encouraging trade

Drexl & Floyd recently assisted with the development of the company's The Actress in East Dulwich and the refurbishment of The Clarence in Balham, introducing high quality pizzas as part of the food offering in these locations.

In a statement it said: "Recent trading in both these pubs has been very encouraging. The directors see further potential in developing the food offering across the estate thereby increasing food sales and subsequently driving further growth in liquor sales.

"The Board believes these developments will help the company to manage its growth over the next few years."

Commercial re-structure

The group, which said current trading remains strong and in line with expectations, also said it had undergone an internal corporate restructuring in order to "create a more commercial structure".

The restructuring has resulted in the majority of the business and assets of the company being transferred to a subsidiary called Capital Pub Company Trading Limited (CPCT), a subsidiary, in which the group owns 100% of the preferred ordinary share capital.

Capital said: "This structure permits the separate reporting of the trading operations of the business from the corporate and administrative side, and is a more commercial structure given the company's stated growth plans."

The restructuring has resulted in net assets of approximately £64.1m being transferred to CPCT. The profit before tax attributable to these net assets in the year to 27 March 2010 was approximately £5.4m.

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