Spirit reports managed like-for-like sales rise

EBITDA excluding exceptional items grew 2% to £150m and profit before tax increased 6% to £54m. There was stabilisation in the Leased estate, Spirit said, with like-for-like net income down 2.1%.

Meanwhile, its managed estate made a “solid start” to the new financial year, with like-for-like sales up 4% in the first eight weeks. Its Leased estate has started the year “in line with expectations” with like-for-like net turnover up 1.2% in the first eight weeks and like-for-like net income down 0.3%.

Capital expenditure for the year was £53m, with £34m invested in its managed estate, £13m in Leased and £3m in infrastructure projects, and it spent £3m purchasing the freeholds of two existing leasehold managed pubs: the Talbot in Bristol and the Red Lion in Moorgate, London.

Acquisition programme​

“Focus for 2013/14 will be on a continuation of our innovation trials in both estates alongside our managed refresh programme. We therefore expect capital expenditure, excluding pub acquisitions, to be between £40m and £45m which represents the ongoing cost of evolving our brands and offers whilst maintaining our estate and infrastructure in excellent condition.

“In 2013/14 we intend to begin adding pubs to our estate to both supplement organic growth and leverage our highly scalable overheads. Our preference is for freehold assets that will be suitable for Fayre & Square or Flaming Grill, both of which are strong food-led value brands with a nationwide appeal. We expect to begin the acquisition programme in our second quarter.”

Spirit upgraded the value of its properties in the year from £1.3bn to £1.4bn. Mike Tye, chief executive, said: “I am pleased with the further progress we have made this year in what have been tough trading conditions.”