Spirit boosted by warm weather but warns on rising costs
The Spirit Pub Company has reported a boost in sales thanks to the early autumn heatwave but added that tough trading conditions and pressure on costs would affect trading over the rest of the financial year.
The owner of pub chains including Chef & Brewer and Fayre & Square, which operates around 1,350 pubs, said like-for-like sales from its managed estate were up 4.8% in the eight weeks since 20 August, with food sales up 5% and drink sales up 5.4%.
In the year to 20 August, Spirit said underlying profits rose 17% to £48m after like-for-like sales at its managed pubs increased 5.2%.
Spirit's chief executive Ian Dyson, who will leave the business at the end of the year, said the company had made great progress and continued to outperform the market.
"We have delivered strong growth in sales and margins, an 18% growth in earnings per share and have made substantial progress in repositioning the business for the future through a combination of investment in our brands, our estate and our people," he said.
"We have made a good start to the new financial year and, while we expect the consumer environment to be more challenging, we are well positioned to move forward."
Former Marks & Spencer finance director Dyson joined Punch Taverns in September last year before taking charge of Spirit following its demerger from Punch in August. He will leave the business on 16 December and will be replaced by deputy chief executive Mike Tye.
Spirit Pub Company reports healthy quarter after Punch demerger >>
By Neil Gerrard
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