Spirit reports 6% rise in profit as it looks to refinance £700m debt

22 October 2013 by
Spirit reports 6% rise in profit as it looks to refinance £700m debt

Spirit Pub Group has reported a 6% rise in profit before tax to £534 in the year to 17 August 2013, and said it was looking to renegotiate with lenders over its £700m debt.

The pub chain, which was formed in August 2011 following a demerger from Punch Taverns, was due to begin repaying it's debt in August 2014, but it is looking to retain as much cash as possible to continue its refurbishment programme.

Total revenue at the group for the year was £758.2m. Sales were up 1.6% at its managed pubs, while income was down by 2.1% at its leased operations to £33m.

Average weekly take at managed pubs was up 2% to £17,300.

Spirit sold 38 pubs in the year and has now sold 90 since taking control of the estate.

Chief executive Mike Tye said: "I am pleased with the further progress we have made this year in what have been tough trading conditions. Our continued focus on the execution of our strategy to deliver hospitality excellence for our guests has delivered a strong financial performance with growth of 6% in profit before tax and earnings per share up 9%.

Our strong portfolio of managed brands has achieved further growth in sales which, coupled with sustained productivity and efficiency gains, has driven significant expansion of managed margin. The performance of our leased pubs has stabilised and, through a combination of investment and innovation in our operating agreements, we are confident of returning the leased estate to growth in the year ahead. We have entered the new financial year with good momentum in the business and remain confident in our strategy for future growth."

Warm weather gives Spirit a summer tonic >>

Christmas and food sales provide growth for Spirit managed houses >>

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