Spirit delivers growth despite tough summer

Oliver Smith
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PUB CHAIN Spirit Pubs, currently the £723.3m takeover target of rival Greene King, yesterday reported its full-year profit grew 11 per cent due to strong growth in its managed pub division.

Revenues from the 1,227 managed and leased pubs that Spirit controls, including Chef & Brewer, Fayre & Square and Flaming Grill, rose 5.6 per cent to £800.9m during the year to 23 August.

“We ended the year with a healthy balance sheet and strong earnings and dividend growth, underpinned by good cash generation,” said chief executive Mike Tye.

“While the consumer environment remains volatile, we are confident that our customer proposition and sustained focus on delivering hospitality excellence for our guests will provide the necessary firepower to grow market share and continue to deliver value for all our stakeholders.”

During the first six weeks of the new financial year Spirit said it saw September’s improving weather offset the wet August Bank Holiday, leading to sales at its managed estate rising 2.6 per cent and its leased estate jumping 4.6 per cent. Shares advanced 1.24 per cent to 102.25p.