CAPITAL Pub Company yesterday reported a 20 per cent increase in profits yesterday in the half year to the end of September, raising hopes it would restart its dividend. <br /><br />Capital Pub, which operates 27 pubs throughout London, also saw a nine per cent increase in sales to £11.1m from £10.1m in 2008. <br /><br />Its adjusted pre-tax profits jumped 20 per cent to £1.4m from £1.2m the previous year.<br /><br />Clive Watson, chief executive of Capital Pub, said: “We will continue to benefit from a strong London market and the unique position of our estate. We anticipate further progress in 2010.”<br /><br />The company said its improved performance was due to its focus on a drinks, while many competing companies have focused on driving revenue growth with food sales. It plans to continue to increase the size of its estate and deliver enhanced returns through better retailing and stringent cost reduction at branch and head office levels.<br /><br />Analysts at Altium Securities said that despite increases in taxes, beer duties and a weak consumer environment, Capital Pub shares represent good value and deserve to do better following the company’s interim results. <br /><br /> Capital has 27 pubs across London including The Inn at Kew Gardens and The Anglesea Arms in South Kensington.