Capital Pub Company says it sees signs of early recovery at its London outlets

CAPITAL Pub Company yesterday reported a 20 per cent increase in profits yesterday in the half year to the end of&nbsp; 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 &pound;11.1m from &pound;10.1m in 2008.&nbsp; <br /><br />Its adjusted pre-tax profits jumped 20 per cent to &pound;1.4m from &pound;1.2m the previous year.<br /><br />Clive Watson, chief executive of Capital Pub, said:&nbsp; &ldquo;We will continue to benefit from a strong London market and the unique position of our estate. We anticipate further progress in 2010.&rdquo;<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.&nbsp;&nbsp; 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&rsquo;s interim results. <br /><br /> Capital has 27 pubs across London including The Inn at Kew Gardens and The Anglesea Arms in South Kensington.