A Midland pub company has announced pre-tax profits of £51 million in its first year of trading.
Spirit Pub Company, based in Burton On Trent, broke away from Punch Taverns in August 2011 and has seen an 16 per cent increase in profit before tax in its first 12 months.
Spirit, which operates more than 800 pubs under brands including Chef & Brewer, Flaming Grill and Fayre & Square, delivered a like for like sales increase of 4.8 per cent in its managed pub business, but saw a drop of 4.9 per cent in like for like net income in its leased bars.
The business, which employs more than 17,000 staff, has proposed a final dividend of 1.30p per share.
Mike Tye, chief executive officer, said: Earnings per share are up 21 per cent and we have commenced the payment of dividends.
We have delivered further strong growth in managed sales through continued investment in our brands, estate, infrastructure and people while cost control has been robust in the face of inflationary pressures, enabling continued expansion of the managed margin.
Our leased pubs have performed in line with our expectations this year and we have now laid the foundations from which to drive performance improvement.
The consumer environment remains tough but our ongoing focus on delivering retail excellence sees us well placed to make further progress in the year ahead.