Poor weather and a weak consumer backdrop meant Spirit Pub Company (SPRT), which demerged from Punch Taverns (PUB) in 2011, suffered a tough first half. But adjust for various exceptionals and half-year underlying pre-tax profit still rose 3 per cent year on year to £20m.
In the managed estate, like-for-like sales rose 1.4 per cent - rather weaker than the 5.6 per cent underlying sales growth in 2012's first half. Poor weather hit drink sales in particular, which fell 0.8 per cent on a like-for-like basis, although underlying food sales grew 2.3 per cent. Efficiency savings, however, allowed cash profit to grow 8 per cent to £53m. In the leased estate, rent reviews pushed rental income down 6 per cent and, overall, cash profit fell 17 per cent to £17m. The disposal programme has continued, however - 72 pubs have gone with a total of 100 disposals targeted. Spirit invested £30m in the half, too - that included £18m in the managed estate and £6m in the leased estate. The full-year spend should reach £55m-£60m, with a further 60 managed and 60 leased pubs set to be refurbished in the second half.
Broker Numis Securities expects full-year pre-tax profits of £56.2m, giving EPS of 6.5p (from £51.1m and 5.8p in 2012).
SPIRIT PUB COMPANY (SPRT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 63p | MARKET VALUE: | £416m | |
| TOUCH: | 62-63p | 12-MONTH HIGH: | 70p | LOW: 45p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | na | |
| NET ASSET VALUE: | 76p* | NET DEBT: | 196% | |
| Half-year to 2 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 394 | 19.4 | 2.60 | 0.65 |
| 2013 | 391 | 12.7 | 1.40 | 0.68 |
| % change | -1 | -35 | -46 | +5 |
Ex-div: 8 May Payment: 7 Jun *Includes intangible assets of £214m, or 32p a share | ||||
