Warm summer weather helped boost the full-year performance at pub group Spirit Pub Company (SPRT) and underlying pre-tax profit rose 6 per cent year-on-year to £54m. Indeed, the managed estate grew like-for-like sales by a solid 1.6 per cent and, even at the leased estate, underlying turnover fell just 0.4 per cent in the year. What's more, details for a comprehensive debt swap were also released.
Specifically, management wants to refinance several of its so-called A1 and A3 bonds by offering new bonds with a higher coupon as a way of lengthening out the repayment schedule - the company currently faces a spike in repayment costs from the end of this year through to 2015. While this means a higher interest rate charge in the short term, it should give Spirit more immediate financial flexibility, particularly as the ongoing refurbishment programme is projected to cost a further £40m-£45m next year. This was on top of the £53m it spent during the period - although, with some 86 per cent of the existing estate having now been refurbished, these costs are set to fall going forward.
Broker Numis Securities expects pre-tax profit for 2014 of £57.9m, giving EPS of 6.8p (from £54.3m and 6.8p in 2013).
SPIRIT PUB COMPANY (SPRT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 75p | MARKET VALUE: | £495m | |
| TOUCH: | 75-76p | 12-MONTH HIGH: | 80p | LOW: 53p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 87p* | NET DEBT: | 154% | |
| Year to 17 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 724 | -163 | -21.7 | nil |
| 2011 | 734 | -207 | -22.7 | nil |
| 2012 | 760 | -589 | -85.4 | 1.95 |
| 2013 | 758 | 71.7 | 5.60 | 2.05 |
| % change | - | - | - | +5 |
Ex-div: 8 Jan Payment: 4 Feb *Includes intangible assets of £214m, or 32p a share | ||||
