Spirit Pub Company has announced its Annual Results for the 52 weeks to 17 August 2013 (see below). At the same time, it is reported that Spirit will exchange £252 million of bonds for longer dated bonds, freeing up cash for plans to return to the acquisition trail.
Mike Tye, Chief Executive Officer, commented:
“I am pleased with the further progress we have made this year in what have been tough trading conditions. Our continued focus on the execution of our strategy to deliver hospitality excellence for our guests has delivered a strong financial performance with growth of 6% in profit before tax and earnings per share up 9%. As a result of this performance the Board is recommending an increase in the full year dividend of 5%.
“Our strong portfolio of Managed brands has achieved further growth in sales which, coupled with sustained productivity and efficiency gains, has driven significant expansion of Managed margin. The performance of our Leased pubs has stabilised and, through a combination of investment and innovation in our operating agreements, we are confident of returning the Leased estate to growth in the year ahead. We have entered the new financial year with good momentum in the business and remain confident in our strategy for future growth.”
Highlights
£m | 2013 | 2012 | Change |
EBITDA | 150 | 146 | +2% |
Profit before tax | 54 | 51 | +6% |
Earnings per share | 6.3p | 5.8p | +9% |
Dividend per share | 2.05p | 1.95p | +5% |
Nominal value of net debt | 706 | 710 | -1% |
Net debt to EBITDA | 4.7 times | 4.9 times | 0.2 times |
- Strong earnings growth
- Managed like for like sales up 1.6%, continuing to outperform the market
- Managed EBITDAR1 margin up 130 basis points
- Leased stabilising with like for like net income down 2.1%; further investment and innovation to drive future growth
- Proposed final dividend increased by 5% to 1.37p per share
- Improved quality of earnings; onerous lease provision utilisation reduced by £2m3
- Net cash inflow of £4m
- Launch today of debt re-profiling proposal
Statutory Results (including exceptional items)
- EBITDA of £145m (2012: £151m)
- Profit before tax of £72m (2012: loss of £589m)
- Net exceptional pre-tax income of £17m (2012: loss of £640m)
- Basic earnings per share of 5.6p (2012: loss of 85.4p)