SPIRIT Pub Company has reported an 11 per cent hike in profits to £60 million before exceptional items, two days after its board backed a revised takeover proposal from Greene King.
The leisure group, which runs scores of pubs in Scotland under brands such as John Barras, Chef & Brewer and Flaming Grill, said market beating performances by its managed and leased estates helped deliver a "strong year" in the 53 weeks to August 23.
Spirit reported a 4.4 per cent increase in like for like sales in its 794 managed pubs and a 2.8 per cent rise same outlet sales across its 433 leased units over the period.
Net income grew by 4.4 per cent in the leased estate on a like for like basis, with average net income per pub rising to £104,000 from £96,000 last year. It means like for like net income has increased at its leased division for the fourth successive quarter.
The period saw the company reduce the nominal value of net debt by nine per cent to £641 million and acquire 22 pubs for its managed division, which it said was positioned for further growth. Spirit said it has a war chest of £75 million available to fund the expansion of its estate.
Chief executive Mike Tye said: "It's been a strong year for Spirit, driven by effective execution of our clear and consistent strategy.
"Our managed division continues to outperform the market with its strong portfolio of brands, while our leased division is delivering market-leading performance and is in growth. We ended the year with a healthy balance sheet and strong earnings and dividend growth, underpinned by good cash generation."
On Tuesday the Spirit board recommended that shareholders back a takeover proposal from Greene King. The cash and share proposal valued the company at £723 million.
A previous proposal from Greene King in September, which valued the business at £661 million on the grounds it undervalued the company.
Shares in Spirit closed up 1.25p at 102.25p.
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