Capital Pub Company sees profits rise in ‘strong' London market
The Capital Pub Company](http://www.capitalpubcompany.com/) has seen pre-tax profits rocket 45% to £2m for the 26 weeks to 25 September, thanks to a strong market in London.
The company, which owns an estate of 31 predominantly freehold, free-of-tie managed pubs in and around the capital, also reported a rise in revenues of 18% to £13.1m over the period.
Capital has a strategy of operating wet-led pubs, with liquor accounting for 75% of all sales. It said the London market remains "strong", with sales up 22% in the first 33 weeks of the year.
Clive Watson, chief executive of Capital Pub Company, said: "This is an outstanding performance, which is the result of having a high quality, well maintained estate and incentivised and motivated pub management matching the retail offer to the local community.
"Over the past two years we have worked hard on the estate and made strategic acquisitions that have maintained the freehold integrity of our pub portfolio. The business is conservatively financed and is now in a position to self-finance further acquisitions using internally generated cashflow. Our aim remains to expand the company to between 45 and 50 pubs by the end of 2013."
Capital said it acquired two pubs in the period - the Black Swan in Cobham, Surrey and the Morgan Arms in Bow - and refurbished two others, which it had recently acquired. It has also exchanged contracts to acquire the leasehold of the Goldsmiths Tavern in New Cross. Completion is due in February 2011, which will bring the total estate to 32.
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By Neil Gerrard
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