Eldridge Pope sees turnover rise 11.4%

Pub chain Eldridge Pope increased turnover by 11.4% in the six months to 31 March, although like-for-like sales rose by just 0.7%.

Turnover on continuing operations at the 194-strong group was up from £22.8m to £25.4m. Continuing pre-tax profit rose by 14.7% to £1.7m and operating profit by 11.5% to £2.8m.

In the past 12 months, Eldridge Pope has disposed of several "non-core" activities, including its wine businesses, to concentrate on pubs.

The company sold off eight city centre bars last year. Excluding the figures from these outlets, pre-tax profit was up by 25.3%.

During the six months to the end of March, the company bought six larger pubs with an average turnover of £13,850 a week - double the size of its average pub at the moment.

Six more pubs are to open this month and next, and terms have been agreed for six more purchases. Eight smaller pubs have been sold.

Sales of food have grown by 29.7% and accommodation by 90.7%.

Chief executive Peter Phillipson said: "Since the end of last year, we have added 117 beds to the estate to give a total of 337, well on the way to our target for the full year of 380."

Accommodation accounts for 2.7% of sales and is expected to rise to 3.8% by the end of the year.

The company has invested £3.5m in refurbishing 16 of its managed pubs and eight tenancies. Sales in the refurbished pubs are nearly one-third up on last year. The group has 133 managed pubs and 61 tenanted.

by David Shrimpton