Capital Pub Company sees pre-tax profits rise 48%
Capital Pub Company has seen pre-tax profits rise 48% to £4.1m for the year to 26 March, as it benefited from a stronger London economy.
The company reported a rise in revenue of 24% to £27.1m, up from £22m in the previous year, reflecting like-for-like sales growth of 7%.
Net debt at the firm reduced by £7.1m, leaving gearing at around 50%.
Capital bought four underperforming pubs in the period and refurbished them, and made three other "bolt-on" acquisitions.
The company, which has 34 unbranded, mostly freehold pubs in London, last week confirmed that it had rebuffed a £54m takeover approach from Fuller's.
Clive Watson, chief executive of Capital Pub Company, said: "This is another exceptional performance resulting from a focused and successful strategy. Capital is a high-quality business and is the only freehold-backed, very well invested pub company trading solely in the London area. The UK has a two-speed economy, with London a very buoyant marketplace from which Capital, with its larger estate, will benefit further in the future, particularly coming into an Olympic year.
The four pubs Capital bought and refurbished were:
â- The Actress (formerly the Uplands, lease acquired in January 2010 with an option to acquire the freehold), reopened in September 2010.
â- New Cross House (formerly Goldsmiths, lease acquired in February 2011 with an option to acquire the freehold), opened in May 2011.
â- The Mansion (West Dulwich, SE27, freehold acquired in March 2011). This will reopen September 2011 after extensive refurbishment works.
As well as turnaround acquisitions, the three bolt-on acquisitions were:
â- The Black Swan in Cobham, Surrey (August 2010, freehold). Sales are currently in excess of 15% ahead of last year.
â- The Morgan Arms in Bow, E3 (August 2010, freehold). Sales are currently in excess of 10% ahead of last year.
â- The Rye in Peckham Rye, SE15 (April 2011, freehold). The group intends to increase the trading area of this site and it hopes to have this completed by November 2011.
This month the group also exchanged contracts on the Priory in Clerkenwell, for £160,000. The Priory is a free-of-tie leasehold pub.
Fuller's £54m bid for the Capital Pub Company rejected >>
Capital Pub Company sells pub for £3.5m to reduce debt >>
Capital Pub Company buys 33rd pub for £1.55m >>
Capital Pub Company buys Peckham pub for £1.37m >>
By Neil Gerrard
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