FINANCIAL HIGHLIGHTS
Underlying Group revenue up 3% to £384.5 million
Underlying profit before tax up 2% to £29.6 million, despite disposals and anticipated pension costs
Underlying earnings per share up 2% to 4.2 pence per share
Interim dividend up 4% to 2.5 pence per share
Estate valuation reveals £54 million increase - 40% increase on build cost for new-builds
OPERATING HIGHLIGHTS
Destination and Premium: Like-for-like (lfl) sales up 1.5%, underlying operating profit up 10%, operating margin up 0.5%
Taverns managed and franchised: Lfl sales up 1.4%, profit per pub up 19%
Leased: Profit per pub up 4%
Brewing: Underlying revenue up 9%, ale volume up 4%, underlying operating profit up 10%, operating margin up 0.1%
STRATEGY HIGHLIGHTS
New-build development: Completed 8 new-builds in the half year
Franchise expansion:37 pubs converted to franchise; now 520 pubs
Disposal of smaller wet-led pubs: Disposal proceeds of £26 million, including sale of 65 pubs, improving average estate quality and returns
Brewing: Acquisition of Thwaites' brewing operations completed in April 2015
CURRENT TRADING - 5 WEEKS TO 9 MAY
Managed lfl sales up 2.0% including lfl food sales up 1.8% and lfl wet sales up 1.7%
Taverns lfl sales up 2.8%
Leased profits and own-brewed volumes in line with expectations
Commenting, Ralph Findlay, Chief Executive, said:
"Two years ago, we set out our plan to reposition our pub estate, focusing on high-quality pubs with opportunity for further growth. As we approach the end of the transition period, these results demonstrate our plan is working.
Profits have increased in each of our trading segments, excluding the impact of disposals, and we remain on track to complete 25 new-builds this year with excellent visibility on our site pipeline in 2015 and 2016. We are also seeing good opportunities to expand our premium estate, Pitcher & Piano and Revere, and invest further in pubs with accommodation.
We expect to complete the majority of our disposals programme this year and our momentum gives us confidence of achieving further progress in the future."
