Capital Pub Company, the Aim-listed managed pub operator, has this morning reported a 19% increase in half-year pre-tax profit to £970,000.
Turnover for the 26 weeks to 29 September 2007 increased 36% to £9.16m, with Ebitda up 21% to £2.21m.
Gross profit rose 35% to £6.58m.
The 27-strong group, which was founded by David Bruce and Clive Watson, said that performance was driven by improved sales through its existing estate and acquisitions.
The company said that current trading remained in line with expectations.
It said that record sales were achieved during the latter stages of the Rugby World Cup and that while the current economic outlook is “more volatile” it was still confident that it was well placed to meet any further challenges.
During the period the company, which listed on Aim in June with a market capitalisation of £32.3m, acquired four freehold pubs for a total of £10.1m.
It exchanged contracts on a further freehold pub in August for £2.2m, and since the year end, has exchanged contracts to acquire its first free-of-tie site, the Boaters Inn in Kingston-upon-Thames for £450,000.
It plans to spend £200,000 refurbishing the Boaters.
The company said it had been encouraged by trading since the introduction of the smoking ban and that it believed it had had a positive effect on its pubs with outside areas, which includes all but one of its sites.
Bruce, chief executive, said: “We have seen a genuine increase in sales through our pubs with outside areas since the ban’s introduction. Sales in our one landlocked site, the Teddington Arms have remained level.
“Our aim is to double the size of our current estate over the next three to five years. We have a cracking pipeline of sites lined up for next year.
“In our experience, trading in London has held up well despite the smoking ban and we are very pleased with this excellent set of results.”
During the six months the company refurbished three pubs and disposed of the upper parts of the George and the Wellesley Arms, for a combined sum of £1m.
