Shares in The Capital Pub Company (AIM: CPUB) were in demand this morning after the London focused pub owner and operator revealed a 20% increase in pre-tax profits and a 23% increase in basic earnings per share (EPS).
Capital Pub Company was founded in 2000 has an estate of 25 predominantly freehold pubs based entirely in London. Since the period end contracts have been exchanged to acquire two more pubs which, when completed, will bring the estate to 27 London pubs. The group’s business model aims to grow its pub portfolio through selective acquisitions.
During the first half, the Company chalked up a 9% increase in revenues to £11.1 million, while margins improved to 26.7%. Adjusted pre-tax profits rose 20% to £1.2 million while adjusted basic EPS was 5.15p, up 23% from the same period in 2008.
The Capital Pub Company said its strong performance was driven by better retailing at pub level and effective cost control. Going forward the company said it would benefit from the World Cup in 2010.
"These are outstanding results in this economic climate,” The Capital Pub Company Chief Executive, Clive Watson stated. “Our focus on well-invested high quality, freehold pubs in London is reaping its rewards. We continue to seek further similar pubs to add to our portfolio. We will continue to benefit from a strong London market and the unique positioning of our estate. We anticipate further progress in 2010."